5. Debate on the Finance Committee Report — 'Post-EU funding arrangements'

Part of the debate – in the Senedd at 3:55 pm on 30 November 2022.

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Photo of Alun Davies Alun Davies Labour 3:55, 30 November 2022

I'd like to start by very much agreeing with the Welsh Liberal Democrats on rejoining the single market and the customs union. I think the damage done by Brexit is going to be a disaster not just for our generation but for future generations, and I hope that all political parties will recognise that. I don't expect the Minister to reply to me on this point, but I hope that she and her enigmatic smile this afternoon—perhaps I shouldn't read too much into it, but I hope it means that she doesn't at least violently disagree with me. 

In terms of where we are on EU funding, I'm very grateful to the Finance Committee for this report. I think it's a very important report, and it's one that I very much welcome. I think we need to have a realistic debate on where we are on EU funding. I'm afraid that there has been a lot of—how shall I put it; I'm trying to find a different word in my mind from the word 'nonsense' that's written down in front of me—there is a lot of talk about EU funding that I think has been largely misplaced. I well remember a former First Minister, actually, describing it as a once-in-a-lifetime opportunity for fundamental change. But, it was never that, and you can't undo a century of economic decline with a five-year funding stream. You need a funding stream over a number of years. And of course the old Objective 1 status was designed in order to deliver that. It was never going to be a one-off funding experiment, if you like, it was always going to be a part of a wider opportunity to underpin economic development over a number of years. And European Union funding, of course, was always based on the principle of additionality. It was never assumed that it would replace spending from national Governments. And it was always that partnership that was crucial to it. So, we were always wrong to assume that EU funding was a panacea for all our economic difficulties. And EU funding was a part of that jigsaw that enabled us to do far more than we could do ourselves. The additionality meant that we had streams for investment in people, infrastructure and places. And I've seen that in my own constituency.

The UK Government has broken its word, and it is in danger of breaking the union. The External Affairs and Additional Legislation Committee in the last Senedd reported on this subject, and the Deputy Presiding Officer, of course, chaired the committee at that time, and he will remember, as I remember, the then Secretary of State giving an absolute undertaking that every penny of EU funding would be replaced under the new system. And that's something that clearly, whatever the complications we now see, hasn't been delivered. And I think we can be very clear about that. The United Kingdom Internal Market Act 2020 is a destructive piece of legislation that doesn't simply attack this place, but it undermines the UK constitution and the agreed will of the people of Wales. I have to say to Peter Fox that this is also a democratically elected institution, and this place has a mandate, and it has a mandate and powers given not simply by the whim of a Secretary of State but delivered by the people through a referendum, and they have the right for a Government to respect that. Yes?