Scotland: Devolution

Lord Elis-Thomas Excerpts

Wednesday 29th October 2014 Lords Chamber

[Lord Birt (CB)]

My Lords, patriotism is a positive force rooted in pride of place, common endeavour and shared culture, perspectives and values. Nationalism, on the other hand, can be a destructive force, and no one expressed that to me more keenly than Eric Hobsbawm, the late, esteemed Marxist historian. Eric was a near neighbour of mine in mid-Wales, and he and I would oft-times hike the glorious hills of Brecon and Radnor together. In the 1930s, as most will know, Eric as a child had to flee Berlin and the Nazis, and he had been forced to move once more in his life, in the 1980s, from north to mid-Wales to escape the poisonous nationalistic hostility that had confronted him in Snowdonia.

[Lord Elis-Thomas (PC)]

I am sorry to intervene on the esteemed noble Lord, but as the Member of Parliament at the time and as the Assembly Member for Meirionnydd, I can assure him that his version of events borders on an imaginative treatise that I will never be able to subscribe to.

[Lord Birt]

I can only say that, on our long walks together, he felt extremely passionate about it and it caused him to move home. He had lots of chapter and verse to support his feelings.

Though many on the yes side of the Scottish referendum campaign behaved with propriety and conviction, others acted dishonestly and with menace. The noble Baroness, Lady Liddell, brought that out extremely forcefully. The evasion about the critical issues in the referendum campaign—the currency, a central bank, the NHS or membership of the EU and NATO—was without precedent in any election or referendum campaign that I ever experienced.

There was no better example of menace, among the many, than the singling out by the First Minister of Nick Robinson and the BBC. At a very difficult moment in the campaign for the yes side, towards the end after a series of highly unwelcome interventions from business leaders, the First Minister held a press conference for foreign correspondents, extraordinarily packing it with fevered and noisy supporters. To distract from his difficulties—as usual playing the man and not the ball—the First Minister orchestrated an argy-bargy with Nick Robinson, the BBC’s political editor, a correspondent universally respected for his insight, independence and integrity.

Following Mr Robinson’s report of that conference, there was a demonstration against the BBC and its political editor, as the noble Lord, Lord McFall, mentioned. Some thousands of yes supporters gathered outside the headquarters of BBC Scotland, an intimidating and frightening experience for BBC staff. The First Minister was, however, to describe this demonstration as “joyous and peaceful”. Nick Robinson could only continue to report the final stages of the campaign with a bodyguard at his side.

The next challenge for the United Kingdom is a resurgence of English nationalism. What Eric Hobsbawm made me deeply conscious of on our walks was how nationalism evades the essential discourse between left and right about wealth creation, social justice and income distribution. For nationalists, there are always easy targets: immigrants are stealing your jobs; the Jews your money; the white farmers your land; the English your oil. Nationalism thrives on economic reverse and volatility.

It is a commonplace at the moment to claim that there is widespread disaffection with the Westminster classes and that the remedy is therefore to tear up our constitution and to devolve power here, there and everywhere. We should be very careful. The modern state is indeed a terrible tangle. It is indeed vital to ensure that real responsibility and power are lodged at the appropriate place, whether globally or at national, regional or local level. I agree with all noble Lords who said that we need to tease away at identifying the right balance between centralisation and devolution or decentralisation. We must, of course, honour our promise to Scotland, but we should take our time about everything else and answer the questions properly.

In particular, we should be extremely cautious of so-called English votes for English laws. It is indeed anomalous, as I am sure everybody agrees, that Scottish MPs vote on English matters, but perhaps, as the noble Lord, Lord Kerr, suggested, it is an anomaly that we should simply live with, for England is by population 84% of the United Kingdom. It is one thing to create special arrangements for three national regions representing respectively 8%, 5% and 3% of the population, but it is quite another to make special arrangements for 84% of the population. That would simply drive us further apart.

Let me cite an extreme example to illuminate a point. The noble Lord, Lord Tope, mentioned London. Imagine if London and the south-east, at some point in the future, pressed to be a city state. It is by far the most prosperous region in Europe, not just in the UK. Enormous wealth passes from London to the rest of the UK. Picture the impoverishment that would result in Wales and elsewhere from London’s independence. Picture also the vulnerability of a highly fragmented British Isles. Remember the Romans, the Vikings and the Normans, as well as the Nazis. A united nation shares its wealth and stands shoulder to shoulder when threatened.

