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That this House has considered the future of the Welsh rural economy.
It is a pleasure to serve under your chairmanship, Mrs Cummins. I am honoured to lead today’s debate on the future of the Welsh rural economy, itself an integral and culturally vital component of the very identity of Wales. This year, 2021, has been one of extraordinary challenges for the Welsh rural economy. Agriculture is awakening to the cold long dawning of a new restrictive trading agreement with our largest export market, the European Union, while tourism and hospitality are enduring the sudden deep freeze and slow defrosting of covid-19 restrictions.
Our communities are facing a series of interlinked crises and interwoven threads of inequalities. There is an environmental and climate change crisis, there is a public health crisis and there is an economic crisis. More than a decade of Tory austerity casts a shadow over our communities’ capacity to respond and to develop resilience. Communities such as mine in Dwyfor Meirionnydd suffer from youth depopulation, while the young people who wish to stay can no longer afford to get on the housing ladder. Wages are among the lowest in the UK. Meanwhile, former family homes become luxury second properties or investment holiday rentals in a febrile market.
Today’s debate is therefore a timely opportunity to consider how the political tectonic shifts of the last five years are changing the Welsh economic landscape, even as their legacy becomes intertwined with the unprecedented and thus unpredictable social and economic results of a global pandemic in a world dependent on global trade. I hope that all of us here will be able to take just a step back and consider what success looks like and to have the humility to recognise that, mere politicians as we are, we will have failed in our duty to our constituencies in the here and now, and to the future children of Wales, if we are satisfied with short-term glories that leave no lasting legacy while failing to remedy the evident injustices of the present.
It is a pleasure to serve under your chairmanship, Mrs Cummins. I thank the right hon. Member for Dwyfor Meirionnydd (Liz Saville Roberts) for securing this important debate on the future of the Welsh rural economy.
My constituency of Ynys Môn has one of the lowest GVA rates in the UK. It is heavily dependent on tourism, and haemorrhages young people when they leave school because of the limited local employment opportunities. Frankly, if any part of Wales needs an economic revival, it is Anglesey. In the past 21 years, since the Senedd was established, and with a Labour Welsh Government, the island has systematically lost major employers, including Anglesey Aluminium, the Wylfa nuclear power station, Octel and Rehau, with huge job losses. We have seen next to nothing from the Welsh Government to address these issues. As such, I am campaigning to bring a freeport to Anglesey.
The benefits incumbent with freeport status would encourage inward investment and employment on the island. I already have businesses, such as Tratos, keen to set up on Anglesey, should we get freeport status. This would mean hundreds of jobs waiting to be created, yet the Welsh Labour Government are digging in their heels and refusing to launch the Welsh freeport bid prospectus. The people of north Wales can only look on as Liverpool establishes itself as a freeport and businesses that could have come to us go instead to England.
Even our farming community suffers when the Senedd votes in legislation creating a whole-Wales nitrate vulnerable zone at an estimated £360 million cost to Welsh farmers, putting local farms at risk of financial ruin.
Anglesey has been sidelined by a Welsh Government who have no concept of the issues facing the island and no local presence. It therefore falls to the UK Government to pick up the pieces of the Welsh rural economy—a job that they are taking on with gusto. Let me give a few examples of the support being given to Ynys Môn. The Secretary of State for Wales was very clear when he gave evidence to the Welsh Affairs Committee last week: if the Welsh Government will not commit to setting up a freeport in Wales, then the UK Government will. There is massive support locally for a freeport on Anglesey and we are putting together an exciting and innovative bid, led by Stena, which has the potential to transform the future of our island. I urge the UK Government to take this forward as quickly as possible.
Diolch, Mrs Cummins; it is a pleasure to serve under your chairmanship. I would first like to thank my right hon. Friend the Member for Dwyfor Meirionnydd (Liz Saville Roberts) for securing the debate, and commend her for such a passionate speech—I agree with the sentiments wholeheartedly. A particular challenge that rural Wales faces, and on which I would like to focus my remarks this afternoon, is a lack of connectivity, in digital and in transport, between our rural economy and the rest of the UK, and the wider global market.
