92 Baroness Randerson debates involving the Wales Office

Wed 15th Oct 2014
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Northern Ireland: Haass Talks

Baroness Randerson Excerpts
Wednesday 22nd October 2014

(10 years, 1 month ago)

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Baroness Randerson Portrait The Parliamentary Under-Secretary of State, Wales Office (Baroness Randerson) (LD)
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My Lords, I thank the noble Lord, Lord Dubs, for his thoughtful speech and for the opportunity he has given us for what has been a high-quality debate on this issue. I thank noble Lords for their participation.

In any debate on Northern Ireland’s troubled past, we must acknowledge the pain and suffering inflicted on so many people. As a Government, we are acutely aware of the many victims of the Troubles in Northern Ireland, many of whom still bear the physical and emotional scars. We must never forget the many thousands who lost their lives, as several noble Lords have mentioned this evening.

This Government believe that it is essential that the Northern Ireland parties find an agreed way forward on how to deal with the past in Northern Ireland. However, we recognise, as have many noble Lords this evening, the challenge that this presents. There have been several attempts to reach agreement and many suggestions put forward. The Eames-Bradley report, in 2009, made a number of recommendations, but it also demonstrated the strength of feeling around this issue. I greatly appreciate the participation of the noble and right reverend Lord, Lord Eames, this evening. More than one noble Lord this evening has referred to the fact that there are issues of great relevance in that report, and things that deserve to be looked at again.

There were also, as many noble Lords have said, the talks led by Dr Richard Haass late last year. Many commentators have remarked that of flags, parades and the past, the past could well be the most difficult issue to resolve. Yet, remarkably, the past was arguably the issue on which the greatest amount of progress was made in those talks. Although an overall agreement proved elusive, much progress was made between the parties. Following those talks, the Government continued to press the Northern Ireland parties to resume their negotiations and find a way forward.

As my right honourable friend the Secretary of State for Northern Ireland has set out clearly, it is our best assessment that the time is now right for a new set of talks on the range of challenges faced in Northern Ireland. Those talks started in Belfast last week, and we have on balance taken encouragement from the approach adopted by the parties thus far. The discussions were serious and businesslike and we hope that all the parties will continue to engage positively in the process.

However, these talks are not and cannot be about the Government intervening to impose solutions on the Northern Ireland parties; they are about helping, supporting and facilitating in order to reach agreement on the issues for which the Northern Ireland parties have primary responsibility. The system of government established under the various agreements enables Northern Ireland’s political leaders to make decisions on local issues.

We are, however, willing to help and support them where we can. The Secretary of State chaired an initial meeting of the parties last week, as well as a number of bilateral meetings. Over the next few weeks the talks will look at a number of issues, including: finance and budgets—including welfare reform, to which noble Lords referred this evening; the working of the Assembly and the Executive; and outstanding commitments of the agreements.

There are many challenges ahead, and the parties are of the view that they cannot resolve these alone, so we will support, guide and facilitate, providing advice where we can. The Secretary of State is leading those discussions and the Irish Government are likewise involved. Consistent with previous talks processes, they are structured according to the three-stranded approach referred to by my noble friend Lord Alderdice.

The talks will also look at another set of issues. The Government have long pressed the parties to reach agreement on the legacy issues of flags, parades and the past. Tomorrow the focus of the talks will be on those issues. The Secretary of State will again emphasise the need for a way forward, because the prize for doing so is immense.

As the noble Lords, Lord Browne and Lord McAvoy, said, Northern Ireland is a society much changed since the dark days of the Troubles. It is a modern, vibrant society with real potential, which has demonstrated its ability to play a major role on the world stage; for example, with the G8 summit. However, the legacy of division looms large in political life, often at the expense of developing the economy and building a shared future. That needs to change.

I will respond to points and questions asked by noble Lords. The noble Lord, Lord Dubs, asked about the consequences of the collapse of the institutions. He is right to suggest that the default position will be that there will be an election. There were resignations so that the institutions could not operate; there must be fresh elections. There are no longer any statutory powers to impose direct rule. It is important that anyone who thinks that the resolution of the current problems faced by the Executive would lie in a short period of direct rule should understand that that is no longer the case. It would prove very difficult indeed to re-establish the institutions if it were necessary eventually to resort to something like that.

In response to the noble Lord’s question on the Haass recommendations, as he knows, some of the parties in the negotiations chaired by Dr Haass endorsed his final proposals. Others did not. The Secretary of State has made it clear that if the parties endorsed recommendations of that sort, we should be prepared to operate them. She has made it clear that a structured approach to the past may be a great advance.

My noble friend Lord Alderdice asked about the situation and emphasised that it is very serious. I say to him that we do not for a moment underestimate the high stakes in the present talks. It is essential that we find a way to ensure that power-sharing in the institutions carries on.

The noble Lords, Lord Browne and Lord Empey, referred to the need for agreement on welfare and the fact that the financial problems facing the Executive are not by any means entirely down to the lack of agreement on welfare. We regard it as essential that the Executive re-establish orderly finances. It is simply not possible for the current situation to continue—it must be addressed.

The noble Lord, Lord Hylton, asked whether the Government would take account of the views of civil society as well as those of the political parties. I am very pleased indeed that the noble Lord raised that issue. We welcome the activity by members of civil society, and by church leaders, in providing leadership at this difficult time. For example, we welcome the work of the Make It Work campaign, which provides a point of focus other than the political parties, which is to be welcomed across society in Northern Ireland. The noble Lord also asked about professionally facilitated conflict analysis. That is certainly an interesting idea, but of course it is something that we would consult the parties on. I emphasise again that this process is led by the political parties and no longer by the British and Irish Governments. We have facilitated, brought them together and are urging them on, but the process has to be undertaken and agreed to by the political parties.

Lord Kilclooney Portrait Lord Kilclooney
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If the process is being led by the political parties, why have the Government therefore excluded the unionist representatives of one-third of the unionist vote in Northern Ireland? Some 100,000 unionist voters are not represented at these talks; 200,000 unionist voters are. That is no formula for success.

Baroness Randerson Portrait Baroness Randerson
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The parties represented at the talks are those represented within the Executive, and it is important to bear in mind that the talks are going ahead with the agreement of the parties concerned.

I must complete my remarks now. The noble Lord, Lord Empey, referred to the need for an election or a referendum on the outcome of the talks. I will ensure that his point is conveyed to the Secretary of State, but I would point out that there is an election coming up in the near future in any event.

Lord Empey Portrait Lord Empey
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I did not ask for those; I just wondered whether the Minister would be prepared to hold them. I am not advocating them.

Baroness Randerson Portrait Baroness Randerson
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In that case I misunderstood the noble Lord. I apologise for that. I will of course review the record of the debate, and if there are any outstanding questions that I have failed to answer, I shall ensure that I write to noble Lords on those issues. I thank them for raising such important points this evening.

Wales Bill

Baroness Randerson Excerpts
Wednesday 15th October 2014

(10 years, 2 months ago)

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Lord Thomas of Gresford Portrait Lord Thomas of Gresford
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I had misunderstood the basis of that committee, so I withdraw what I said first of all—that the last Labour Government addressed the Barnett formula. They clearly did not and it was a committee of this House, chaired by the noble Lord, Lord Richard, which did address it. The Government then ignored its findings. That is what I am told. I am told that there was a second committee but I am not particularly aware of it.

Where the problem really arises is that the Barnett formula is used as an excuse for the failures of the Welsh Labour Government in the fields of education and other devolved areas. They say, “We don’t get enough money”. As soon as I read of the vows given to the Scottish people by the three leaders, it seemed to me that at that moment the concept of having a formula that could apply equally in Scotland and Wales was dead because one surely has to decouple whatever funding formula eventually applies in Scotland when it exercises its powers from whatever formula happens in Wales when it exercises different and more limited powers. Accordingly, we need something specific to Wales through looking at the needs of its people as opposed simply to dividing money on a population basis.

The whole point of the social contract is that taxes are paid—not to be divided equally per head of population but so that services according to need can be paid for by the government of the day. That is the principle that must be the basis of the way in which Wales is funded in the future.

Baroness Randerson Portrait The Parliamentary Under-Secretary of State, Wales Office (Baroness Randerson) (LD)
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My Lords, as ever, a debate on the Barnett formula is interesting but I am afraid that from my perspective it is rather too well worn territory.

I start by responding to the comments of the noble Lord, Lord Wigley, in relation to the £300 million to which he referred as the funding gap identified in the Holtham report. The gap has indeed come down in size and it would be very useful to determine the current shortfall. It is particularly important to point out that when the agreement was made between Jane Hutt and the Chief Secretary to the Treasury in an exchange of letters in October 2012, it acknowledged that convergence had ceased to take place, that there was, in fact, divergence and that Welsh funding was within the region of what the Holtham report regarded as fair funding. Therefore, at the moment, there is not a major issue of unfair funding. There may be issues at the edge, but it is not a big problem at the moment, as was acknowledged by the Welsh Government. Of course, that does not solve the problem, because convergence is predicted to start again around 2018. That issue has to be addressed if the gap is not going to widen again. I agree that there is a need to deal with this in the scope of the devolution discussions because it distorts the political debate in Wales. Funding is quite simply blamed for every policy failure. Even if we take the figure of £300 million, in a budget of £15 billion, £300 million is a significant amount of money, but it is not something that could possibly be blamed for every health failure, every education failure and every social problem within Wales. It is not so massive that it is fundamental to the problems that we all acknowledge are faced in Welsh society.

The noble Lord, Lord Anderson, is absolutely right in saying that it is the funding issue that the public are interested in. They do not worry too much in general about devolution, but they are interested in fair funding. The noble Lord, Lord Anderson, referred to the Severn tolls. I look forward to our debates on that in the next Government. Whoever wins the election, there will be debates on the Severn tolls because, of course, the end of that franchise is due in the mid-years of the next Government.

I strongly welcome the acknowledgment by the noble Lord, Lord Richard, that the Labour Party did not deal with the problems of Barnett. Indeed, the Labour Party refused for 13 years to agree publicly that there was any problem with the Barnett formula and it was in those years that convergence was taking place and the funding gap was really growing. It would certainly be the case that Wales would have fewer problems now if that had not been neglected. It is my view, and the Secretary of State certainly agrees, that it is time to look at the funding formula for Wales, and it is my view that one could do this even with the constraints of the agreement that Scotland will retain its current funding. One can look at Wales on a unilateral basis.

The noble Baroness, Lady Morgan, asked me to clarify the Prime Minister’s statement. He simply restated the oft-stated government position on funding in Wales, which is that because the problem of the deficit is our priority, no additional funding can be provided within this Government. That is in no way at odds with the Secretary of State saying that the long-term funding position of Wales needs to be looked at. There is an immediate situation and a long-term situation. The noble Baroness also asked for clarification on the impact of having income tax powers on the block grant and so on and referred to the index deduction method. The purpose of the index deduction method was to protect Wales from big swings in the economy as a whole and the sort of big swings that are due to UK government policy. However, I point out yet again that the Welsh Government have acknowledged that funding is fair at this point, within the region of fairness. Given that the Welsh Government acknowledged that we were in that sort of territory two years ago, it would be a good idea to go for a referendum on income tax powers as soon as possible to give the Welsh Government the maximum opportunities to use the taxation system to increase prosperity in Wales.

I shall very briefly look at the technical details of the amendments. Amendment 56 would require the Secretary of State to lay an independent report on options to replace the Barnett formula. Amendments 59 and 60 would seek to make the devolution of an element of income tax conditional on dealing with the funding formula. They specifically say that income tax can devolve only when the Welsh Government confirm that they are content with how funds are allocated. The progress that this Government have made on working towards fair funding, with the significant exchange of letters in 2012 between the Ministers in the two Governments, can be built on. I urge the noble Lord to withdraw his amendment.

Lord Richard Portrait Lord Richard
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Can I be perfectly clear as to what the Minister has just said? As I understand it, she is saying that the fact that a vow has been given to Scotland that the Barnett formula should continue to apply there is no bar to the funding arrangements for Wales being reconsidered, and that it is the Government’s position that those funding arrangements for Wales will be reconsidered.

Baroness Randerson Portrait Baroness Randerson
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I am saying that I do not believe that it is impossible to overcome the issue of the commitments made to Scotland and that you can honour those commitments and look separately and independently at the funding for Wales. Northern Ireland is also funded via the Barnett formula but from time to time gets additional funding for specific things. I cannot see why Wales cannot be treated, as Northern Ireland is, as a separate thing, as a matter of principle. Having said that, I am simply arguing the case—it is not government policy to do that. I am firmly saying that the Secretary of State for Wales has made it absolutely clear that it is his view that fair funding needs to be looked at in the context of the devolution settlement and the discussions that are going on about it. In that case, I am confident that those discussions will encompass the issue of funding, although I cannot predict the outcome.

Lord Richard Portrait Lord Richard
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So that is government policy—what the Secretary of State said?

Baroness Randerson Portrait Baroness Randerson
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Yes, that is policy, announced by the Secretary of State for Wales.

Lord Wigley Portrait Lord Wigley
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And of course, every word uttered from the Dispatch Box is government policy, as well. What I am trying to reconcile from the Minister’s response are the comments that things are more or less right now and that there is a need to look at fair funding. There is something a little bit contradictory about that. They are not absolutely right now, or at least we do not know that they are. That is the argument in favour of having more investigation.

The Holtham methodology may or may not have been right, though it has generally been accepted that it was. That indicates there has been a closure of the gap, though there probably is still a gap, of maybe £200 million rather than £300 million to £400 million. We do not know. Taking the comments that the Minister made a moment ago in response to the noble Lord, Lord Richard, if there is a gap of £200 million which could be put right, it would bring us on to roughly what a needs-based formula would generate.

The assumption is that Holtham was looking for a communality of standards in public services in Wales, as might be expected in England. Whether it be £300 million or £400 million as it was, or £200 million as it is now, if that could happen with a one-off adjustment and by bringing in a floor and making sure that the changes—convergence or divergence—were on percentage rather than absolute terms, so that we are not missing out, we would at least have a system that would be sort of needs-based. It is not the radical needs-based formula that a lot of us are looking for, where you have determinants that generate entitlement to certain funding, but at least it would meet the Holtham assessment of the needs as he saw them at that point in time.

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Baroness Morgan of Ely Portrait Baroness Morgan of Ely
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My Lords, we have to understand what the Scotland referendum was really about. It was a cry from the people of Scotland who feel cut out of the political process. Of course, that has had an impact not just in Scotland because of the commitments that were made in the last days of the referendum, but it is having and will have an impact across the whole of the United Kingdom. It makes sense for us to place the discussion within a broader context.

We are not in favour of stopping this Bill in its tracks. A lot is in the Bill and there is a lot more to come with Silk 2. It is important that the Welsh devolution process does not stop because of a huge transformation in Scotland. However, it is worth saying that we have to think in a broader way about the constitutional arrangements of our country. What happens in Scotland is having an impact in Wales. Those commitments on Barnett are already having an impact in Wales and there is a problem if they continue to do so. We need to get the balance right and we need to have a broader discussion.

For two years the First Minister of Wales has been calling for a constitutional convention to be established where a discussion about the power relationship between Wales and the rest of the United Kingdom would be undertaken. Who would be on such a constitutional convention? Obviously there would have to be representatives from the devolved Administrations and local government representatives from England. But, crucially, we would also want to see representatives of civil society and the general public. The disconnection between politicians and the public absolutely has to be halted. We would need to work to a clear timetable. The last thing we want is a discussion that goes on for years and years without end. We would also need to think clearly about what the convention would do. We would have to define the core elements of a new constitution that would enshrine a programme of fundamental reform for the UK. The new settlement, while recognising the different circumstances of the four nations, must be based on common principles that reflect the multinational and multi-union character of our United Kingdom.

The referendum in Scotland was a wake-up call for all members of the political class. We must acknowledge the depth of disillusionment in this country and the distance that people feel from the political process. Through establishing a convention, we would have a one-off opportunity fundamentally to reform the system of governance of this country. A constitutional convention is needed and it is well overdue. We recognise, however, that the Wales Bill is not the ideal mechanism for introducing the idea of a constitutional convention, but it seems rather odd for us to be ploughing on with constitutional changes as if nothing has happened. As Carwyn Jones, the First Minister of Wales, has said, the current constitutional settlement is dead. We recognise the need and the demand for more devolution in Wales, but we need to set the whole within the broader UK framework. To proceed in isolation from the wider discussion would be to miss the opportunity to elaborate on a new vision and a constitution for this country, a constitution that would involve, include and invigorate the population so that people would feel as if they had ownership of their own country.

