Strikes (Minimum Service Levels) Bill

Debate between Lord Wigley and Baroness Randerson

Consideration of Commons amendments
Thursday 8th June 2023 Lords Chamber

[Lord Wigley (PC)]

My Lords, I will intervene very briefly, as I did at earlier stages of the Bill, having taken good note of the comments made by the noble and learned Lord, Lord Thomas of Cwmgiedd.

I press on the Government the question of the definition of reserved powers. This goes broader than this amendment and may be something that needs to be looked at in another context, in its own right. Under those circumstances, I accept the lead that has been given by the amendment of the noble and learned Lord, Lord Thomas, and I hope the Government keep the issue alive in their mind.

[Baroness Randerson (LD)]

My Lords, I thank the noble and learned Lord, Lord Thomas, for moving this amendment. I too will be brief. It is important to restate the principles involved here. The Bill is one of a series from this Government that trespass boldly—I would say foolishly—on devolution. The United Kingdom Internal Market Act, the Procurement Bill and the Retained EU Law (Revocation and Reform) Bill do so distinctly, but this Bill takes it to another level. The overwhelming majority of the list of services for which it seeks to set minimum standards and take control are devolved services, and the noble and learned Lord spoke about this. Add to this the Government’s habit of ignoring the need for legislative consent Motions and we are well on the way to a constitutional crisis, which this Government seem openly to invite.

Even now, the Government do not seem to have decided how to develop and impose minimum service levels. Back in March, the Constitution Committee expressed surprise at this in its report, and it is significant that we are still at this point in June. It is nonsense to imagine that the Government can impose minimum service levels, in effect from a distance, on a service for which they have no responsibility at any level, and, in the case of Welsh-medium education, for which they do not even understand the language in which the rules and standards are written.

As it stands, the Bill is unworkable and damaging. The noble and learned Lord’s original amendment, which was agreed by the House, sought to limit the scope of the Bill. The elegance of the new amendment is that it would allow the devolved Administrations to give agreement in the normal way.

In the different political climate of the past, in devolution as it used to be practised and operate, there would be discussions, co-operation, compromises and ultimately agreement between the UK Government and the devolved Administrations. There would be legislative consent Motions agreed before we agreed legislation here. The norms have gone and that is a serious problem for our future democracy.

Subsidy Control Bill

Debate between Lord Wigley and Baroness Randerson

Committee stage
Monday 31st January 2022 Grand Committee

[Baroness Randerson (LD)]

My Lords, I will speak specifically to Amendment 6, to which I have added my name. The noble and learned Lord, Lord Thomas of Cwmgiedd, explicitly outlined its importance.

This very important group of amendments seeks to get to the core of what this is all about: why are subsidies required? As it stands, the Bill sets out seven subsidy control principles, which you could actually call rules and which on their own can easily be interpreted in a mutually contradictory way. They are further complicated by additional “energy and environmental principles”, by “subsidy schemes” versus “streamlined subsidy schemes”, and by “schemes of interest” versus schemes of “particular interest”.

This web of rules is combined with a complete lack of context. I take to heart the points just made by the noble Lord, Lord Lamont. As a councillor in south Wales, I was on the receiving end of changing maps. There is great significance in maps as an instrument to encourage investment in certain areas. If you are not going to have a deprived areas map for places to be assisted, you can have a carefully written industrial strategy that sets out terms on which assistance would be given to help the less prosperous areas. There is also a clear potential for overlap with other government schemes. It seems that levelling-up funding could well be seen to be in direct contravention of several of the principles set out in the Bill.

All this is further complicated by the unbalanced power structure at the top. I will not go through it again, but we will undoubtedly do so at different points on our amendments over the next few meetings. Briefly, the crux of the problem is that the Secretary of State is the Minister for England at one moment and the UK’s referee at another. In addition, there is a weak regulator with ill-defined powers and a lack of transparency, with high financial limits at which subsidies have to be registered. All this together strikes me as a chaotic system that is cooking up a bureaucratic nightmare because it does not have the clarity of the map or of the industrial strategy. It is a lawyer’s dream come true and invites litigation.

My noble friend Lord Fox gave us some excellent examples, and we could add to them the overt conflict between the principles of this Bill and those of the ARIA Bill. I was one of the Peers sitting here prior to Christmas discussing the Government’s desire to have the freedom to invest without particular principles that they would have to obey. I cannot see how that does not conflict with this Bill.

The amendment from the noble and learned Lord, Lord Thomas, tries to start to sort this out. So far the Government clearly do not know what they want, or they would have set it out in much greater detail and with much more clarity. Another way of looking at this is that the Government have been given all the cards in terms of power and can brush aside competition. They can hide significant subsidies that fall below the very generous thresholds that they have set out. It leaves the Government free to pick winners on the flimsiest of evidence—almost as was done over PPE at the start of the Covid pandemic, and we know what grief that has caused to both the Government and taxpayers.

Crucially, Amendment 6 sets out a process of agreement between the four Governments on what constitutes “disadvantaged areas” that are hence in need of levelling-up subsidies. As the noble and learned Lord, Lord Thomas, said, this must be a decision taken at a political level. It is not suitable for the CMA or the Competition Appeal Tribunal; their job is to judge individual cases against the rules established as a result of political decision-making.

Amendment 6 would once again establish in legislation the existing concept of common frameworks in relation to this topic. There are of course dozens of common frameworks on everything, from nutritional labelling to rail technical standards, from blood safety to motor insurance. Each has a set of rules on how the four Governments of the UK will co-operate to ensure that individual internal markets work properly. If any mechanism is likely to disrupt relationships within the internal market then subsidies are the one, so a formal common framework with evenly balanced dispute mechanisms is required. That way, the Governments of the four nations can establish their own priorities for subsidies and ultimately subject them to a formal dispute procedure if needed.

[Lord Wigley (PC)]

My Lords, I had not intended to intervene in this debate, and I am going to do so not from a particularly Welsh angle but from a general one. I identify with Amendment 6 and the comments of the noble and learned Lord, Lord Thomas of Cwmgiedd, with regard to the practicality of any Act like this being interpreted by the courts. We are going to create a monster if we are not careful, and it may well fall down because of its own inertia.