Digital connectivity remains a tremendous challenge for the rural economy of Wales. Ofcom’s “Connected Nations” report in 2020 noted that nearly 9,000 premises in Wales cannot access a decent fixed broadband service or get good 4G coverage indoors, with almost all those premises in rural areas. More recently, NFU Cymru and others found that less than 50% of those who lived in rural areas said they had standard broadband, only 36% had superfast broadband, and 66% said that they or their household had been impacted by poor broadband.
That has dire consequences for constituencies such as mine, where only 20% of the population live in an urban area. In the rural areas, it is estimated that 26.5% do not receive a decent broadband connection—by that, I mean a download speed of 10 megabits per second—compared with the Wales average of 11.9% and the UK average of 9.3%.
That is largely to do with the UK Government’s difficulties in delivering a digital infrastructure strategy that works for rural communities in Wales. The Government’s Future Telecoms Infrastructure Review proposed an “outside in” approach, to ensure that gigabit-capable connectivity across all areas of the UK is achieved at the same time, so that no area is systematically left behind. However, the UK Government’s reduced target of gigabit broadband coverage of 85% by 2025 is to the detriment of rural communities, which yet again will have to wait for improved connectivity.
Diolch yn fawr iawn, Mrs Cummins. It is an absolute pleasure to speak in this debate and to serve under your chairmanship, I believe for the first time.
I congratulate the right hon. Member for Dwyfor Meirionnydd (Liz Saville Roberts) on bringing forward this important debate and setting out so well in her opening remarks the many challenges facing rural communities in Wales. Needless to say, I agreed with everything she said. It was a pleasure to listen to her opening remarks.
Levelling up has acted as a convenient smokescreen for the UK Government on these matters, but we have yet to see a credible strategy underpinning the slogan. In my first Parliament here, in 2010, there used to be “geographical rebalancing”. There was not much geographical rebalancing in the past 10 years, but now we have levelling up. What discussions is the Minister having with the Treasury about how issues facing rural communities will be factored into the metrics used to measure the success of levelling up? We know that work is going on, and we hope that there will be more than just words behind the strategy on this occasion.
One of the key measures must surely be improved connectivity through better transport and broadband infrastructure. On broadband, I echo the comments of the hon. Member for Ceredigion (Ben Lake). The pandemic has proved beyond any doubt that access to broadband is critical, both for economic prosperity and individual wellbeing.
The pandemic has also highlighted the importance of maintaining our physical fitness and provided an opportunity to enable more active travel. In Carmarthenshire, the county council is about to submit a shovel-ready levelling-up fund application for an exciting Tywi valley cycle pathway, linking the towns of Carmarthen and Llandeilo. It has my full support, and I ask the Minister to look into the submission and give his support to what we are trying to achieve in Carmarthenshire.
It is a pleasure to serve under your chairmanship, Mrs Cummins. I thank the right hon. Member for Dwyfor Meirionnydd (Liz Saville Roberts) for securing the debate. I speak today as the Liberal Democrat spokesperson for Wales. I am sure Members will join me in welcoming my newest colleague, my hon. Friend the Member for Chesham and Amersham (Sarah Green), to the House, a proud Welsh woman, as she made clear with her affirmation in Welsh yesterday.
Moving on from yesterday’s news to today’s debate and the future of the Welsh rural economy, the Welsh high street, like much of the UK, has suffered over the past 15 months. It is obviously right that shops had to close during the pandemic, but now they must be supported in the recovery. When talking about the rural economy, people often assume that it is just agriculture. Although I will turn to that, it also includes those businesses that serve rural communities, for example, local shops. It is vital that those businesses are supported during the recovery, something that my colleague the Liberal Democrat Member of the Senedd for Mid and West Wales has been championing since her recent election.
