Wales Bill

Debate between Lord Anderson of Swansea and Baroness Morgan of Ely

Wednesday 15th October 2014 Lords Chamber

[Lord Anderson of Swansea]

My noble friend as usual asks some very probing and cogent questions. On the face of it, these transfers of tax responsibility are relatively symbolic because, on the “bucket and the well” principle, what is gained on the one hand is lost on the other in terms of the block grant. It would be helpful if that could be elaborated on. Perhaps the best answer is that these transfers give a basis for the borrowing powers, which are very welcome, and which are contained in the Bill. Just a word of caution, however: the idea of a transfer of stamp duty has already been seized upon by other groups, notably by the Mayor of London, Boris Johnson. London, of course, has far greater resources and far more wealthy houses and land than Wales. If this were to move along the spectrum in the UK, it could have substantial implications, not least for Wales. Therefore, I utter a word of caution. However, on the other side of the coin, the borrowing powers, and the use to which they will be put—pace the noble Lord, Lord Thomas of Gresford, who feels that north Wales is likely to lose out in terms of the borrowing powers—are indeed welcome in principle.

[Baroness Morgan of Ely]

My Lords, Labour supports the move to devolve stamp duty land tax to Wales as it would be an obvious candidate due to the highly immobile nature of the tax base. The other issue to consider is the fact that housing is already a devolved issue. Devolving this tax would allow the Welsh Government to have a more comprehensive approach to housing needs in Wales. I echo the concerns of my noble friend Lord Rowlands about the impact on the block grant. Obviously, there would be an impact. The Command Paper states that the Government continue to discuss this proposal. However, the problem is that we are back to a negotiated agreement based on subjective decisions, so it is not as clear as we would like it to be.

As my noble friend Lord Anderson said, we have to be very careful about this issue. If Scotland and Wales opt for this measure, what will happen when London, with its £1.3 billion of stamp duty, starts to ask for it? If we go down this route, we must be very careful and do so with our eyes open. I am not saying that we should not go down this route but we should be aware of the floodgates that we might open in doing so. However, we support this tax.

The most obvious problem with the landfill tax is that the more successful the policy of using the tax as a means of getting people not to use landfill is, the less income will be derived for the Welsh Government. The other problem is that the current system of landfill does not identify the geographical location of the taxable activity, so we would have to bring in a whole new administrative mechanism as it does not exist in the UK at the moment. A danger could arise of the cross-border disposal of waste if there were a change in the rate of tax between one country and another. We need to be aware that these things could cause problems. However, as I said, the benefit is that this is a relatively immobile tax and waste management is a devolved responsibility so there would be opportunities to co-ordinate policy, particularly in respect of the environmental aims of the Welsh Government. We are in favour of devolving these taxes given their importance in providing an independent source of income to borrow against but we should be aware of the floodgates that might open in the rest of the UK.

Wales: National Assembly Elections

Debate between Lord Anderson of Swansea and Baroness Morgan of Ely

Monday 18th June 2012 Grand Committee

[Baroness Morgan of Ely]

My Lords, it is probably worth noting that there is a degree of suspicion on the part of some political parties due to the way in which we have seen the suggested changes to constituency boundaries and the likely political impact.

[Lord Anderson of Swansea]

Perhaps the noble Baroness will permit me to say that the suspicion is in part because of the effects of the constituency Act, which has borne down most heavily on Wales. Indeed, it has reduced the weight of Wales at Westminster and clearly has important party political implications. That is why, in my judgment, there is a considerable degree of scepticism about the bona fides in this case.

[Baroness Morgan of Ely]

Another point I want to make is that it was recognised that there might be a change in the size of the Assembly. It was suggested that if that happens, the change could be made up for on the regional basis of the regional list. It could be, therefore, that there are many more members on the regional list than on the first past the post system. That would be a departure from anything this country has previously seen. I believe that what we are suggesting here may have implications for the long term and that at some point, due to changes in the responsibilities of the Assembly, more powers may be given. There may be a need for more support in the Assembly. If so, I would be really concerned that that would be made up on the regional list.

As regards the dual mandates, in principle, it is difficult to serve two political institutions at the same time. However, it can be beneficial to have some individuals also plugged into the national level. There should not be a double mandate, certainly as regards Assembly Members and Members of Parliament, for more than one year. We should encourage a little bit of movement between the two levels of government, but a case could probably be made for the House of Lords. As yet, we do not have individual Members of the House of Lords democratically elected to represent Wales. We happen to be Welsh people, but we do not represent Wales here. It is an accident and we are not speaking officially for Wales in any capacity. However, despite the fact that some individuals would not have a mandate to speak for the Assembly, it would be useful to keep a link and a channel of information open between the different institutions. I have a concern that, as the Assembly settles, we will see less movement between the institutions. Then there is the question of whether you could or should stand on a constituency list in addition to being on a regional list. I can understand how unjust that felt in 2003 in North Wales, when the constituency Labour Member won and each one of his defeated opponents then popped up on a regional list. On the other hand, I felt a little bit sorry for a Tory—which does not happen very often, I can assure you—when the leader of the Tory group, Nick Bourne, was knocked off the regional list; he was rejected because of the success of his party at a constituency level. So I have a degree of sympathy, which does not happen very often, as I said.

My conclusion and my clear message is this: whatever is decided, it should be decided with the blessing of the Assembly. If it is not, it will be perceived as something being imposed from London and that will be simply storing up trouble for the future.

--- Later in debate ---

[Baroness Morgan of Ely]

She claims that she is Welsh.

[Lord Anderson of Swansea]

Others say she is English.