Three areas of experience spring to mind for me in addressing this question. The first is the old—am I allowed to say it?—Chinese saying that if you give a man or woman a fish then you feed them for a day, but if you teach them to fish then you feed them for a lifetime. Therefore, any long-term economic strategy must be geared towards enabling that to fulfil itself, so that we are not just providing subsidies for the day but providing a basis on which to build.

The second experience that comes to mind is writing an economic plan back in 1970 with the late, great Phil Williams, whom some colleagues here will remember from the National Assembly. We did an analysis to find winners in terms of industry and in terms of geographic location. Most of them worked out. In fact, they were fairly common-sense things—electronics, chemistry and so on—and I suspect that they would have fulfilled themselves had there been no grant mechanism, because they were doing what there was a momentum towards.

My third and final point concerns our experience in Wales with regard to European funding; I have no doubt that similar experience will have been obtained in Cornwall, South Yorkshire, Merseyside, parts of Scotland and wherever such funding was available. The funding went not just to narrow projects but to areas of investment with a long-term payback, such as work, even blue-sky projects, in our universities. These would not create immediate jobs but provided a basis on which industry and commerce, and those who were going to invest in them, could look to the future. The scheme of grants that was available then through the European Union was very broad; we should not ignore that dimension. We need mechanisms that enable that to happen. If we can get this right, it could be very valuable. It may well be that this Bill has that potential in it, but there is a lot that needs to be clarified at the moment. Some of these amendments may help tease that out.

European Union (Withdrawal Agreement) Bill

Debate between Lord Wigley and Baroness Randerson

Committee: 2nd sitting (Hansard) & Committee stage & Committee: 2nd sitting (Hansard): House of Lords
Wednesday 15th January 2020 Lords Chamber

[Lord Wigley (PC)]

My Lords, my name is also attached to Amendments 18, 23 and 45. I am very pleased to support the points made by the noble and learned Lord, Lord Thomas of Cwmgiedd, and the noble Baroness, Lady Finlay.

The issues at question are issues of trust between the devolved Governments and the Government of the United Kingdom. Nobody is arguing that the devolved Governments have power over international treaties—of course they do not; they are reserved powers. None the less, what will be undertaken in those treaties will almost certainly have a very direct effect on matters that are devolved, some of them fully, to the National Assembly for Wales, and likewise to Scotland and Northern Ireland in slightly different ways.

To that extent, there have been occasions when the UK Government has been well represented in negotiations in Brussels by Ministers from the Government of Wales. It is perfectly right that they should be there on matters such as the sheepmeat regime or when questions of smaller languages are debated. When such matters arise, as is likely, in the context of any ongoing treaties or new treaties that will emerge, it is vital that the confidence of the Welsh Government and the National Assembly, and likewise that of Scotland and Northern Ireland, is taken fully into account.

The real danger is that things happen by default. The UK Government, with all the good will in the world, might think that issues do not arise without having talked about them. There needs to be some system to avoid unnecessary tension and rows between the various Governments within the United Kingdom.

I did not participate in the debate last night, but I read with considerable interest the comments made by the noble Lord, Lord Duncan of Springbank. He said:

“This debate has taken a turn that I had not anticipated—the notion that a power is now being granted to the Government to undo that which has been set before: if you like, the magisterium of the law which sets up the elements of Northern Ireland, Scotland and Wales. That is not the purpose of this rule.”


He goes on to say that he would be happy to make a note available

“to all noble Lords who are interested in this, so they can see where we believe this power will be required”.—[Official Report, 14/1/20; col. 639.]

The point is that if the noble Lord, Lord Duncan, has recognised that there is a need for greater clarification than is provided in the Bill, surely with the Bill still going to Parliament there is an opportunity to table amendments, such as the ones proposed in this group, to safeguard the position. It is not enough to have a sentence in Hansard. That obviously helps to clarify the position, but there needs to be something more cast-iron than that.

This is not a party-political issue, it is a matter of getting means of sensible co-operation into the Bill. If the Government cannot accept the amendments now, I very much hope that between now and Report they will consider these issues and try to bring in some form of wording that gives an assurance in the Bill along the lines that the noble Lord, Lord Duncan, suggested last night.

[Baroness Randerson (LD)]

My Lords, these amendments are designed to cement the established position of the devolved Administrations in the new situation in which we will find ourselves.

Amendment 18 to Clause 22 relates to any amendment to the statutes establishing devolution. They can be amended by a Section 109 Order in Council as long as the devolved Administrations agree but, as the clause stands, it leads to a suspicion that the Government could take the power to change devolution settlements without the agreement of, for instance, the National Assembly of Wales. We need the Government to make it clear one way or the other that they do not intend to do this.

Amendment 23 to Clause 26 simply adds devolved Ministers to the list of those to be consulted before the Government bring forward regulations referred to in that clause. Amendment 45 to Clause 38 relates to the Sewel convention. It simply inserts the well-established principle that Parliament will not normally legislate on devolved matters without legislative consent from the National Assembly for Wales.

I want to spend a little longer on Amendment 29, which puts the Joint Ministerial Committee on EU Negotiations on a statutory footing and requires representatives of devolved Administrations to be briefed regularly on future relationship negotiations. The history of the JMC as a whole has been chequered, to say the least. I have been privileged to see it from both sides: from the Welsh perspective as a Minister between 2000 and 2003 in a coalition in the National Assembly, and from 2011 to 2015 when I was a Minister in the Wales Office here.

In the early years, 2000 to 2003, I would describe the JMC as having been part of an old boys’ network. Labour was in power, in government, both here and in Cardiff, where it led the coalition. There was a dangerous lack of formality about the business we did. It was very good humoured but it did not have structure and was slightly erratic. It at least met regularly, if not frequently, but its behaviour was erratic. From 2010, I would characterise relationships as at the other end of the spectrum, with the coalition Government— the Liberal Democrats and Conservatives—here, the SNP in Scotland and Labour in Wales, as well as the complexity of Northern Ireland. I would say it was more of an armed standoff in those years. It provided an opportunity to have a well-scripted, very formal row with each other, with people coming out on to the steps of Downing Street to tell the world what they had said on their side of the argument. As a result, not surprisingly, it did not meet that frequently. Having observed the JMC in recent times, it does not seem to have got much better.