Baroness Randerson Portrait Baroness Randerson
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My Lords, the noble Lord, Lord Anderson, has pointed out the flaws in the devolution settlement for Wales. I say to him that I have campaigned for devolution for virtually the whole of my adult life. I have faced downright nasty opposition at worst and a lack of enthusiasm and total incomprehension at best. Long ago, I came to the conclusion that the overwhelming majority of people simply were not interested. It is a really exciting time for me because devolution is suddenly fashionable and a lot more people understand what it is about. Noble Lords will not be surprised, therefore, that I am keen to seize the moment; I am keen to get this Bill through as a basis on which we can take the next step. The Bill is a very important step forward in devolution in its own right.

Yes, there is a great deal to be said for a constitutional convention. The noble Baroness, Lady Morgan, said that the First Minister has been calling for one for two years. My party has been calling for one for 40 years. On that basis, I would argue that one should not place too much faith in the immediate production of an outcome of the concept. I agree with the noble Lord, Lord Howarth, when he says that this is something that we need to think about widely and in the long term. The message from my noble friend Lord Thomas and the noble Lord, Lord Howarth, is that, despite the great advantages of a constitutional convention, we have to get on with it now.

To the noble Lord, Lord Anderson, I say that if I accepted his amendments, it would ensure that Parts 1 to 3 of the Wales Act could be commenced only by the Assembly on a day of its choosing, but the Assembly could not decide to commence the provisions until the recommendations of a constitutional convention had been voted on by both Houses of Parliament or until the Welsh Government had implemented the Williams report. I would say that would mean a minimum of five years. My noble friend Lord Bourne, being a member of the Williams commission, assures me that that should be implemented a lot sooner, but we all know that local government reform in Wales does not prove easy. Therefore, I am not betting my political reputation on the timescale for either of those events.

The last few months have been momentous for our United Kingdom. It is now time for us to come together and move forward, but we also accept that it is not “business as usual”. The referendum in Scotland has led to a demand for reform across the UK. We now have a chance—a great opportunity—to change the way we are governed, and change it for the better. The Government have made it clear that we want a debate on how to make the United Kingdom work for all its nations. We have introduced a new devolution committee, chaired by the Leader of the Commons, to consider how we can best do this. The Wales Office is fully represented on that committee and my right honourable friend the Secretary of State for Wales is also having meetings across the parties to pursue this agenda.

We have as a Government already committed to devolving further powers to Scotland as a result of the referendum, and we will deliver on that commitment. England, Wales and Northern Ireland are now on the agenda. This is the time to put our foot on the pedal of devolution. I regret that the noble Lord’s amendments would apply the handbrake. Wales needs the powers this Bill provides now, not in several years’ time, which would be the case if the noble Lord’s amendments were accepted.

The noble Lord’s amendments would also enable the Assembly to decide the commencement of the provisions in the Bill, subject to his other conditions being met. I regret to say that they are very imprecise conditions and it would be difficult to know when they are satisfied. We will of course—this is a commitment—work with the Welsh Government and the Assembly on the commencement and implementation of the provisions in a Wales Act.

The Bill is about creating truly accountable devolved government for Wales. It is about providing the Welsh Government with the levers to grow the economy in Wales and ensuring clarity for Welsh voters when they go to vote in 2016. All these things would be prevented if commencement of the Bill was delayed in any way, including through the amendments put forward by the noble Lord. I therefore respectfully ask him to withdraw his amendment.

Lord Anderson of Swansea Portrait Lord Anderson of Swansea
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My Lords, the Minister vastly overstates her case by claiming that this Bill would lead to a truly accountable Welsh Government. If we look at this objectively, it is pretty small beer. It is a Wales (Miscellaneous Provisions) Bill. It was framed in a very different context from that which we have now, after the Scottish referendum. I assure her that the purpose of these two amendments—

Baroness Randerson Portrait Baroness Randerson
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Is the noble Lord saying that a Bill that provides fiscal accountability for the very first time for the Welsh Assembly and Welsh Government is not a big step forward? Is he saying that the provision of borrowing powers for the first time for them is not also a big step forward? Does he not accept that the devolution settlement has been sadly lacking up to now because there has not been that proper accountability and that this is a vital development?

Lord Anderson of Swansea Portrait Lord Anderson of Swansea
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I hear what the Minister says about accountability but given the relatively small changes and the small amount of money involved in these taxes which are to be transferred, I doubt that one can properly say that there is real accountability. There is considerable scepticism in the Assembly in relation to the tax powers, which may be stillborn in any event. Yes, I accept that borrowing powers are a major innovation in the Bill but these borrowing powers, albeit in diluted form, are available to local authorities in Wales in any event so why not to the National Assembly?

On the general point she made, my purpose in having this formula of,

“may not come into force until”,

was clearly only to provoke a debate. It was not intended as a freeze or delaying device. I accept that after the result of the Scottish referendum we cannot return to business as usual. Finally, I also accept the point made by my noble friend Lord Howarth that there are great problems in the concept of a constitutional convention. Even if we have the so-called constitutional experts, no doubt there will be minority opinions—as there have been on similar issues. It may be extremely difficult to find—as we saw in respect of reform of your Lordships’ House—any reasonable consensus following that.

Having provoked the debate that I set out to provoke by using the formula that, I say again, was not intended to freeze in any way the progress of the Wales (Miscellaneous Provisions) Bill, I will withdraw the amendment.

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Moved by
62: In the Title, line 3, leave out “a rate” and insert “rates”

Wales Bill

Baroness Randerson Excerpts
Wednesday 15th October 2014

(10 years, 2 months ago)

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Lord Richard Portrait Lord Richard (Lab)
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My Lords, perhaps I may say a brief word. Following the noble Lord, Lord Tyler, I should perhaps declare an interest. First, I am Welsh; secondly, I am a lawyer; and, thirdly, I am not a Methodist minister but my grandfather was, so I suppose that that qualifies me to speak on this amendment. I do so for one basic reason, which is to assure the Government that there is very warm cross-party support in the House for these amendments. When the Minister replies, I hope that we shall not hear, as we have on many occasions on the Bill so far, that this is not the right time to do it. It seems to me to be absolutely the right time to do it. Indeed, if you are looking for a better time to do it, it will be difficult to find one. With elections looming for the Assembly in 2016, it seems to me absolutely right that we should go down this route now.

The desirability of the amendments is perfectly clear. What is proposed is not based upon anything fanciful; it is based upon practical experience of the way that it has worked in Northern Ireland. There is also some evidence in the United States that this type of approach is effective, and I cannot see for the life of me any reason why it should not be introduced in Wales in time for the next election. I hope that the Minister is not going to get up and say merely that it is not the right time to do it; I believe that the House thinks that it is.

Baroness Randerson Portrait The Parliamentary Under-Secretary of State, Wales Office (Baroness Randerson) (LD)
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My Lords, there must be, and clearly is, concern across the Chamber about the low engagement of young people in particular with our democracy and with civic life. However, I have to make the point to noble Lords that registration in itself does not mean that young people vote. Experience in Northern Ireland—and, as my noble friend Lord Lexden made clear, I am very familiar with that experience—has shown that voting does not necessarily follow from registration. Therefore, I think that we have to work very hard at what is a complex issue which goes beyond simply having to ensure, quite rightly, that more people vote.

Lord Richard Portrait Lord Richard
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Before the noble Baroness leaves that point, it is perfectly true that if you register, you do not necessarily vote, but it is also true that if you do not register, you cannot vote. With great respect, we are talking here about the qualifications for voting.

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Baroness Randerson Portrait Baroness Randerson
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I think that the noble Lord misunderstood what I was saying, which was that this is a very complex problem that goes well beyond these amendments, and is one of which the Government are very well aware.

My noble friend’s Amendment 19 would impose a duty on the Secretary of State to make regulations which require government bodies to provide registration officers with personal data. Registration officers could then use this information to add people to the electoral register or make contact with them in order to obtain the necessary information. Amendment 61 is consequential on Amendment 19, and Amendment 20 inserts two new subsections into Section 9A of the Representation of the People Act 1983, in order to place duties on registration officers in Wales to ensure that they focus their registration efforts on specified groups, particularly young people, disabled people and people from certain ethnic groups.

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Lord Tyler Portrait Lord Tyler
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As my noble friend will know, I have been following the DVLA issue through the IER process for a number of years and I welcome what she has just said. But even more valuable than all these pilot studies would be to look very carefully indeed at the very recent experience in Scotland. The levels of registration, particularly among young people, exceeded anything we have seen anywhere else in the United Kingdom. One of the differences between Scotland and Northern Ireland on the one hand and England and Wales on the other is that there is greater direction in Scotland to the local electoral registration process to make sure that there is an equal quality of service at the lower level.

As I mentioned quickly in my previous remarks, I encourage the Minister and her colleagues to look very carefully indeed at the recent experience in Scotland. It is practical experience—it is not a pilot in a particular area. As the noble Lord, Lord Richard, said earlier, it gives added impetus to the suggestion that now is the right time to take a forward step in this area.

Baroness Randerson Portrait Baroness Randerson
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My noble friend makes a good point. Of course, the Electoral Commission will be doing a report on the referendum in Scotland that will cover those issues.

I recognise that there is considerable sympathy in this Chamber and beyond for the aims of Amendment 20. I assure noble Lords that I share them. However, the Government are already taking steps to increase the engagement and registration levels of traditionally underregistered groups. Five national organisations and every registration officer in Wales, as in England and Scotland, have shared £4.2 million of funding aimed at maximising the rate of voter registration as part of the transition to IER. I draw my noble friend’s attention to the fact that every electoral registration officer in Wales has received that funding—not just one. Cardiff received almost £25,000 in order to engage more with underregistered groups and Ceredigion received £4,290 in order to take that work on. The amounts given were based on a formula that related to the level of underregistration in every local authority throughout Great Britain and the number of 16 to 18 year-olds within that area specifically so that EROs could go into schools and do the engagement work that is encompassed in my noble friend’s amendment.

Perhaps I may also respond to his comment that it needs only a tick in a box—would that that were so. Unfortunately, there is a complex legal basis for voting. The form has to be set out in a particular way and it has to be of some considerable length. The tick-box would work in terms of expressing an interest in voting, but, as the noble Lord, Lord Howarth, pointed out, it means that you have to follow up on the person. It is to be hoped that if they have ticked a box, they would respond to a letter, but people often tick boxes and then do not respond to a letter, so they could well require door-to-door canvassing. Ticking a box sounds good and it works up to a point, but in itself it does not actually get anyone on to the register. Northern Ireland is indeed a case of best practice in our country. That effort was based on going into schools and getting young people to fill in paper forms. The crucial difference between Northern Ireland and the rest of the UK is that Northern Ireland has a paper-based system and we now have online electoral registration.

Perhaps I may return to the amendment. I know that the Electoral Commission sent a briefing to noble Lords setting out its view that while it strongly supports the principle of EROs working with local education establishments to encourage registration, there is no need for additional legislation to provide for this. I should point out that there is no obligation in Northern Ireland on the electoral officer to engage with schools and colleges. That work was done without any legal obligation or basis. However, in the light of concerns expressed by noble Lords and indeed in the letter referred to from the four party leaders in the Assembly, I will be happy to look at this issue again. However, I should say that registration officers already can and do visit schools, colleges and other locations in Wales in order to target under-registered groups and fantastic work is being done up and down the country by civil society organisations to find new ways of reaching a range of underregistered groups and encouraging them to register to vote. The Government are proud to fund this type of activity and I congratulate the wide range of organisations engaged in this work.

I want to make a final point about Northern Ireland in response to the comments made about the low levels of registration among young people there. Yes, the figures were woefully low in part because they had not been doing the annual canvass. That has proved to be the crucial thing. The annual canvass must be maintained alongside all the additional work. However, given that registration had fallen to very low levels in Northern Ireland, considerable remedial work needed to be done.

The noble Lord, Lord Elis-Thomas, referred to the National Assembly. The National Assembly has an excellent record in terms of its outreach work with young people. I think that at one point the Assembly was the major tourist attraction in Wales. A large number of young people come into the Assembly to learn about politics and to hear excellent debates. That is the kind of thing I was referring to in the first sentence of my response. It is about more than registration—you have to engage young people and explain why it is relevant to them.

I have already referred briefly to online registration. It brings voter registration into the 21st century and it is particularly attractive to young people because it is easier, simpler and faster. More than 410,000 applications have been made online by people aged between 16 and 24 since 1 July this year. More than 90% of the users of the system have been either satisfied or very satisfied, so it is obviously an easy system to use. The Electoral Commission has further noted that a statutory change specifically relating to electoral registration officers in Wales would be complex to manage at a time when they are dealing with things throughout the UK on IER. However, in the light of the concerns and the consensus here today, I certainly undertake that, before Report, I will discuss with the Minister for the Constitution all the issues that have been raised. I will also discuss with the Electoral Commission the issues that it put forward in its circular to all of us saying that these amendments are not necessary.

Lord Elis-Thomas Portrait Lord Elis-Thomas
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In the spirit in which the Minister has spoken, and in the spirit already referred to by colleagues of the all-party consensus emerging very strongly in the National Assembly—I draw the attention of Members of this House to the Motion that has today appeared on the Order Paper signed by the four party leaders, which will be debated in the Assembly on Tuesday—would it be possible for her to give an assurance that she will speak to the First Minister, the appropriate representatives, the Presiding Officer and so on in the National Assembly on this matter?

Baroness Randerson Portrait Baroness Randerson
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The noble Lord has anticipated my next sentence. In the light of the letter that has been received, I will, of course, liaise with Members of the National Assembly, because it is very important to ensure that their views are taken into account. In the light of these points, I urge my noble friend to withdraw the amendment.

Lord Roberts of Llandudno Portrait Lord Roberts of Llandudno
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I am most grateful to my noble friend for her full reply. I understand her reluctance, but I do not accept it and I hope that on Report we will have a very different statement from her. Perhaps I may tackle one or two matters. First, over the next four or five years, we are going to face a referendum on whether we remain in Europe. If that referendum takes place on the register as it is, then half our young people will not be eligible to take part. There will be a general election next May, and unless we move immediately—there is no time to lose—our young people will not have a voice in that election. There is no time to waste. I know that there are “t”s to cross and “i”s to dot, but there is certainly no time for anybody—including the Electoral Commission—just to hope that this will go away. It will not go away.

Secondly—this is the most important point of all—what is the relationship between the Houses of Parliament here in London and the Assembly in Cardiff? Yesterday I asked the Electoral Commission itself who has the last word: is it the civil servants or the Electoral Commission or is it the parliamentarians representing us at every level? The answer, of course, is that it is the parliamentarians. I say to my good friend here that something must be done immediately to come to an understanding. If the Assembly in Cardiff has voted 41 to a handful in favour of this, if all four leaders of the parties there have voted and written in favour of this, then unless we do something, we could well create resentment in Wales that will cause us to have another referendum, this time not in Scotland but in Wales itself. Therefore, I urge the Minister—I know she will; I know her well enough—to move in immediately and perhaps by Report give us a glimmer of light, if not a big flashlight, on this matter. I beg leave to withdraw the amendment.

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Lord Rowlands Portrait Lord Rowlands (Lab)
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My Lords, I wonder if I may briefly intervene before the Minister moves her amendments. I have a very modest amendment, Amendment 31, which has been included in this list. It addresses a completely separate point from the whole swathe of government amendments and I would suggest that we take Amendment 31 separately. I hope that that would be possible.

Baroness Randerson Portrait Baroness Randerson
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I understand the noble Lord’s point but I am intending to speak to my amendments and then give way to the noble Lord to make his points. I will then respond separately. Although it is in the same group, there will be plenty of time for us to give separate attention to the noble Lord’s amendment.

Lord Rowlands Portrait Lord Rowlands
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I appreciate the Minister’s offer but it is a very different point altogether. I think that it would disrupt the flow of the debate on the Government’s amendments if Amendment 31 was included and involved in it.

Baroness Randerson Portrait Baroness Randerson
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Following the points that the noble Lord has made, we will uncouple his amendment and have a separate debate at that point.

Amendment 24

Moved by
24: Clause 8, page 9, line 5, leave out “a rate” and insert “rates”
Baroness Randerson Portrait Baroness Randerson
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My Lords, I am delighted to be introducing this series of amendments. Concerns were raised across the Chamber at the previous stage of the Bill. The Government have listened and, as a result, have tabled the amendments that we have before us. These amendments seek to remove the lock-step from the income tax provision in Clauses 8 and 9, which has been subject to a great deal of debate during the passage of the Bill thus far.

The Bill would enable the National Assembly for Wales to set a single rate of income tax that would be applied to all three income tax bands if income tax devolution were approved in a referendum. These amendments would allow the Assembly to set separate Welsh rates for each band instead, as the Silk commission recommended. I said at Second Reading in July that the Government were prepared to revisit these arrangements, and that is what we have done. The lock-step has been debated at some length in both Houses throughout the passage of this Bill and we have listened to and reflected on the arguments that have been raised. Through these amendments, all three income tax rates would still be reduced by 10p in Wales, with the Assembly taking control of nearly half of all income tax paid as a result.

