Wales: Commission on Devolution in Wales

Lord Morris of Aberavon Excerpts

Monday 18th November 2013 Lords Chamber

[Baroness Randerson]

I am disappointed that the noble Lord, who has given a great deal of thought to this matter, has not been able to welcome the vast majority of the Government’s response. I take issue with the idea that we are blindly following Scotland. There is no blindness about this. The Treasury has made its decision on this, based on the evidence that it took in relation to the specific situation in Wales. I have already referred to the significance of the very porous border between England and Wales, and to the fact that so many people live close to and cross it on a daily basis. That was borne in mind by the commissioners at the Silk commission when they produced their report, and the Government have had to take that into account as well.

[Lord Morris of Aberavon (Lab)]

My Lords, I thank the Minister for her Statement, and Mr Paul Silk and his fellow commissioners for the work that they have done.

In general, I welcome warmly the new powers for the Government of Wales, particularly borrowing powers, which are badly needed. But first, as the income tax proposals require a referendum, do I understand it correctly that the Welsh Ministers will campaign for a yes vote for all the tax powers proposed? Secondly, can the Minister clarify a problem that I have already raised with her at Question Time? Will the borrowing powers to be used for the upgrading of the M4 around Newport and other major road improvements in Wales be financed solely from the new powers of taxation, or will some funding still come from the Chancellor of the Exchequer, and if so how much?

[Baroness Randerson]

I thank the noble and learned Lord, Lord Morris of Aberavon, for referring to borrowing powers. As we discuss tax-raising powers, we should not overlook the significance and importance of borrowing powers, particularly as they will enable us to be fleet of foot and ensure that the Welsh Government get the money that they require.

The noble and learned Lord asks how Welsh Ministers will be campaigning in a referendum. I cannot speak for Welsh Ministers. They must make up their mind—they are members of a different party and Government from me. However, it seems fairly unlikely that a referendum would be called if they were going to campaign against it, but it is not impossible.

I am unable to give the noble and learned Lord a detailed answer on the precise funding model for the M4. That still has to be worked out. The devolved responsibility for infrastructure means that the burden of the repair and construction of roads in Wales falls on the Welsh Government to a very large extent.