Wales: Devolution

Lord Roberts of Conwy Excerpts

Thursday 19th July 2012 Lords Chamber

[Lord Roberts of Conwy]

My Lords, I congratulate my noble friend on securing this debate, which enables us, as she suggested, to have an input into the Silk commission’s deliberations.

My comments today will be very preliminary and tentative, because I hope that we shall have a further chance to debate the Silk report when it is published and before the Government make up their mind on the proposals. However, even as things stand, it is not difficult to make an informed guess about the recommendations of the first part of the Silk commission’s inquiry on taxation and accountability in Wales; and, indeed, perhaps about the eventual outcome after public reaction to its proposals and the Government’s consideration of it all. I say this with some confidence, because we know what happened to Scotland after the Calman inquiry and the subsequent Bill that came before this House. Unlike Scotland, Wales does not have a Parliament of its own, but it has a National Assembly and Government, and we can reasonably assume that developments in Wales will very likely follow a similar pathway to the one in Scotland.

The commission may well recommend that the revenue produced by certain UK taxes in Wales should be assigned to the Welsh Assembly Government and a corresponding deduction made from the block grant. I see no insuperable difficulty with this, although there may be some argument about the level of the taxes concerned and the power to change them. I first encountered this idea of assigning the product of taxation in a report produced by my noble friend Lord Steel of Aikwood when he presided over the Scottish Parliament, which takes us back a bit.

I also remember the conclusion of that report: namely, that even if the Scottish product of all the UK taxes he listed in his report—and it was a page full of transfers—was transferred to Scottish coffers, Scotland would still need a subsidy from the UK Treasury to maintain the level of spending that it was accustomed to. That is likely to be the position in Wales as well. To my mind, the real problems arise over powers to vary rates of tax of one sort or another and if power is given to raise new taxes unique to Wales, as allowed in the recently passed Scotland Act, although it is a power not yet used in Scotland.

With regard to the power to vary taxes, we have seen the argument arise over the desire to vary corporation tax in different parts of the UK, particularly in the face of the low rate of 12.5% in the Republic of Ireland. The rate is regarded as an all-important factor in attracting inward investors, and of course we all want inward investors in all parts of the UK. The UK Government’s view is that it would not be right to allow one UK country or region a more favourable rate of corporation tax than another. I do not see them changing their mind on this.

I am more perturbed by the possibility of new or increased rates of taxes being imposed on businesses and individuals in Wales. We have a Labour Government in Wales, with more of the flavour of old Labour than the new. They are convinced of the supreme importance of the state and of the primacy of its needs and requirements. Their views are not mine. Suffice it to say: by their deeds shall ye know them. As the noble Baroness has just said, their record in developing the Welsh economy over the past 13 years is not one to be proud of. They have seen Wales fall as a favoured destination for inward investment from being second only to Scotland to being the lowest bar one among the UK regions. That, I dare say, was due to the abolition of the Welsh Development Agency. Let us face it, Wales is one of the poorest regions in the European Union and one of the least able to bear additional taxation. Extra taxes would drive out businesses and individuals—of that we can be certain. If the Government were to lower taxes to incentivise people it would be a different matter, but that is most unlikely.

If the National Assembly and its Government do not have taxation powers, how can they be held accountable to the electorate? Arguably, that could be achieved through the National Audit Office, the Public Accounts Committee and all the other parliamentary mechanisms here, but I do not think that they have ever been applied. That is a dilemma that is being left to the Silk commission, and I do not envy its task of deciding how that accountability can be created. Even within a democracy, there must be safeguards against the deleterious, deeply damaging and mistaken use of powers. The trouble is that it often takes time for the abuse and hurt to be felt and realised by the electorate.

This possibly explains the somewhat conflicting views expressed to the ICM poll, which was commissioned by the Silk commission and published this week. We are told that 64% of those questioned thought that income tax levels should be determined in Wales. However, as the Guardian put it on Monday,

“other answers muddied the waters”.

It went on:

“Asked which level of government should have the most influence over taxes that Welsh people pay, the results seem to contradict the bottom-line conclusion, with … 53% saying it should be Westminster. The Welsh government was … second with 35%”.

There we have it.

