7. Debate on the Finance Committee report on its Inquiry into Preparations for Replacing EU Funding for Wales

Part of the debate – in the Senedd at 4:26 pm on 14 November 2018.

Alert me about debates like this

Photo of Mark Drakeford Mark Drakeford Labour 4:26, 14 November 2018

Thanks very much to all those who've taken part in what has been a consensual debate, as was the report itself. I was very pleased on behalf of the Government to be able to support all the report's recommendations. We particularly and obviously support the overarching recommendation of the report to continue to negotiate with the UK Government to ensure that Wales is not a penny worse off as a result of Brexit. As others have said, this was a promise made to people in Wales during the referendum campaign, and the UK Government must live up to that promise.

Now, Dirprwy Lywydd, I've always recognised in the Chamber the value of the Chancellor of the Exchequer's commitment to current programmes. The guarantee that he has provided has been undoubtedly useful in sustaining the interest and commitment to that programme, but as the weeks and months go by, it is hugely regrettable, as David Rees said, that we are still no clearer on the UK Government's intentions beyond 2021. The delay in the spending review into next year means that it is now going to be even more difficult to plan effectively for our future outside the European Union and to support prosperity across Wales.

The value of the programmes to Wales has been regularly referred to during the debate. Caroline Jones referred to the money that we get for European structural and investment funds, worth some £370 million annually to Wales. John Griffiths made a really important contribution, I think, in reminding us that, as well as the money we get through its structural funds and the money we get to support agriculture in Wales, there are a series of other really important European Union programmes—Erasmus+, Horizon 2020, the interterritorial co-operation programme, Creative Europe, and, as John said this afternoon, the LIFE programme. All of those strands in European funding have done enormous good here in Wales and allowed Wales to play a part on the European stage. When we say that Wales must not be a penny worse off, we mean continued access to those programmes and to what they bring to Wales, as the report does in, for example, highlighting the importance of the European Investment Bank to us here.

It's essential, then, that the UK Government not only confirms replacement funding for the Welsh Government to protect the livelihoods of our businesses, people and communities, but also that we retain the responsibility that has been here in this Assembly since it was founded in 1999 to decide how that funding is best deployed along with our partners here in Wales.

We set out our policy position in 'Regional Investment in Wales after Brexit'. It was developed through close and open dialogue with stakeholders and it contains those 'made in Wales' solutions to which Members this afternoon have referred. I'm very grateful to the committee for its support of this basic policy position.

We've heard a lot this afternoon about the UK shared prosperity fund. Maybe that wasn't one of the more consensual moments in our debate. Let me say from my perspective, there's very little 'shared' about it, in the sense that we know almost nothing about the plans that the UK Government has for the fund. We raise it absolutely regularly. I raised it at the last meeting of finance Ministers with the Treasury, strongly supported by the Scottish Government. The First Minister raised it again with the Deputy Prime Minister and the Scottish First Minister at the British-Irish Council at the weekend. Frankly, Dirprwy Lywydd, we have more traction with UK Ministers who do not represent Wales in the UK Government than we do through the Secretary of State himself, constantly, as Mick Antoniw said, talking Wales down in a vain attempt to aggrandise his own role in the UK Government.

We reject outright any notion of a UK shared prosperity fund that would take money or decision making away from Wales. The repeated promises that Brexit would result in an increase in powers for this institution have to be honoured in the very practical implementation of any funding arrangements the other side of the European Union. That was endorsed this week, Dirprwy Lywydd, in a report by the all-party parliamentary committee on this matter, which said, yet again, the money that goes to Wales and to Scotland as a result of our membership of the European Union must flow to Wales and Scotland in the future, and the decision making about how best to use those investments must be left as close to where those decisions matter.