I ask the Minister to detail what consideration has been given to rural retail generally. In the face of strong competition from online retailers, what measures will be considered to level the playing field in the recovery from the pandemic? As part of that recovery, and as businesses and communities respond to having left the EU, it is vital that communities throughout Wales, particularly those in rural areas, receive investment.
It is only two weeks since I last spoke in a debate in Westminster Hall about the importance of the community renewal and levelling-up funds. Then I asked whether the Minister responding would commit to a meaningful relationship with the Welsh Government on the formation and administration of those funds and, going forward, of the shared prosperity fund. I also asked for assurances that Wales would not lose out on the funding it used to receive. Today, I add to those questions by asking whether the first meeting of the promised inter-ministerial group with the Welsh Government has taken place and whether a statement can be made as to its outcome. If it has not, when will such a meeting take place?
Thank you, Mrs Cummins, for your indulgence, given my slightly late appearance at this debate. I apologise to colleagues in the debate and especially to the right hon. Member for Dwyfor Meirionnydd (Liz Saville Roberts) for being slightly late—demonstrating to colleagues that it is literally impossible to be in two places at once.
I am very pleased to take part in this debate, but I will proceed with caution because, despite a very happy 18 months living and working in the Vale of Glamorgan, I recognise my limited knowledge of matters Welsh, and there is nothing more irritating to a Member of Parliament than somebody talking about our part of the world with less than comprehensive knowledge. But there are very many similarities between the situation that the rural Welsh economy finds itself in and the rural Scottish economy.
I represent a rural ward in Angus in Scotland. There is not so much difference between the Welsh valleys and the Angus glens. I would contend that neither are being particularly well served by the UK Government at the current time, a classic example of that being the Australia trade deal. I will not labour this point. It is a hot topic in the Chamber and in the media. Suffice it to say that the reassurances—if we can call them that—coming from the Department for International Trade and, to a significantly and tellingly lesser extent, from the Department for Environment, Food and Rural Affairs are very hollow indeed. The supposed safeguards for Welsh producers, Scottish producers and Cumbrian producers of lamb are paper thin. There is also the fact that, watery as they are, they are timebound over a maximum period of 15 years. I wonder what the Government will tell Welsh farmers is going to happen after 15 years. Is the scale of Welsh farming suddenly going to increase after 15 years to the extent that farmers will be able to compete with the colossal enterprises in Australia and, by that time of course, New Zealand, Mexico, Brazil and many other colossal producers?
Does the hon. Gentleman share my concerns about the anticipated trade agreement with New Zealand, which we expect to be announced in August? It has seen the precedent set with Australia and, in terms of lamb, this deal looks even more damaging than the present agreement.
The right hon. Member is exactly right. We are looking at the thin end of the wedge. I will come on to why this is a function of a disconnect in the current set-up of the United Kingdom, but of course she is right. With my hon. Friend the Member for Edinburgh North and Leith (Deidre Brock), I met the Australian high commissioner to the UK about a year ago, and we were assured by him that Australia was not particularly interested in bulk volumes, in terms of exporting lamb to the UK. I did not believe it then and I do not believe it now; it is inconsistent.
New Zealand will follow where Australia leads. Such is the unseemly haste with which the UK Government are pursuing any and all opportunities for international trade, as though it somehow validates the ridiculous and reckless Brexit course, that they will do deals with New Zealand and we will see further attrition in the markets that we currently satisfy from domestic production. It is a very damaging prospect that faces us now.
Yesterday I met NFU Scotland members in Angus. Their issues include the arbitrary discussions around journey times for animals; the trade deals we have touched on today; welfare standards that we must adhere to in this country but that our competitors are not similarly held to; and the availability of seasonal agricultural workers because of the Conservative Government’s fundamental ideology of not wanting people to come from outside to support our industries and enhance our communities, despite the negative effect that that has on the rural economies of the constituent nations of the UK. Likewise food standards are now a lottery, depending on the food we buy and the market it comes from.