It would then be for the Assembly to set a separate Welsh rate for each band which would be added to the reduced UK rates. I believe that these amendments remove a significant barrier to devolving an element of income tax to Wales. Subject to their inclusion in the Bill, my hope is that the Welsh Government will now feel that they can call a referendum on income tax devolution as soon as possible after the Bill receives Royal Assent.

As a result of this Bill and the full devolution of business rates which we will implement next April, the Welsh Assembly will become responsible for raising around a quarter of the money it spends. By removing the lock-step, the Welsh Government now have no reason to delay a referendum. It is high time that the Assembly is given power and responsibility for raising significant amounts of its own revenue and thereby becomes more accountable to the people of Wales.

These amendments align the income tax provisions in the Bill with the Silk recommendations and show that the Government are prepared to listen to the arguments of those who disagree with us. The amendments show that we are prepared to be bold in progressing devolution in Wales. I therefore urge noble Lords to support them. I beg to move.

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Lord Howarth of Newport Portrait Lord Howarth of Newport
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My Lords, it must be right as a matter of equity that Wales should have the same powers to alter tax rates as does Scotland, but my noble friend is right to remind the House that the exercise of those powers could be a poisoned chalice. In the extremely unfortunate situation in which we find ourselves, in which the Government are pledged to retain the Barnett formula, it is very hard to foresee circumstances in which it would be in the interests of Wales to use such further devolved powers of taxation. So long as Wales gets an unjust and inadequate funding settlement from the Exchequer, not based on needs but based on population, Wales will be at a loss, and it would be very dangerous for the Government of Wales to accept that it is their job to make up the shortfall by raising tax rates in Wales. I think that that would lead to extremely unhappy long-term consequences for the economy and society of Wales.

So, although I support my noble friend in her amendment to create powers that would be comparable to the powers in Scotland, we should keep our eyes wide open as to the realities of this. I cannot foresee that, in the absence of reform of Barnett, there is going to be any possibility of a stable and acceptable new constitutional settlement for the United Kingdom. However, these are larger issues that we shall debate another day.

My noble friend is also right to remind the House that the nature of the border between Wales and England also imposes a very powerful, practical restraint on the scope for differentiating tax rates. If people who are living in Wales near the border feel themselves to be so penalised, so disadvantaged by differential tax rates in Wales as compared with England, a number of them will move their residencies across the border and that would be very detrimental to Wales. As far as I can foresee, the practicalities are pretty unattractive compared with the notional possibilities that we are discussing in this legislation.

Baroness Randerson Portrait Baroness Randerson
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Noble Lords will have noticed that the pleasant agreement and consensus across the Chamber has disappeared in the last group of amendments. I thank the noble Lord, Lord Wigley, for his speech, bearing in mind that the transfer of powers proposed in his amendments would mean Wales becoming entirely separate in taxation terms. He will not be surprised to hear me say that I am not going to accept these amendments.

However, I wish to spend some time on the speech by the noble Baroness, Lady Morgan, and to express some considerable surprise. I took the trouble to reread what she said at Second Reading. The Labour Party’s views appear—to use a colloquial phrase—to be all over the place because of the considerable gap between what the noble Baroness said at Second Reading, what she is saying now, what the First Minister of Wales has said and what the honourable Owen Smith said in the other place. Name a person, name a debate and you can have a slightly different view. In fact, there is a huge gap between one debate and another.

The principle of accountability lies behind the proposal in the Bill to devolve an element of income tax to the Welsh Assembly. The noble Baroness asked me what the reason was for the Government changing their mind on the lock-step. The reason was quite simple. People such as the First Minister said that this power was no use, therefore they could not use it. They said that the lock-step was not a good idea. We listened to people and it seems that, across parties and across the country, there has been huge support for the removal of the lock-step except now, suddenly, in the Labour Party, which had condemned the lock-step as being fatally flawed. It therefore surprises me that, when the lock-step was proposed, the Labour Party did not make clear that it was totally opposed to the devolution of income tax, rather than simply opposed to the lock-step.

I want to take up a few issues that the noble Baroness, Lady Morgan, raised. She referred to the serious erosion of local accountability. That may be the case in Wales and, if so, it is down to the Welsh Government, because they have devolved responsibility for local government. However, looking at the pattern in England, there has been a big increase in the amount of local power and local discretion for local authorities and councils in England. I agree with the noble Baroness that there has been a contrast between the two countries. In Wales, there has been a process of centralisation; in England, there has been a process of decentralisation.

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Lord Howarth of Newport Portrait Lord Howarth of Newport
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I am grateful to the Minister but does she recognise that, in the context of an unfair funding formula which simply fails to address the reality of the needs of Wales, Wales has less scope to cut taxes than other parts of the United Kingdom?

Baroness Randerson Portrait Baroness Randerson
- Hansard - -

I recognise that there is an issue with the funding formula but I think it is also possible to overestimate the level of unfairness. I believe that this week the honourable Owen Smith suggested that the gap in funding for Wales was £150 million per annum. That is a significant amount of money but in a budget of more than £15 billion it would not offer a total revolution for Wales. Nevertheless, I recognise that it is an issue that needs to be looked at in the context of other devolution discussions at the moment.

I turn to the questions asked by the noble Baroness. An impact assessment of the costs was published alongside the Wales Bill. It indicated that the estimated cost of setting up the income tax changes in Scotland was £40 million to £45 million. An updated estimate is now available of £35 million to £40 million, which is rather less than we initially thought. There has also been an updated impact assessment. The estimate of the annual running costs is £4.2 million, and that will be updated in due course.

The noble Baroness also asked whether we would agree to a Treasury impact assessment of the taxes on either side of the border. The key thing is that there are provisions in the Bill on the transparency of the whole thing and of the discussions between the parties. A joint Treasury committee has been established between the Welsh Government and the UK Government, and it is already in discussions. Welsh Ministers and UK Ministers are discussing these matters. That is the kind of detail that would flow from those discussions.

I turn now to the Labour amendment. Forgive me, but I find it quite difficult to understand the intellectual inconsistency of arguing against the removal of the lock-step, while at the same time arguing for an increase in the amount of devolved income tax from 10p to 15p. I remind noble Lords that the First Minister said on several occasions that the lock-step was an inappropriate method of dealing with income tax devolution, and that this was unusable and unworkable. He did not say that he was opposed to income tax devolution. Now, apparently, it is dangerous as a mechanism to devolve income tax and, at the same time, it is also all right to devolve 15p but not 10p.

I believe that noble Lords will be surprised that the Labour Party is having so much difficulty in coming to a firm position on this. The noble Lord, Lord Howarth, exposed one interesting piece of inside information with his use of the phrase “poisoned chalice”. He said that the devolution of income tax could be a poisoned chalice for the Labour Party in Wales. It is called “government”. I leave you with that thought.

Amendment 24 agreed.
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Lord Thomas of Gresford Portrait Lord Thomas of Gresford
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My Lords, I am most grateful to the noble Lord, Lord Rowlands, for drawing my attention to these new sections, in particular new Sections 116G and 116H. I spend around 140 days of the year here, about 60 days in my family home in Scotland and the rest of the time in Wales. On these formulae, I am not liable to pay income tax in Wales, certainly not in Scotland, and possibly not in England, if we have similar provisions. Thank you very much. Devolve away.

Baroness Randerson Portrait Baroness Randerson
- Hansard - -

My Lords, I understand that this new chapter is not the easiest read. In fact, I found it quite good for getting to sleep on one occasion. However, it is important to recognise that this is a complex issue and has a direct relationship with things such as tax law, and when you get an indirect relationship with tax law. When you get into these things, the more you think about it, the more exceptions that occur to you to be considered.

The clauses in this Bill are very closely based on those in the Scotland Act and have been subject to the whole scrutiny process in that respect. I suggest that noble Lords think about how to deal with somebody who is a lorry driver or a shift worker. Every time you set a test, you can think of exceptions. Before the noble Lord, Lord Rowlands, thinks that being a Scottish parliamentarian and a Welsh parliamentarian in the same year is unusual, may I remind him that I call this the “Keith Raffan clause”? Keith Raffan was an MP in north Wales and then almost immediately an MSP in Scotland. He moved from Wales to Scotland.

Lord Anderson of Swansea Portrait Lord Anderson of Swansea (Lab)
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Did he hold both positions in the same tax year?

Baroness Randerson Portrait Baroness Randerson
- Hansard - -

We are talking about the situation in the past. Keith Raffan moved from Wales to Scotland; he also moved from the Conservative Party to the Liberal Democrats. The whole thing is a relevant example: the thing you would imagine would never happen has already happened.

Lord Rowlands Portrait Lord Rowlands
- Hansard - - - Excerpts

I am sorry; I do not know Mr Raffan’s parliamentary history? Was Mr Raffan both a European Member and a Member of the Commons in the same tax year?

Baroness Randerson Portrait Baroness Randerson
- Hansard - -

He was an MP and an MSP in the same tax year. I am pretty certain I am right, but the principle is that he moved from Wales to Scotland, straight from one job to the other.

Lord Richard Portrait Lord Richard
- Hansard - - - Excerpts

Is it not absurd that we should be legislating in this way for one person? Is it not absolutely ludicrous? Has there been a flow of parliamentarians across the borders in this way, or is it just this one individual? The Minister, with great respect, should take these measures back and look at them again and, if she wants to, simplify them and bring them back.

Baroness Randerson Portrait Baroness Randerson
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This has been through the whole scrutiny process in relation to Scotland. If noble Lords wish to blame someone, I suggest they blame the Scots. They sat in here and in the other place and thought up a lot of complexities that had to be answered in the case of both this Bill and the Scotland Act. Just for the sake of clarification—

Lord Anderson of Swansea Portrait Lord Anderson of Swansea
- Hansard - - - Excerpts

What is the answer to the good point made by the noble Lord, Lord Wigley, that this is appropriate for an order, rather than for the face of the Bill?

Baroness Randerson Portrait Baroness Randerson
- Hansard - -

That is a perfectly valid point, but we have it here in the Bill. I am also very conscious of the fact that noble Lords constantly complain that there is not enough in the Bill and that there should be more on its face and less in orders for the sake of transparency. On this occasion, you have total transparency. There is also, of course, the argument that we are talking about tax rules for individuals. In fact, if you have more on the face of the Bill, that could be said to be easier for individual taxpayers to follow.

May I finally make it absolutely clear to noble Lords that the noble Lord’s amendment would, in fact, mean taking away the simple test—which is the test, if you have only one home, of where your closest connection is—and replacing it with everyone counting days? Counting days is one way of dealing with it but not the simplest one. For most people, the simple thing is to ask, “Where is your home?” and, “Where do you spend most of your time?”. Taking away that option and leaving everyone counting days would possibly make life much more complex.

The noble Lord, Lord Richard, asked why not just say “resident in Wales”? I think noble Lords are well aware that the concept of where your residence is has caused a number of people a lot of trouble over the years. It is really important that we have clarity and absolute rules. There should be no doubt in people’s minds as to which rules they need apply.

Lord Richard Portrait Lord Richard
- Hansard - - - Excerpts

With the greatest respect to the noble Baroness, residence is a very well known concept in tax law. If you talk to taxpayers, particularly in areas such as the City of London, they know what their residence qualification is. They know that they have to establish a certain residence and that it is on the basis of where that residence is that they pay their tax. That is a much simpler concept than this.

Baroness Randerson Portrait Baroness Randerson
- Hansard - -

These rules flesh out what the term “residence” means in tax rules in relation to Wales. I hope noble Lords will accept that although the rules may not make pretty reading, they are workmanlike and, despite their complexity, they are clear, unambiguous and easy for people to follow.

Lord Rowlands Portrait Lord Rowlands
- Hansard - - - Excerpts

I find it difficult to believe that they are very easy to follow. I also do not believe that there is clarity here: there is a lot of confusion. I am delighted that the noble Lord, Lord Thomas, will become completely tax-free as a result of the other provisions in the Bill. What we are trying to show and expose is that we are getting fed up with the way in which Bills are drafted in this kind of way. The constant cross-referencing makes it almost impossible for a Member of Parliament or Member of this House to follow the Bill as closely as he or she would want. This amendment was tabled to cause this debate and I have no intention of forcing it to a vote because, of course, in the process I would take out other parts of the Bill that I would support. I hope that, if nothing else, when Ministers go away and talk to parliamentary draftsmen, they will say that there is great and bitter agitation against this type of drafting and legislation. If nothing else, this debate would then have served a purpose. I beg leave to withdraw my amendment.

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Moved by
32: Clause 8, page 12, line 1, leave out first “the” and insert “a”
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Moved by
39: Clause 9, page 13, line 36, at end insert “for the purpose of calculating the Welsh basic rate, the Welsh higher rate or the Welsh additional rate (as the case may be)”
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I think the Minister deliberately misunderstood part of my last intervention. Our interest in the Labour Party is in doing what is the best for Wales. We are not necessarily opposed to lock-step; we simply say that we have to proceed with extreme caution. We would abstain, if pushed, as we did in the Commons. We are simply saying be careful, this is a slippery slope and you have to do this in the context of the broader UK discussion. The second lock we would want to look at is to allow for a system that would ensure that there would be no change in terms of income tax powers unless and until we could be assured that Wales would not be worse off. We want to see a period of assignment to carry out an assessment to see what the real costs and benefits are to Wales of the introduction of income tax. The third lock, of course, is the one to which my noble friend referred just now—a fair funding mechanism for Wales. Until everybody understands that Wales is being short-changed by Barnett and something is done about it, it would be a very unpopular move in Wales in the long term—we would be locked into a system where we were permanently disadvantaged. I am sure that we will come on to this later in the debate.
Baroness Randerson Portrait Baroness Randerson
- Hansard - -

I thank noble Lords for their contributions to this debate. The Government have been consistently clear that the decision on whether to trigger a referendum on the devolution of income tax is a matter for the Assembly and the Welsh Government. I say that in response to the noble Lord, Lord Elystan-Morgan. Clause 13 empowers the Assembly to trigger a referendum to ask the electorate in Wales whether they want some of their income tax to be devolved. The Government agree with the Silk commission that the 2011 referendum on full lawmaking powers for the Assembly provides the best model for conducting such a referendum. Clause 13 replicates for the most part Section 104 of the Government of Wales Act. The clause provides for the Welsh Government to move a resolution in the Assembly to trigger a referendum. If the Assembly passes the resolution by a two-thirds majority, the First Minister must ensure that notice of the resolution is given in writing to the Secretary of State. The Secretary of State or the Lord President must lay a draft order before Parliament within 180 days. I refer the noble Lords, Lord Wigley and Lord Elis-Thomas, to Clause 13(3)(a) and (b) on page 18 of the Bill:

“the Secretary of State or the Lord President of the Council must lay a draft of a statutory instrument … the Secretary of State must give notice in writing to the First Minister of the refusal to lay a draft”.

The first thing I asked when I read the Bill was, “In what circumstances could the Secretary of State refuse?”. I was advised that the only sorts of grounds on which a Secretary of State could refuse would be where there was genuine doubt about the procedures of the Assembly that led to the two-thirds majority being obtained or whether it had been obtained.

Lord Wigley Portrait Lord Wigley
- Hansard - - - Excerpts

Where in the Bill does it say that those are the only circumstances in which the Secretary of State can refuse to do so? Why must it take up to 180 days for such a decision to be taken?

Baroness Randerson Portrait Baroness Randerson
- Hansard - -

The Bill does not give those reasons. The legal advice I was given related to tried-and-tested constitutional principles. Dare I say it, the noble Lord is now asking for more to go into the Bill and in the previous debate he was asking for it to be reduced.

Baroness Randerson Portrait Baroness Randerson
- Hansard - -

I will just answer the noble Lord’s intervention and then I will certainly give way.

The noble Lord, Lord Wigley, asked, both in his speech and just now, about the 180 days. I remind noble Lords that the previous referendum in 2011 took 246 days, albeit with the intervention of a general election—but we have them quite regularly. It could be that another referendum would be interrupted in such a way. I am sure that the noble Lord, Lord Elis-Thomas, recalls that there was a tremendous scramble to make that timetable of 246 days. Our 180 days is therefore an amendment to take account of experience. I reassure the noble Lord that it is a limit, not a target.

Lord Elystan-Morgan Portrait Lord Elystan-Morgan
- Hansard - - - Excerpts

With great respect, I wholeheartedly agree with the noble Baroness that that is the only circumstance in which there could be any dubiety at all. My question is not irrelevant: who decides? Is it the Secretary of State who decides whether there has been a valid two-thirds majority, or it is the courts?

