9. Short Debate: Rural Wales — An economy to be promoted

– in the Senedd at 6:37 pm on 7 November 2018.

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Photo of Ann Jones Ann Jones Labour 6:37, 7 November 2018

We now move to proceed to the short debate. If Members are leaving the Chamber, can you do so quickly, quietly? We now move to the short debate and I call on Angela Burns to speak on the topic that she has chosen—Angela.

Photo of Angela Burns Angela Burns Conservative

Thank you, Deputy Presiding Officer. I've agreed to give a minute of my time to Mohammad Asghar, Janet Finch-Saunders and Russell George.

The countryside of Wales is not only the sweeping canvass that underpins our nation and defines our borders and identity, but it forms the backdrop to a way of life that is often not understood or as valued as it should be. Yet rural Wales is home to around 33 per cent of the Welsh population. A third of us live in towns, villages and communities where our landscape is quite different to the rest of Wales, and where we often feel that our valuable contribution to supporting the economy of Wales and its rich cultural and social heritage is not given the weight it deserves.

Like many nations, Wales experiences a split between its urban centres and the rural hinterlands. All too often, Government policy is centred on making sure that the large urban centres are catered for to the cost of the more remote and less populated rural counties of Wales. Policies surrounding healthcare, education and economic growth cannot be implemented through a one-size-fits-all approach, and the Government needs to remember that, for many, a rural way of life is one of survival and hard graft and not the picture-postcard, doe-eyed good life that many others consider it to be.

All of us weigh up many factors when deciding where to live and those who want to live in rural areas are often prepared to compromise, to accept that jobs might be harder to get, that services might be a bit further away, that schools might be smaller, that we won't earn as much or indeed have so many opportunities to spend what we earn and that our way of life does cost a bit more. But Welsh Government is now asking us to compromise too much. For example, education: access to a local village school and the community that comes with it is a key reason for many choosing to live where they do, but, under Welsh Labour, we have seen schools close and communities disintegrate; villages have lost their focal point. These actions were supported by Welsh Government, and whilst I was happy to see the revised school organisation code, which finally introduces a presumption against the closure of rural schools, it is too late for too many teachers, too many pupils and too many parents. After all, three out of five schools were closed between 2006 and 2016.

Photo of Angela Burns Angela Burns Conservative 6:40, 7 November 2018

Another compromise too far is healthcare. It is no coincidence that the two health boards covering the majority of rural Wales are in major difficulties. These health boards have presided over major controversial reorganisations, which aim to centralise services and save money. However, what is often ignored is the views of the local population. It may be more economically efficient to centre services in one or two large hospitals, but does this deliver health and well-being outcomes for the rural population? I, personally, am always really impressed by how truly rural nations like Australia are able to balance the needs of providing services across thousands of square miles. Yet, despite a £9 billion budget, Welsh Government can't do it. It's not just the outcomes that concern me, but the ability to attract the appropriate workforce to support these systems of care, which are so important in rural communities. For people to choose to work in healthcare in rural communities, they want good local schools for their kids and a decent job for other members of their families.

So, whilst health and education are absolutely vital threads in the canvas of rural living, it is the economy of rural Wales that provides the golden thread. We must create and preserve a prosperous rural economy that can support our communities. The prosperity we seek stems from agriculture, tourism, sports, the public sector, and the extraordinary diversity of businesses, large and small. Whether it's the local newsagent in Tenby, the global supplier of agricultural matting in Llanglydwen, the fast-growing chocolate company in Llanboidy, or the niche boutique in Narberth, they, and many other extraordinary entrepreneurs throughout the whole of Wales, combine to create real opportunities for a vibrant rural economy. And, without doubt, the warp that runs through our rural canvas is farming. The Welsh Conservatives are united in understanding the importance of the agricultural industry to the Welsh economy, but I am not sure that the Welsh Government understand that. Because, without farming at the heart of the rural economy, we will lose not just farms, not just the next generation, not just the businesses that depend on agriculture, but we will lose the environment, the countryside that attracts tourists, and, finally, we will lose the people.

Farmers are rightly worried about what support will be available once the single farm payment stops, and I personally am deeply concerned about the 'Brexit and our land' consultation, because this consultation suggests that farmers will become simply custodians of the countryside, being financially rewarded for addressing problems such as poor air and water quality and flood risk, but this does not recognise the key role they already play, nor indeed their outstanding custodianship of the environment, or that the core focus of a farming business is to produce food. If we don't value the quality and abundance of our countryside and simply push farmers into a land management role, then what of all the other businesses that rely on farmers—those that produce feed, mend machinery, sell supplies, broker the product? Therefore, Minister, I urge the Government to listen to the 12,000 responses on the 'Brexit and our land' consultation. We could be changing the nature of farming forever, and, alongside that, changing the countryside for generations to come. We must remember the impact that a strong agricultural sector has on our rural economy. The Welsh Government ignores at its peril the fact that agriculture underpins a multi-billion pound food and drink industry that employs over 222,000 people, making it the largest employer in Wales, and which is worth over £6.9 billion to the economy. So, why—through arrogance, carelessness, or indifference—destroy it? And, if agriculture is the warp to our canvas, then business is the weft, and rural business is struggling. 