The root of widespread disaffection in the electorate, which has been much mentioned in this debate, is not our constitution but the monumental failure of governance in the last decade or more. Governments the world over, including in the UK, have been fiscally irresponsible. Regulators have failed to protect us against systemic breakdown and the finance sector has failed to act with prudence and probity.

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[Lord Thomas of Gresford]

My Lords, it was a great pleasure to hear the noble Baroness, Lady Quin, deal with the most outstanding achievement of the Welsh Labour Government, and that is to put a charge of 5p on plastic bags.

Home rule is a Liberal invention. Mr Gladstone said in Aberdeen in September 1871:

“This United Kingdom which we have endeavoured to make a united kingdom in heart as well as in law, will, we trust, remain a united kingdom. If the doctrines of Home Rule are to be established in Ireland, I protest on your behalf that you will be just as well entitled to it in Scotland. Moreover I protest on behalf of Wales, in which I have lived a good deal and where there are 800,000 people who to this day, such is their sentiment of nationality, speak hardly anything but their own Celtic tongue—I protest on behalf of Wales that they are entitled to Home Rule there”.

Mr Lloyd George echoed those sentiments in 1891, calling for “Home Rule all round”. Jo Grimond believed that power was not to come top-down, as the noble Baroness said, but to spring up from the people. He wrote:

“I find it difficult to see how, if the case for Scottish and Welsh self-government is accepted at all, any powers can be reserved to the UK government except foreign affairs, defence, and the wider issues of economic policy linked to a common currency and common trade policies”.

This was the model in the Hooson Bill for a Welsh Parliament in 1967, which I drafted myself.

Home Rule is not independence. We in Wales agree with Mr Gladstone that this is a United Kingdom of the heart, as much as of political economy. The first impact of the Scottish referendum on Wales was to reduce the support for independence for Wales from 7% to 3%. This was according to a BBC random poll of over a 1,000 adult respondents between September 19 and 22. This is not in the least surprising. Welsh nationalism has always been focused more on cultural identity, tinged perhaps with a little bit of arson, rather than political power. The Scottish referendum campaigns revealed only too starkly the impact that independence was likely to have upon the economy in the relocation of banks and of industry, upon the pound in the pocket, upon relationships world-wide, upon defence obligations and upon jobs.

It was argued by the yes campaign that Scotland paid more in taxes than it received; it would easily be more than self-sufficient, and they could afford to go their own way without detriment to the people. This calculation, dubious in itself, was in any event dependent upon the total success of all their claims in negotiations with the rest of the United Kingdom. That assumed a hearty goodwill and a desire on the part of the taxpayers of England, Wales and Northern Ireland to underwrite the economy and banking system of an independent country north of a newly defined border. It was a fantasy.

Wales is not Scotland. We raise in taxes only 70% of the money we spend. It is not because we are weak or poor in ability or ingenuity; it is because our basic industries of coal, slate and steel are exhausted. Wales shares its wealth, as the noble Lord, Lord Birt, said. We did not call it Welsh coal when it was mined.

However, today, according to key economic indicators published by the Office for National Statistics last July, we are the poorest part of the United Kingdom. We had hoped that a devolved Government would lift us economically, but it has not happened. Public services in education and health are falling behind England. It is clear that a devolved Government in Wales requires some form of equalisation funding.

The Barnett formula, while generous to Scotland, as the noble Lord, Lord Lang, pointed out, underfunds Wales, according to the Holtham commission, to the tune of some £300 million a year. We need fair funding: a needs-based formula which would restore parity to our communities and our public services. As an immediate stop-gap, the Holtham commission recommended a “Barnett flaw”. If anybody wants to know what that is, perhaps they would like to buy me a drink afterwards and I will explain.

In the medium term, a formula must be devised which takes into account an ageing population in Wales, the additional health burdens which mark a post-industrial society, but above all the need to revive and develop the Welsh economy and create jobs. I remain wholly committed to devolution. There are signs of progress. The coalition agreement in paragraph 24 recognised the concerns of the Holtham commission and undertook to establish a process similar to the Calman commission in Scotland. This resulted in the Silk commission and we are currently putting through this House part 1 of its proposals, which will chiefly introduce borrowing and taxation powers. It is a sad commentary that the Government in Wales refuse to hold the referendum which would bring those taxation powers into operation.

