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Work Programme (Wales)

(Translation) : I am sure that if we carry on with that kind of comment Mr Havard will intervene. It is not my intention to complain, or to harp on about Wales. In many of these Committee sittings, my party has been accused of whingeing for Wales. We are not whingeing, and I have, hopefully, positive things to say. I praise the efforts of the staff at the Jobcentre Plus in Caernarfon—and in Wrexham, with which I regularly have links. They work very hard in very difficult circumstances. I shall put forward a few answers that people will be familiar with, because they have been part of our policy for a long time. The first is a reduction in VAT, targeted at certain sectors of the economy. I was glad to see in the House the other night the Labour party’s proposal for a reduction in VAT and, having discussed the matter with Conservative Members, I know that Government Members are in agreement. Unfortunately the hon. Member for Aberconwy is not here today, but I have chatted to him and he sees mileage in the idea. The idea is to cut VAT on industries that are heavy employers. It is possible to do that, because in 2009, after ECOFIN, the European Union allowed states to reduce VAT down to 5% on certain such industries, but unfortunately we have not taken up that permission so far.