The devolved Administrations have drawn a lot of their strength and confidence from their vital EU links, which affect so much of the devolved work that is taken in those countries. Those links are now to be severed. As a Welsh Minister in the early years of this century, for instance, I represented the combined Governments of the UK at a European Council of Ministers; the noble Lord, Lord Wigley, referred to that kind of situation in his speech. I presented the agreed joint position of those Governments. It has given the devolved Administrations status and strength and is a very important part of their overall situation.

European Union (Withdrawal) Bill

Debate between Lord Wigley and Baroness Randerson

Committee: 7th sitting (Hansard): House of Lords
Wednesday 14th March 2018 Lords Chamber

[Lord Wigley (PC)]

My Lords, my Amendment 147B is in this rather diverse group of amendments. I declare an interest in that most of my close family are involved in the creative industries in Wales. My amendment is very similar to Amendment 146, spoken to by the noble Lord, Lord Stevenson, on behalf of the noble Lord, Lord Puttnam, who cannot be here, unfortunately. I support that amendment. My wording makes reference to the creative industries in all parts of the United Kingdom.

By their very nature the creative industries are international. Nothing that emerges from the negotiations that the Government are undertaking with the EU should in any way serve as a disincentive to all elements of the creative industries to engage as fully as they do now with counterparts throughout the European Union, or for those engaged in creative industries in the other 27 member states of the EU to maintain their engagement with colleagues in the UK and, indeed, with the general public.

The creative industries are the fastest-growing sector of the Welsh economy, having increased by way of employment by 58% between 2005 and 2014. Film and television account for a significant part of this, and the Welsh Government have had creative industries as a growth target since 2006. Our Welsh universities generate 5,000 creative industry graduates each year in such subjects as animation, visual effects and digital and mobile technology.

The creative industries are a key component of the UK economy, worth more than £35 billion per annum, with almost half their exports going to the EU. The audio-visual sector alone contributes £16 billion to UK GVA, with £7 billion of exports—more than £3 billion of them to EU countries.

The Creative Industries Federation published its Global Trade Report in January, based on evidence from 130 leading creative businesses. Of these, more than 80% were not confident that the UK’s creative industries could maintain their global reputation after Brexit. Forty per cent said that a no deal outcome would harm their ability to export, with 21% saying that it would lead to them moving their business abroad. They desperately want the UK to continue to have an active role in future EU legislation, as that can have a far-reaching impact on their work. The sector urgently needs to know how alignment with the EU will be managed post Brexit. Who will make the rules and regulations that will affect their ability to export to the EU countries? They also need clarity on the movement of self-employed performers and are calling for a labour movement framework that enables individuals and businesses to travel unhindered throughout the EU in order to provide their services.

The federation is calling for ongoing participation for UK citizens and businesses in EU cultural and educational programmes. It wants mutual recognition of qualifications—as has been mentioned already—and an agreement that covers the key dimension of intellectual property. It also wants clarification about the future of the digital single market.

One very important function is provided by UK-based broadcasters which broadcast programmes and services to European Union audiences. It is a significant sector; I believe that a staggering 700 such services are generated from the UK. Will they be allowed after Brexit to broadcast without barriers? They need to know the likely position relating to intellectual property. In particular, there is a strong feeling in the sector that we must be able to bring in labour from the EU as we do not have enough home-grown skills to satisfy demand.

Last November, the Welsh Government hosted in Cardiff a conference of EU peripheral maritime regions on European co-operation beyond Brexit. Their final declaration emphasised the need for continued participation in Creative Europe. Will we still have access to Creative Europe, which supports transnational co-operation projects involving cultural and creative organisations from different countries? If we lose access to this resource, it will be a very great loss to Wales and many other parts of the United Kingdom. Will the Minister clarify the position on that point when he responds?

[Baroness Randerson (LD)]

My Lords, I shall speak to Amendment 147C. In this rather pick-and-mix debate, as we go from one important topic to another, my amendment refers to transport. Our transport systems operate on a system of ongoing reciprocal arrangements and there is no WTO fallback position—indeed, I spoke about this in the early hours of yesterday morning. It is essential that we remain part of the arrangements that already exist, because our whole economy and society stand on the shoulders of our transport systems.

European Union (Withdrawal) Bill

Debate between Lord Wigley and Baroness Randerson

Committee: 6th sitting (Hansard - continued): House of Lords
Monday 12th March 2018 Lords Chamber

[Baroness Randerson]

I have spoken for a total of three minutes on this Bill. I think we have a right to be heard.

[Lord Wigley]

The point I wish to make, if I may, is that Amendment 104 is very significant for Wales because of the implications that it has for the ports of Holyhead, Fishguard and Pembroke Dock—an angle that has not yet been covered in this debate. These are vital trading links between Wales and the Republic of Ireland. Holyhead is the UK’s second-largest port. In excess of 400,000 trucks pass through it each year, and a hard maritime border between Wales and the Republic of Ireland will inevitably hit it hard.

I ask noble Lords to read the excellent article by Professor Richard Wyn Jones in the Irish Times on the specific issues facing Holyhead and his native Ynys Môn, or Anglesey. Almost 80% of the Irish-registered HGVs heading for the continent pass through these Welsh ports, the vast majority via Holyhead. There is simply no space in or around the port for the kind of infrastructure that will be required to process the number of lorries and trailers that currently pass through it. A hard border in Holyhead will yield only chaos, and the same problems apply to Pembroke Dock and Fishguard on a lesser level.

The inevitable consequence of physical constraints in and around the ports is that freight will need to find ways to bypass Holyhead and Wales, especially if there is a soft border between the British state and the European Union in Northern Ireland. Without trade arrangements that mirror the outcome of what we already have, Welsh ports will be in danger of becoming uncompetitive. In practice, the border for freight at the Welsh ports must be as frictionless as it will be between the north and south of Ireland. That is why I support the amendment.