I agree in principle that borrowing powers, which are already available to the Scottish Parliament and the Northern Ireland Assembly, should be granted to the Welsh National Assembly and its Government but under strict Treasury control, bearing in mind the UK deficit that the coalition Government inherited and which has got us into so much trouble. The ultimate safeguard—we must never allow this to go—must be the overriding power of this Parliament. I sincerely hope that it will be preserved for use in extreme circumstances if things go very badly wrong in Wales.

There are many other issues to consider: the transfer of business-rate setting to the Assembly, which has similarities to the transfer of corporation tax in that it can advantage or disadvantage an area, depending on the rate imposed. However, the key question is whether the product of any tax transfers is additional to the block grant or a substitute for some part of it. I suspect that most transfers will be substitutes.

There is also the issue raised by the Welsh Government in their evidence to the commission in the event of a transfer of power to vary income tax. They suggest that there should be a referendum. Incidentally, it is not a power that the Welsh Government have actually asked for. Much to my surprise, I see that the Welsh Conservatives, in their evidence, which is reproduced on page 7 of the excellent Library note, say that,

“consideration should be given to the devolution of some aspects of income tax, because this could make the … Assembly more accountable to the people it represents … There is considerable merit in exploring this policy”.

Wonders never cease.

Wales: National Assembly Elections

Lord Roberts of Conwy Excerpts

Monday 18th June 2012 Grand Committee

[Lord Roberts of Conwy]

My Lords, first, I will compliment the Secretary of State, my noble and learned friend, and those who drafted the Green Paper. It is a model of clarity in its presentation of the choices before us and the arguments for and against them. As noble Lords said, the choices were consequential on earlier parliamentary legislation.

The choices that I make are governed by the principle that the best choices are those that bring the National Assembly and this Parliament closer together, rather than those that tend to drive apart these institutions. Therefore, it will come as no surprise that I favour the proposal that Assembly constituencies should be aligned with their parliamentary equivalents, and that we should follow the 30:30 model of 30 directly elected Assembly Members to complement the 30 Members of Parliament, and 30 Assembly Members elected by STV from five regional combinations of six parliamentary and matching Assembly constituencies. The pattern will lead to less confusion and more clarity among electors, and will appeal to local party organisers; I think that we all know that that is true. It will make life simpler for them—and for Members of Parliament and of the Assembly, who will be able to sort out between them the constituency cases that will belong appropriately to each of them.

I also favour the five-year term for the National Assembly, which will match the parliamentary term. Same-day elections should assist turnout. Its decline over the years has concerned us all. It should not be beyond the wit of most electors to handle three ballot papers simultaneously, especially if they have been warned in advance about what to expect.

[Lord Wigley]

Does the noble Lord not accept that if the elections for the National Assembly and the House of Commons were on the same day, inevitably the overwhelming attention of the press and media would be on the Westminster election? The paucity of our independent press in Wales underlines that. It would lead to a situation where there was no proper scrutiny of the programme being put forward for government in Wales—something that should be basic to democracy.

[Lord Roberts of Conwy]

Yes, of course there is a case to be made along those lines. At the same time, I urge the noble Lord to consider the low turnout at Assembly elections. The fact that there is a higher turnout for parliamentary elections could be combined and taken advantage of in order to secure more consideration by the individual elector when he gets to the ballot box of what else there is for him to choose. In practical terms, it may well be that United Kingdom politics would get more attention than local Assembly politics. However, I am not so sure that electors might not have a different view in each case. The fact is that they would be attracted to vote, which is what concerns me, and would make their decisions in the privacy of the voting booth.

I will return to my first principle: that we should endeavour to bring the National Assembly and Parliament closer together. Both institutions are, after all, part of the same democratic state, and one derives its power from the other. I said in the debate on the Queen’s Speech that there had been a strong tendency for the institutions to drift apart. Some would say that that divide has been deliberately promoted and a wedge driven, largely from the National Assembly side, but I would say that wouldn’t I? If so, it has not been particularly beneficial to Parliament, the Assembly or Welsh electors—quite the opposite.

[Lord Elystan-Morgan]

Would the noble Lord, Lord Roberts, not agree that it may be that a wedge was driven from the other side too? The Prime Minister said, in the first instance, that there would be no question of carrying through proposals for retracing the boundaries of the Welsh Assembly without the agreement—that was the word—of the Welsh Assembly. That was an undertaking given to Mr Carwyn Jones. He said later that it would be done after consultation—a very different matter and a far more colonial prospect.