I had an interesting meeting recently with a renewable energy company that has floating wind farms. It has a tremendous pilot project off the Pembrokeshire coast, and it wants to do something similar off the North sea coast, off Peterhead. The dialogue that it had with the Department for Business, Energy and Industrial Strategy was so slow that it represents a golden opportunity lost by the Government to open up rural and very rural parts of our economy and to meet our net zero and renewable energy targets. There is a level of disconnect. Even if the company did get the project going, like many renewable projects in mid and west Wales, the feed-in tariffs, although not so bad in Wales, are still appalling, whereas we have energy producers around London paid to connect to the grid. In Wales they will have to pay a couple of pounds per unit, and in Caithness in Scotland, very, very rural communities will have to pay £6 or £7 per unit. BEIS just holds up its hands—“It’s not us. It is Ofgem.” Such levels of disconnect from central Government in London are not acceptable. They hold our economies back.
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The Welsh rural economy plays a pivotal role in the wider Welsh economy, accounting for 28% of the economic output across Wales in 2019. It is the heartland of key export industries, including Wales’s highly successful food and drink sector. Yet such economic successes have failed to translate into real economic gains for rural communities or attention by both UK and Welsh policy makers. If this is trickle-down economics in action, we are experiencing a drought. The gross value added per capita of Welsh rural areas was just £18,000 in 2019, significantly below the Welsh average of £21,295 in 2019, and also far behind the UK average of £29,599. That is reflected in low pay, with my home county of Gwynedd a rural area where 31.4% of employees—the highest proportion in Wales—earn below the real living wage.
Disturbingly, this is being translated into worse life outcomes for our youth. The spectre of child poverty, which has risen in 20 of Wales’s 22 local authorities, is particularly acute in rural areas such as Pembrokeshire, Ceredigion, Powys and Carmarthenshire, and a recent report by the Rural Youth Project suggested that 68% of Welsh rural youths struggle to find work in their local communities. We do our communities a deep disservice if we just shrug our metaphorical shoulders and say, “Well, that’s how it has always been”—that somehow we in Wales should be resigned to our children leaving, because all the glittering prizes have always been elsewhere, and that we had better knuckle down and accept that, to Westminster, some places are just more deserving than others.
As I have already mentioned, the combined disruption of Brexit and the covid-19 pandemic has hit key sectors of the Welsh rural economy disproportionately hard. In my role as a commissioner on the UK Trade and Business Commission, I have heard at first hand how Welsh small and medium-sized enterprises located in rural communities have lost market share, and whole export markets in some cases, due to the trade disruption caused by Brexit. Equally, the pandemic has caused untold hardship for hospitality businesses across the UK, but especially in rural areas such as Dwyfor Meirionnydd, where hospitality and accommodation employ 27% of the total local workforce.
Policy makers therefore have a key role to play in ensuring that the Welsh rural economy is at the forefront of Wales’s economic recovery. Plaid Cymru local authorities, such as Carmarthenshire County Council, have led in that regard, implementing clear strategies such as furthering business scale-ups and improving transport links and access to housing. However, the UK Government are hampering our efforts to develop a more vibrant and sustainable rural economy. Time and again, Plaid Cymru has tabled amendments to Finance Bills, asking the Treasury to consider how to channel investment into Wales and its rural economy more effectively and coherently and, perhaps most importantly, with a long-term vision. Instead, the UK Government have replaced the needs-based funding investment formula adopted by the EU, which was formerly a significant investor in the Welsh rural economy, with competitive UK-wide schemes that ignore rural need and disadvantage Wales. Such schemes not only fail to honour Conservative manifesto promises to Wales, but lack a collaborative and future-focused strategy to further Welsh economic development.