[Baroness Randerson]

My Lords, these amendments are designed to concentrate the Government’s mind and to get some answers. I share the concerns of the noble Lord, Lord Wigley, about Holyhead. The situation is very similar to that at Dover. When the Government try to close down the debate, I remind them that the areas expressing extreme concern to us about the lack of preparedness are the ones that have loyally voted Conservative over a long period, and they will be particularly worried that their concerns are not being heard with due seriousness in this Chamber.

The sort of Brexit that we get will of course have a major impact on our ports. They might have to change the way that they process goods twice: once possibly for the transition period and once for the end game, whatever that is.

Wales Bill

Debate between Lord Wigley and Baroness Randerson

Committee: 3rd sitting (Hansard): House of Lords
Tuesday 15th November 2016 Lords Chamber

[Lord Wigley]

My Lords, once again it is a delight to follow the noble Baroness, Lady Bloomfield of Hinton Waldrist. I had the pleasure of speaking after her when she made her maiden speech a few weeks ago on an earlier stage of this Bill. On this occasion, I am afraid that we shall not see exactly eye to eye on the question of the limitation, since I shall speak briefly to Amendments 99 and 101, which seek to remove the 350 megawatt limit on the devolution of energy projects to Wales.

Having given Scotland complete control over its natural resources—with no limits, so for those looking for a United Kingdom policy, that has already been given away—the Government are proposing to devolve energy in Wales only up to a limit of 350 megawatts, with anything above that threshold being reserved to Westminster. This arbitrary constraint on the ability of Wales to control its own natural resources has stirred many emotions in Wales. It seems archaic and contrary to the spirit of devolution that Whitehall will still decide how and when Wales can harness many of its most precious natural resources.

I shall outline what this means in practical terms by reiterating an example highlighted by my colleagues in another place. Responsibility for the 320 megawatt Swansea Bay tidal lagoon would be devolved under the current Bill. However, the proposed Cardiff and Colwyn Bay tidal lagoons, which are identical apart from scale, will be reserved to Westminster. This does not stand up to any test in logic.

The Government have chosen to use the cover of the Silk commission’s recommendations—which, I recognise, also suggested a possible limit of 350 megawatts. However, if they are going to do so, does the Minister not agree that all of the Silk recommendations must be treated with the same respect? The Government most certainly are not doing this in other instances, so why pick out this one? As the Minister will undoubtedly recall, the 350 megawatt limit was agreed to in a cross-party Silk commission discussion on the understanding that other parties would support the devolution of policing and broadcasting. Does he recall that meeting? I have the references.

I conclude by noting that this is once again an example of how we are asked to accept second best in terms of devolution of energy. We are asking only for the same deal that is afforded to other nations. The 350 megawatt limit that the Bill imposes stops Wales effectively harnessing its world-class renewable resources —its wind, its coastline and sometimes even its sun. As my noble friend Lord Elis-Thomas emphasised, these are important ingredients for the future of the Welsh economy. Our resources belong to the people of Wales and now is the time for the law of the land to recognise that.

[Baroness Randerson]

My Lords, we on these Benches have felt for a long time that the constraint on the Assembly’s current control over energy is ridiculously low and the suggestion that it should rise to 350 megawatts is better, but by no means good enough. The noble Lord, Lord Wigley, has outlined the foolish situation that we are likely to find ourselves in if the 350 megawatt limit is adhered to. We all know it was picked as a limit by the Silk commission because it would encompass the Swansea Bay tidal lagoon. But as the noble Lord pointed out, the problem is that the sister projects in Cardiff and Newport, if they are built, will be larger than 350 megawatts, so by what measure would the Swansea lagoon not be considered to be of strategic importance but one built in Cardiff would be?

It is absolutely essential that the Welsh Government and the Assembly are able to take a stronger position on energy development. They should also be able to take a distinctive and different position on it. We fully accept that nuclear developments would not be appropriate for devolution because of their massive scale, but we do not believe that artificial limits should be put on the ambition of the people of Wales, the Assembly and the Welsh Government to provide a larger share of the energy they consume, and to find new, different, innovative and environmentally sound ways of doing so. I think that this is one of the most important series of amendments which have been put forward to the Bill so far.

Wales Bill

Debate between Lord Wigley and Baroness Randerson

Committee: 2nd sitting (Hansard - continued): House of Lords
Monday 7th November 2016 Lords Chamber

[Lord Wigley]

I accept entirely the Minister’s point that they have been grouped in this way, but when I realised they had been coupled in this way it was too late for me to get the decoupling done. That means that devolution of the police, which was a major issue for the Silk commission, is being tucked away at this hour of the night and has been responded to before the arguments have been put. I intend to put those arguments, even at this late stage of the night, and I shall not truncate what I had to say.

Amendment 48 would remove a reservation and subsequently devolve matters relating to the police in Wales to the National Assembly. As noble Lords will be well aware, the Silk commission, of which the Minister was a member, recommended unanimously the devolution of policing and related matters of community safety and crime prevention. Given that the Minister was so keenly in support of that in the Silk commission, it beats me how he was able to say what he said a few moments ago. It is my contention, shared by many people in Wales, that this Bill should have enacted the Silk recommendations—or at least the unanimous recommendations and in these matters in particular.

To put it simply, Wales, like the other nations of the United Kingdom, should have responsibility for its police forces. I cannot see any reason why police priorities in Wales should be dictated by the UK Parliament and not by the National Assembly. Given that policing is devolved to Scotland and Northern Ireland, I can see no reason why it cannot be devolved to Wales. What makes Wales an exception?

The four police forces are unique within the United Kingdom. They are non-devolved bodies operating within a largely devolved public services landscape. They are thus required to follow the dual and diverging agenda of two Governments. Additionally, all four forces in Wales accept the need to provide a service in Welsh and in English. North Wales Police does this with great effectiveness and is held up as a model among public sector organisations in Wales for its language training support and initiatives. This has largely broken down barriers which were at one time widely felt within Welsh-speaking communities in northern Wales and has created a new climate within which police and public co-operation have flourished.

