EU Withdrawal: Welsh Economy

3. What recent assessment he has made of the effect on the Welsh economy of the proposed withdrawal agreement with the EU.

The withdrawal agreement means we can leave the European Union with a deal that honours the referendum result, protects our economy and security and safeguards our Union. The best outcome for Wales and the Welsh economy is for the UK to leave the European Union in a smooth and orderly way.

What assessment has the Secretary of State made of the impact of non-tariff barriers? They would result in customs procedures and technical barriers to trade, meaning delays and costs that would be particularly damaging to the Welsh economy.

The hon. Gentleman makes an important point that further underlines why the deal we have negotiated with the European Union will work in the interests of Welsh manufacturers, Welsh agriculture and other sectors across the whole UK. The political declaration says “as frictionless as possible,” which is the objective we want to achieve.

The economy of Montgomeryshire is very dependent on the sheepmeat industry. Does the Secretary of State accept that retaining tariff-free access to the EU market is crucial to the future of all of rural Wales where sheepmeat is important? Will he do everything he can, alongside me and many others, to ensure that the withdrawal agreement is passed when it returns to the House?

My hon. Friend speaks with great authority and expertise, and he has been an extremely strong advocate for rural Wales in all the roles he has conducted, be it on the Development Board for Rural Wales, as an Assembly Member or, now, as a Member of Parliament. He is right about the withdrawal agreement and the support it has received both from the Welsh farming unions and from farmers directly because it will give them access to the European market and will allow them the freedoms that being an independent trading nation delivers, as well as stopping freedom of movement.

Some 12,000 jobs in the Welsh economy rely on steel. Given the crisis in this sector, how will the right hon. Gentleman work with the Business Secretary to get the steel sector deal over the line?

I am grateful to the hon. Gentleman for raising this important point. I spoke to a director of Tata earlier this week and, along with a Minister from the Department for Business, Energy and Industrial Strategy, I will be meeting him next week. This is an important sector of the economy, not only for south Wales but for north Wales and the rest of the UK. The sector is of strategic importance, and we are determined to work to secure a steel sector deal that offers a long-term future.

Given that the Wales Office has no exclusive responsibility for any of the 300-odd work streams associated with Brexit and that we have had 20 years of devolution under a Welsh Government who have legislative and taxation powers, can the Secretary of State give the House a necessarily brief definition of his role and function?

The hon. Gentleman raises an interesting question. Of course the cross-Government responsibilities in which the Wales Office is active and interested go far and wide. I happily point to the crossings and the Severn toll as one example. Wales is also the only part of the UK to have a city and growth deal in every area.

I thank the right hon. Gentleman for that answer but, just for starters: electrification of the railway west of Cardiff, abandoned; electrification of the north Wales line, a pipe dream; the Swansea Bay tidal lagoon, cancelled; the post-Brexit shared prosperity fund, handed to an England-only Department; and, as I said, the Wales Office has no exclusive Brexit responsibilities. Is not his function just to nod through Conservative policies, whatever the cost to Wales?

The hon. Gentleman should be practical and realistic in what he calls for. He will be fully aware that electrification of the railway to Swansea offers no tangible benefits to passengers. He will also be aware that the Public Accounts Committee called for re-analysis of each section of the electrification, and it was on that basis that we came to the same outcome by delivering the most modern trains, which happen to be hybrid. Is he seeking to support a tidal lagoon that would be three times the cost of an alternative green provider?