What discussions he has had with the Chancellor of the Exchequer on the effect of the spending review on Wales.

What discussions he has had with the Chancellor of the Exchequer on the effect of the spending review on Wales.

I have had a number of discussions with the Chancellor on the spending review. This Government are investing in Wales. The announcement of the £250-million new prison in north Wales will create much-needed jobs for the region and further boost economic growth.

Missing from the spending review was real investment in Welsh ports and Welsh infrastructure to those ports. Wales has already lost out under this Government on ports, which are the gateways to Wales. They could regenerate sectors such as energy and, thus, make places such as Holyhead world leaders. When will this Secretary of State stand up for Welsh ports and make sure that we get a level playing field for this energy development, which includes marine, tidal, onshore wind, offshore wind and nuclear power, which Plaid Cymru does not support?

I regularly visit ports across Wales and am well aware of the importance of Holyhead port to the economy. The hon. Gentleman is quite right that we need better connectivity with the ports, on which I am pressing my right hon. Friend the Secretary of State for Transport, and I am raising it with the Welsh Government.

The austerity audit published in the Financial Times found that the average working Welsh adult would lose £549 a year from the cuts compared with just £470 for an adult in England. Given that, why is the lion’s share of investment in infrastructure plans in London and the south-east, with no high-speed rail to Wales and no capital investment? Will he fight for a fair share of investment as well as an unfair share of cuts?

I strongly refute the hon. Gentleman’s suggestion that Wales has somehow been short-changed: the investment in railways is very significant, with electrification right through to Swansea; in north Wales, we have a new prison; and we have new nuclear on Wylfa. The hon. Gentleman should also remember that as a result of our tax changes the average tax payer in Wales is some £750 per annum better off.

Will my right hon. Friend the Secretary of State join me in welcoming the decision to protect funding for S4C in the recent spending review?

Absolutely. S4C is extremely important to the cultural life of Wales. It is the only Welsh language channel in the whole world and its value to Wales cannot be overstated.

Further to that answer, will the Secretary of State reiterate the importance of that decision for the independent television production sector in Wales, which is critical for many of our local economies?

My hon. Friend makes an extremely important point. The independent production sector in Wales is not only innovative but extremely important to the Welsh economy and I am sure it was very relieved by the Government’s announcement last week.

As the Secretary of State will know, total pay in Wales has fallen by 8% since 2007, one of the biggest falls in living standards in Europe. The spending review will not help the Welsh economy very much, taking a further £1 billion out of the Welsh economy—and the Labour party has now signed up to that. It is for Ynys Môn to decide whether it wants Labour cuts or Conservative cuts. Which does the Secretary of State think would be appropriate?

I will make no apologies for the way in which the Government have treated the interests of Wales since we came to power. We have seen more infrastructure investment in Wales under this Government than under 13 years of Labour and I am proud of the support we are giving to Welsh families and the Welsh economy.

The IMF—the high priests of austerity—said that the Government should cut less and start spending more on infrastructure projects. The re-announcement of HS2 last week was sort of welcome, but the cost has gone up to £50 billion. Is the Secretary of State satisfied that Wales will not be given the £2.5 billion consequential?

HS2 is a United Kingdom project and both north and mid-Wales will benefit from it. I know that the right hon. Gentleman uses the north Wales line regularly, so I presume that he will support our campaign for electrification of that route.

In the spending review, the Chancellor made a significant announcement about capital expenditure. What steps is the Secretary of State taking to ensure that we in Wales get the appropriate proportion of that capital infrastructure spend?

I believe that Wales has had more than a fair share of capital expenditure announced. Let me reiterate: the electrification of the south Wales and valley lines, the north Wales prison and the commitment to support new nuclear through guarantees.

The reality is that since 2010, the Welsh budget has been cut in real terms by £1.7 billion, or 11%, yet on Welsh television last week the Secretary of State for Wales said that Wales had “got off lightly”. I know that the right hon. Gentleman is not exactly famed across the House for his humour, but was that meant to be a joke?

Compared with the average cut across Whitehall, which was 8%, and the cut to the Wales Office budget, which was 10%, I would say that the real-terms cut of 1/9% for Wales, because of the protection of the health budget and the education budget, is a good deal.

The answer is clear: Wales is meant to be grateful for this Government’s largesse, but the reality is that on the right hon. Gentleman’s watch, the budget is down £1.7 billion, real wages are down £1,700, 3,000 more people are out of work, 35,000 people are using food banks, 33% of children in Wales are in child poverty and 400,000 people have lost their tax credits. If that is “getting off lightly”, heaven help the most vulnerable in Wales if he and his Government decide to get serious.

The hon. Gentleman is in a terrible quandary. On the one hand, he wants to support his Westminster boss and accept coalition spending cuts; on the other, he wants to obey his Cardiff boss who says, “Enough is enough,” and borrow more: one man, two guvnors.