All four police and crime commissioners, the Welsh Government, the Official Opposition in Wales and even the Welsh Conservatives are in favour of devolving policing to Wales. In fact, the only elected body of people in Wales who share the view of the UK Government are the UKIP AMs elected in May—I am not sure whether they are now unanimous on this matter either.

Transferring responsibility to the Welsh Government would not be the tectonic plate shift that many in this Committee might be inclined to believe. Relationships between the Welsh forces and the UK services, such as the police national computer and the Serious Organised Crime Agency, would continue as at present, as is the case with Scotland. I remind the Committee that many of the public services which are directly relevant to policing work are already devolved. That is the case with regard to highway matters, social services, local government, the ambulance service, youth services, education and training. It makes practical good sense to devolve policing, so that a synergy can be developed with these other devolved services.

Why should the people of Wales not be given the same democratic freedom enjoyed by the people of Scotland? Doing so would lead to greater clarity and efficiency by uniting devolved responsibilities, such as community services, drug prevention and safety partnerships, with those currently held by the UK Government.

The Silk commission was established by the Tories and comprised all four main political parties in Wales, including the Conservative Party. Its members spent two years consulting the public, civil society, academia and industry experts on the powers necessary to strengthen Wales. It received written evidence, heard oral evidence and visited every corner of Wales. It heard evidence from the police themselves and from the Police Federation calling for the devolution of policing, and the report recommended accordingly.

Budget cuts to Welsh police forces have been severe. We have seen a reduction of 1,300 in police officer numbers in Wales since 2010. It is true that these cuts have been across the board, but, as Plaid Cymru has recently discovered, they may well have been more manageable had the formula used to fund the police in Wales been according to population and not to crime figures.

A policing grant consultation launched in July 2015 by the then Home Secretary, Theresa May, was abandoned earlier this year after Policing Minister Mike Penning admitted that there had been a “statistical error” on which several police and crime commissioners threatened legal action. Last year’s formula would have resulted in a £32 million cut to Welsh forces, which. as everyone can imagine, would have caused the Welsh police severe difficulties.

The 43 police forces of Wales and England often have different needs and challenges. Policing is a field for which sophistication and complexity are needed in the funding formula to properly account for the relative needs of each force. The review last year sought to place greater emphasis on socioeconomic data and more general crime figures. Such a formula does not properly consider the workload differences in each constabulary. Figures provided by Dyfed-Powys Police indicate that funding our forces in line with population would result in an additional £25 million for the four forces in Wales. That is the Dyfed-Powys Police figure, not mine.

Of course, if policing were devolved to Wales—a position supported by all four police and crime commissioners—the overall Barnett formula would be applied as for the funding of all devolved public services and based on our population. So by retaining police as a non-devolved service controlled from Westminster, Welsh forces face the prospect of these very significant cuts. This is particularly relevant when we consider that policing is devolved to Scotland and Northern Ireland. Consequently, that new formula will not apply to them. Policing is the only emergency service not to be devolved. I am yet to come across any convincing argument, even after listening to the Minister tonight, for not doing so.

Even at this late stage, I beg the Government to think again and show that they are sensitive to widespread feelings in Wales on the issue, particularly within the police forces themselves, and add this provision to the Bill. It would then start to garner a critical mass which parties in the National Assembly would see as a significant step forward and create a logical framework of devolved services that could better serve Wales. There is no point in me adding more now: the reply has already been given. I write that into the record and I emphasise that I am very unhappy about the way this debate has been handled.

[Baroness Randerson]

My Lords, I greatly regret that we are discussing one of the key features of the Bill at this very late hour but there are things that certainly need to be said on this issue.

I share the concerns of the noble Lord, Lord Wigley, about policing. My party has been firmly committed to the importance of devolving policing to the Welsh Assembly for many years. That is simply a recognition of the reality of the situation. If you talk to senior—and junior—police officers in Wales, you see and hear their feeling of identity with the Welsh Assembly. It is to the Assembly that they look for the structures within which they work on a day-to-day basis. Devolving policing would not prevent them from linking in with, for example, training facilities or on rules and regulations across Britain. I have observed the way in which the police force in Northern Ireland manages to do that very successfully in a very difficult situation, and at a much greater distance from England. It works well.

In addition, it is very important to remember that the funding of policing in Wales comes predominantly from local sources within Wales one way and another. Therefore, it is important that the Welsh Assembly has more than a guiding hand on that.

In addressing the amendments in my name, I also share the Assembly’s serious concern about the impact of reservation 37 on the prevention, detection and investigation of crime. That illustrates the complexity of this situation and the way in which these issues are interwoven. For example, think of the ability within the Assembly’s power to deal with domestic abuse and sexual violence. The Assembly passed its own violence against women Act so clearly has competence within that area. However, it seems that the reservation I just referred to would make it very difficult for the Assembly to act in that area. It is important that we bear in mind the responsibilities of local government in this area as well as those of the police. The whole thing is an interlinked whole, and by not devolving these responsibilities you make it difficult for work to be done as effectively as possible.

Trade Union Bill

Debate between Lord Wigley and Baroness Randerson

Tuesday 19th April 2016 Lords Chamber

[Lord Wigley (PC)]

My Lords, I added my name to this amendment and I am glad to associate myself with almost everything the noble Baroness, Lady Morgan, said. I shall make an exception for the Labour manifesto, which has at long last appeared, and I contrast its rather thin guise with the 190 pages that Plaid Cymru has put forward—be that as it may. However, I welcome the progress that has been made in recent days, and particularly this afternoon, with regard to the Government’s movement on these important matters. I hope it is an indication of a more positive approach to these issues and an avoidance of the unnecessary involvement of legislation in matters that should not have legislation.

Turning to the amendment, clearly the Government of Wales have relationships with employees in Wales directly, through their own responsibilities, and indirectly, with regard to such bodies as the health authorities and the local authorities in Wales. We have a saying in Wales: you can lead the workforce through hell and high water but once you start driving them, woe betide. There is a different industrial climate and it is a climate that begs a co-operative approach, as opposed to a top-down approach. Because of that difference, it is very important that the legislature at Westminster does not involve itself unless it is really necessary—and I cannot see why it would be necessary in such matters.

