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Severn Crossings Toll

I would like to make a few quick comments before my voice breaks again. The importance of the report, as I have already suggested, concerns inward investment and prosperity for Wales. The simple fact is that if we want to attract inward investment into Wales, multinational companies in particular need to be able to assess, years in advance, the likely costs they will face in networking European markets. I urge the Government to make their intentions clear, so that that can be done. I share the view of the Welsh Affairs Committee Chair, the hon. Member for Monmouth (David T. C. Davies). We should aim to minimise the toll, subject to operational and maintenance costs, and look again at off-peak fares in terms of traffic management and the balance between car and van traffic and larger trucks—the balance between inward investment and trade versus tourism. That is not easy, but we should make a general statement of intent now. We want to see a substantial reduction in a tax on trade and inward investment into Wales. I respect the point made by the Minister from a sedentary position asking why Labour did not do that. If that was a mistake, then that is not a reason to repeat it. As we approach 2017, it becomes more and more important that we make those signals—generally at first, and then specifically down the road. The Welsh Affairs Committee is focusing strongly on the various parts of inward investment—visiting Germany and so on. The crossing is a crucial artery for investment into Wales. The electrification of the railways is also crucial. People will know that I have stood up for the electrification of the railways from Cardiff to Swansea, as well as to Cardiff. The railway line and the road are the two main axes for getting trade into Wales. The point was made that there is some uncertainty about the economic impact. The Welsh Assembly is supposed to be doing an assessment of that. The fundamental economic analysis is obviously that this is clearly a tax on trade and inward investment. Taking on board what the Chair of the Committee, said, it works both ways. The fact is, however, that it is not worth it for people in Newport to pop over to Bristol to do some building work there, because of the toll. The toll impedes the development of ambitious small businesses. A company opening its headquarters will look at the market place. Clearly, more people live on the English side of the river Severn than on the other side. In terms of cost-management, they are better off locating on the English side. That stands to economic reason, so there is a dramatic impact. I was disappointed by the evidence we heard from Ieuan Wyn Jones. He was meant to be in charge of economic development for Wales, but happily he is not any more. He seemed to have the idea that some of the reduction in price, which should go to motorists, inward investors, and the traffic of people and products, should be taxed away and spent on other pet projects in Aberystwyth, or wherever. That misses the point that the fundamental driver of the Welsh economy is trade. As it happens, my father used to be in charge of economic development in the Wales Office some time ago. There was an analysis at the time to show that Wales is not just one great economy. Essentially, it is two economies—south Wales with the south-west, and north Wales with Liverpool. A moment's thought would lead us to that conclusion. The study made clear the interdependence of the south-west and south Wales. Therefore, having a brake or a tax on that relationship harms both economies. We know from the first principles of economics that trade is beneficial, so it is not a good idea to say, ““Separate these two and they won't have to compete with each other.”” Trade is mutually beneficial. Again, I urge the Minister to encourage the Treasury to signal the direction of travel and to give us greater clarity. In places such as Swansea, which I represent, we have the enormous growth of the university as a research-and-development, technologically driven entity with global reach and attraction. Companies such as Tata Steel, Rolls-Royce and now Boots the Chemist have moved their research and development to Swansea, and they are looking to develop products with a global reach. Part of that is being able to link to European networks and beyond, and part is the cost of moving products and people between Wales and England and beyond. The issue is not a minor one, with people who happen to live in Cardiff getting annoyed; it is about our strategic position on inward investment and the development of the Welsh economy, which is so important for all of us. I look forward to the Minister's response.