Baroness Randerson Portrait Baroness Randerson
- Hansard - -

That would depend on the circumstances, would it not? Someone may wish to test such a matter before the courts; I speculate here, but there might be objections lodged by certain Assembly Members. I emphasise to noble Lords that the driving seat is occupied by the Assembly in this process.

Lord Elis-Thomas Portrait Lord Elis-Thomas
- Hansard - - - Excerpts

I will not pursue this matter, but I tell the Minister that if she has been given legal advice that procedures of the Assembly are in doubt, she must know that those matters are for the Presiding Officer and the Assembly itself, and must be so.

Baroness Randerson Portrait Baroness Randerson
- Hansard - -

That is exactly the view of the Government. The Assembly, as I have just said, is in the driving seat in this process.

I resume my response to the initial speeches in this debate. I point out that by opposing the question that the clause should stand part of the Bill and through Amendments 41 to 45, 47 and 48, noble Lords are of course seeking to remove important parts of a tried-and-tested mechanism which was recommended by the Silk commission. Silk is the basis of consensus. The noble Lord, Lord Elis-Thomas, referred to the importance of agreement, and so on, and the characterisation of consensus as something that the Assembly has sought on many occasions. Silk is the basis of the consensus behind the Bill. I ask noble Lords to recognise that we sometimes need a bit of choreography in order to maintain unity. That means that there has to be agreement to work in unison, although it may not always be exactly what we would prefer at any one time.

Amendments 41 to 45 would remove the need for Parliament to approve the draft order that sets out how a referendum is to be conducted, and the right of the Secretary of State to consult before such an order is laid. I repeat that all this is based on the experience of the 2011 referendum for lawmaking powers. It is the mechanism that has been agreed.

Through Amendments 47 and 48, noble Lords are seeking to provide a mechanism by which the Assembly could resolve to commence income tax provisions in this Bill without a referendum. I realise that there are those who do not believe that a referendum is necessary, but I recognise entirely the arguments put forward by the noble Baroness, Lady Morgan, that the original referendum did not include a tax question. It is therefore important that people are engaged in this debate and given the opportunity to make their voice heard. It is a fundamental, far-reaching issue and therefore the people of Wales need to be consulted.

The noble Baroness, Lady Morgan, was concerned that I had deliberately misunderstood her, which I find a distressing accusation. I invite the noble Baroness to reread what she said earlier in the debate; she might then understand why it is possible to have misunderstood her.

I therefore ask the noble Lord, Lord Wigley, to withdraw the amendment, and not to oppose the question that Clause 13 stand part of the Bill.

Lord Wigley Portrait Lord Wigley
- Hansard - - - Excerpts

My Lords, I am grateful to every noble Lord who has taken part in this debate and to the Minister for her response. There has been clarification on some points, such as the 180 days and so on, which is useful.

There is, however, a central point here: whether or not this House trusts the National Assembly for Wales, the elected parliament of Wales, to take decisions such as this. I have every faith in its Members that, if there is doubt as to whether they can carry the people of Wales with them in their decision within the Assembly, they know that they may need to revert to a referendum. Of course, they have as much intelligence to provide that as we do in this House.

Wales Bill

Baroness Randerson Excerpts
Monday 13th October 2014

(10 years, 2 months ago)

Lords Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Lord Rowlands Portrait Lord Rowlands
- Hansard - - - Excerpts

I am not altogether certain that that would happen. There is some indication that if the polls were on the same day, people would vote for the local Assembly Member from one party and for another at United Kingdom level. But if you talk about a mandate, it is always better to have two-thirds of the electorate giving you the mandate than 40%. I am not disputing that it is obviously the wish of everyone in Cardiff to separate the elections, but we should take account of the fact that turnout is important. There is no doubt that there is a big difference at the moment between turnout in National Assembly elections and turnout in UK elections.

Baroness Randerson Portrait The Parliamentary Under-Secretary of State, Wales Office (Baroness Randerson)
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My Lords, I thank noble Lords for their participation in this section of the debate. Amendment 4, proposed by the noble Baronesses, Lady Morgan and Lady Gale, would give the Assembly the power to decide, by resolution, when Assembly elections are held. It would give the Assembly a wide degree of discretion to determine the date of Assembly elections, which is something that the noble Lord, Lord Richard, raised concerns about. We might all be rather worried about that issue because it has such a wide scope. By a simple majority, the Assembly would be able to vote for a change to the length of its terms. Such a power would go beyond that given to other devolved legislatures, which do not have the freedom to vary the length of their terms.

The Government believe that the devolution of further powers to the Assembly, such as this, cannot be undertaken in a piecemeal fashion. Once again, this is an issue that is better discussed and considered in a wider context of other changes to the Welsh devolution settlement arising from the Silk recommendations. It is a fundamental change, as has been said today, to devolve to the Assembly competence over its elections, and it would undoubtedly have knock-on effects on UK government elections. The noble Lord, Lord Rowlands, made the very good point that you would get a higher turnout by holding those two elections in coincidence. I do not think, however, that that would be desirable because it is undoubtedly true that the media in Wales are not strong enough to lead a debate on Welsh issues that is not overshadowed, at the time of the general election, by UK issues.

Amendment 5 seeks to preclude an ordinary general election to the National Assembly being held within 355 days of the UK general election. As I have said, I fully agree with the sentiment behind this, that these should be distinct and separate events. I share the concerns of the noble Lord and the Assembly that holding those elections on the same day would not give electors a clear view of Welsh issues. The Fixed-term Parliaments Act 2011 changed the length of term of the current Assembly to five years on a one-off basis. Without further provision, the Assembly will return to four-year terms thereafter.

Clause 1, however, already provides for five-year terms in perpetuity for the Assembly’s general elections from 2016 onwards. It already does this without the need for further amendment, making it very unlikely that the Assembly general elections and parliamentary general elections will coincide in future. I am sure that the noble Lord will welcome this, and I thank him for his explanation for including his amendment. I believe, however, that the provisions already included in the Bill will go as far as is necessary to ensure that Assembly elections and parliamentary elections do not coincide.

In response to the noble Baroness, Lady Morgan, I point out that the Assembly agreed to the change of date of the elections. This is not something that has simply been visited upon it: it has agreed to it. I welcome once again the conversion of the Labour Party to the idea that the Assembly should have the freedom to do such things as deciding its own elections. It is important in that context that we note that views on devolution are changing fast in some quarters, and it is important that there is public debate as to what additional powers are devolved to the Assembly.

On that basis, I respectfully request that the noble Baroness withdraws her amendment and that the noble Lord does not press his.

Baroness Morgan of Ely Portrait Baroness Morgan of Ely
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I thank those who have participated in this debate. I stand by the principle that it should be up to the Assembly to determine when its election should be. The points made by the noble Lord, Lord Wigley, about discussion of the Welsh election being drowned out, are valid, but the points made by the noble Lord, Lord Rowlands, about turnout probably increasing significantly if the elections were held on the same day are also worthy of consideration. Ultimately, however, it should be up to the Assembly to decide. I understand the point that the noble Lord, Lord Richard, made on tightening up the wording of the amendment. It is a lot better than the one they had in the Commons, in which there was no mention at all of when the Assembly should have elections; it could have gone on for ever without any. We have improved on that.

The Minister also talked about this being a fundamental change. I think there are fundamental changes going on at the moment, and so we need to make sure that we keep perspective and an open mind on some of these issues. On that note, I beg leave to withdraw my amendment and to suggest that it could be returned to on Report.

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This debate has shown clearly that there is consensus on having an increased number of Assembly Members, so that they can deal effectively with the new responsibilities and hold the Executive to account. I am sure that there will be further debate, not just in your Lordships’ House, before there is a clear decision on how many Members there should be and by what method of election. But one thing is clear: there is general agreement that the number of Assembly Members should be increased. I am looking forward to further debate as we take the Bill through the House.
Baroness Randerson Portrait Baroness Randerson
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Thank you, my Lords, for that interesting debate. I have grasped the picture. There is a cross-party and no-party agreement here today. Noble Lords want the Assembly to have more Members but also have very different views on how many more Members there should be, how that process of enlargement should happen and how they should be elected.

I welcome again the conversion of the Labour Party to the cause of having more Members. If we go back to the days—10 years ago—when the noble Lord, Lord Richard, suggested having 80 Members, that was not acceptable to the Labour Government then, so I am delighted that we are now reaching agreement on this. However, I have to point out that, although we as politicians here think that what is needed is more Members for the Assembly, I fear that if we asked the general public they would not produce the same answer. Asking for more politicians is not going to be an easy thing, particularly when the public view of politics and politicians is at a pretty low ebb across all parties.

Lord Thomas of Gresford Portrait Lord Thomas of Gresford
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The deal in Scotland was that it had primary legislative powers and therefore the number of Members was reduced from 72 to 59. The people of Wales have spoken. They have had a referendum in which they have provided that Wales should have primary legislative powers and those have been given. Why should the people of Wales object to a reduction in numbers of MPs and an increase in numbers of Members of the Assembly?

Baroness Randerson Portrait Baroness Randerson
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The noble Lord makes an excellent point and anticipates part of my speech. There is an issue of ensuring that if the Assembly is to have more Members, and that is to have broad public support, it needs to be done either when there is a reduction in the number of Welsh MPs, as was referred to earlier, or there is a reorganisation of local government in Wales, when I anticipate that there would be a reduction in the number of councillors.

In the mean time, there is an important public debate to be had and an argument to be made by civil society. I am aware that a large number of organisations within civil society in Wales share the views that noble Lords have expressed today. There is an engagement with politics that these things should be done by civil society in order to ensure that any arguments on them are put forward with force and relevance for the people of Wales.

I am grateful to the noble Lords whose amendments have enabled this debate. Amendments 6, 9 and 11, and Amendment 14 in the name of the noble Lord, Lord Anderson, have formed a useful group and theme. Amendments 6 and 9 require the Secretary of State to introduce a Bill to increase the size of the Assembly to at least 80 Members—in the case of Amendment 6, from 2016. Amendment 9 provides that responsibility for deciding the number of Assembly Members should be devolved to the Assembly. Any subsequent change to the number of Members must be approved by a two-thirds majority.

We recognise in government the legitimate concerns about whether the Assembly has sufficient numbers to provide Ministers and the scrutiny that government through the committee system in the Assembly requires. This has been discussed since at least the time of the Richard commission and I pay tribute to the noble Lord, Lord Richard, on this issue. More recently, the Silk commission recommended in its second report increasing the number of Assembly Members, although it did not go into the detail of suggesting a number.

Lord Elystan-Morgan Portrait Lord Elystan-Morgan
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The Silk commission was not allowed to consider the matter. With rather restrained mischief it made the point that there should be an increase. It produced this memorable line, which introduces a point that has not been considered in this debate. It said: good scrutiny leads to good legislation and good legislation pays for itself.

Baroness Randerson Portrait Baroness Randerson
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I think that it was not a case of the Silk commission not being allowed to consider the matter; the issue was that this was not within the specific remit of the commission. It was certainly something that it considered and discussed, and on which it made a recommendation.

While all of us here today seem to have an agreement that there is an issue to be considered, the First Minister confirmed in his evidence to the Welsh Affairs Committee in the pre-legislative scrutiny of the draft Bill that the Assembly could undoubtedly cope with all its new powers with the 60 Members. Reference has been made to the Presiding Officer’s views. I think that it would be useful if the Assembly itself considered this issue.

Lord Elis-Thomas Portrait Lord Elis-Thomas
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I would counsel the Minister not to quote the First Minister or any first minister in any legislature as the authority on scrutiny.

Baroness Randerson Portrait Baroness Randerson
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The noble Lord makes a very good point.

The size of the Assembly is a vital issue that goes to the heart of democracy in Wales and the inter-relationship between the legislature and the Executive. The key issue—the noble Lord has just drawn our attention to it—is that with a small Opposition, particularly in the case of a coalition, scrutiny is very difficult. The noble Lord, Lord Anderson, said that everyone has a job. The problem is that everyone has two or three jobs in the Assembly, so the difficulty is with Assembly Members being busy. MPs and your Lordships are busy too, but Assembly Members are spreading themselves across several subjects and committees, which makes it difficult to establish expertise. This is a live issue. It needs to be considered as part of the Silk 2 recommendations and after the appropriate level of public debate.

A recent Electoral Reform Society report found that nearly 80% of Assembly Members believed that changes should be made to the way in which plenary time is used within the Assembly, with a view to making the time that they have available more effective. I am sure that that will have been considered within the Assembly at various times. As our debate today has demonstrated, this is a complex issue with a number of strands of opinion.

I wish now to turn to Amendments 11 and 14. Amendment 11, in the name of my noble friend Lady Humphreys, specifies that from 2021 the Assembly should be elected via the single transferable vote system. That would bring greater proportionality than the current system. We have discussed proportionality this evening. It would replace the current mix of first past the post and the proportional system that we have in the Assembly at the moment. Although we have an element of proportionality in the Assembly, it is not complete proportionality. A change in the electoral system is once again properly the domain of manifestos. I would also like to note a recommendation by the Richard commission report that was accepted at the time by several of the parties in the Assembly but has not been implemented.

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Lord Anderson of Swansea Portrait Lord Anderson of Swansea
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That was by chance and by choice of the parties rather than by statute.

Baroness Randerson Portrait Baroness Randerson
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The noble Lord is seeking to guarantee that gender balance. I am normally very supportive of any initiative that increases the number of female elected Members but, as the noble Baroness, Lady Gale, indicated, there would be an element of controversy. For example, if a female was elected as one of the Members and a male as the other Member, but the second male, shall we say, on the list had more votes than the winning female, or vice versa, there would be local controversy.

However, the main concern with this proposal is that it would reduce the element of proportionality. The offer of proportionality was intrinsic when Welsh people accepted the Assembly in the referendum. It was an integral part of what was offered.

The interlinked issues of the right number of Assembly Members, the optimum balance between constituency and regional Members and the system used to elect them need to be considered as part of the further step forward in devolution in Wales. If there are to be profound changes, there needs to be wider consultation. I know I will disappoint many Members when I say that I do not believe that the thinking behind these amendments is sufficiently mature for me to accept any of them. There needs to be further debate.

Lord Richard Portrait Lord Richard
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Can the Minister go this far and say that the Government would accept in principle that the Assembly needs more Members?

Baroness Randerson Portrait Baroness Randerson
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I can certainly undertake to relay the points of view put forward this evening within government discussions on the future of devolution in Wales. I understand that there are very clear and strong views. Although I cannot promise action on this issue in this Bill, I can guarantee that I will ensure that the views are widely known within government. I fully understand the issues that have been raised.

Lord Elis-Thomas Portrait Lord Elis-Thomas
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That means that we go into the 2016 election without an increase in Members.

Baroness Randerson Portrait Baroness Randerson
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The noble Lord is possibly being a little on the cautious side in his estimate of how fast a future Government could produce a further devolution settlement. I cannot give any guarantees about anything that a future Government might do, but if this debate is taken forward and undertaken rigorously within Wales within the next few months, and if parties put something in their manifesto on the increase in the size of the Assembly that they believe is required, we can have a debate on the future shape of devolution during the general election that would enable a future Government to take this forward with considerable speed. I regret that there are a number of “ifs” in that answer, but there is no need for the noble Lord to despair of the outcome.

This debate must continue. It must include civil society and seek to engage the general public if the Assembly is to change as a result of the further devolution of powers so that there can be more Assembly Members. I hope the noble Lord will withdraw his amendment.

Lord Rowe-Beddoe Portrait Lord Rowe-Beddoe
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I thank the Minister for her reply and her summing up of a very interesting debate. I am still most concerned that devolved power as contained in this Bill will become law and more money will be devolved, more capital will go down, more tax-raising powers will come along and there will still not be a resolution for scrutiny. I listened very carefully to what the Minister said in her concluding remarks. I hope the Government understand that it is inextricably linked. I beg leave to withdraw the amendment.

Amendment 6 withdrawn.

House resumed. Committee to begin again not before 8.25 pm.

Wales Bill

Baroness Randerson Excerpts
Monday 13th October 2014

(10 years, 2 months ago)

Lords Chamber
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Lord Elis-Thomas Portrait Lord Elis-Thomas (PC)
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Amendment 10, which is in the name of my noble friend Lord Wigley, my parliamentary leader, and myself, is drafted again with the support of the Electoral Reform Society Cymru, which has been widely trailed in this debate and which I am sure it appreciates. This is to find a way of ensuring that the electoral system of the National Assembly is determined by the Assembly itself. The Order in Council procedure would enable both Houses to debate this matter before the transfer of functions of responsibility happen.