It would be good if the Minister could indicate from the Dispatch Box today that the Government take this on board and are particularly sensitive to the questions that have arisen from the disputes between Westminster and the National Assembly—between the Government of Wales and the Government at Westminster—over the interpretation of legislation. The last thing we want is for that sort of dispute to lead to difficulties in working between the workforces and the Government.

In concluding, I draw the Minister’s attention to the fact that we do not have a strike by junior doctors in Wales because there is an understanding between the employer and the doctors. It is an approach that I commend to Westminster and I urge the Minister to take note of this amendment and its implications.

[Baroness Randerson (LD)]

My Lords, I frequently disagree with the way the Welsh Government operate but I defend totally their right to do so under the devolution settlement. If anything is within their rights, it must be their relationship with their employees.

Since the Agricultural Wages (Wales) Bill judgment by the Supreme Court, which occurred when I was a Minister in the Wales Office, it has been clear that the Government would not win on the issue at stake in this part of the Bill. The Welsh devolution settlement was simply much broader than we had all assumed, and that applied to the Welsh Government as well as to the Government here in Westminster. The new Bill, which is in draft form but will be extensively rewritten and I very much hope will come back next year, will probably provide much more certainty. However, we are working with the situation we are in now, with all its uncertainties and faults.

I say to the Government today, from my party: I have added my name to the amendment because we believe that the Government were well overstepping the mark on this issue. The Government must treat devolution with respect and not grudgingly. I regret that the concessions here have been made at the last minute, when the Government have their back against the wall. They should have seen reason a long time ago. However, for all that, I am very grateful that the Government have conceded on this issue.

Welsh Government: Fracking

Debate between Lord Wigley and Baroness Randerson

Thursday 22nd January 2015 Lords Chamber

[Lord Wigley]

To ask Her Majesty’s Government what discussions they have had with the Welsh Government regarding the devolution of powers over fracking for gas on land.

[The Parliamentary Under-Secretary of State, Wales Office (Baroness Randerson) (LD)]

My Lords, in November 2014 my right honourable friend the Secretary of State for Wales announced a programme of work to seek a political consensus on the way forward for devolution and to provide a stable settlement for Wales. This work is underpinned by discussions with Welsh party leaders, including the First Minister of Wales, the right honourable Carwyn Jones AM.

[Lord Wigley (PC)]

My Lords, may I interpret that Answer as an indication that we can look forward to a Statement being made by the Secretary of State on St David’s Day to indeed confirm a transfer of responsibility for fracking to Wales? Since the Government have their own amendment to the Infrastructure Bill, Amendment 86, on Report in the House of Commons on Monday, removing Scotland from the provisions of that Bill concerning the right to use deep-level land for fracking, why is there not a similar amendment for Wales, if that is indeed the direction in which the Government are going? Will the Minister link up with the department today to see whether it is possible, even at this late stage, to table such an amendment?

[Baroness Randerson]

The noble Lord should take into account the process that is under way. The Secretary of State has set great store by the fact that he wants to achieve political consensus across the four parties in Wales. The Welsh Government are involved, of course, and they have made it clear what their views are on the need to offer powers to the Welsh Government if they have been offered to Scotland. However, what is right for Scotland is not necessarily always right for Wales, and discussions are still ongoing.

Government of Wales Act 2006 (Amendment) Order 2015

Debate between Lord Wigley and Baroness Randerson

Tuesday 13th January 2015 Grand Committee

[The Parliamentary Under-Secretary of State, Wales Office (Baroness Randerson) (LD)]

My Lords, I beg to move that the draft order laid before the House on 5 November 2014 now be considered. I will provide noble Lords with a brief summary of what it seeks to achieve. The UK Government are making this order at the request of the Welsh Government. The National Assembly for Wales is currently considering legislation relating to sustainable development in the Well-being of Future Generations (Wales) Bill. The stated intentions of the Bill are to enhance the sustainable development duty on Welsh Ministers and to make sustainable development the central organising principle of the Welsh Government and of other public bodies in Wales exercising devolved functions.

However, Section 79 of the Government of Wales Act 2006 already imposes a duty on Welsh Ministers in relation to sustainable development. To avoid Welsh Ministers being subject to two separate duties, the Welsh Government wish to be able to amend Section 79. Currently, the Assembly does not have the legislative competence to do so. As a result, the UK Government have agreed to use the power under Section 109 of the Government of Wales Act that allows Her Majesty, by Order in Council, to amend Schedule 7 to that Act and thus confer the required competence upon the Assembly.

If passed, this order will enable the Assembly to amend Section 79 of GOWA, which in turn would allow the Welsh Ministers’ obligations to be aligned with the duties contained in the Bill. Section 79 was created in GOWA in 2006, when only executive competence existed in Welsh devolution. Following the referendum in Wales in 2011, the Assembly obtained full legislative competence for the subjects in Schedule 7 to the Government of Wales Act. This order therefore reflects the evolution of Welsh devolution since 2006. Section 109 requires the order to be approved not only by both Houses of Parliament but also by the National Assembly for Wales. The order was approved by the House of Commons on 15 December, and the debate in the Assembly is expected to take place on 20 January.

I believe that this order demonstrates the UK Government’s continued commitment to work constructively with the Welsh Government to achieve an effective devolution settlement for Wales. I hope that noble Lords will agree that this order is a sensible use of the power in Section 109 and that the practical result is something to be welcomed. I commend the order to the Committee.

[Lord Wigley (PC)]

My Lords, I rise to ask for clarification from the Minister. I do not think that many people would want to block the order, because it seems a patently sensible thing to do—but if the House did not pass this order, it would be a case of the unelected Peers blocking the wishes of both the elected House of Commons and the elected National Assembly for Wales. That strikes me as a rather unsatisfactory position to be in—albeit that the powers are being used in this instance with a recommendation and to move forward.

Secondly, the Minister said that the Assembly is “currently considering legislation”. I assume that those words were carefully used. Does that mean that the Assembly is currently considering legislation outside its powers? Are there issues that arise from that possibility? Is it outside its competence? If that is the case, are we asking for powers for retrospective action in order to put right something that has already been carried or debated, possibly outwith the Assembly’s powers? All these areas need clarification to avoid any instance arising, perhaps in circumstances more contentious than this. The objective of this order is probably acceptable to everyone, but one can imagine circumstances where that might not be the case and where there could be great difficulties.