Last week's budget saw the Westminster Government backing high streets by cutting business rates by a third for two years, but we are yet to hear if support is being considered for Welsh high streets. In rural communities, footfall is often seasonal, vacancy rates are high, charity shops abound, more and more edge-of-town multiples are appearing, and, once a high street starts to die, the reverse is hard to engineer. Wales now has the highest business rates in the UK, and the Welsh Conservatives believe this is placing a crippling and unfair burden on businesses across Wales and threatening the economic well-being of many, many businesses. And it is these high streets that complement one of rural Wales’s greatest assets: our outstanding countryside. Destination tourism is a concept much talked of by Welsh Government: get people to come and see our fabulous national parks, the sheer majesty of the seas pounding our land, the quiet beauty of the mountains, hills and valleys of the hinterland, persuade people to cycle, run, walk, row and wander—singles, couples, families—and, when exhausted, or rained on, then head to the castles and churches, the shops and attractions, the museums and restaurants.

Photo of Angela Burns Angela Burns Conservative 6:45, 7 November 2018

Thankfully, the tourism tax did not take hold; dropped from consideration by Welsh Labour when they understood the strength of feeling against it from rural communities. Because we have some wonderful accommodation on offer in rural Wales, from country hotels overlooking lakes and mountains, to bed and breakfasts next to the coastal path, all the way through to holiday parks and on-farm cottages. It is for these reasons that so many people visit, and in the first six months of this year there were 430,000 day trips to Wales, which contributed over £167 million to the Welsh economy.

Without doubt, Minister, another thread to our rural canvas, and in a great many country people’s DNA, are field sports, which attract people to shoot, fish, hawk and ferret from within and without Wales. I think that we all recognise there is a need to develop a tourism industry that operates year round. Shooting, for example, contributes significantly to 365-day-a-year tourism by maintaining employment in otherwise challenging environments, and it provides hotels, bed-and-breakfast establishments and pubs with vital income in the winter months.

And, Minister, it’s not just business that benefits from the field sports industry; it’s also the environment. Whilst farming has played a huge role in shaping these landscapes, it is shooting that has ensured that these farms continue to be infused with hedgerows, small woodlands, lakes and ponds. However, recent announcements by the Welsh Government have seen a decision taken to ban game shooting on public land. This decision lacks scientific basis, substantiated by a report undertaken by Natural Resources Wales, which said there was no need to change existing laws. I’m deeply concerned that the urban lobbyist, who doesn’t need to make a country life work, will push this Government into banning shooting on all Government land, such as forestry, then the national parks. Then, are the anglers to be driven from the rivers and waterways of Wales? Where does it stop? It is estimated that shooting in Wales directly contributes £75 million gross value added to the Welsh economy every year. Shooters pay for accommodation and services wherever they travel. Tables in pubs and restaurants, and rooms in hotels and bed and breakfasts are booked by shooters from all over the world throughout the game shooting season, which coincides with the otherwise quieter winter tourism months. Sixty-four per cent of all shoot providers say that their staff live within 10 miles of their workplace, ensuring that wages are being spent supporting local businesses and services.

Shooting supports the equivalent of 2,400 full-time jobs in Wales and is involved in the management of 380,000 hectares of rural land. Shooters undertake over 120,000 days of conservation work annually—conservation work, Minister, annually—across the Welsh countryside, and almost £8 million is spent each year on conservation and habitat maintenance by shooting estates here in Wales. It is this management that benefits rare songbirds, geese, and waders, providing shelter, food and protection from predators, and it should come as no surprise that when the management for shooting stops, vulnerable wildlife, including red-listed species such as grouse and lapwings, suffer.

As I mentioned earlier, I fear for angling. There is already a tussle between canoeists and anglers for our waterways. The canoeists are a vocal lobby group that swoop into Wales for a day or two, yet angling is also an important part of our rural economy. Rod licences raise well in excess of £1 million a year, and the fees are used for the management of inland water. According to your own Welsh Government figures, the total value of fishing to the Welsh economy is at £38 million.