[Lord Roberts of Conwy]

The Opposition, as always, put forward their own independent case and I would have to consider what the noble Lord, Lord Elystan-Morgan, has just said. The main drive towards separation has come from the National Assembly. I do not think it has been particularly beneficial to Parliament, the Assembly or Welsh electors. The Assembly has gained more powers following a positive referendum—provided, after all, by central government and on a low turnout with little or no opposition to speak of. Most of us now recognise that, whatever our earlier views, the Assembly is here to stay and our duty is to make the best of it.

There is much more to be gained by collaboration between the National Assembly and this Parliament than from the mock tug of war for more powers than has been the feature of the past. The willing establishment by the Secretary of State of the Silk commission, its membership and remit proves that there is a new, pro-devolutionary spirit abroad and the National Assembly should welcome it. It could begin to reciprocate by improving its communication with this place. I give just one example: last month, the Assembly Government published their first annual report for the Assembly term 2011-16 with a foreword by the First Minister. I obtained a 19-page summary of the report entitled Programme for Government. I was not able to get the full 600-page document: it was not available to us here in the Library or the Printed Paper Office, although I am glad to say that it is available today thanks to the indefatigable industry of Mr Quin at the Printed Paper Office. When I have finished perusing this somewhat substantial document, I shall make sure that it is in the Library for other Members.

Even the summary refers to a number of White Papers, draft measures and strategy documents. They were not available either and I doubt whether they are available now. They may be on the web but they should be as available—and in the same form—as the Green Paper we are discussing now. The least we should have is a list of Assembly publications and their whereabouts.

[Lord Elis-Thomas]

I am afraid I have been provoked, because we go back a long time in this discussion. Will the noble Lord accept that the National Assembly for Wales is an electronic democracy in which everything is digitally available?

[Lord Roberts of Conwy]

I agree. Even this tome, which I can barely lift, is available on the web but even the website reference is complex enough. Also, I really do not think that you can read 660 pages easily on the web.

My real point is this. As a consequence, most of us—of course I speak for myself—are pretty ignorant about what goes on in Cardiff Bay, which begs the question: is it right for this Parliament to devolve powers and then wash its hands of the use made of those powers? I do not think it is right. Those powers involve the use of British taxpayers’ money, and we are accountable for how that money is spent. It is irresponsible on our part. We should know what is being done and the National Assembly should be proud to tell us. It may be that we require a sub-committee of the Constitution Committee as the equivalent, as it were, of the Welsh Affairs Committee, to consider developments in Wales. Better communications and a ready supply of documents are only one aspect of improved relationships. There could be more official visits to Cardiff Bay, and I commend the Assembly Government Minister, Edwina Hart, who has been assiduous in cultivating informative relationships with Members of this House through the good offices of the noble Lord, Lord Touhig.

Finally, I turn to the Government’s proposal to restore the right of an Assembly constituency candidate also to be on a regional list, which was the original position. I am in favour of this not only because Arbuthnott found nothing against it in Scotland but because it will help to ensure that the best candidates a party can offer—I am thinking particularly of the smaller parties—have the best chance of securing Assembly membership. We want only the best in the Assembly, and they are not all that plentiful in any party. I am aware of how rivalries between some candidates in Wales led the Labour Government to abolish in 2006 the right to dual candidacy but, as we all know, rivalry is inherent in political life and only to be expected.

Scotland: Independence

Lord Roberts of Conwy Excerpts

Thursday 1st March 2012 Lords Chamber

[Lord Roberts of Conwy]

My Lords, bearing in mind that it was this Government who set up the Silk commission to review the case for devolving fiscal powers to the National Assembly for Wales and further constitutional changes—with high expectations, I might say, of positive outcomes—is not the devolution process now becoming an open road to greater independence, which very few Welsh people want: in fact, only 7 per cent of them, according to the latest BBC/ICM poll?

[Lord Wallace of Tankerness]

I thank my noble friend for drawing attention to that poll, which shows that the wish for independence in Wales is very much a minority interest. He is right to draw attention to the Silk commission. The first part of it will look at the fiscal powers and whether there should be greater accountability in the way in which money is raised by the Welsh Government and the Welsh Parliament. Thereafter, it will look at the other powers. I cannot accept that devolution will lead to independence. Rather, I think it is important that, where people have their own domestic agenda, they should be able to order its priorities, be it in the Welsh Assembly, the Northern Ireland Assembly or the Scottish Parliament.