Wales Bill

Debate between Lord Wigley and Baroness Randerson

Monday 24th November 2014 Lords Chamber

[Baroness Randerson]

My Lords, I shall respond briefly to the salient points that have been made in this, our last debate. The noble Lord, Lord Elystan-Morgan, referred to the words of the Prime Minister. Perhaps I may point out to him the solid steps that have been taken since 19 September. The Cabinet Committee has been established under the chairmanship of William Hague. The Secretary of State is of course a member of that committee and, indeed, I attend as well when Wales is being discussed. I would also point to the establishment of cross-party discussions here in Westminster. My right honourable friend the Secretary of State will also be in discussions with the leaders of the Assembly groups. We have made the announcement which has been referred to on numerous occasions in our debates of the date of 1 March, St David’s Day, by when we expect to have resolved the issues to a sufficient extent to be able to produce a reserved powers framework for future legislation in respect of Wales. That will deal with the proposals for additional powers in Silk 2, in so far as there is cross-party agreement relating to the size of the Assembly. Silk 2 was accepted by the Deputy Prime Minister in his role of leader of his party. The long-standing devolution credentials of the noble and learned Lord, Lord Morris, are well known and respected by this House. The recent Supreme Court judgment has made it imperative that the issue of the reserved powers model is dealt with.

[Lord Wigley]

The noble Baroness touched on Silk 2 and the fact that, in Wales, we had a remarkable cross-party agreement in the Silk commission to deliver it. A lot of parties compromised to reach that agreement. Can we be assured that there will not now be further compromise? The compromise has already taken place, the Government have a unanimous report and Wales expects it to be enacted.

[Baroness Randerson]

It does not, of course, lie in my hands whether there is compromise. It is an issue for the four parties within Wales. I strongly agree with the noble Baroness, Lady Morgan, who has made clear that the devolution debate has changed. It has gathered force and moved on since Silk 2 was published. I join the noble Lord, Lord Elis-Thomas, in being delighted at the end of the concept of WAG. I always regarded this as an unfortunate acronym of the Welsh Assembly Government. My noble friend Lord Thomas made the very important point that the Bill is just a step. I say to noble Lords who make me feel like a newcomer that I have only been campaigning for devolution in Wales since 1979.

Wales Bill

Debate between Lord Wigley and Baroness Randerson

Wednesday 15th October 2014 Lords Chamber

[Baroness Randerson]

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]

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]

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.

--- Later in debate ---

[Baroness Randerson]

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]

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

Debate between Lord Wigley and Baroness Randerson

Wednesday 15th October 2014 Lords Chamber

[Baroness Randerson]

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

[Lord Wigley]

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.

Wales Bill

Debate between Lord Wigley and Baroness Randerson

Monday 13th October 2014 Lords Chamber

[Lord Wigley]

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.

[Baroness Randerson]

I—

[Lord Wigley]

I am sorry, but those were her words.

[Baroness Randerson]

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

[Lord Wigley]

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]

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]

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

Debate between Lord Wigley and Baroness Randerson

Monday 13th October 2014 Lords Chamber

[The Parliamentary Under-Secretary of State, Wales Office (Baroness Randerson)]

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]

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]

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.

--- Later in debate ---

[Lord Wigley]

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]

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.

Wales Bill

Debate between Lord Wigley and Baroness Randerson

Tuesday 22nd July 2014 Lords Chamber

[Baroness Randerson]

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]

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]

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.

Wales: Silk Report

Debate between Lord Wigley and Baroness Randerson

Tuesday 21st January 2014 Grand Committee

[The Parliamentary Under-Secretary of State, Wales Office (Baroness Randerson) (LD)]

I thank all noble Lords who have participated in this debate. I start by joining the noble Lord, Lord Bourne, and others, in the tributes to Lord Roberts of Conwy. I had known him over many years, and he provided me with an inspirational example in the way that he fulfilled his role in the Wales Office. In particular, his love of the Welsh language ensured that changes were made at the time that have strengthened the language and its position in society.

I thank the noble Lord, Lord Bourne, for securing the debate today on the very important opportunities for Wales presented by the recommendations made by the Silk commission in its Part 1 report. I also paid tribute to the hard work of the Silk commission that went into the report, and I note the important role that the noble Lord played in that process. I have listened carefully to noble Lords in the Chamber and I am pleased that the Government’s response to the Silk commission’s recommendations has been broadly welcomed by several noble Lords, as has the draft Wales Bill, which, we must remember, implements the vast majority of its key recommendations, and which is currently undergoing pre-legislative scrutiny in the other place.

The Government believe that the devolution of tax and borrowing powers should be used to help to generate jobs and growth in the Welsh economy; to give Wales a competitive edge; and to make Wales a more prosperous place. Our response to the Silk commission and the powers we will transfer to Cardiff Bay, take forward these principles. The Welsh economy has lagged behind other parts of the UK for far too long—a point made by the noble Lord, Lord Anderson—and we intend to give the Welsh Government and the National Assembly for Wales the tools to change that.

Just as importantly, implementing the Silk commission’s recommendations will also make the devolved institutions in Wales more accountable to the people who elect them. We fully agree with the commission’s key recommendation: that the funding model of a block grant and some devolved taxes best meets sound principles for funding the Welsh Government, and that part of their budget should be funded from devolved taxation under their control. Since devolution, the Assembly and the Welsh Government have been accountable only for how they spend taxpayers’ money—a point made by the noble Baroness, Lady Humphreys. They will now become more accountable for how they raise it.

The Government demonstrated our commitment to these reforms by publishing the draft Wales Bill before the Christmas recess, only one month after we announced our response to the Silk 1 recommendations. We wanted pre-legislative scrutiny of this important legislation to take place in this Session of Parliament, and I am pleased to say that the Welsh Affairs Select Committee already has that scrutiny well under way. Subject to successful parliamentary passage of the legislation, I hope the new tax and borrowing powers to be devolved well before the next Assembly elections in May 2016.

