Welsh Affairs — House of Commons, 2016-03-03
Topic: Mixed Topics
David Jonathan Edwards (Plaid Cymru, Centre-left to left): I was not going to mention the Transatlantic Trade and Investment Partnership, but the hon. Gentleman has led me to it. He knows that there are genuine concerns about how TTIP could impact on public services, and about the privatisation of public services. That is one of my concerns about the European Union—I am not an unconditional supporter because it has fostered those liberalising policies that successive Westminster Governments have introduced for our public services. The fear is that TTIP could be a Trojan horse for promoting those liberalising polices even further, especially in public services. That is why I believe that the Welsh Government should have a veto on whether the UK Government sign up to TTIP. I am also somewhat sceptical about the European Union because of its treatment of the Greek people in their hour of need recently Although I will vote to remain, I believe that the Prime Minister’s current tactics are dangerous and ill judged. Project Fear 2, and the use of all the assets of the state to ramp up risk and anxiety, may prove to be a short-term success in securing a vote to remain in June. However, a gaping wound will be created when people feel that they have been cheated and bullied. As we see in Scotland following Project Fear 1, the battle might be won from a Unionist perspective, but ultimately the war will be lost. If the UK Government’s position is to settle the European question, they need to fight a positive campaign, and as I have outlined, there are numerous things that they could say I welcome the Secretary of State’s decision to delay the introduction of the Wales Bill following pre-legislative scrutiny of the draft measure. I am pleased that the Secretary of State seems to have agreed to remove the necessity tests from the Bill. I hope that he has taken note of the excellent work in the Cardiff University/University College London report, which stresses that the model itself makes the necessity tests unworkable, rather than the choice of words, "necessary" or otherwise I also welcome the fact that the Secretary of State has agreed to shorten the list of reservations significantly. However, as always, the proof of the pudding will be in the detail of the Bill when it is published. He will know from the pre-legislative scrutiny that two reservations in particular make the Bill unworkable—the reservations of the criminal law and private law mechanisms. While I am encouraged by his promise to shorten the list, his reluctance to accept the evidence on the need for a distinct jurisdiction leads me to believe that he will not remove criminal law and private law from the list Indeed, the Welsh Affairs Committee, which has a Tory majority and is chaired by one of the most prominent anti-devolution MPs, accepted that creating a distinct legal jurisdiction would "provide a solution to issues associated with the reservation of civil and criminal law and necessity clauses." When redrafting the Bill, and the list of reservations in particular, the Secretary of State should ensure that each and every reservation is individually justified. I believe that the Secretary of State is serious about creating a long-lasting devolution settlement and I share his ambition, but unless he fights against his devo-sceptic fringes, he will just be yet another Secretary of State for Wales who creates yet another failed devolution settlement The context of the rewriting of the Bill has also been changed by the decision to cut more than a quarter of Welsh MPs. If the UK Government want to make those cuts to Wales’s representation, they must give the National Assembly the same powers as the Scottish Parliament—the number of Scottish MPs was cut following transfer of powers. That means full transfer of responsibility over energy and the Crown Estate, full income tax powers, transfer of policing and criminal justice, the legal system, transport, air passenger duty, and the rest of the provisions in the Scotland Act. The Government cannot expect those responsibilities to remain with the UK Government and Westminster with only 29 Welsh MPs. That would create a gaping democratic deficit I want to turn my attention to one economic project in Wales about which I have not had the opportunity to comment in any great detail to date—the Swansea bay tidal lagoon. Despite Wales being one of the most advantageous locations in Europe for renewable energy, just 10.1% of our electricity is generated from renewable sources. That compares with 32% in Scotland and 14.9% for the UK as a whole. Despite Wales being home to the second highest tidal range in the world, and 1,200 km of coastline, we are lagging behind on tidal technology. I understand concerns about the proposed financing model. Proponents of the contract for difference strike price model argue that the Swansea lagoon is nowhere near as big as the planned Cardiff and Colwyn bay lagoons, and that therefore the strike price on a per megawatt basis seems high. However, it must be considered as a long-term investment that will eventually deliver multiple lagoons across the UK Funding green energy through a CFD effectively passes the cost of upfront investment on to the consumer, who inevitably will see their bills go up. If I were in the shoes of the Secretary of State, I would make the case that the Treasury should invest in the project by bringing it on to the books directly, as happens for transport infrastructure such as HS2 in England. Raising money on the bond markets has never been cheaper, with 50-year bonds at a negative rate and 10-year bonds at less than 1.5%. Those rates are available only to the Government and not the private sector. Using an old-school financing method—direct public investment—as opposed to an ultimately far more costly financing scheme such as CFD, will be far cheaper in the end for the public, and the UK Government should be honest with the people of Wales about that The Treasury will be aware of my early-day motion tabled earlier this week, which calls for a specific Welsh public sector pooled pension fund. Instead of letting the pension assets of Welsh public sector workers be pillaged by a super pooled asset fund based in England, why is the Wales Office not ensuring that Welsh assets are pooled at a Welsh level to invest in Welsh infrastructure such as the lagoon? I recognise, however, that that model would require a CFD. Confidence is the magic trick in any economic policy, and moving forward quickly on the proposed lagoon will be a massive confidence boost for the south and west of our country, stimulating further economic investment and growth.