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Welsh Affairs

It is always a pleasure to follow the hon. Member for Swansea East (Mrs James), who originates from my constituency and so has a lot going for her. I agree with her that the best way out of poverty is through work, and that is a huge challenge that Wales has to address. Although we have had the success of the Welsh Development Agency and the Development Board for Rural Wales, we have not made enough of our indigenous talent and business. I shall return to that point, but first let me say that it is a great pleasure to take part in this St David's day debate. I commend the right hon. Members for Torfaen (Paul Murphy) and for Dwyfor Meirionnydd (Mr Llwyd) and the hon. Member for Montgomeryshire (Glyn Davies) for the part they have played in obtaining the debate, which is certainly worth having. Our discussions so far have been very cogent and to the point. On the reform of the electoral boundaries in Wales, I have listened to everyone's comments but I cannot believe that one can argue against having equal weight for equal votes. We should work towards a situation in which constituencies have the same number of electors. My constituency used to be far greater at one time. It was represented by great heroes such as Tom Hooson, Caerwyn Roderick and Tudor Watkins. [Interruption.] I shall not include the hon. Member for Cardiff North (Jonathan Evans) because the three people I have mentioned represented it when it was a far bigger constituency and included heads of the valleys communities such as Llanelly Hill, Gilwern, Brynmawr, Cefn Coed, Hirwaun and Penderyn. People still talk about the tremendous work that those people did at a time when we did not have the communications systems that we have now. I congratulate the Wales Office on having delivered the coalition agreement almost to full, but I add that there is more work to be done. The people of Wales engaged fully with the referendum on further powers for the Welsh Assembly and showed their determination to take forward the devolution settlement. I believe that that has contributed to the fact that, as seen in a recent poll, the appetite for independence in Wales is limited. The people of Wales see their role and that of the Welsh Assembly as increasing those powers, including the power to raise taxes and levies. The second part of the coalition agreement that has been delivered concerns the setting up of the Silk commission. The representations from the Welsh Liberal Democrats are on the website and in a public document so I will not go into this in great detail, except to say that if the Welsh Assembly is to be truly transparent, it needs the power to raise taxes as well as to spend money. It must be able to borrow to address the large infrastructure problems in Wales, but without a stream of taxes, it does not of course have the power to borrow. I turn to the Welsh economy and the importance of building on the quality, experience, skill and enthusiasm of people and business in Wales. Not enough is being done to encourage that and take it forward. I congratulate the university in Newport on beginning to think about a department dedicated to entrepreneurs and to encouraging their talents and enthusiasm. I have obtained some statistics from written questions. Believe it or not, there are 210,000 businesses in Wales—a greater proportion than in the other devolved nations—but they are rather small businesses. Only 85,000 of them are VAT-registered but 125,000 are not, which means that their turnover is less than £70,000. Most of those businesses are not incorporated either. The Government pay a lot of attention to the reduction of corporation tax, but if we are to encourage business in Wales, we must encourage those businesses that are not incorporated as well. Wales has the business acumen and enthusiasm for business, but it needs to be encouraged, and those micro-businesses need to be encouraged as well.