As in our earlier amendment, this amendment would ensure that there would have to be a two-thirds majority of voting Assembly Members. I take advantage of this amendment to impress on the Government that there are more checks and balances in the regulation of democracy which can be established for a democratic body in terms of its autonomous function. The idea that legislation for elections can be regulated only by Westminster fails to recognise the importance of the two-thirds majority principle, which we have established significantly in the constitution of Wales over the past 15 years.

Baroness Randerson Portrait The Parliamentary Under-Secretary of State, Wales Office (Baroness Randerson)
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My Lords, I thank the noble Lords, Lord Anderson, Lord Wigley and Lord Elis-Thomas, for tabling these amendments. I begin by discussing Amendment 7, which provides that the electoral provisions in the Bill should not be implemented until the Assembly has agreed them. Let us look at the electoral provisions in the Bill. The majority of the electoral proposals are widely supported within the Assembly. As I said earlier, the initial move to a five-year fixed term for the Assembly, set out in the Fixed-term Parliaments Act 2011, came about as a result of a vote in the Assembly. In the Government’s subsequent consultation on a permanent move to five-year fixed terms, there was also unanimous support from the parties in the Assembly for such a move.

The consultation also showed widespread support in the Assembly for the move to ban MPs from also sitting as Assembly Members, although the Welsh Government did not believe that there was currently a need for legislation on this. The Government consulted on these changes. We listened to the views of those who responded and included these provisions in a draft Bill, which was subject to extensive scrutiny by the House of Commons Welsh Affairs Committee. Therefore, the Assembly has had the opportunity to express its views even though I freely accept that it falls short of the legal obligation that the noble Lords are seeking.

Amendments 8 and 10 would require the Secretary of State to publish draft orders within six months of the passing of the Bill, for the approval of both Houses of Parliament, to provide for the transfer of responsibility for elections to the National Assembly for Wales. It is worth noting that the Silk commission did not make recommendations in relation to Assembly elections in its part 2 report. I also note that wholesale transfer of responsibility for elections has not been devolved under any of the devolution settlements. Therefore, at this moment the Bill is probably not the appropriate vehicle for making such a transfer on a piecemeal basis for only one part of the UK, at a time when a wholesale look is being taken at the whole shape of devolution. If there were not work going on in the Cabinet committee at this time, it would be a more appealing argument. Having said that, I go back to the point I made right at the beginning of my responses: this is a response to the provisions of the Silk 1 report in large part and the Green Paper.

Lord Wigley Portrait Lord Wigley
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The noble Baroness refers to this being a piecemeal approach, which is apparently not appropriate. Would she therefore use the same principle that, when there are devolution proposals for Scotland, they would not be regarded as piecemeal but rolled out for Wales and Northern Ireland also?

Baroness Randerson Portrait Baroness Randerson
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They are being looked at in the context of Wales and Northern Ireland, yes. Piecemeal means something different from having solutions that suit the individual countries. Piecemeal is when you pick one thing off at a time without looking at the situation in the round. There are some areas where I would fully agree that the situation is very different from one country to another, and it is appropriate that we respond in different ways. There are other things, such as the conduct of elections, where one needs to look in the round at all three countries and see whether one can have a comprehensive approach—the kind of comprehensive look that my noble friend Lord Thomas referred to earlier—to devolution.

The Bill provides for a referendum to be held on the devolution of a portion of income tax, among other things, and ensures that the decision of when and whether to hold this referendum is in the hands of the Assembly. It is important to point out that issues such as referendums obviously have an impact across the UK and need to be properly considered by not only the Assembly but Peers and MPs. In devolved areas there is already provision in Section 64 of the Government of Wales Act 2006 for Welsh Ministers to hold a poll in all or part of Wales to determine how any of their functions should be exercised.

I hope that the work of the Cabinet committee on devolution will result in a less piecemeal approach to devolution in the UK, and I point out to noble Lords that the Secretary of State is working across the parties in Wales to achieve consensus on a more robust settlement for Wales.

The amendments, if accepted, would represent a fundamental change to the devolution settlement in Wales. It is therefore important that they are considered in the context of party manifestos for the 2015 general election, and I therefore ask noble Lords not to press their amendments.

Lord Anderson of Swansea Portrait Lord Anderson of Swansea
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It is contended that this is a piecemeal approach and “not appropriate at the moment”. Frankly, the whole Bill is a piecemeal approach. The whole process of devolution has been piecemeal. Who can doubt that, following the result of the Scottish referendum, we are now in a new era? Everything has to be looked at again and this has necessarily to be piecemeal. I would not dismiss this sensible suggestion by suggesting that it is just piecemeal.

Baroness Randerson Portrait Baroness Randerson
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My Lords, does the noble Lord consider that it is a sensible approach to say that the Bill, which for the first time introduces an important new principle of fiscal responsibility for the Assembly as well as borrowing powers, should be abandoned and we should go back to where we are?

Lord Anderson of Swansea Portrait Lord Anderson of Swansea
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I have not argued for a freeze or for abandonment. I am suggesting that we are in a new era following a new context and that that context means we are indeed moving piecemeal, bit by bit. So far as “piecemeal” is concerned, I made the point in an earlier debate: what about local government? Surely it is because there is some relation to local government that we have decided to move in a piecemeal manner. Also, it is contended that “it is not appropriate at the moment”, which begs the question: when will it be appropriate? Why should not Wales be different? Scotland has been different for some time. This is an area where Wales could be different. In my judgment, it should be a matter not just of good practice that the Wales Office chooses in its generosity to consult the Assembly on such matters: it should be a matter of law.

Once upon a time I was a civil servant and I could, if asked, choose 1,001 ways of dismissing something. I fear that there must be a lexicon in Whitehall from which people draw from time to time. We have managed to use two of those phrases from the lexicon: “it is not appropriate” and “it is not appropriate at the moment”. That is not good enough. Nevertheless, in the circumstances, I beg leave to withdraw the amendment.

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Lord Berkeley of Knighton Portrait Lord Berkeley of Knighton (CB)
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My Lords, we live in an ever changing world. One thinks back over the last year and the issues that we have debated in this House, be it assisted dying or gay marriage, and it is clear that we live in a world that is changing very fast. What do we want of young people? Do we want passion? Do we want interest? Do we want commitment? If we want those things, the way to get them is to reward them with our confidence. I have worked in schools where I have seen members of orchestras who are suddenly given an extraordinary responsibility to their colleagues: they have, if you like, to play as a team. This is also true of sport.

I have no doubt that many 16 and 17 year-olds want this responsibility. It helps them to grow up, to mature. I say to those who suggest that there are many who are irresponsible—of course there are; that is true of any age group, as we have heard—that I agree with what the noble Lord, Lord Rennard, just implied, which is that those who are really irresponsible and not very interested simply will not bother to vote. We are talking about those who are interested, and possibly about making those who might be interested more interested, so I wholeheartedly support this amendment.

Baroness Randerson Portrait Baroness Randerson
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My Lords, I am very grateful for the contributions to this debate. Amendments 12 and 46 in the name of my noble friends Lord Tyler and Lord Thomas of Gresford, and Amendment 18 in the name of the noble Baronesses, Lady Gale and Lady Morgan of Ely, would reduce the age of voting in an election to the National Assembly for Wales, and any referendum held under Clause 12, from 18 to 16. I thank noble Lords for a really interesting debate on an important issue which has certainly captured the public’s imagination, particularly that of young people. The passion when my noble friend Lord Tyler spoke was very appropriate to the topic because it has aroused so much interest and it has, more or less, come from nowhere in terms of public awareness and debate. It might not have engaged members of the public very much but Members in both this House and the other place have strongly held views on this issue. We have had agreement here this evening but there was a Backbench Business Committee debate in the other place in January of this year, which aired the often opposing views on this issue.

Amendments 12 and 18 would apply only to elections to the Assembly. I am aware that my noble friend Lord Tyler currently has a Private Member’s Bill before this House, which would apply these provisions to the whole of the UK. I commend him for adjusting his amendments for Wales to ensure that they are within scope of this Bill. Labour’s Amendment 18 also attempts to introduce a voting age of 16 but it is technically deficient because it refers to parish elections in Wales. Of course, we do not have parish elections in Wales but community council elections.

Amendment 46, in the name of my noble friends Lord Tyler and Lord Thomas of Gresford, provides for voting by 16 and 17 year-olds in a referendum held under Clause 12 on devolving powers over income tax to the Assembly. The events in the recent referendum in Scotland are obviously of intrinsic importance here. A consensus appears to have developed within the Scottish Parliament, across parties, that the voting experiment was a success and should be continued. There is interesting work to be done in assessing the lessons of including 16 and 17 year-olds in that referendum. The Electoral Commission is undertaking work at this moment and will be producing a report which will deal with this as part of its coverage of the referendum.

The Government are committed to increasing democratic engagement and registration across the UK. They are very much at one with, for example, the noble Lord, Lord Berkeley, on the importance of systems of education which encourage young people to be responsible and take an active part in civic life. As someone who has spoken often over the years on the issue of votes at 16, I think that the fears of people who oppose it are that 16 year-olds might vote in strangely different ways. Actually, the Scottish referendum showed that 16 and 17 year-olds vote very much in the same pattern as older people. There is certainly a fascinating and probably a very vigorous debate to be had and I hope that that public debate will take place, above all by including young people. It should be a debate including young people rather than about young people. That is the key thing for the future.

Ideas are moving fast and I find it heartwarming to hear reports of so much support for ideas which I have spoken about over many years. I have been disappointed only on occasions that young people have lacked confidence in their ability to participate, but the important thing that my noble friend Lord Tyler pointed out is that young people can be brought along with the voting process more easily. The word he used was “mobilised”. They are often still in education and usually living at home. They are therefore easily accessible for people campaigning in elections.

Having said all that, I shall say what I say every time: this is clearly not an issue for this Bill and I will listen with interest to the debate in future. I urge the noble Lord to withdraw his amendment.

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Lord Thomas of Gresford Portrait Lord Thomas of Gresford
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I believe that the territorials and special police are not disqualified.

Baroness Randerson Portrait Baroness Randerson
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My Lords, I have been very interested in the debate on these amendments. Amendment 13 in the name of my noble friend Lord German would reduce to six the number of candidates on the regional list at an Assembly election and ensure that the names appeared on the ballot paper. The Government of Wales Act 2006 provides that a political party may put up no more than 12 candidates. As my noble friend explained, until the 2011 Assembly election the names of all regional candidates appeared. However, in its report on the 2007 Assembly election, the Electoral Commission noted that returning officers were becoming increasingly concerned with the size of ballot papers due to having to list up to 12 candidates. As a result, no names of regional candidates were displayed in 2011.

I sympathise with the noble Lord’s concerns, which were widely shared across parties at the time. Because of this, following the election, the Electoral Commission committed to consulting on the issue of including names on regional ballot papers once more with a view to providing a recommendation to the Secretary of State for Wales. This consultation is currently under way and is due to report before the end of the year. I concur with my noble friend that it is perhaps surprising that it has slipped so late in this electoral cycle. Once the commission has reported, however, the Wales Office will, together with the Welsh Government, political parties and electoral administrators in Wales, consider the recommendations for inclusion in the conduct order for the next Assembly elections in 2016. That order will, of course, be subject to the approval of both Houses of Parliament.

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Lord Wigley Portrait Lord Wigley
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My Lords, many of us campaigned for a Parliament for Wales for many years and in that context, obviously, the ambitions for a legislative body that has full competence, including tax raising and tax varying, fits with the concept of a Parliament.

The one point that I would make—and undoubtedly the noble Lord, Lord Elystan-Morgan, has thought about it—is that the building in Cardiff is now known as a Senedd, which makes it even more complex, with the differential between the Senedd building and the Cynulliad Cenedlaethol or National Assembly that is within it. We are of course aware that in France the National Assembly is the primary body. Therefore, my feeling is that whereas I have total sympathy with what my noble friend is aiming at, perhaps this, like so many other issues, is one that in the first place the National Assembly itself and its Members should decide on.

Changes have been made, as has been referred to earlier today, with regard to moving from the First Secretary to the First Minister and from secretaries to Ministers; something that was picked up by custom and practice in the first place and then became accepted. I hope that if there is to be a move in this direction it is by the initiative of the Members of the National Assembly itself. What is most important—I am sure that the noble Lord would agree—is the powers and functions that that body has to serve the people of Wales.

Baroness Randerson Portrait Baroness Randerson
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My Lords, I thank the noble Lord, Lord Elystan-Morgan, for his amendment, which seeks to change the name of the National Assembly for Wales to the Welsh Parliament. Clause 4 of the Bill does amend the statutory title of the Welsh Assembly Government to Welsh Government. Since law-making powers were devolved to the Assembly in 2011, the Government have almost universally been referred to simply as the Welsh Government. Our clause reflects that reality. The same is not the case for the National Assembly for Wales, which is still commonly known as the National Assembly, the Welsh Assembly or the Assembly.

My view is that, once the Assembly has the powers of a Parliament, it should be called one. At the moment that is not the case. It is, however, worth pointing out that there are several national legislatures called assemblies. There is the Assemblée Nationale in France, the Quebec Assembly and the South African Assembly. So there is a swap-over in the use of the words.

Honourable Members will be aware that the Silk commission recommended that if the Assembly wishes to change its name to the Welsh Parliament, this should be respected. The noble Lord’s amendment goes further than Silk by simply changing the name of the Assembly in primary legislation—crucially, as the noble Lord, Lord Wigley, has said, without the Assembly itself what it feels about the issue. I think it is essential that such a change should not take place without consulting the Assembly. I therefore urge the noble Lord to withdraw his amendment.

Lord Elystan-Morgan Portrait Lord Elystan-Morgan
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My Lords, I certainly shall withdraw my amendment. There is, however, an irrefutable logic in this situation. Where the name of the building is a Senedd, a person who is a member will be asked, “What are you doing down there in the Bay?” and he will say, “Rwy’n Aelod o’r Senedd”—“I am a Member of the Parliament”—and yet the name “Parliament” is not to be used formally. Anyway, this is a debate for another day, and I beg leave to withdraw the amendment.

Wales Bill

Baroness Randerson Excerpts
Monday 13th October 2014

(10 years, 2 months ago)

Lords Chamber
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Baroness Randerson Portrait The Parliamentary Under-Secretary of State, Wales Office (Baroness Randerson) (LD)
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My Lords, this has been an extremely interesting debate to start the Committee proceedings on this Bill. In response, I begin by reminding noble Lords of the intention behind the Bill. It encompasses three strands: first, issues flowing from the Green Paper issued by the Wales Office early in this Parliament; secondly, amendments to the Government of Wales Act requested by the First Minister; and, thirdly, measures to introduce fiscal accountability and borrowing powers recommended by the Silk 1 report, which so far have been sadly lacking in the Welsh devolution settlement.

Many of us here today are anxious to see the Silk 2 recommendations implemented, and I assure noble Lords that the Wales Office is working actively on that at the moment. Unfortunately, the Silk 2 report was produced too late for us to bring forward legislation in this Parliament. The Silk commission acknowledged that fact and said that it realised that many of its recommendations were for manifestos. The fact that it brought forward its second report too late in this Parliament does not mean that we cannot achieve anything from Silk 2 before the election. We can make a number of recommendations on which we can make progress. We can also prepare for further legislation, and we are doing so.

The Scottish referendum has ensured that a new devolution settlement for Wales is very much on the agenda, and I hope that there is cross-party agreement on that. However, Silk 2 was clear that its legislative recommendations were for party manifestos, and rightly so because, as has been referred to this afternoon, there needs to be discussion, debate and public information before people vote on a number of issues, obviously including this one.

These amendments from the noble Lords, Lord Wigley and Lord Elis-Thomas, seek to leapfrog that manifesto process—understandably perhaps. Plaid Cymru wants to air its manifesto in advance and this is a very good opportunity to do so. Unfortunately, the amendments are poorly thought through, for reasons that I will outline in a moment. It is also important to note that some of the new powers suggested in the amendments, as other noble Lords have said, were not recommended in Silk 2. We therefore need that manifesto process and an element of public discussion in order to have the cross-party agreement, which, I am sure noble Lords will agree, is essential if one is to move forward firmly on constitutional reform.

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Lord Richard Portrait Lord Richard (Lab)
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I was very interested in what the noble Baroness had to say about the reserved powers model. She comes from one branch of the coalition—if I may put it that way—which has been in favour of reserved powers for a long time. Will she assure us that the other branch of the coalition is now also in favour of the reserved powers model?

Baroness Randerson Portrait Baroness Randerson
- Hansard - -

My Lords, my right honourable friend the Secretary of State for Wales made it absolutely clear at the recent Conservative Party conference that he believes that Wales needs to move to a reserved powers model. It is also worth noting that the recent legal judgment, to which reference has been made today, on the Agricultural Wages Board was sufficiently far reaching to ensure that many people have reconsidered the situation in the light of that judgment.