We also have it in our Liberal Democrat manifesto to implement part 2 of the Silk commission, which will move Wales to the reserved powers model called for—

[Lord Elis-Thomas]

Did I hear the noble Lord right? Did he accuse the Government of Wales of refusing to hold a referendum on taxation powers? How can a Government possibly hold a referendum on something which has not yet been passed by this House?

[Lord Thomas of Gresford]

I am sorry, I did not quite catch what the noble Lord said.

[Lord Elis-Thomas]

I am grateful to the noble Lord for allowing me to intervene again. I heard him imply that the Welsh Government had refused to hold a referendum on tax-varying powers in Wales. How is it that a Welsh Government, or any other Government, for that matter, can hold a referendum on a matter which has not yet been legislated?

[Lord Thomas of Gresford]

That is the stated policy of the First Minister of Wales, as the noble Lord knows perfectly well.

We have in our own manifesto the intention to implement part 2 of the Silk commission, which will move Wales to the reserved powers model that was called for by Jo Grimond and which operates at the moment both in Scotland and Northern Ireland. We hope that normal political processes will operate to install in the Assembly a Government which will use the levers that they are being given to deliver the infrastructure upon which an expanding economy depends: outstanding education in accordance with Welsh traditions and a healthy NHS. Let us see if Scotland can match us then.

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[Lord Elis-Thomas]

My Lords, it is always a delight to follow the noble Lord, Lord Purvis of Tweed, in our devolution debates. When we go back to the later stages of the Wales Bill in the coming weeks I hope he will be able to find time to share his wisdom with us as he has done before. I was particularly pleased to hear what he had to say about his experience in the Scottish Parliament and his emphasis on co-operation across parties. As I am sure Members of this House and certainly the Government know well, this is precisely what has been happening in the National Assembly for Wales. Only last week a resolution was passed unanimously by all the four parties, put down jointly by all four party leaders. The essential part of that is the emphasis on the timescale for getting draft legislation— certainly before the end of the current Westminster parliamentary Session—to implement the further report of the commission so ably chaired by Paul Silk, a former clerk and chief executive of the National Assembly.

In a sense, the process in Wales was ahead of that now taking place in Scotland; but it has also been overtaken by events, in that the process in Scotland is going further. The negotiation that the party leaders in Wales are seeking jointly with the UK Government is precisely to sharpen up the proposals in the Wales Bill. It is also important that, as powers mature in Scotland, we have devolution to the English regions—for example, the north of England—alongside what is happening in Scotland, Wales and Northern Ireland. I speak as someone who is highly reliant on transport starting from Manchester, whether trains or planes.

In the short time available, I shall not venture into the English question as a whole, except to emphasise the point that we already have a clear statement at all times of the territorial extent and application of all our legislation. Wherever there are areas which overlap, we work through legislative consent Motions, both in the Scottish Parliament—substantially used, dare I say, by the SNP Government—to ensure that we can co-legislate when that is deemed the best way forward.

I will emphasise the aspects on which the party leaders in Wales are keen to get movement. The leader of the Opposition, the Conservative leader, Andrew RT Davies, is very keen on having the power to determine our electoral arrangements and the size of the Assembly, subject to the use of a super-majority, a two-thirds majority, whenever those decisions are taken.

As I said, there is an emphasis on the need to develop the legislative proposals in what we call Silk 2, but also to ensure that as we get further powers, there is serious co-decision between the UK Government and the Welsh Government, between this Parliament and the National Assembly, whenever we consider a referendum, for example. That is my clear response to what the noble Lord, Lord Thomas of Gresford, said. We must recognise that any decisions taken on holding a referendum on tax-raising powers should reflect the views of the people of Wales, and the UK Government should accommodate that.

It is essential that the discussions taking place between Wales and the UK Government parallel the process that is taking place in Scotland. I join colleagues in saying how good it is to see the SNP Government and the Scottish Greens as part of the post-referendum process.

I get a bit tired of the ideological attacks on a form of nationalism that I certainly never espoused, which does not belong in the 21st century. The civic nationalism of the Ministers who I know in the Scottish Government does not fit the description of my old friend Eric Hobsbawm. Whatever reason he had to leave his home in Croesor, in my former Westminster constituency, I am certain that it was not ethnic cleansing, although he seemed to think that that was the case.

As we look forward to the progress that the coalition Government are leading on devolution across the United Kingdom, for which I thank them, it is an opportunity for us to restate, in this building of all buildings, that in our history the relationships between the nations, regions and peoples of these islands have always been changing. The key thing is to realise that they are relationships. Constitutions are made by relationships, not the other way around.