Let us go back to the word “competitive”, because it is a word that the Tories like—winner-takes-all, macho stuff to make headlines. Let us unpick the meaning of “competitive” in this context. It is setting communities against each other—winners and losers in a political popularity contest—and does not begin to recognise need. This is about the Tories wanting to have their cake and eat it—every last crumb. Adding to the injury is the fundamentally flawed United Kingdom Internal Market Act 2020, which acts as a vortex deliberately set in motion to dismember the principle of subsidiarity. It is a terribly long word, but it means pulling apart the integrity of Welsh devolution, which the people have supported again and again whenever they have had the opportunity. After vesting Westminster with powers that previously were clearly and exclusively at the disposal of our Parliament, we now even see limitations on how Welsh public bodies can purchase from local Welsh companies, removing a key pillar of support from local Welsh food producers and hospitality businesses.
The Conservatives’ austerity has indirectly resulted in local authority budgets in Wales shrinking by 17% and led to the loss of public services that are so central to our communities in rural areas, and the UK Government are now actively encumbering Welsh rural authorities. Consequently, although many key drivers of the Welsh rural economy are devolved, Westminster is failing where it is encroaching. That is why I urge the Government to work with, rather than against, Welsh institutions to help them deliver locally informed economic strategies that will further, rather than hamper, the Welsh rural economy. Anything else will ensure only that stagnating rural incomes, rising rural poverty and youth migration will continue unabated.
No issue better encapsulates the consequences of such an outcome than the worsening second home crisis in Wales. The low incomes and poor economic prospects of rural communities have left them unfairly exposed to the rapid increase in house prices and second home ownership across the UK. It is not an overstatement to say that this has created a situation of pervasive exclusion of local workers and younger members of communities from their local housing markets.
In Gwynedd, for instance, approximately 40% of houses that go on the market every year are now bought as second homes. In the village of Cwm-yr-Eglwys, Pembrokeshire, there are now only two permanent residents—the rest of the 50 houses are holiday homes. This not only has dire ramifications for local public services and distortionary implications for the local economy, but fundamentally means that local workers, especially the young, find it almost impossible to stay in their local communities. That is why I welcome action by Plaid Cymru-led local authorities, such as those in Gwynedd, Ceredigion and Carmarthenshire, to increase revenue through second home council tax premiums to fund local housing initiatives, and I urge the Welsh Government to work with Plaid Cymru to address this issue urgently.
Fundamentally, however, we need to improve the resilience of the Welsh rural economy itself. Last week’s headlines alone were an unwelcome reminder of the urgency of doing so, as they announced a bad trade deal with Australia. This could well establish a disastrous precedent for Welsh agriculture, as well as increase the growing risks posed by climate change, as described by the Climate Change Committee.
On the subject of trade, I urge the UK Government to involve the Welsh and other devolved Governments closely in the negotiation of new trade deals, particularly as economic development in key sectors such as agriculture are devolved competencies. As my Plaid Cymru colleagues, such as my hon. Friend the Member for Ceredigion (Ben Lake), have argued, the deal with Australia threatens to undercut our local farmers, hollow out our rural communities and damage our climate.
Equally, our net zero pledges require urgent action to decarbonise our rural economy and build upon its key strengths. Wales is an energy-rich nation, yet we lack not only the borrowing powers to finance nationwide developments, but a modern energy transmission grid that would allow local renewable energy developments to feed electricity into it. That hampers the ability of actors ranging from farmers to local authorities to decarbonise and make the best use of Wales’s natural resources for our common good. Those are just two issues, but I hope that today’s debate will further this much-needed discussion on improving the rural economy’s resilience.
The Welsh rural economy has a pivotal role to play not only in ensuring Wales’s post-pandemic recovery, but in ensuring that we meet our net zero obligations as sustainably and rapidly as possible. The Welsh rural economy is a vital component not only of the wider Welsh economy, but of Wales as a nation. It is the heartland of the Welsh language; the origin of some of our finest food and drink; the guardian of the sustainable use of our environment; and, of course, the destination for tourists worldwide.
Plaid Cymru is calling for the UK Government to work with, rather than against, the devolved Governments, by involving and engaging with them, whether on regional and rural development funds or in trade negotiations. We urge both the UK and Welsh Governments to support Plaid Cymru’s proposals to address the second home crisis and, in order to meet our net zero objectives, to give us the borrowing and regulatory powers needed to develop Welsh renewable energy projects and connect them to a newly upgraded electricity transmission network.