The canvas of our rural economy needs many other threads, such as decent infrastructure and comprehensive broadband, and, of course, other threads have already been pulled, such as the closure of many rural banks and post offices. But, Minister, I’m concerned over what many see to be a fundamental lack of understanding of the interwoven threads of the rural economy and the rural way of life. These threads, drawn together, are the day-to-day canvas for one third of Welsh people, and so I urge you to give your backing to recognising the value that our rural economy plays in our nation's prosperity. In making the wrong calls, you risk permanently harming the countryside and our economy that is so vital to the future prosperity of Wales. We do not want to have a countryside that is empty and derelict.

Photo of Mohammad Asghar Mohammad Asghar Conservative 6:50, 7 November 2018

I'm very grateful to Angela for bringing this debate forward this afternoon on the rural economy. For the rural economy to thrive, we need a fit-for-purpose road network to support long-term social and economic development. Hindering the development of the rural economy in south-east Wales is, of course, the level of ongoing congestion on the M4 motorway. The road has been blighted by a huge level of traffic congestion for many years. We desperately need a relief road, but a final decision should be taken following the conclusion of the public inquiry and with value for money in mind for Welsh taxpayers.

If we are to take full advantage of the opportunities presented by the abolition of tolls on the Severn crossing, then we have to improve our road, air and rail links between rural areas, mid Wales, and north Wales, to improve our economy, and we have a great potential. I'm pretty sure, if you improved the transportation, our economy will improve. Thank you.

Photo of Janet Finch-Saunders Janet Finch-Saunders Conservative 6:51, 7 November 2018

Community transport provisions, following on from Oscar, are an important aspect of connecting rural Wales, providing a vital role in the lives of thousands of people across Wales, providing a vital lifeline to many vulnerable people who, possibly, couldn't leave their home, face social isolation, or even get involved in their communities without it.

In Wales, 2 million journeys are made every year by passengers, assisting 142,000 individuals. However, according to the Campaign for Better Transport, approximately 12 per cent has been cut from the budget for supporting bus services within Wales, with 25 of these services now withdrawn. And guess what and where these are? In our rural communities. The Welsh Government must work more with local councils to protect these services from budget cuts and to work with transport providers to increase the availability of such transport. This will go a long way in helping vulnerable people to access the services they require and will help to provide a well-connected rural Wales.

Photo of Russell George Russell George Conservative 6:52, 7 November 2018

Can I thank Angela Burns for allowing me to speak on this just briefly, considering I represent a rural constituency myself? I think tourism is key to the rural economy. We have outstanding, beautiful landscapes that we need to utilise.

There are a range of views on shooting, and mine are on record, so I won't go into that now, but there will be an impact on my constituency, for rural Wales, as a result of the proposals if they go ahead. But, I'll say to the Minister, you've got to recognise that if you bring forward proposals and you force a change, you have to support the businesses that are affected and recognise the consequences of your policy. So, that is extremely disappointing and unhelpful to the rural economy. There is a great deal of permanent employment and partial employment, or seasonal employment, that will also be affected as a result. So, I ask you again, Minister, and urge you to look carefully at this again and think of the consequences on the rural community.

And a further concern of course, is the 'Brexit and our land' consultation—[Interruption.]

Are you looking at me?

Photo of Russell George Russell George Conservative

So, in that case, I will just say that there's a huge knock-on effect for the rural economy in this regard, for local shops and businesses that depend on that farming industry. If farming becomes unsustainable, there will be a huge knock-on effect and you will dismantle the local economy as it is now. 

Photo of Ann Jones Ann Jones Labour

Can I now call the Minister for Environment to reply to the debate? Hannah Blythyn.

Photo of Hannah Blythyn Hannah Blythyn Labour

Thank you, Deputy Presiding Officer. Can I start by thanking all Members for their contributions today and, in particular, Angela Burns, for bringing forward this short debate? And whilst we may not agree on all elements of the content of Angela's speech, I'm sure everybody will agree with me in saying what a passionate and eloquent speech it was, promoting the wonders of our rural communities in Wales.

I think the key point you picked up on and something that struck me is that the economy of rural Wales is the golden thread. We know that the economy of rural Wales is vital to so many communities across our country. It's an economy that, as a Welsh Government, we are supporting and are keen to promote. During the summer, my colleague the Cabinet Secretary for Economy and Transport visited businesses throughout rural Wales to discuss the unique challenges and opportunities facing those areas. Businesses included Siemens Healthineers, which employs 413 people in Llanberis, PCI Pharma, which employs 360 people in Hay-on-Wye, and I know that he recently visited Wynnstay in Llansantffraid, which employs 400 people. 