Devolution: Wales

Lord Roberts of Conwy Excerpts

Tuesday 28th February 2012 Lords Chamber

[Lord Wallace of Tankerness]

My Lords, I am sure that the noble Baroness will reflect that the Barnett formula has implications for all parts of the United Kingdom and therefore it would not have been appropriate for the Silk commission to look at it in relation to Wales in isolation. That is why the Calman commission, looking at Scottish devolution, did not feel able to look at the Barnett formula. This Government have indicated that, while there is a case for looking at the Barnett formula, it is important that we first bring the finances of the United Kingdom under control. That is a precondition for any movement on the Barnett formula. For noble Lords who are keen to talk about the Barnett formula, the noble Lord, Lord Barnett, has tabled an amendment to the Scotland Bill which I very much hope will be debated later this evening.

[Lord Roberts of Conwy]

My Lords, one of the remaining issues after more than a decade of devolution is the dire state of the Welsh economy after the Welsh Labour Government have ruled the country. They have got rid of the Welsh Development Agency, which has cost us a great deal, and one Welsh academic has described it as,

“the worst policy decision made in Wales in living memory”.

Does my noble and learned friend agree with that verdict?

[Lord Wallace of Tankerness]

My Lords, I am not in a position to agree with that, not having read that particular report. Clearly the economy of Wales is a matter in which your Lordships’ House has a legitimate interest, concerning, as it does, both devolved and non-devolved matters. I understand that on St David’s Day later this week the House of Commons will be debating Welsh affairs generally, and I strongly expect the economy to dominate and not least the Welsh Development Agency and the point made by my noble friend.

Parliamentary Constituencies and Assembly Electoral Regions (Wales) (Amendment) Order 2011

Lord Roberts of Conwy Excerpts

Tuesday 22nd November 2011 Grand Committee

[Lord Wallace of Tankerness]

That is a very good question and I hope that the answer I give will satisfy the noble Lord. He will know that this is an amendment order and it is amending the Parliamentary Constituencies and Assembly Electoral Regions (Wales) Order 2006. However, I think we are clear that it will affect only the Assembly constituencies. A smaller number of people are affected. Nevertheless, for the electors and the relevant Assembly Members concerned, these are important. I am sure that MPs in the other place whose constituencies cover the areas affected will have been interested in the changes; indeed, they were debated there yesterday.

[Lord Roberts of Conwy]

Would my noble friend give way?

[Earl Attlee]

My Lords, may I suggest that we allow the Minister to lay out his stall, as it were? It may well be that he covers noble Lords’ points in his opening remarks.

[Lord Roberts of Conwy]

I was intervening simply because my noble and learned friend referred to the small number of people affected, and indeed the Explanatory Memorandum to the order refers to the first report dealing with Brecon and Radnorshire, and Merthyr Tydfil and Rhymney, as affecting only 18 electors. Could he say how many people in total are affected by the order?

Wales: Council Tax

Lord Roberts of Conwy Excerpts

Thursday 27th October 2011 Lords Chamber

Asked By

[Lord Roberts of Conwy]

To ask Her Majesty’s Government what steps they will take to ensure that funds allocated to the Welsh Government to enable them to freeze council tax rates are used solely for that purpose.

[The Advocate-General for Scotland (Lord Wallace of Tankerness)]

My Lords, the Welsh Government have received a £38.9 million increase to their departmental expenditure limit in 2011-12. As is usual practice, it will be for the Welsh Government to decide how to use this additional funding.

[Lord Roberts of Conwy]

But does my noble and learned friend think that it is right that nearly £40 million allocated by our right honourable friend the Chancellor of the Exchequer to the Welsh Assembly’s Labour Government specifically to enable them to freeze council tax should deliberately not be applied to that nationwide purpose for the second year running, with the result that over a million Welsh households are to be deprived of a substantial sum when they are facing the fastest rise in living costs for 20 years?

[Lord Wallace of Tankerness]

My Lords, I can readily understand where my noble friend is coming from in asking that question. The consequentials were made available because of the funding made available in England to freeze the council tax to help hard-pressed families. Indeed, many Welsh families might wonder why they are the only households in Great Britain that will not be having their council tax frozen. But the essence of devolution in the Acts that were passed by this Parliament in devolving power to Wales, including power over local government finance, means that it must be a matter for the Welsh Ministers and for the Welsh Assembly to determine what their priorities are. Importantly, Welsh Ministers will be accountable to the Welsh Assembly for their spending decisions and through the Assembly to the people of Wales. That is where the proper accountability should lie.