The amendments in the names of the noble Lords, Lord Wigley and Lord Elis-Thomas, would put in place in the short term a broad but poorly defined settlement until the Government put forward a timetable for putting in place reserved powers. It will disappoint noble Lords in some cases that the Government have made clear repeatedly that this Bill is not the appropriate place for implementing Silk 2 recommendations. If we seek to use the Bill for that purpose we risk—I say this very seriously to noble Lords—lengthening the process and causing serious problems for the Bill in the other place. I remain completely committed to ensuring that we get the Bill through and I do not want to put the Bill at risk in any way. By widening the Bill considerably, it would have a very difficult passage in the other place. Given the proximity of the general election, we would find it difficult to ensure that the Bill passed before the end of the Session. Therefore, I certainly do not intend to put this at risk.

Lord Bishop of Oxford Portrait Lord Harries of Pentregarth (CB)
- Hansard - - - Excerpts

I thank the Minister for giving way. I have listened to her with great attention. I can well understand the need for extensive discussion in manifestos as well as in the other place and the points made by the noble Lord, Lord Crickhowell, and various other people. However, as there is such unanimity about the reserved powers model, why can this not be accepted in principle in the Bill, leaving the question of its implementation and the timetable open? It does not have to be six months, but it could be accepted in principle if it is now accepted by all parties. The only point that has not been made about why it should be accepted is a very important philosophical and political point about subsidiarity. The Minister has not addressed the issue of why it cannot be accepted in principle in the Bill, with all the details to be worked out in due course.

Baroness Randerson Portrait Baroness Randerson
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The noble and right reverend Lord raises an interesting point and I will obviously take it away and think about it. In so far as thought has been given to this so far, we have been thinking about the scope of those reserved powers being included in legislation at the same time as the principle of reserved powers. There would possibly be issues and problems with separating out the principle from the scope of those powers, but I will certainly reflect on what the noble and right reverend Lord has said.

Lord Anderson of Swansea Portrait Lord Anderson of Swansea (Lab)
- Hansard - - - Excerpts

On that point, potentially some substantial time may have elapsed before the principle of reserved powers comes into operation. The extent of the conferred powers has been shown by the Supreme Court judgment in fact to be highly flexible. To what extent has the Wales Office taken on board the effect of that judgment? Can we be assured that there will be no unnecessary legal challenges in future and that we have learnt the lessons of that judgment?

Baroness Randerson Portrait Baroness Randerson
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Noble Lords can certainly be assured that, first, the Wales Office has studied that legal judgment very carefully and, secondly, that across government there is a determination to move ahead with devolution, and the development of devolution, on a cross-party basis, where it is possible to do so. There is a determination to ensure that we work proactively with the Welsh Government on issues. Indeed, that refers back to the Silk 2 recommendations, which included a number of mechanisms for improving relationships between the UK Government and the Welsh Government. That is very much at the forefront of our minds at this moment in terms of making progress.

In conclusion, our focus in the Bill is on implementing the first part of the Silk commission’s recommendations, and that must remain its focus. I urge noble Lords not to put the Bill at risk in the hope of something even better. Do not reject jam today in the hope of even more jam tomorrow. Use the progress in devolution that the Bill encompasses as a sound basis for further devolution. Do not for one moment entertain the idea that the best way of moving forward is to stand still and in some ways set this Bill aside and start again. We insist that this is a positive step forward and it is important that we demonstrate the cross-party agreement that exists on the further development of devolution.

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Lord Wigley Portrait Lord Wigley
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We have in the grouping of these amendments brought two different fields into play, and they need to be addressed separately to that extent. Of course matters related to the Home Office are already devolved to Scotland. We are very much aware of that, and that is one reason why matters such as policing, to which the noble Lord, Lord Elystan-Morgan, referred a moment ago, have wide support across the party-political divide in Wales and should be devolved rapidly.

Even though I accept what the noble Baroness said with regard to bringing in changes mid-Assembly, that may be appropriate with regard to some of the background systems and the concept of reserved powers without changing any of the actual detail of the portfolios being devolved. But if we are talking about further devolved portfolios of the sort that will come into play in Silk 2, they most certainly need to be specified before the 2016 election so that the issues within those portfolios can be addressed by the parties putting forward the manifestos for that election. I understand what the noble Baroness is saying in regard to the theory, but in regard to the practice we need to have that further detail.

I return to Amendment 1. I reject the suggestion made by the noble Baroness that this has been poorly thought out. It has been drafted on very good advice.

Lord Wigley Portrait Lord Wigley
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I am sorry, but those were her words.

Baroness Randerson Portrait Baroness Randerson
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I hope the noble Lord will accept that I was referring to Amendments 2A and 3.

Lord Wigley Portrait Lord Wigley
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I am very grateful that the noble Baroness is taking the opportunity to clarify that, because that will be helpful for Members in all parts of the House. It is quite clear that we have a cross-party consensus, as the noble and right reverend Lord, Lord Harries, mentioned a moment ago. It will be very helpful if we could have some indication between now and Report as to how exactly this is going to be taken forward.

Although there is a mention of “within six months” in the amendment as a period for bringing forward proposals on reserved powers, that does not mean that we need to take the whole six months. I believe that the process can be completed within four months, before Prorogation for a general election. It will be very useful if this has been clarified at that stage, even if some of the detailed legislation has to be taken forward thereafter.

I also reject the suggestion—it is always made at this stage of a Bill, as we are coming nearer Royal Assent—that if we send it back with changes to another place that will open a can of worms. I do not believe it will because I think the same cross-party consensus exists in another place as exists here. If there is that general agreement with regard to the reserved power model, let us just get on with it, not hold back.

Baroness Randerson Portrait Baroness Randerson
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The noble Lord might reflect that while there might be consensus within Wales on this issue among political parties, there are a very large number of English MPs in the other place who will quite rightly want to discuss this in the context of their own situation. I fear that we could find the process very heavy going if we started to expand this Bill beyond its original intention.

Lord Wigley Portrait Lord Wigley
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My Lords, heaven help us if English MPs are going to start voting on matters of purely Welsh concern, but I take the point. I am sure the other point is understood across this Chamber as well.

The issue that I want to stress before withdrawing this amendment—obviously at this stage it is a probing amendment—is please, between now and Report, can we firm up the intentions in general with regard to reserved powers? I reserve the right to come back at Report if that is not done. I hope we can achieve that without that being necessary and that the consensus in this Chamber today will be carried through and can work for the benefit of Wales. I beg leave to withdraw the amendment.

Wales Bill

Baroness Randerson Excerpts
Wednesday 30th July 2014

(10 years, 4 months ago)

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Moved by
Baroness Randerson Portrait Baroness Randerson
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That it be an instruction to the Committee of the Whole House to which the Wales Bill has been committed that they consider the Bill in the following order:

Clauses 1 to 12, Schedule 1, Clauses 13 to 16, Schedule 2, Clauses 17 to 30.

Motion agreed.

Wales Bill

Baroness Randerson Excerpts
Tuesday 22nd July 2014

(10 years, 4 months ago)

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Moved by
Baroness Randerson Portrait Baroness Randerson
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That the Bill be read a second time.

Baroness Randerson Portrait The Parliamentary Under-Secretary of State, Wales Office (Baroness Randerson) (LD)
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My Lords, the Bill before us today continues this coalition’s ambitious programme of reforms to devolved governance in Wales. We have already achieved the commitments in our programme for government relating to Wales, including delivering the 2011 referendum on full law-making powers for the Assembly and establishing the Commission on Devolution in Wales—the Silk commission—which has since published two detailed reports.

I pay tribute to Paul Silk and his commissioners, including my noble friend Lord Bourne, for their two excellent reports. The commission included representatives from all four political parties in the Assembly, and reached unanimous agreement on its recommendations. I hope that a similar spirit of broad consensus will exist in this House in respect of this legislation.

The Bill implements the vast majority of the recommendations that the Silk commission made in its first report, devolving an exciting package of tax and borrowing powers to the Assembly and Welsh Ministers. These reforms provide the tools and incentives for the Welsh Government to grow the Welsh economy; make the Welsh Government more accountable for raising some of the money they spend; and deliver borrowing powers that will enable Welsh Ministers to invest further in Welsh infrastructure.

I now turn to the detail of the legislation. The Bill provides for the introduction of a Welsh rate of income tax. As the Silk commission recommended, the devolution of income tax powers would be subject to a referendum, should the Assembly decide to trigger one. The devolution of income tax powers to Scotland was subject to a separate referendum question in 1997, and it is only right that people in Wales should decide whether income tax powers should be devolved to the Assembly.

Should the Welsh people vote for an element of income tax to be devolved—and I sincerely hope they will—it would provide a significant incentive for the Welsh Government to grow the Welsh economy and deliver a real-terms boost in revenue—money that the Welsh Government could then spend on key services such as health and education.

In the event of an element of income tax being devolved, the UK rates would all be reduced by 10p for Welsh taxpayers and the Assembly would set a single Welsh rate of income tax for all three income tax bands that would be paid alongside the reduced UK rates; this is the so-called lock-step mechanism. Noble Lords will no doubt be aware that the proposal has generated some intense debate, not least as the Silk commission recommended that the Assembly should be able to set separate Welsh rates of income tax for each of the three income tax bands.

The Government recognise that there are arguments for and against the lock-step mechanism, but we continue to believe that the approach set out in the Bill is appropriate for Wales. Given the porous border with England—almost half of the Welsh population and 10% of the English population live within 25 miles of the border—the changes to individual income tax rates in Wales could have wider effects than similar changes in Scotland.

It would not be logical to provide more flexible rate-setting powers in Wales than in Scotland. The Government have therefore decided that the lock-step is the best system for encouraging the Welsh Government to grow the overall tax base in Wales while safeguarding against the risks of damaging cross-border tax competition and increased tax avoidance.

We are now less than two months away from what I consider to be one of the most fundamental decisions in the history of the United Kingdom. I, along with almost every other noble Lord present, sincerely hope that the people of Scotland choose to remain united with the peoples of Wales, Northern Ireland and England. Nevertheless, the Government recognise that even a clear no vote may well lead to further income tax devolution to Scotland.

Having said that, we are not there yet, and I would not wish to pre-empt that debate. The Government remain open to revisiting the arrangements for income tax devolution in Wales as any changes are brought forward in Scotland; but, as I explained, there are differences between Wales and Scotland, particularly in the nature of their borders with England.

The Bill also devolves powers over stamp duty land tax and landfill tax to the Assembly, giving it the ability to devise a system of tax on land transactions and landfill specific to Welsh needs. That will provide an independent revenue stream for the Welsh Government to borrow against and give them additional tools to manage housing and waste management policy in Wales, both of which are already devolved.

The devolution of tax powers is intrinsically linked to the devolution of borrowing powers. In addition to powers relating to current borrowing, the Bill provides the Welsh Government with the ability to borrow up to £500 million to invest further in capital infrastructure in Wales. That is a generous limit, which reflects the independent income generated through the two devolved taxes, and which can be increased if additional taxes, such as an element of income tax, are devolved. Crucially, it will allow the Welsh Government to move on with much needed infrastructure investment, including improvements to the M4 around Newport.

The Government have been criticised for linking the borrowing limit to the income from devolved taxes. However, we have been clear that any borrowing must be contingent on the Welsh Government’s ability to pay that money back. You or I would not get a reputable loan without a means of repaying it, and Governments should be no different.

Finally with regard to fiscal reforms, the Bill devolves responsibility to the Assembly for its own budgetary arrangements, enabling it to decide how it wishes to scrutinise and approve its annual budget.

I now turn to Part 1, which includes a number of important electoral and constitutional reforms for Wales. Clause 1 deals with the move to permanent five-year Assembly terms. Noble Lords will recall that the scheduled 2015 Assembly election was moved to 2016 by the Fixed-term Parliaments Act 2011 in order to avoid it coinciding with the UK general election. The Bill makes the change to five-year terms permanent, following the Government’s 2012 consultation on future electoral arrangements for the National Assembly. This change will make it less likely that Assembly and parliamentary general elections will occur on the same day in future. I hope that we would all agree that it is important that Assembly elections are contested, wherever possible, on issues specific to Wales and are not overshadowed by wider issues that often dominate parliamentary elections.

The Bill also overturns the ban on candidates standing for election in both a constituency seat and on a regional list in an Assembly election. We are restoring the position to that set out in the Government of Wales Act 1998 and reversing the ban imposed by the then Labour Government in the 2006 Act. That change was made against the wishes of all the other major political parties in Wales and against the advice of the Electoral Commission and electoral experts in Wales. Noble Lords will be aware that, for Welsh Members of the Labour Party in the other place, judging by column inches in Hansard, this is seemingly the most important issue in the entire Bill. Important though this issue is, the Bill simply reverses a change that should not have been made in the first place. It restores fairness to Assembly elections, which the ban on dual candidacy took away.

The Bill also prohibits dual mandates between the Assembly and the House of Commons. The Government do not believe that it is possible for an Assembly Member to represent their constituents effectively and to devote their full attention to their role as an Assembly Member if they must also spend a significant portion of their time in Westminster. From now on, politicians elected to both legislatures will need to make a clear choice whether they wish to serve as a Member of Parliament or an AM. The Bill does not impose a similar prohibition on your Lordships, as we do not have the same constituency commitments or the requirement to attend this place regularly. At the request of the Welsh Government, this legislation also formally enshrines that name in statute. This title has been common parlance for the Welsh Assembly Government since the advent of full lawmaking powers in 2011 and it makes sense for legislation to catch up with the reality on the ground.

Finally, I would like to say a little about the second Silk report. The commission has made some crucially important recommendations about the future governance of Wales within the United Kingdom, most notably by recommending a move to a reserved-powers model similar to that in Scotland. The move would involve a fundamental, top-to-bottom change to the Welsh settlement and is not something which could be entered into lightly or done quickly.

In responding to the report’s publication in March, and while welcoming the report, the Government made clear that the Bill is not the right vehicle for implementing its recommendations. Let us implement the commission’s first report before we turn our minds to the second. Including a whole raft of additional powers in the Bill would serve merely to delay its progress and jeopardise its enactment in this Parliament. Much better that these matters be left for the next Government to take forward, giving all political parties the opportunity to seek the endorsement of the electorate through party manifesto commitments.

This Government believe that devolution should be used to give Wales a competitive edge. It should give its politicians the ability to make decisions for the people they serve, becoming increasingly accountable to them as a result. The Bill delivers on that. I commend it to the House and beg to move.

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Baroness Randerson Portrait Baroness Randerson
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My Lords, this has been a good debate. I believe that it has reflected the constitutional importance of the Bill for Wales and for the United Kingdom as a whole. I fear that at times it was a debate on a Bill that many of us would like to write rather than the one before us. As the Minister in charge of the Bill here, my first priority is to ensure that we steer the Bill through safely in the time that we have left in this Parliament. It is very important to me personally that we ensure that that is done because across the Chamber today I have noted very strong support for the Bill in general terms.

I am a devolutionary enthusiast but I am also a pragmatist, and I realise that in some ways the timetable is not ideal. As several noble Lords have mentioned, the Bill is being discussed in the shadow of the Scottish referendum, a point made powerfully by the noble Lord, Lord Rowe-Beddoe. We will then have our Committee stage very close on the heels of the result of the Scottish referendum without having time to reflect and to develop ideas. Therefore, I urge noble Lords to judge the Bill on the basis of where we are at present and the fact that it is being very firmly based on the Silk 1 report. The Silk 2 report is for another day and it needs to be considered in the light of our party manifestos. My party’s manifesto will contain a very firm commitment to delivering the Silk recommendations, and I hope that I will see things that I recognise in the manifestos of the other parties represented here today.

I shall try to reply to as many of the issues raised by noble Lords as possible. Many speakers, including the noble Baroness, Lady Morgan, and the noble Lord, Lord Wigley, mentioned the lock-step. It is clearly something that is going to continue to generate passionate debate. I said in my opening speech that the Government continue to believe that the approach set out in the Bill is appropriate for Wales, given the potentially far-reaching and significant effects of allowing the Welsh Government to alter each income tax band independently. That is our belief, particularly in the light of the porous border between Wales and England and the figures quoted by noble Lords indicating that there is a very large population that might cross that border.

The Government believe very strongly in the impact of the tax banding system on ensuring that taxation is progressive and that it reallocates money across society. That is an important aspect that we have been bearing in mind in relation to the lock-step. However, as I said earlier, at this point the Government remain open to revisiting the arrangements for income tax devolution in the light of changes in Scotland, and I am happy to restate that. I also draw noble Lords’ attention to the fact that the new Secretary of State has made it clear that his mind remains open on the issue.