Not only are these goals achievable; they are undeniably necessary to support our Welsh rural economy and allow it to flourish. If our communities are to withstand the unprecedented and interlinked crises ahead, resilience must be built into our economy in the long term. The Westminster Government have failed time and again to show they have the ambition or the ideas to do so, but today’s debate provides them an opportunity to set out a coherent strategy for supporting the future of the Welsh economy. I look forward to a constructive debate. Diolch yn fawr.
The levelling-up and community renewal funds have been opened by the UK Government with millions of pounds available for investment. The community renewal fund gave me the opportunity to work directly with the Isle of Anglesey County Council and to build relationships with them. The island’s head of regulation and economic development, Christian Branch, and his team submitted a fantastic range of projects last week, which will generate local jobs and boost the economy directly and indirectly. Our council will also receive over £140,000 in capacity funding to help it generate excellent quality bids for these funds.
We are working hard to bring new opportunities here. In his March Budget speech, the Chancellor announced £4.8 million of funding for the new Holyhead hydrogen hub. The Department for Business, Energy and Industrial Strategy will be on the island next week to meet M-SParc and the Minister for Science to discuss bringing the cutting-edge thermo-hydraulic facility here. I am also in talks with Rolls-Royce about bringing SMRs to the island as well as continuing discussions about potential developers for Wylfa Newydd.
The trade deals that the UK Government are working on will open up new and exciting markets for our farmers. Countries keen for our high-quality produce are coming online. Earlier this month, the Minister for Trade Policy spent 50 minutes speaking to farmers on Anglesey, in English and in Welsh, about those opportunities. He was also happy to reassure them that scaremongering on food standards is incorrect and that standards will not be compromised by imports.
The UK Government are also committed to levelling up communications and transport infrastructure. They are delivering the shared rural network to improve 4G coverage and have committed £5 billion to support the roll-out of broadband through Project Gigabit. The Union connectivity review by Sir Peter Hendy highlighted the need for investment in road and rail infrastructure right across north Wales. All these moves by the UK Government will contribute to levelling up our rural community on Anglesey by giving businesses and individuals better access where they have been failed in the past.
Anglesey needs good-quality, well-paid jobs. This is how we stop our young people leaving; how we stop the decimation of the Welsh language; and how we preserve our local communities, our language and our heritage. I see great opportunities for the Welsh rural economy with the moves being made by the UK Government, and I look forward to seeing the fortunes of Anglesey reversed as a result. Diolch yn fawr.
The original plan would have been a big boost to people living in rural communities struggling on speeds below 30 megabits per second and the Government have already admitted that reaching the final 1% of very remote homes could be prohibitively expensive. That is without even addressing the excess costs facing rural communities under the universal service obligation, which offers a maximum of £3,004 to a single premises, well below the costs being quoted to connect some of my constituents in Ceredigion. To make matters worse, schemes that exist to address rural connectivity, such as the broadband upgrade scheme, need greater co-ordination between the Welsh Government and the Department for Digital, Culture, Media and Sport if their potential is to be realised.
Ceredigion, Carmarthenshire and Pembrokeshire were included in the pilot broadband upgrade scheme, which proved successful locally in aggregating community demand for better broadband in such a way as to encourage alternative network providers to bid to undertake upgrade work in some of our most rural communities. A number of these companies have shown an interest in connecting communities across Ceredigion. However, despite working successfully with local residents, they have encountered a range of difficulties, foremost among which were data problems that saw entire communities being deemed ineligible for gigabit voucher support due to their sharing a postcode area with a solitary premises that had benefited from broadband upgrade work, despite the fact that they themselves were struggling on less than 3 megabits per second.
More recently, a number of proposals to connect communities have been thrown into uncertainty due to the announcement that commercial roll-outs might be possible in these areas in the next four or five years. No detailed plans have been announced, but the eligibility criteria for gigabit voucher funding mean that, due to this announcement, proposals already under development as part of the broadband upgrade fund may no longer be viable. So the communities affected are thrown into yet another limbo in their quest for decent broadband.