Parliamentary Voting System and Constituencies Bill

Lord Roberts of Conwy Excerpts

Wednesday 26th January 2011 Lords Chamber

[Lord Roberts of Conwy]

I welcome the noble Lord, Lord Wigley, who is a fellow north Walian. I look forward to hearing his maiden speech, but perhaps not this evening. We have gone on long enough I think.

As we are all aware, under the Bill as it stands, the total of Welsh parliamentary seats will be reduced from 40 to 30, which is an unprecedented figure. Even in 1832 Wales had 32 seats and, of course, the number has grown since then to 35 under the Representation of the People Act 1918, 36 under the Representation of the People Act 1948, to 38 in 1982-83, and 40 in 1995, under various statutory instruments passed by Conservative Governments. So the noble Lord, Lord Morgan, is perfectly correct in saying that both major parties have contributed over the years to this increase in Welsh representation. It is interesting to note that in 1948, while the Labour Government reduced the overall number of Members of the House of Commons from 640 to 625, they increased the number of Welsh seats by one.

How have the present proposals come about? The Government made their views very clear in the evidence that they supplied to the Welsh Affairs Committee, which conducted an inquiry into the implications for Wales of the Government’s proposals. It is clear from that evidence that it is the equal value of votes cast at parliamentary elections across the UK that is the overriding principle. Currently they do not have equal value. The Government go on to say in that evidence:

“The electoral quota for Wales’s forty constituencies averages around 56,500, the lowest of the four nations in the United Kingdom. Welsh constituencies now have on average some 20% fewer electors than constituencies in England; almost 14% fewer than constituencies in Scotland; and some 13% fewer than constituencies in Northern Ireland”.

Those are the facts. The Government go on in that evidence to point out the inequality in vote value among constituencies in Wales. They say:

“For example, the vote of an elector in Arfon, with an electorate of around 41,000, is worth almost twice that of an elector in Cardiff South and Penarth, with an electorate of over 73,000. The votes of electors in Aberconwy, Dwyfor Meirionydd and Montgomeryshire, all with electorates below 50,000, are worth considerably more than those in the Vale of Glamorgan, with an electorate of over 70,000 … The Government believes that, again, there is strong justification for ending this manifest inequality”.

I cannot say that that is felt at all acutely in Wales. Nevertheless, those are the facts that we must consider.

Some would think that the Government’s proposals are among the consequentials of devolution and the establishment of the National Assembly for Wales with its 60 representatives. They would recall that Scottish representation was reduced in 2005 from 72 to 59. The Government’s evidence appears to deny that in the case of Wales. The noble Lord, Lord Elystan-Morgan, was absolutely right on that. In their evidence the Government deal with the view,

“that given the establishment of the National Assembly for Wales and the extent of devolution to the National Assembly and the Welsh Assembly Government, Wales’s representation at Westminster should be proportionally less than that of England, not the same. The Government disagrees with this view. Since devolution, Parliament continues to legislate for the whole of the United Kingdom on matters that are non-devolved, including social security, tax, immigration and defence. It is surely right in principle that the people of Wales should have the same level of representation in respect to these matters as the people of England, Scotland and Northern Ireland”.

There we have the Government’s reasoned justification for their proposals. We are all aware of the factors that the Boundary Commission may take into account in deciding boundaries. We would all probably agree that a 10 per cent variation on either side of the quota would probably make life easier without mortally injuring the basic equality principle that lies at the heart of this Bill. As has already been said, Mr Lewis Baston of Democratic Audit has drafted a list of a possible 30 constituencies approximating the required size. The list is to be found in the Welsh Affairs Committee evidence. It merits close study. Of course it would be controversial, as any proposals for boundary changes are bound to be.

Devolution and the election of 60 National Assembly Members should have reduced the constituency workload of MPs, especially in the areas of devolved government—health, education, housing, and so on. But some MPs tell me that constituents still come to see them rather than their Assembly Members. If so, that is a problem that they should sort out among themselves at ground level. Wales has many problems. Indeed someone asked where Wales would be without its problems. More MPs than average is not the answer in my view. I agree that it is a matter of quality. Better quality MPs might help, but not more.

