Motion that this House has considered Welsh affairs. Agreed to on question.

Motion that this House has considered Welsh affairs. Agreed to on question.

What assessment he has made of the effect on the devolution settlement in Wales of the UK leaving the EU.

What assessment he has made of the effect on the devolution settlement in Wales of the UK leaving the EU.

What recent steps his Department has taken to improve co-operation between the UK, Welsh and Scottish Governments.

What recent steps his Department has taken to improve co-operation between the UK, Welsh and Scottish Governments.

I was always optimistic that discussions with the Welsh Government would result in agreement on the European Union (Withdrawal) Bill. The agreement that has been reached is testimony to the close intergovernmental working that has taken place and to the spirit of co-operation, and I am still hopeful that the Scottish Government will sign up to it as well.

I was always optimistic that discussions with the Welsh Government would result in agreement on the European Union (Withdrawal) Bill. The agreement that has been reached is testimony to the close intergovernmental working that has taken place and to the spirit of co-operation, and I am still hopeful that the Scottish Government will sign up to it as well.

My hon. Friend has made an extremely important point. I think the agreement demonstrates the maturity of the relationship between the UK Government and the devolved Administrations. The Welsh Government recognised the merits of providing certainty and security for businesses and communities. I am still hopeful that we can underline the benefits of the scheme to Scottish businesses and communities, and that we can attract the support of the Scottish Government.

My hon. Friend has made an extremely important point. I think the agreement demonstrates the maturity of the relationship between the UK Government and the devolved Administrations. The Welsh Government recognised the merits of providing certainty and security for businesses and communities. I am still hopeful that we can underline the benefits of the scheme to Scottish businesses and communities, and that we can attract the support of the Scottish Government.

I draw the hon. Gentleman’s attention to the north Wales growth deal that we are currently negotiating between the authorities and businesses in north Wales. I met Ken Skates, the Economy Minister, just last week to discuss it. We are anxious to see greater devolution, but some Assembly Members do not want that, because some areas of north Wales have traditionally felt as isolated from Cardiff Bay as from Westminster.

I draw the hon. Gentleman’s attention to the north Wales growth deal that we are currently negotiating between the authorities and businesses in north Wales. I met Ken Skates, the Economy Minister, just last week to discuss it. We are anxious to see greater devolution, but some Assembly Members do not want that, because some areas of north Wales have traditionally felt as isolated from Cardiff Bay as from Westminster.

I am grateful to my right hon. Friend for that question, because he rightly focuses on the practical benefits and the outcomes. I believe that so long as we are focusing on an environment in which business can continue to invest, employ and represent communities in the way we have negotiated with the Welsh Government, that will put us in the strongest position to get the best benefits for every part of the UK.

I am grateful to my right hon. Friend for that question, because he rightly focuses on the practical benefits and the outcomes. I believe that so long as we are focusing on an environment in which business can continue to invest, employ and represent communities in the way we have negotiated with the Welsh Government, that will put us in the strongest position to get the best benefits for every part of the UK.

As my right hon. Friend the Member for Clwyd West (Mr Jones) highlighted, so long as we focus on outcomes—and the Scottish Government focus on outcomes and delivering for Scottish businesses—I am confident we can reach an agreement. The Welsh Government clearly would not undermine the devolution settlement as far as Wales is concerned, and I hope the Scottish Government will see the merits of the certainty and security that we can offer Scottish industry and Scottish business with this agreement.

As my right hon. Friend the Member for Clwyd West (Mr Jones) highlighted, so long as we focus on outcomes—and the Scottish Government focus on outcomes and delivering for Scottish businesses—I am confident we can reach an agreement. The Welsh Government clearly would not undermine the devolution settlement as far as Wales is concerned, and I hope the Scottish Government will see the merits of the certainty and security that we can offer Scottish industry and Scottish business with this agreement.

What recent discussions he has had with the Welsh Government on the proposal for a Welsh EU Continuity Bill.

What recent discussions he has had with the Welsh Government on the proposal for a Welsh EU Continuity Bill.

What recent discussions he has had with the Welsh Government on the proposal for a Welsh EU Continuity Bill.

What recent discussions he has had with the Welsh Government on the proposal for a Welsh EU Continuity Bill.

What recent discussions he has had with the Welsh Government on the proposal for a Welsh EU Continuity Bill.

What recent discussions he has had with the Welsh Government on the proposal for a Welsh EU Continuity Bill.

As I have said previously, I do not think that the Welsh Government’s continuity Bill is necessary. The UK Government want to reach agreement with the Welsh Government on the European Union (Withdrawal) Bill, with a view to securing the National Assembly’s support for the legislation.

As I have said previously, I do not think that the Welsh Government’s continuity Bill is necessary. The UK Government want to reach agreement with the Welsh Government on the European Union (Withdrawal) Bill, with a view to securing the National Assembly’s support for the legislation.

My relationship with the First Minister and the Welsh Government is a positive one. We do not agree on everything, but we agree on the objective, which is to improve the outcomes for businesses and communities in Wales. There are 64 areas of the devolution settlement with Wales. There are 24 areas that we want to discuss further with the Welsh Government, to come to an agreement on how best to ensure that common rules apply across the UK, so that Welsh businesses are protected and can market their products across the rest of the UK.

My relationship with the First Minister and the Welsh Government is a positive one. We do not agree on everything, but we agree on the objective, which is to improve the outcomes for businesses and communities in Wales. There are 64 areas of the devolution settlement with Wales. There are 24 areas that we want to discuss further with the Welsh Government, to come to an agreement on how best to ensure that common rules apply across the UK, so that Welsh businesses are protected and can market their products across the rest of the UK.