Compounding this debacle is the fact that the Government’s policies for addressing better mobile connectivity in rural areas are also not delivering. The shared rural network, for instance, uses many of the emergency services network sites run by the Home Office. The delay by the Home Office in constructing new masts and connecting existing masts is denying rural communities in Wales the opportunity of improved connectivity now.
Just as important as digitally connecting our rural economy is the need to decarbonise our transport system rapidly and responsibly reduce private car use. Local authorities in Wales have a vital role to play in developing and supporting local bus networks, such as Bookabus. However, such services do not come cheap. In Carmarthenshire alone, over 85% of local transport routes in rural areas are subsidised to some degree, with the average subsidy in 2019 in Carmarthenshire per passenger being £3.63. As such, it is simply not enough for the Governments on either end of the M4 to call for improved active travel or the adoption of electric vehicles if they are not also prepared to invest in the necessary infrastructure and improved public transport.
In sum, better supporting our rural communities’ connectivity, both digital and transport, is pivotal to securing the future and resilience of the Welsh rural economy. All areas, all communities—indeed, all nations of the UK—deserve equal treatment, so I hope the UK and Welsh Governments will do their utmost to secure the investment and, where necessary, the policy reform to allow our rural communities to fulfil their potential.
Moving towards more sustainable models of travel is critical if Wales is to meet our climate targets, yet currently 87% of all journeys in mid-Wales are undertaken by car. To reduce that figure, we must drastically improve our railways. It will come as no surprise to anyone who frequently travels by train in Wales that we have historically received only 1% of rail investment, despite having 11% of the track. I encourage the Minister to look at the submission by the renowned transport expert Professor Stuart Cole to the UK Government’s connectivity review. He makes the case for a £20 million investment in the beautiful Heart of Wales line, which connects Swansea and Shrewsbury, and links three of the main market towns in Carmarthenshire, all of which reside within my constituency: Ammanford, Llandeilo and Llandovery. Professor Cole outlines how that investment would improve and increase service provision on the line and bring substantial economic and social benefits.
Notwithstanding my points about decarbonising transport, I believe that there is still an important role to be played by investing in road transport. I cannot miss the opportunity to highlight the very damaging announcement today by the Welsh Government that they will not invest in the Llandeilo bypass—there is a moratorium on bypass developments. There was a cast-iron guarantee for the communities I serve in Carmarthenshire that it would be built by now. There has been obstacle after obstacle, and today’s news will be a hammer blow for the Tywi valley.
All too often, rural Wales finds itself at the back of the queue for investment in infrastructure. Our farmers are bearing the brunt of Wales being an afterthought in the UK Government’s trade policy. The lamb and beef tariff rate quotas in the proposed trade deal with Australia have confirmed the worst fears that many of us had about the trajectory of trade policy post Brexit. It sets a precedent, and not only for the agriculture sector. Trade deals with far bigger economies than Australia will undoubtedly be more problematic, not just for food but for other sectors such as steel and manufacturing.
Meanwhile, the consequences of Brexit are beginning to bite. Analysis by the Food and Drink Federation of Her Majesty’s Revenue and Customs data shows that British food and drink exports to the EU fell by £2 billion in the first three months of 2021, with sales of dairy products falling by a staggering 90%. It is time to give up on the spin that those are just teething troubles, and acknowledge that the latest figures show that wholescale dentistry is required in the Trade and Agriculture Commission. An urgent veterinary agreement on sanitary and phytosanitary rules would be one way to remove barriers for Welsh farming exports created by the current Brexit deal, as well as alleviating friction caused by the Northern Ireland protocol.
Reports indicate that at the G7, President Biden offered a trade deal—which I suspect did not include food products—with the US, even if the UK aligned with the EU on food standards. Surely that is too good to turn down, considering the current shambles. Has the Minister made any assessment of whether reports of reduced checks in the Australian trade deal would prevent such an agreement with the EU?