My noble friend Lord Crickhowell has expressed my views very well about the very eloquent arguments that we have heard in the course of this debate. Like him, I shall continue to ponder, but your Lordships may rest assured that there is no doubt that the issue of parliamentary representation of Wales is crucial. As the noble Lord, Lord Morgan, has said, Parliament has played a very important part in our history. I hesitate to say it but surely the 16th century Act that was passed requiring the translation of the Bible into Welsh was a unique piece of Welsh legislation. If my memory, which is faulty, nevertheless serves me correct, it was 1563 and it was a fellow countryman from the Conwy valley, where I reside, Richard Davies, who actually pressed that statute in this very House.

[Baroness Finlay of Llandaff]

My Lords, I wish to speak very briefly. The noble Lord, Lord Touhig, introduced this debate with eloquence and discipline and summarised the points beautifully. I wish to address two aspects only: devolution and Wales’s contribution to the UK today.

In the devolution settlement for Scotland, the powers were much clearer. Even if Wales has greater devolution —the Liberal Democrats had always said that they wanted to cut the number of MPs when the Assembly was stronger—and we go down to 35 MPs, we in Wales will still have lost a greater percentage than Scotland will have done. Fairness in devolution needs to be looked at.

What about Wales in the UK today? I refer noble Lords simply to the Armed Forces. We should remember that the population of Wales is just over 5 per cent of that of the UK. There are 37 regular battalions in the British Army, three of which are Welsh and six Scottish. Eleven per cent of recruits come from Wales and more than 7 per cent of casualties in Afghanistan are from Wales. At the height of Operation Panther’s Claw in summer 2010, the proportion of Welsh soldiers was between 20 and 25 per cent, as Welsh regiments such as the Welsh Guards were on the front line. An MoD spokesman, Paul Barnard, said in an interview last year:

“It’s certainly true … that Wales punches above its weight in the armed forces … And for that Welsh people should be proud, and the rest of the UK should be grateful”.

Indeed, the rest of the UK should be grateful, as Wales does contribute. We have a devolved Assembly, but the role of the MPs in the other place is important. We contribute to the UK. That is why this is such a serious debate and why the amendment as proposed by the noble Lord, Lord Touhig, is well crafted and should be supported.

National Assembly for Wales (Legislative Competence) (Housing and Local Government) Order 2010

Lord Roberts of Conwy Excerpts

Tuesday 13th July 2010 Grand Committee

[Baroness Gale]

As I said, the housing LCO could not be included in the wash-up, much to the disappointment of those in the Assembly who were waiting for a conclusion to this matter. A report in the Western Mail on 24 June stated:

“Conservative Wales Office Minister David Jones said he was not prepared to allow Ms Davies’ Sustainable Housing Legislative Competence Order (LCO) through unless it was amended to make clear that the right to buy council houses would not be abolished in Wales … Politicians at Cardiff Bay have been trying for three years to get legislative powers relating to housing transferred to them. An earlier version of the LCO was knocked back while Labour was in power, and the new coalition at Westminster has rejected the latest draft … Meanwhile Welsh Liberal Democrat housing spokesman Peter Black claimed that the veto of the LCO breached the Westminster coalition agreement. The relevant clause in the agreement states: ‘We will take forward the Sustainable Homes Legislative Competence Order’”.

On 29 June, the Wales Office issued a press statement:

“In the spirit of mutual respect between Westminster and Cardiff Bay, the Welsh Office will take forward the Assembly’s Sustainable Housing LCO unamended, Welsh Office minister David Jones announced today (28 June) … Mr Jones said: ‘Last week Deputy Minister for Housing Jocelyn Davies and I reached an amicable agreement on an amended Order to be taken forward. But having made further enquiries, the Welsh Office established that it would in practice be virtually impossible for the amended Order to complete its passage through Parliament to enable it to be put to the Privy Council for approval in July. We therefore decided, in pursuance of the spirit of mutual respect and in reliance to the assurances given by the Welsh Assembly Government to proceed to put the original draft LCO in its unamended form before both Houses of Parliament for confirmation as quickly as possible, so that the Order may be made by the Privy Council next month’”.

Why was there this change of heart? After all this time, in the matter of a few days—between 24 June and 28 June—why did the Wales Office Minister decide that the original LCO was now able to proceed?