The Welsh Government has supported all these businesses in one way or another, but we know these aren't the only examples of successful businesses operating in rural Wales that we have directly supported. We have supported DMM International, which employs 195 people in the mainly rural Arfon area, and in rural Carmathenshire we have supported Coaltown Coffee, which is now a thriving business. If I'm correct, I've actually spotted it in the Members' tea room here as well. All of these are important examples of successful rural businesses that have received direct Welsh Government support. We absolutely recognise, however, that the success of these businesses does not rely on direct support alone. We need to do more to grow our economy in an inclusive way, tackling the structural inequalities that exist within our regions, spreading opportunity to every part of Wales.

Skills and infrastructure have a key role to play in delivering on that opportunity, and I know a number of Members pushed on the importance of connectivity in terms of transport. We are working with regional partners throughout the regional skills partnerships to ensure we have the skills provision in rural areas to meet the need of that region and that area.

We also know how in today's world the availability of digital infrastructure is hugely important to businesses and communities in rural areas and these areas often face specific challenges with that. Since its inception in 2013, Superfast Cymru has invested over £82 million to provide access to fast fibre broadband to over 280,000 properties across the predominantly rural areas of Carmarthenshie, Powys, Pembrokeshire, Ceredig—I'm not doing very well today—Ceredigion—thank you—Gwynedd and Angelsey.

Our national transport finance plan recognises the importance of our rural economy. For instance, the £95 million investment in the Newtown bypass, which is a programme to be completed in early 2019. As a Government, we are committed to empowering our regions through our economic action plan, to build on their individual strengths to ensure maximum economic growth for Wales and for our people. Our economic action plan recognises that each region has its own opportunities and challenges and that a one-size-fits-all approach to economic development will not go far enough to drive the regional economic growth that Wales needs.

Photo of Angela Burns Angela Burns Conservative 6:57, 7 November 2018

Will you take an intervention? May I just ask you, and I note you have the Minister for the Welsh language sitting next door to you, does your economic plan, which recognises all the regions, also weight and factor that Welsh lives very strongly in many rural areas? Unless you support those rural areas—the tourism, the health, the education, all the rest of it—then, actually, the Welsh language will also suffer as a consequence of the decimation of rural Wales. 

Photo of Hannah Blythyn Hannah Blythyn Labour 6:58, 7 November 2018

Yes, absolutely. Despite my poor pronunciation today, I do try very hard to learn Welsh and I understand absolutely how important it is particularly to our rural communities across Wales. Part of it is the well-being of future generations Act that needs to be considered as part of that. That's why I say that a one-size-fits-all approach will not work, because we know each area of Wales has their own unique not just challenges, but characteristics as well. So, it's absolutely essential to consider that the Welsh language is key to that.

In addition, the strong benefit of our new regional model is that it provides a holistic approach to relationships with businesses. Hopefully, it will enable better collaboration with public sector delivery partners, including local authorities and providers of both higher and further education. It will enable better integrated infrastructure decisions, including transport and digital requirements as well as the provision of good-quality commercial property. The new chief regional officers are now in post and they're providing a regional voice in Government. They are listening to local partners and involving them in decision making. They're feeding back local intelligence that's helping to tailor Welsh Government's work.

It's important, though, to remember that the rural economy has benefited hugely from EU funds and our broader access to the single market. The Welsh Government has made clear that Wales should not lose out on any of that funding or through lack of access to the single market. A thriving rural economy is fundamental to help sustain viable communities throughout rural Wales to provide quality employment opportunities for our people, particularly including young people and to help to secure the Welsh language in some of the heartlands in rural Wales. We are therefore working to achieve the best outcome for Wales, but, as a responsible Government, we recognise the need to plan in the case of a 'no deal' scenario. Last month, the finance Secretary delivered an oral statement setting out the next steps in the development of a post-Brexit regional policy. The oral statement confirmed that any replacement funding will be invested to support regional development and reduce inequality. It also confirmed that we will continue to adopt a multi-annual approach towards investing any replacement funding to maintain a long-term focus on the structural challenges in our economy and labour market. 

The Chancellor's announcement last Monday on the north Wales growth deal fell some way short of what the North Wales Economic Ambition Board had been hoping for. However, despite this, we remain fully committed to delivering this potentially transformative growth deal and will continue to work to get the package and direction right for north Wales, agreeing heads of terms for the deal as soon as possible. Similarly, we are fully committed to developing and securing a growth deal for mid Wales, and we'll continue to work closely with partners in the region and the UK Government.

May I finish by thanking, once again, all Members for their contributions and to conclude by reaffirming that this Government is committed to supporting our rural communities and economy for the prosperity of the whole of Wales? Diolch yn fawr. 

Photo of Ann Jones Ann Jones Labour 7:01, 7 November 2018

Thank you. That brings today's proceedings to a close. 

(Translated)

The meeting ended at 19:01.