Before I bring my remarks to a close, I would like to touch on another issue that threatens not only to undermine the long-term sustainability of Welsh agriculture and the unique linguistic and cultural traditions maintained by farmers in our country, but completely to change the local landscape. There is growing evidence of Welsh farms being bought by large multinational companies from outside Wales for unregulated woodland planting in order to offset their carbon emissions. Furthermore, rich people from outside Wales are buying up productive Welsh farms and planting them, while coining Glastir support.
Once an agricultural holding is lost to woodland, it will not return. Anyone who recognises the challenges of the climate crisis will support a policy of increased woodland. However, the debate on the issue far too often fails to recognise the contribution that grassland systems play in providing an important carbon sink. I am delighted to see my colleague the hon. Member for Angus (Dave Doogan) here. In Scotland, they have managed to increase woodland planting without supplanting agriculture, working with their farmers. We need that approach in Wales.
This is a matter for the Welsh Government, which in my view should set a maximum limit based on the national woodland target for tree planting in each farm holding, and ensure that Glastir and woodland planting schemes are available only to actual, active farmers. I am interested to know whether the Minister has come across this issue in Sir Fynwy. I would like to use the debate to call on the Welsh Government to revise their planning technical advice notes, to ensure that woodland planting is done in a manner that preserves our agricultural heritage.
There is also a wider question. Carbon offsets may present a very attractive shortcut for companies to reduce their emissions, but we need to cut emissions in the first place. The UK Government are due to publish a net zero strategy before COP26. Will that address the question of corporations using carbon capture, rather than reducing their carbon emissions?
To tackle the many issues faced by rural communities, the Welsh Government must be empowered with the fiscal levers required to deliver an effective post-covid recovery strategy. That includes reforming the funding formula, greater tax freedoms and increasing the cap on borrowing. Only in that way can we deliver tangible benefits for those living in rural communities throughout Wales.
In the previous debate, we were reassured that the stated figure of 5% of allocated funding coming to Wales represented a funding floor, not a ceiling, but I understand from my colleagues in Welsh local government and from my own experience in my constituency of North East Fife in Scotland that it has been arguably more challenging for local authorities under the devolved Administrations to put together bids for both funds, the deadlines for which passed last week, so again I ask the Minister what steps will be taken to ensure that the floor is met even if fewer bids from Wales are received than expected.
Finally, I turn to agriculture. As colleagues have mentioned, there are significant concerns that the Australia trade deal will put the Welsh rural economy at risk. I say “concerns”, but perhaps I should say “suspicions”, because full details are still awaited. There were recent reports in the media that there will be no tariffs on Australian beef imports until they rise above 35,000 tonnes —six times the current level of imports—or on lamb imports until they go above 25,000 tonnes, which is three times the current imports. Australian animal welfare standards are significantly below ours, which means that people there can produce cheaper products.
This Government say that they support Welsh farmers, but if those reports are true and Welsh farmers are undercut by such produce, how can they be doing anything other than breaking that promise? How does the Minister plan to support Welsh farmers in the light of the Australia trade deal? Sadly, parliamentarians will not be given a vote on the deal when it comes to Parliament, so what opportunities will we have to scrutinise it? I am sure that Welsh farmers, like farmers in North East Fife, have worked very hard over the last few years to diversify their economies. I would hate to see that hard work undone by that trade deal.
As a member of the Environment, Food and Rural Affairs Committee, I take part in good faith and in good spirit when discussing issues that are of no consequence to my constituents because I am a Member of the UK Parliament. I would rather not be, but I am—I wish I was a member of a sovereign Scottish Parliament. What has come through loud and clear is the disconnect and the asymmetry in the representation of the people of the United Kingdom. There is no English Government, but DEFRA is little more than an English Government Department. It has very little locus in the United Kingdom at large, and where it does, it exercises it with indifference and ambivalence. It is a great impediment to our rural communities.