Whatever the reason, we are pleased that there has been this complete U-turn from what the Conservatives were saying before and after the general election. This is welcome news. At long last the Welsh Assembly will get the LCO that it wanted, which will bring about a much improved method of social housing in Wales, meeting the needs of the Welsh people in a more positive and constructive manner.

[Lord Roberts of Conwy]

My Lords, I, too, welcome my noble and learned friend to his new position in the coalition Government and I wish him well, particularly in relation to Wales.

As we have heard, this LCO has been a long time coming, but not under this Government. In fact, we have made up for whatever delay there was under the previous Government. However, it is now here and I do not intend to delay its passage, although I am not entirely uncritical of it. We are, after all, transferring extensive legislative powers in the housing field in this order and those of us who have previous governmental experience in this area are anxious to assist the National Assembly and its Government to exercise those powers in the best interests of the people of Wales. I had ministerial responsibility for housing in Wales in the early 1980s when the right of council tenants to buy their rented properties was first introduced to Wales, much against the wishes of local housing authorities. Of course, the right to buy quickly became a popular policy with sitting secure tenants and has remained so over the years.

According to the Explanatory Memorandum—page 8, paragraph 7.20—there have been some 140,000 sales in Wales, which is almost half the original social housing stock. The right to buy was not abolished during the 13 years of Labour rule, so one may conclude that it was accepted by the major parties. The Assembly has, however, reduced the maximum discount available from £24,000 to £16,000 and has extended the rural areas where there are restrictions on resale of right-to-buy properties. So perhaps the right to buy is not sweet music to everyone’s ears.

The benefits and advantages of owner occupation to the owner and to society are obvious and I shall not rehearse them. The key fact to remember is that the secure council tenant who becomes a buyer takes an immediate interest in the maintenance and improvement of his or her property and no longer waits for the council landlord to cut the privet hedge, subsidise the rent and perform all the functions of a responsible landlord. There is a tendency on our part now to forget just how heavy a burden housing subsidy and repair and maintenance costs can become on housing authorities and taxpayers. Those who are intent on increasing social housing should consider these factors and realise what they are letting themselves in for in terms of cost when the stock is enlarged.

A local authority’s housing stock may be reduced as a result of right-to-buy purchases, but the locality’s total available housing stock is undiminished. That point, too, is often overlooked or ignored. When the house is sold to its tenant, some people take the view that that house seems to have disappeared, but that is not the case.

As my noble and learned friend said, assurances have been given by the Assembly Government Minister, Jocelyn Davies, that the intention of the Assembly is not to abolish the right to buy but to limit sales in areas of housing pressure. There is nothing new in that. Limitations were imposed on council house sales in sensitive areas such as the national parks from the earliest days and such restrictions continue. They are not confined to Wales; they also apply in the Lake District, for example.

What is important in this right-to-buy context, in this order more generally and in the legislation that may flow from it, is that the best interests of the individual and his or her rights should be preserved and not overridden to enhance the control and power of authorities over citizens’ lives, as has happened in the past. There is a great deal of talk these days about more powers for the National Assembly; indeed, we are about to have a referendum on the issue next year. I for one would like to hear more talk in our representative institutions about the devolution of powers to a more local and community level. This is why there has been such concern about an Assembly power to direct local authorities to provide specific locations for Gypsy and Traveller sites, irrespective of the views of local communities. The individual’s rights and well-being must also be carefully considered in the context of the provision in this order to allow increased council tax on second homes. Such decisions, taken too abruptly and in a sweeping fashion at the wrong time, could cause a severe decline in property values across whole swathes of Wales and could cause chronic rural depopulation, such as we experienced in mid-Wales in the previous century, to rear its ugly head again; it could at least worsen the depopulation problem.

Finally, we must recognise that we are facing an era of severe austerity as a result of the legacy of unparalleled debt that this Government have inherited from their prodigal predecessor. Many things that looked achievable at one stage no longer appear so. Adapting to our new and straitened circumstances will take time—longer for some than others—but adapt we must. One of the keys to such adjustment is to realise that the state and its ancillary authorities cannot do everything; they are restricted by limited resources and must, like the rest of us, live within their means. Where people and communities can do things for themselves, they must be encouraged to do so. There seems to me no credible alternative approach in the present circumstances.