The noble Lord, Lord Anderson, asked: if you do not vary the rate of taxation, what is the point of it? The point of it is that it is the basis for borrowing power. It is used as the basis for borrowing power by the Scottish Government and it would be used as such in future by the Welsh Government.

Several noble Lords, including the noble Baroness, Lady Morgan, referred to the level of the block grant adjustment. A number of different views were expressed on this across the Chamber. I make it clear that if the income tax base in Wales grows faster than that in the rest of the UK, the Welsh Government will benefit, even if the Welsh rate is the same as the UK rate. Inevitably, however, if it grows slower, the Welsh Government’s budget will be lower. That is a simple consequence of more accountability, linking the Welsh Government’s budget to the performance of the Welsh economy. This arrangement would incentivise the Welsh Government to grow the economy in Wales but, importantly, it would protect it from UK-wide effects that the UK Government are better placed to manage. It is a fair system, designed to protect Wales from the greatest volatility and it is consistent with our aims of increasing the Welsh Government’s accountability.

The noble Lord, Lord Howarth, asked about stamp duty land tax volatility. The block grant adjustment will not reflect SDLT volatility. Instead, the Welsh Government are being given new tools to manage tax volatility, which is part of increasing accountability. Those new tools include a cash reserve that can be used to save tax revenues in good years and spend them when revenues are lower than they have been forecast to be. The Welsh Government will also be able to borrow up to £500 million and up to £200 million in any one year if there are insufficient funds in the cash reserve.

The noble Baroness, Lady Morgan, and other noble Lords referred to the sensitivity of the timing of this debate in relation to the Scottish referendum result. I agree, but of course hindsight is a wonderful thing. When the timescale for the Silk process was set out, people did not have any concept that there would be a Scottish referendum at this time.

Many noble Lords raised the reserved powers model. I think that universal support for that has been expressed today across the Chamber. Several noble Lords, including the noble and learned Lord, Lord Morris, also referred to the recent decision on the Agricultural Wages Board. That decision certainly adds to the debate on the issue. However, as several noble Lords recognised and acknowledged, it has to be a longer-term issue. That was recognised by the Silk commission in its second report which made it clear that it was something for manifesto decisions. Even if we made the decision today to go to a reserved powers model, we would not be able to create it and legislate in the timescale left. It is absolutely right that there is a wide public debate on this and I urge noble Lords to encourage that debate.

In many ways the same points should be made about the size of the Assembly and its capacity for scrutiny. It was also an issue raised in the second Silk report, but that is also something for manifestos.

Lord Rowlands Portrait Lord Rowlands
- Hansard - - - Excerpts

Do I take it that, in principle, the coalition Government are in favour of the reserved powers?

Baroness Randerson Portrait Baroness Randerson
- Hansard - -

I am specifically making it clear that the Government do not have a position on the reserved powers model. As the Silk report recommended, this is something for manifesto positions from the different parties. However, my party is in favour of the reserved powers model. That does not make it a government position, and it certainly is not something that can be created now. However much one might wish to do so, we cannot write the kind of complex legislation needed for a reserved powers model of devolution for Wales. If we tried to do so at that speed, we would be in danger of ending up with second-rate legislation, which the people of Wales do not deserve.

I move on to the point made by the noble Lord, Lord Wigley, on corporation tax. I remind the House that the Silk commission said that if corporation tax were devolved to Scotland and Northern Ireland it should also be devolved to Wales. There are no current plans to devolve to Scotland and Northern Ireland. However, the Bill contains the power to devolve further taxes to Wales by order. I would like noble Lords to note that. The noble Lord, Lord Anderson, raised the same issue about the power to devolve further taxes. A good example would be the aggregates levy once the EU Commission has completed its investigations. That provision is in the Bill as it stands.

The noble Lord, Lord Howarth of Newport, and others, raised the issue of borrowing powers and why they are not higher. I should point out that there are two capital borrowing limits: the annual limit and the overall limit. The overall limit in Scotland is £2.2 billion, which is supported by around £5 billion of annual devolved tax revenue. Using the same ratio, the overall limit in Wales would have been only £100 million. I ask noble Lords to bear that in mind when they ask for Wales to be treated like Scotland. We accepted that £100 million was inadequate so we increased it to £500 million specifically to enable M4 improvements to be undertaken, although there are no restrictions in law on how that could be spent. Obviously this is a power in perpetuity which the Welsh Government could exert for other things.

Lord Wigley Portrait Lord Wigley
- Hansard - - - Excerpts

I asked a specific question on that. If the cost of the M4 relief road around Newport is £930 million, or so, and the limit on the borrowing, prior to having a referendum that would enable more to be levered in, is £500 million, does the balance—the £438 million, or whatever the figure is—have to come out of the capital budget of the National Assembly, and does that mean that all the other projects that are being funded by that are lost?

Baroness Randerson Portrait Baroness Randerson
- Hansard - -

How the Welsh Government raise the additional money is, of course, entirely at their discretion. It could come directly from their capital budget or they could have a partnership with the private sector to ensure that additional funding is available for them.

Lord Howarth of Newport Portrait Lord Howarth of Newport
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Given that the M4 relief road around Newport is an infrastructural benefit to the United Kingdom as a whole, how much contribution are the Government of the UK planning to make to that very large cost?

Baroness Randerson Portrait Baroness Randerson
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I think that the noble Lord raises a fundamental point about devolution. The control of building and road infrastructure in Wales is devolved. With it comes the Barnett consequential of the funding for infrastructure throughout the UK, which is reflected in the proportion of the Department for Transport’s budget that is devolved to the Welsh Government.

To complete the point I was making, we have agreed an annual limit of £125 million relating to borrowing in Wales. That limit was proposed by the Welsh Government. A lot of noble Lords referred to the Barnett formula. I remind them that the Holtham report recommended that Welsh funding should be between 15% and 17% above English funding. Funding in Wales is 15% above the funding for England at this time, so it is within the areas deemed as fair by the Holtham commission. That is not to say that it has been fair in the past; it is at the current point because there has been divergence in recent times rather than convergence. I remind noble Lords that in 2012 the Welsh Finance Minister Jane Hutt agreed with the Chief Secretary to the Treasury in an exchange of letters a system to review the situation in relation to Barnett if convergence was about to begin again. That system worked satisfactorily at the spending review last year and it provides a basis for fairness in the future. I am absolutely sure that noble Lords will return to this in the future and that we will be talking about it in some detail.

Lord Rowe-Beddoe Portrait Lord Rowe-Beddoe
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Is the Minister saying that the Barnett formula has been revised in the last 12 months?

Baroness Randerson Portrait Baroness Randerson
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No I am not, but the natural process of the way in which the formula works means that in times of spending restraint, where we have been for the last four years, the convergence process, which worked over many years and made the formula more, shall I say, sparing in relation to Wales, ceased to operate and we have had divergence which has brought Wales to a position of greater fairness now than in the past. That means, however, that if we go back to times of financial plenty, there would be an issue once again. That has been recognised in the exchange of correspondence between the Chief Secretary to the Treasury and the Finance Minister in Wales.

In response to the general point made by noble Lords from the Labour Party about dual candidacy, as I predicted, when we read Hansard tomorrow it will appear as the most important matter in the Bill to members of the Labour Party. It is significant to remember that the purpose of doing this is to widen the pool of good candidates. Time and again people have raised the issue of how important it is to have scrutiny of the highest nature in the Welsh Assembly. It is not only a case of ensuring that there are more Assembly Members—whether you agree with that or not—but of ensuring that the best candidates can stand and get elected.

Many noble Lords on the Benches opposite referred to the Clwyd West situation. I refer to the Nick Bourne situation, if my noble friend will forgive me, where, as the leader of a party in the 2011 Assembly elections, he failed to gain a seat because his party had done so well. That is an anomaly, and it is important to bear in mind that within this system you will get that kind of anomaly. I say to the noble Lord, Lord Rowlands, who raised the issue of people who lose still getting into the Assembly, that that applies only if you think that elections should be on a winner takes all strategy. However, if you believe that elections are a way of ensuring that different strands of opinion are represented in our legislatures and Parliaments, you look at ways of ensuring that significant minority opinions are represented as well as majority opinions.

Lord Anderson of Swansea Portrait Lord Anderson of Swansea
- Hansard - - - Excerpts

The very able leader of a party in Wales lost under that system. The solution is simple: his party should have ensured that he sat in a winnable seat.

Baroness Randerson Portrait Baroness Randerson
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There are many other answers connected with the problems and anomalies associated with that system. However, I repeat, this system was established by the Labour Party in the first Government of Wales Act. It may not be perfect but it provides an element of proportionality, although not perfect proportionality by any means. Even now within the Assembly, 50% of its members are from the Labour Party even though it gained under 40% of the vote. It is not perfect but it brings some proportionality to the Assembly, which was an essential part of getting the original referendum accepted by the people of Wales.

I conclude by saying that it has been a great pleasure to listen to the debate. I am sure that I will be answering in considerable detail the questions that I know noble Lords will put to me when we return from the Recess. I invite your Lordships to support the Bill.

Bill read a second time and committed to a Committee of the Whole House.

Hallett Review

Baroness Randerson Excerpts
Thursday 17th July 2014

(10 years, 5 months ago)

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Baroness Randerson Portrait The Parliamentary Under-Secretary of State, Wales Office (Baroness Randerson) (LD)
- Hansard - -

My Lords, with the leave of the House I will now repeat a Statement made earlier today by my right honourable friend Theresa Villiers, the Secretary of State for Northern Ireland. The Statement is as follows.

“Mr Speaker, with permission I would like to make a statement on the report by Lady Justice Hallett on the scheme dealing with the so-called on-the-runs.

In February, Mr Justice Sweeney ruled that it would be an abuse of process to proceed with the prosecution of John Downey in connection with the Hyde Park bombing on 20 July 1982 and his trial was stayed.

The Hyde Park atrocity resulted in the brutal murder of four members of the Blues and Royals. Seven horses were also killed and just hours later another bomb in Regent’s Park took the lives of seven members of the Royal Green Jackets. These were appalling terrorist outrages carried out by the Provisional IRA for which there could never, ever be any justification. So in this House I hope that our first thoughts today should be with the families and friends of those murdered that day in July 1982. The Government fully appreciate the deep sense of hurt and anger that the collapse of the Downey trial has caused both to them and victims of terrorism more widely. I would like to repeat the apology I gave in March for that. This Government are profoundly sorry for the hurt that this case has caused.

The Downey case highlighted the administrative scheme introduced by the previous Government to deal with so-called on-the-runs. These were people who had left Northern Ireland and believed that if they returned to any part of the UK they might be arrested in connection with terrorism offences. The Government responded to the widespread public concern expressed about the OTR scheme by establishing a judge-led independent review of the scheme. I am grateful to Lady Justice Hallett for taking on this task. Anybody reading the report will be left in no doubt that she has provided us with a rigorous and comprehensive account of the scheme.

The Government accept the report and all its recommendations in full. On the central issue of whether the OTR administrative scheme gave suspected terrorists immunity from prosecution, Lady Justice Hallett is very clear. She concludes:

‘The administrative scheme did not amount to an amnesty for terrorists ... Suspected terrorists were not handed a “get out of jail free” card’.

The Government have always been clear that, if sufficient evidence emerges, then individual OTRs are liable for arrest and prosecution in the normal way. So I repeat again today to the people holding these letters: they will not protect you from arrest or prosecution and, should the police succeed in gathering sufficient evidence, you will be subject to the due process of law.

Lady Justice Hallett sets out the origins, operation and evolution of the scheme. She agrees with successive Attorneys-General that the scheme was lawful. The last letter sent by the Northern Ireland Office was issued in December 2012 and I repeat today that, as far as this Government are concerned, the scheme is over.

The report sets out a number of serious criticisms of how the scheme operated, including significant systemic failures. Lady Justice Hallett states:

‘The scheme was not designed; it evolved. As a result there was no overall policy and no overall responsibility/accountability for it’.

The scheme,

‘lacked proper lines of responsibility, accountability and safeguards … When errors came to light opportunities were missed to rectify them’,

and,

‘there was no risk assessment’.

In the case of Mr Downey, Lady Justice Hallett concluded, in line with the Sweeney judgment, that it was not the fact that Mr Downey was sent a letter that caused the trial to collapse; it was the fact that the letter contained an incorrect and misleading statement on which Mr Downey relied. The report finds that if the scheme had been properly administered,

‘John Downey would not have received a letter of assurance’.

She can find no ‘logical explanation’ of why PSNI officers failed to pass on the fact that Mr Downey was still wanted by the Metropolitan Police, nor why they failed to correct the error once it became known.

Lady Justice Hallett finds that 13 OTRs received the royal prerogative of mercy between 2000 and 2002 and that in all cases this was to release people from having to serve some or all of the rest of their sentences. No pre-conviction pardons were issued. The report criticises the lack of a,

‘central register of documents recording the use of the RPM’.

While she finds,

‘no evidence of the UK Government actively seeking to obscure the scheme from the public’,

Lady Justice Hallett states that it,

‘was not given much publicity and that important groups’,

such as victims and their families, ‘remained unaware’ of it. The report acknowledges the hurt and distress that this has caused to many victims.

Lady Justice Hallett has found two examples of somebody receiving a letter in error, in addition to the Downey case. She has also identified 36 cases dealt with between February 2007 and November 2008 which should be given priority in the exercise now under way by the PSNI to check whether the change in status from ‘wanted’ to ‘not wanted’ can still be justified.

A key question has arisen as to what the Government intend to do next to ensure that there are no more failed prosecutions like that of Mr Downey. The report recommends that we now,

‘seek legal advice, in conjunction with the police and prosecuting authorities, to determine whether’,

we,

‘should notify any individuals whose status, as communicated to them, has changed or may change in the future’,

and that we,

‘consider how to mitigate against further abuse of process arguments, for example by confirming to recipients the factual and contemporaneous nature of their letters’.

The Government will act on these recommendations and I give the House this assurance. We will take whatever steps are necessary, acting on the basis of legal advice and in conjunction with the police, the Justice Minister and prosecutors, to do everything possible to remove barriers to future prosecutions.

The bulk of this report deals with decisions made by the previous Government in respect of their handling of the political process in Northern Ireland. It is not my role to speak for my Labour predecessors as Secretary of State; they are more than capable of speaking for themselves on the role that they played and the decisions that they took. Yet I will say this: I might not agree with every decision that they made in relation to the OTR issue but, whatever differences of emphasis and approach we might have, I recognise that they were dealing with very difficult judgments in very difficult circumstances and that they were at all times acting with sincerity in seeking to move the peace process forward.

I emphasise that Lady Justice Hallett has found no evidence that either politicians or officials ever interfered improperly with due process of law or the operational independence of police or prosecutors. The report concludes that the scheme did not impact on police investigations into historic terrorist offences. PSNI and Historical Enquiries Team files on terrorist crimes were not closed. There was no chilling effect.

It is well known that the current Government allowed the checking process to continue after we came to power in May 2010, but both I and my predecessor are very clear: had we at any time been presented with a scheme that we thought amounted to an amnesty, immunity or exemption from prosecution, we would have stopped it immediately. That would have been consistent with the opposition of both coalition parties to the Northern Ireland (Offences) Bill introduced by the right honourable Member for Neath in 2005, which was subsequently abandoned.

This Government believe in the rule of law, and that applies across the board to everyone, without fear or favour, including those in possession of letters issued under this scheme. There are many lessons to be learnt from this episode, not the least of which is the crucial importance of continued efforts to find an agreement on the divisive issues of flags, parading and the past. In dealing with the painful legacy of Northern Ireland’s past, we need a process that is transparent, accountable and balanced, which puts the era of side deals firmly behind us and which commands the confidence of all parts of the community. The Government remain fully committed to working with all parties in Northern Ireland in their efforts to deliver that important goal. I commend this Statement to the House”.

My Lords, that concludes the Statement.

--- Later in debate ---
Baroness Randerson Portrait Baroness Randerson
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I thank the noble Lord for his recognition of the complexity of the situation. The noble Lord raised a number of different points, and I will do my best to address most of them.

In relation to the recognition that there were systemic problems that led to the problems that the Downey case revealed, the Northern Ireland Office is already reviewing its procedures. The Permanent Secretary is leading that work, which is under way. The noble Lord referred to the fact that the report shatters some myths. It is important to note that Lady Justice Hallett emphasised the importance—in her very last paragraph, I believe—of people not making political capital out of this situation. She also emphasised in the report that the misrepresentation of the scheme has caused anguish to the families of victims. It is important to remember that the law officers and legal officials who appeared not just before Lady Justice Hallett but also before the Northern Ireland Affairs Committee have all emphasised that this was a legal scheme.

