Commons Sense

House of Commons · Westminster Hall

Welsh Rural Economy — [Judith Cummins in the Chair]

22 June 2021 · 6 other contributors · 11,933 words

Opened by Liz Saville-Roberts PC Dwyfor Meirionnydd

Responding minister: David Davies

Summarised by AI from the official record, so it can contain mistakes.

At a glance

Liz Saville-Roberts raised concerns about welsh rural economy — [judith cummins in the chair] in Westminster Hall. A government minister responded.

Key points

  • Welsh rural economy faces challenges from Brexit and the pandemic, impacting agriculture, tourism, and hospitality.
  • Gross value added per capita in Welsh rural areas was 18,000 in 2019, below both Welsh and UK averages.
  • Plaid Cymru seeks Government involvement in trade deals and support for proposals addressing the second home crisis.

Key requests to Government

The Government should involve the Welsh Government closely in negotiating new trade deals and support Plaid Cymru's proposals to address the second home crisis. They must also provide borrowing and regulatory powers needed for renewable energy projects and a modern electricity transmission network.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Liz Saville-Roberts PC Dwyfor Meirionnydd

The Welsh rural economy is facing significant challenges, including the impact of Brexit and the pandemic on agriculture, tourism, and hospitality. Low wages, youth depopulation, and high second home ownership rates are exacerbating economic inequalities. The gross value added per capita in Welsh rural areas was just £18,000 in 2019, below both the Welsh average (£21,295) and UK average (£29,599). Sixty-eight percent of Welsh rural youths struggle to find work locally. Plaid Cymru-led local authorities are implementing strategies to support business scale-ups and improve transport links and housing access, but competitive UK-wide schemes disadvantage Wales compared to needs-based funding.

Other contributors (6)
  • Ben Lake PC Ceredigion Preseli

    Ben Lake highlighted the challenges faced by rural Wales in terms of digital and transport connectivity. He mentioned that nearly 9,000 premises in Wales cannot access decent broadband or good indoor 4G coverage, with a significant portion being in rural areas. In his constituency, only 20% of the population lives in an urban area, and about 26.5% do not receive a decent broadband connection compared to the Welsh average of 11.9%. He criticised the UK Government's reduced target for gigabit broadband coverage by 2025 as detrimental to rural communities due to its high costs.

  • Dave Doogan SNP Angus and Perthshire Glens

    The rural Scottish economy faces similar challenges to the Welsh rural economy, particularly with regards to the UK Government's approach to international trade deals. Dave Doogan criticises the lack of substantial safeguards for local producers in the Australia trade deal and highlights issues such as journey times for animals, welfare standards, availability of seasonal agricultural workers, and inconsistent food standards. He also mentions a disconnect between central government and rural communities, with slow progress on renewable energy projects and poor feed-in tariffs discouraging investment. Emphasised that the current trade agreement with Australia displaces domestic production due to higher costs in Scotland, questioning the sustainability of such deals.

  • Gerald Jones Lab Merthyr Tydfil and Aberdare

    Welsh rural areas have faced challenges from Brexit, austerity, and the pandemic. The Welsh Government has taken steps to protect the environment and support farmers through sustainable farming schemes and planning powers.

  • Jonathan Edwards PC Carmarthen East and Dinefwr

    Mr. Edwards highlighted the challenges faced by rural communities, including inadequate investment in transport infrastructure and concerns over trade policies post-Brexit. He mentioned a proposed £20 million investment for improving the Heart of Wales railway line and called for better veterinary agreements to ease export barriers for Welsh farming products. Additionally, he expressed worries about unregulated woodland planting on farms bought by large companies for carbon offsetting purposes. The Minister may not accept my argument on that point, but has he read the statement of funding policy that accompanied the last comprehensive spending review? It indicated that the Barnett consequential share for Wales is plummeting as a result of the Department for Transport spending on HS2, and showed the inequity that Wales faces compared with Scotland and Northern Ireland because of that.

  • Virginia Crosbie Con Ynys Môn

    Mrs Crosbie highlighted the economic challenges faced by Anglesey, including job losses and limited local employment opportunities. She emphasised the need for inward investment through initiatives like a freeport and mentioned businesses interested in setting up on Anglesey if it were to become a freeport. She criticised the Welsh Labour Government's reluctance to launch a freeport bid and highlighted the negative impact of recent Senedd legislation on farmers, estimating costs at £360 million. Mrs Crosbie welcomed support from the UK Government through funds such as levelling-up and community renewal funds and noted progress in bringing new opportunities like hydrogen hubs and SMRs to the island.

  • Wendy Chamberlain Lib Dem North East Fife

    Welcoming the new MP and focusing on the Welsh rural economy, Wendy Chamberlain expressed concern about the challenges faced by local shops in the recovery from the pandemic. She asked for measures to support rural retail and ensure communities receive investment. Chamberlain also raised questions regarding the inter-ministerial group's meeting with the Welsh Government and funding allocations under the levelling-up funds. Additionally, she questioned the impact of the Australia trade deal on farmers' welfare and sought assurances that the Government would support Welsh farmers.

Government Response

David Davies

Discussed the UK Government's commitment to Wales' rural economy, including investments in broadband, tourism, agriculture, and transport. Emphasised the importance of levelling up opportunities across Wales.

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