The hon. Gentleman is referring to amendments tabled to clause 11 in the other place. Commitments were made that amendments would be tabled, and that is exactly what we have done. If we had not tabled those amendments, we would have been criticised. As I have said in this Chamber and elsewhere, we are determined to work with the devolved Administrations to come to an agreement, but it is the UK Government that have the interest of looking after the whole of the UK. It is the UK Government that want to act in the interests of businesses and communities to ensure that a Scottish business can sell or buy products in Wales under the same regulations, where a common UK market matters.

The hon. Gentleman is referring to amendments tabled to clause 11 in the other place. Commitments were made that amendments would be tabled, and that is exactly what we have done. If we had not tabled those amendments, we would have been criticised. As I have said in this Chamber and elsewhere, we are determined to work with the devolved Administrations to come to an agreement, but it is the UK Government that have the interest of looking after the whole of the UK. It is the UK Government that want to act in the interests of businesses and communities to ensure that a Scottish business can sell or buy products in Wales under the same regulations, where a common UK market matters.

I am hoping the agreement of the devolved Administrations will come as soon as possible. I am not going to tie it down to any one particular Joint Ministerial Committee meeting, but the one last week was another positive engagement between Administrations. I have been in this position before, when it was predicted that I would not get a legislative consent motion for the Wales Bill as it was progressing through Parliament. This can be done only by constant hard work and engagement, as well as optimism on both sides—acting in the interests of businesses and communities, not in the interests of politicians.

I am hoping the agreement of the devolved Administrations will come as soon as possible. I am not going to tie it down to any one particular Joint Ministerial Committee meeting, but the one last week was another positive engagement between Administrations. I have been in this position before, when it was predicted that I would not get a legislative consent motion for the Wales Bill as it was progressing through Parliament. This can be done only by constant hard work and engagement, as well as optimism on both sides—acting in the interests of businesses and communities, not in the interests of politicians.

My hon. Friend is absolutely right. There is no intention of any power grab. Of the 64 areas that relate to Wales, we have already said that 30 will pass to the devolved Administration without the need for any further agreement, or at the very most only an informal agreement between the UK Government and them, but there are 24 areas in which it is in the interests of businesses in Wales, Scotland and Northern Ireland, as well as in England, to have common practices so that we can protect the UK market; 80% of Welsh output is sold to the rest of the UK.

My hon. Friend is absolutely right. There is no intention of any power grab. Of the 64 areas that relate to Wales, we have already said that 30 will pass to the devolved Administration without the need for any further agreement, or at the very most only an informal agreement between the UK Government and them, but there are 24 areas in which it is in the interests of businesses in Wales, Scotland and Northern Ireland, as well as in England, to have common practices so that we can protect the UK market; 80% of Welsh output is sold to the rest of the UK.

The hon. Gentleman rightly points out that Wales voted to leave the European Union, and we have an obligation to act on that instruction from the referendum. This is also an opportunity to highlight that 80% of output from Wales goes to the rest of the UK, and Scotland sells four times more to the rest of the UK than it sells to the rest of the European Union. On that basis, protecting the UK market must be a priority, and acting in the interests of businesses and communities is our priority.

The hon. Gentleman rightly points out that Wales voted to leave the European Union, and we have an obligation to act on that instruction from the referendum. This is also an opportunity to highlight that 80% of output from Wales goes to the rest of the UK, and Scotland sells four times more to the rest of the UK than it sells to the rest of the European Union. On that basis, protecting the UK market must be a priority, and acting in the interests of businesses and communities is our priority.

My hon. Friend is absolutely right. Much focus is understandably and rightly placed on selling and trading with the European Union, but the most important market to Wales is the UK market—with eight out of 10 lorries of output from Wales and complex supply chains—and this is only right. Only two weeks ago, we recognised that the investment of Toyota in Derbyshire will have major positive impacts on the Toyota plant making engines on Deeside.

My hon. Friend is absolutely right. Much focus is understandably and rightly placed on selling and trading with the European Union, but the most important market to Wales is the UK market—with eight out of 10 lorries of output from Wales and complex supply chains—and this is only right. Only two weeks ago, we recognised that the investment of Toyota in Derbyshire will have major positive impacts on the Toyota plant making engines on Deeside.

I do not recognise the statements made by the hon. Lady. The amendment tabled in the other place is a significant one. It recognises that powers automatically fall to the devolved Administrations, but also introduces the prospect of bringing them in centrally to protect the UK common market, which is in the interests of Welsh business. I have had the privilege of sitting in front of a number of expert panels of industry representatives, and we are acting in the way they are calling for, rather than in the way that some politicians who are more interested in the powers are calling for.

I do not recognise the statements made by the hon. Lady. The amendment tabled in the other place is a significant one. It recognises that powers automatically fall to the devolved Administrations, but also introduces the prospect of bringing them in centrally to protect the UK common market, which is in the interests of Welsh business. I have had the privilege of sitting in front of a number of expert panels of industry representatives, and we are acting in the way they are calling for, rather than in the way that some politicians who are more interested in the powers are calling for.

Protecting the UK market is absolutely a priority for us. The hon. Lady will have food producers in her constituency who want to sell their products in England according to common practices on food labelling. That is an example of the area of policy on which we are seeking to get agreement. We will continue to work hard with the devolved Administrations to get agreement,

but only the UK Government can act in the interests of the whole of the UK, not some politicians in other areas who are seeking to represent a regional dimension only.

Protecting the UK market is absolutely a priority for us. The hon. Lady will have food producers in her constituency who want to sell their products in England according to common practices on food labelling. That is an example of the area of policy on which we are seeking to get agreement. We will continue to work hard with the devolved Administrations to get agreement,

but only the UK Government can act in the interests of the whole of the UK, not some politicians in other areas who are seeking to represent a regional dimension only.