My right honourable friend the Secretary of State has apologised for failing to brief Ministers of the Northern Ireland Executive. She recognises that that was a failing. She is now, however, working very closely with the Justice Minister in Northern Ireland to deal with the outcome of this review. I recognise—and the noble Lord emphasises this point—that Northern Ireland continues to rely on leadership. There have been outstanding men and women of great courage across communities in Northern Ireland in recent years who have stood up for their beliefs and for peace. We must hope that that process continues. I have to say that I first visited Northern Ireland in the late 1990s and when I go back now I am always struck by the progress that has been made. Devolution has changed the centre of gravity and it is important now that it is the devolved Administration that need to take the lead. The Government fully recognise the complexity and difficulties that the previous Government were facing over many years of the peace process.

Lord Alderdice Portrait Lord Alderdice (LD)
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My Lords, I welcome the Statement from my noble friend and identify these Benches with the concern for the victims who have been spoken about by noble Lords on both sides of the House. However, we must do more than simply speak about our concern for the victims. We must act in a way that shows real concern.

A number of things have been revealed in this report—it is more than 270 pages long, so it is difficult to get a full assessment of it in such a time. Already it seems to me that some of the assessments are mistaken, including some of those identified in the Secretary of State’s comments. For example, she said that,

“the bulk of the report deals with decisions made by the previous government in respect of its handling of the political process”.

It seems to me that the bulk of the report is not about the decisions but about the process that led to the decisions. It is quite clear that the process was shambolic and was a whole approach to government from the very top. Decisions were not taken in a formal and proper way. I know that to have been the case during the process itself.

I agree with the noble Lord, Lord McAvoy, about not taking it to pieces and certainly not behaving retrospectively. However, some of us made criticisms at the time about the way in which it was being handled. Subsequently, many of the problems that we continue to experience are because of the unwise ways of reaching decisions about prisoners, weapons, dealing with the past and issues of that kind. It is quite clear that time after time Lady Justice Hallett identifies the failure to keep any list of pardons and the failure to keep any account of the decisions that were made. I think that this Government, as well as any future, never mind past Government, must learn about process. It is not sufficient to have this kind of sofa government, or any emblem of it, particularly when one is dealing with matters that are serious life and death issues and matters of law.

We have to go back and revisit those things to learn from them—not just to be critical, but to learn that we should not behave in that way again. I am afraid that the evidence is that the lesson has not yet been learnt. The Secretary of State is now saying, quite properly, that she will make sure that she informs Ministers in the devolved Government. That means that they were not properly informed before. We had a Bill yesterday where we were looking at legislation about arrangements for the NCA, and so on. It was quite clear that there was no discussion at an early stage with the Government of the Republic of Ireland and the Justice Minister there. I know that because I raised it with the noble Lord, Lord Taylor of Holbeach, and the reply was almost, “What a shocking suggestion”. The fact is that we should have been doing those negotiations.

Of course we should not be unhelpfully critical, but we are here to hold government to account and to try to improve the processes. It is quite clear that some of those processes were seriously mistaken. As an emblem of that, I will put a specific question to my noble friend. Given that these letters gave reassurance, and were meant to give reassurance, to individuals that at the time of their issue they were not wanted for questioning by the PSNI or other forces, and given that we are told that the PSNI and others have not closed the cases, will the PSNI be formally withdrawing letters, or otherwise formally notifying individuals concerned if and when intelligence, information or evidence comes to hand that changes their status back to being wanted for questioning? I ask because if there is not a proper, formal scheme of withdrawal instigated, arrests and subsequent court cases could well be endangered again, as in the Downey case. I ask my noble friend for assurance on that, not because it is the only question but because it is symbolic of some of the failings of the past.

Baroness Randerson Portrait Baroness Randerson
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My noble friend asked about the royal prerogative of mercy and the failure to keep lists. In fact the royal prerogative of mercy is not used only in relation to terrorism cases. It is used very much more widely and it was used much more frequently in the past. Legislation has changed and enables the justice system now to deal with issues such as early release from prison in a different manner. It has simply not been the custom to keep lists of this nature, and I would say that in regard to the Northern Ireland Office investigations, it is not the case that the problem related entirely to the time of the peace settlement and the time of devolution. It predates and goes well back into the last century.

My noble friend referred to poor administration and organisation. The report by Lady Justice Hallett is very clear about the areas of poor administration. The key point she makes is that it was a system that evolved and was not created. The Government acknowledge that as time went on and the scheme developed and grew, failure to take the opportunity to review, update or risk assess the scheme added to the problems of the scheme.

My noble friend asked whether the Government were thinking of withdrawing the letters because of the dangers of impairing prosecution. Lady Justice Hallett recommended that the Northern Ireland Office should seek legal advice in conjunction with the police and prosecuting authorities on what to do in cases where errors may have been made. That process is already under way. The Police Service of Northern Ireland is reviewing all the cases. Lady Justice Hallett makes clear that that review will be thorough and will take years rather than months. However, she made clear that the judgment in the Downey case stood on its own facts; it was a judgment in the first instance which should not be applied to any other examples, and was not binding in any other cases.

I think my noble friend did us all a great service in drawing our attention again to the victims in this, for whose families today will not be easy. It is important to remember the names of those who died: Lieutenant Anthony Daly, Trooper Simon Tipper, Lance Corporal Jeffrey Vernon Young and Squadron Quartermaster Corporal Major Roy Bright. It is important that, as we have these discussions here today, we hold them in our minds and thoughts.

Lord Rogan Portrait Lord Rogan (UUP)
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My Lords, I also welcome the Statement. As we read the Hallett review, I agree with the noble Baroness that we should never forget the innocent victims.

Unlike the noble Lord, Lord Alderdice, I will be critical. This has been a sorry debacle, which has given no credit to the Blair Government—or, indeed, the current Secretary of State for Northern Ireland. For many months now, it has undermined confidence in the rule of law. The people of Northern Ireland have seen that members of a specific terrorist organisation appear to have been given, at the very least, a letter of comfort that indicates that all is forgotten and they can come home to the United Kingdom in the knowledge that they will be free from prosecution and can live a life of comfort—unlike their victims. That clearly was the implication and interpretation given to the leadership of Sinn Fein/IRA, who requested these letters in the first instance.

Much has been said about transparency, or the lack of it, regarding this matter. I will ask the Minister a specific question. Can she inform the House why and when the Government of the Irish Republic were made aware of this scheme, and why the Northern Ireland Executive and parties in Westminster were not so informed?

Baroness Randerson Portrait Baroness Randerson
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The noble Lord referred to the nature of the scheme, and for the absolute clarity of the House here today, I will repeat that this was not an amnesty and it was not intended to be an amnesty. Lady Justice Hallett is quite clear on that. The Downey judgment was the result of an error in an individual case that should not have occurred, not as a result of the general design of the scheme.

The noble Lord asked a specific question about the Irish Government. The Irish Government had been involved in discussions with the UK Government over the period of the peace process. They had been closely involved in discussions and, for that reason, they were aware of the scheme. I repeat that, of course, the devolved Executive of Northern Ireland should also have been consulted and informed, and should have known about it in an official format.

Lord Lexden Portrait Lord Lexden (Con)
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My Lords, I will make four points. First, does my noble friend agree that this was a wholly dishonourable scheme because it conferred benefits and assurances on one small group of which everybody else was kept in ignorance? Secondly, since it was a dishonourable scheme, why did this Government allow it to remain in being from 2010 until 2012? Thirdly, my noble friend may recall that in a Question in April I asked for assurances that the police force in Northern Ireland would be given not just resources but also every encouragement to pursue the cases against terrorist suspects, to secure the evidence and bring them to book. What progress has been made?

Fourthly, I will touch upon the Sewel convention, of which my noble friend made a great deal in the Answer to a Question by the noble Lord, Lord Empey, yesterday. The Sewel convention provides that the Government at Westminster will not normally take action in areas that are devolved to the Northern Ireland Executive. Since 2010, security and justice have been so devolved. Why were the Executive kept in complete ignorance?

Baroness Randerson Portrait Baroness Randerson
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My noble friend refers to this as a “dishonourable scheme”. It is clear from the coverage given to it in the extensive report of Lady Justice Hallett—which is very detailed and thorough; one must be grateful to her for her efforts—that the scheme could have in principle applied to those who were not necessarily republicans. Indeed, I believe one name was supplied from the unionist community.

It is, however, an issue of logic that members of the unionist community do not tend to go on the run to the Republic of Ireland. They would be much more likely to have stayed in the UK. Over the years, some members of the unionist community were, I believe, the subject of the royal prerogative of mercy.

Why did the current Government continue the scheme? By the time of this Government, it was dealing with smaller numbers of people: 45 cases have been considered since May 2010 and 12 letters were sent by the Northern Ireland Office since May 2010, stating that on the basis of current evidence the person concerned was not wanted by police. Two further “not wanted” indications were sent by the PSNI without involving the Northern Ireland Office. However, the current Government have issued no letters since December 2012. It is important to repeat again that the Government regard the scheme as finished.

My noble friend raised the Sewel convention. Of course, as a result of that convention and the fact that devolution had occurred, the Northern Ireland Executive should have been fully involved. I have said this, and the Secretary of State has made it clear in her Statement and apologised for the fact that they were not formally briefed.

Lord Cormack Portrait Lord Cormack (Con)
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My Lords, as one who was chairman of the Northern Ireland Affairs Committee in another place for the whole of the previous Parliament, it is clear to me that this matter was not as well handled as it should have been. However, one understands that there was a passionate desire not to see the peace process unravel. I understand that fully. We have to recognise that we have a power-sharing Executive in Northern Ireland and a Deputy First Minister who very recently had an audience with Her Majesty the Queen, and I am very glad that it happened. I would much rather have that happen than have a return to the Troubles. However, we have to maintain the rule of law and reach a tidy conclusion. I wonder if we might not consider all those who are guilty of terrorist offences and are prepared to admit their guilt eligible for the royal prerogative of mercy, and those who are guilty and not prepared to admit it would be liable to prosecution. The sooner we can ensure that the PSNI devotes all its resources to combating current crime, rather than investigating past crime, the better.

Baroness Randerson Portrait Baroness Randerson
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My noble friend is absolutely right to emphasise the passionate desire at that time to make sure that the peace process did not unravel. We must never take progress for granted. It would be quite possible for there to be major problems even now.

My noble friend makes some interesting points on how problems that this administrative scheme was designed to deal with might be dealt with under a scheme that involved pardons. There have been numerous ideas and attempts at cracking this problem. None of them has been fully satisfactory but many great minds are at work on this issue and I very much hope that people will continue to keep this at the forefront of their mind. It is a problem that has to be solved in one way or another, but it is not something that this report in itself will solve.

Lord Morrow Portrait Lord Morrow (DUP)
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The noble Baroness has stated that the Government accept this report in its totality. She has quoted from the last paragraph of that report, and I, too, will quote from it. It says:

“One catastrophic mistake has been made and it cannot be undone. The families of those killed in the Hyde Park bombing have no choice but to come to terms with that fact, as devastating as I know it has been for them”.

Does the Minister accept, if there is to be a restoration of confidence in the community in Northern Ireland, that it is imperative that whatever happens from this day forth has to be done in an open and transparent manner?

The Hallett report also makes a number of recommendations. Can the Minister assure us that all those will be implemented? Can she give us a timescale? Can she also assure us that, in the event of further or new legislation being required, there will be no hesitation in bringing that forward as early as possible?

Baroness Randerson Portrait Baroness Randerson
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The noble Lord points out some significant words at the end of this report that make very difficult reading for the families of the victims of that bombing. He asked about the timescale for implementing the recommendations. I have already said that the Government accept all the recommendations and indicated that in some cases work is already under way in dealing with the issues. However, it is important that we do not set a timescale. The work of the PSNI, which faces significant recommendations of its own, has already begun in reviewing all cases. However, it would be totally inappropriate to put an artificial timescale on that because the emphasis of that work must be on thoroughness rather than speed in order to ensure that the work is done properly and will stand up in court if tested. That certainly does not suggest that the Government are putting any of this off; the work is currently under way.

Northern Ireland: National Crime Agency

Baroness Randerson Excerpts
Wednesday 16th July 2014

(10 years, 5 months ago)

Lords Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Baroness Randerson Portrait The Parliamentary Under-Secretary of State, Wales Office (Baroness Randerson) (LD)
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My Lords, we fully support the efforts of the Northern Ireland Justice Minister David Ford to secure the support of the parties for the full extension of the NCA’s remit to Northern Ireland. We want to see an early resolution of this issue to avoid serious gaps emerging in law enforcement in Northern Ireland in areas where there is deep public concern, such as drug enforcement, human trafficking and other forms of serious criminality.

Lord Empey Portrait Lord Empey (UUP)
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My Lords, I rather suspected that the Minister would answer in those terms. Is she aware that the Northern Ireland Executive has not discussed the National Crime Agency this year? Is she further aware that the Police Service of Northern Ireland has neither the personnel nor the financial resources to fulfil the functions that should be carried out by the National Crime Agency, which is a matter of grave concern?

Baroness Randerson Portrait Baroness Randerson
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My Lords, the Government are well aware of the impact on the PSNI and of the need for agreement to be reached as soon as possible. I understand the noble Lord’s concern. It is clear to us that the NCA in Northern Ireland obviously has less capability than elsewhere. However, this is a devolved matter and it is right that discussions are ongoing between the Justice Minister, the NCA and the political parties—but UK Government Ministers and officials remain fully engaged.

Lord Trimble Portrait Lord Trimble (Con)
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My Lords, I understand the Minister’s desire to proceed by agreement, but with regard to the particular issues of trafficking, drugs and the related matters that she mentioned, is it the Government’s view that it is in the national interest that the National Crime Agency be fully operational throughout the United Kingdom on those issues?

Baroness Randerson Portrait Baroness Randerson
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My Lords, in our view it is clearly in the national interest that the National Crime Agency is fully operational throughout all parts of the United Kingdom. However, the Sewel convention must apply at this point, and it is clear that we do not normally intervene and legislate on matters within the competence of the devolved Administrations without their consent.

Lord McAvoy Portrait Lord McAvoy (Lab)
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My Lords, this is no nationalist versus unionist argument; clearly it is about the national interest. The non-involvement of the National Crime Agency in Northern Ireland was highlighted the other day when a Treasury Minister, from that Dispatch Box, indicated that HMRC was having difficulty in collecting taxes, VAT and so on. Despite the mention of the Sewel convention and the Justice Minister, surely it is time that some leadership was shown by the Northern Ireland Office in bringing these people together to get agreement, in the national interest.

Baroness Randerson Portrait Baroness Randerson
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My Lords, the Government have taken the view that agreement is most likely to be obtained under the leadership of David Ford, the Justice Minister, who, after all, has support across the parties in Northern Ireland. It is important that we ensure that his discussions with the parties and with Keith Bristow of the National Crime Agency, which are active and ongoing, are facilitated. I assure noble Lords that my right honourable friend the Secretary of State for Northern Ireland is fully engaged in the process, and that the Home Secretary remains prepared to consider proposals that are put forward.

Baroness Harris of Richmond Portrait Baroness Harris of Richmond (LD)
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My Lords, the National Crime Agency, as my noble friend said, is doing a terrific job under the leadership of the very able director-general, Keith Bristow, who told an audience at the Police Foundation conference two weeks ago that last year, 93% of five to 15 year-olds in the UK used the internet, which makes them very vulnerable to predators in that online space. Does my noble friend believe that some politicians in Northern Ireland could be endangering the lives of their young people by not letting the NCA investigate appalling internet crimes, some of which involve children?

Baroness Randerson Portrait Baroness Randerson
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My noble friend makes an important point, and I very much hope that politicians in Northern Ireland who have not found themselves able to reach agreement so far on the remit of the NCA and its answerability in Northern Ireland are listening at this time, or will read the record afterwards, in order to realise the seriousness and importance of reaching agreement.

Baroness Butler-Sloss Portrait Baroness Butler-Sloss (CB)
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My Lords, since this is a matter of enormous concern throughout the United Kingdom, and not just a Northern Ireland issue, what can the UK Government do about it?

Baroness Randerson Portrait Baroness Randerson
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My Lords, I hope that I have made it clear that the Government are very closely involved in this, and that we remain optimistic that agreement will be reached. I understand the frustration that noble Lords are exhibiting at the length of time it is taking to reach agreement, but the talks and discussions are ongoing, and the work within the office of the Justice Minister is very much an active piece of work; we are reassured of that fact.

Lord Kilclooney Portrait Lord Kilclooney (CB)
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My Lords, if, as the Minister says, this is a matter of national interest, is it not time that it ceased to be a matter for a devolved Government?

Baroness Randerson Portrait Baroness Randerson
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I think that noble Lords will appreciate that, having established devolution, it is very important that one trusts it to work its way through, despite issues and problems that arise on the way.