I want an early referendum called as soon as possible after the legislation is passed, and I will be campaigning for a yes vote. I hope that the First Minister will be joining me.

In response to the points made about the ability to vary income tax in each band by the noble Lords, Lord Bourne and Lord Wigley, and the noble Baroness, Lady Humphreys, among others, we believe that the so-called lock-step system of income tax devolution that we have set out in the draft Wales Bill is the right system for Wales. The system applies in Scotland and was agreed with the Scottish Government, with a single devolved rate for all bands. We believe that it would work equally well in Wales. It delivers on two key principles that underpin the Government’s approach to devolving income tax. It ensures that the UK maintains a progressive tax system. As the noble Baroness, Lady Morgan, said just now, it prevents a damaging race to the bottom on higher-rate taxes, one where the tax rate increases as the income of an individual increases.

The income tax structure is a key mechanism to redistribute wealth across the whole of the UK, which is why we believe it is properly set at a UK level. That point was made clearly and firmly by the Calman commission in respect of its recommendations on Scotland. That point transcends both Scotland and Wales and applies to both countries. The lock step ensures that the gap between income tax rate is consistent across the UK; that devolved government works comfortably within the parameters of the UK; and that fiscal devolution does not benefit one part of the UK at the expense of another. This could occur if the Welsh Government were to set substantially lower rates for higher and additional taxpayers without having to change the basic rate.

Devolving income tax would give the Welsh Government a crucial lever that they could use to reduce taxes across the board in Wales to put money back into the pockets of people in Wales who are working hard and deserve to hold on to more of the money that they have earned. It will create new incentives for growth and jobs and rekindle the spirit of entrepreneurialism. If the people of Wales decide in a referendum in favour of income tax devolution, the Welsh Government would become responsible for almost half of the income tax generated in Wales, making it more accountable while giving them flexibility over levels of tax and spending. An important issue is, crucially, that devolution of income tax would give the Welsh Government access to a significantly larger revenue stream to finance borrowing. So it is far from being a power that cannot be used.

Even if the Welsh Government decided not to vary income tax rates, it would still provide a base for borrowing as well as a base for accountability. However, as the noble Lord, Lord Anderson, pointed out, you have to win the referendum first. I am surprised that the noble Lord can envisage only a situation where the Welsh Government would wish to increase tax if income tax were to be devolved. Under the Government’s proposal it would be just as feasible for the Welsh Government to reduce rates of income tax—for example, by half a pence or one pence in the pound. The noble Lord and the noble Baroness, Lady Morgan, both reflect the view, which is all too prevalent in the Labour Party, that taxes could only be altered by increasing them and not by decreasing them.

[Lord Wigley]

My Lords, the Minister has mentioned three times now the wish, which she clearly reflects, to reduce income tax and reduce the revenue the Assembly would have. What services is she going to cut to facilitate that?

[Baroness Randerson]

The noble Lord does not take account of the well known economic mechanism that reduced taxes create more money in people’s pockets, which stimulates the economy, which in turn causes more taxation to be collected. That is a basic point of economics that the Government are pressing.

Much time has been devoted to income tax, but we should not forget stamp duty land tax, which was referred to by the noble Lord, Lord Thomas, which will give us a chance to reshape the housing market in Wales in a way which is much more appropriate for Wales.

Further, we must not overlook business rates. The full devolution of business rates can be implemented almost immediately and without legislation, a crucial point which will enable the Welsh Government to get on with stimulating, for example, the establishment of new SMEs.

The noble Lord, Lord Bourne, asked about the future of the aggregates levy proposal. We have promised that we will review that once the situation in Europe is clear. On air passenger duty, we are not convinced that this will do any more than shift passengers from one airport to another. The situation in Northern Ireland is different: it is the only part of the UK that has a land border with another European country. That is the key difference.

Several noble Lords referred to Barnett reform, including the noble Lords, Lord Elystan-Morgan, Lord Bourne and Lord Thomas. The issue of fair funding is set out in the following way. The arrangements that we agreed with the Welsh Government, set out in our joint statement in October 2012, established a process to review the relative levels of funding for Wales and England in advance of each spending review. That process worked well at the spending review last year. It provides a firm basis for the devolution of income tax, should that be the outcome of the referendum. Convergence is not occurring at this moment; indeed, divergence is occurring, and funding levels are well within the parameters recommended as fair in the Holtham commission’s report, contrary to what the noble Baroness, Lady Morgan, said. If convergence is forecast to resume, we have committed to discuss it with the Welsh Government and to address it in a fair and affordable manner.

I thank noble Lords for their contributions. This Government have delivered for Wales on devolution and will go on doing so. Devolved Governments will be fairer and more accountable and will be able to create a stronger Welsh economy as a result of these proposals. It will be a giant step forward in the development of devolution. This Government are ambitious for Wales and are planning to give the Welsh Government the tools to do the job to stimulate the economy. It is up to the Welsh Government to use those tools effectively.

Wales: Commission on Devolution in Wales

Debate between Lord Wigley and Baroness Randerson

Monday 18th November 2013 Lords Chamber

[Baroness Randerson]

I thank my noble friend for his support on this issue and for underlining the importance of this Statement. I am proud of the record of the coalition Government: we have already, through our facilitating the referendum on increased full legislative powers for the Welsh Assembly, enabled one step forward on devolution to be taken. Today’s announcement heralds a second giant step forward for devolution. While expressing full confidence in the model of devolution throughout the United Kingdom, however, the Government have been concerned that we should not in any way undermine the union. It is important to bear that in mind.

My noble friend referred to the need to strengthen institutional arrangements. I cannot give him an estimate of the cost, because that strengthening is largely a matter for the Welsh Government. It is essential that they go ahead with this rapidly. I am aware that they are already in the process of strengthening their financial arrangements for establishing a Treasury function within the Welsh Government.

[Lord Wigley (PC)]

The Minister understands that I support the thrust of the Silk report and the response of the Government, but can I press her on the way in which she is blindly following Scotland in insisting on the introduction of a lock-step rule whereby all three rates of income tax can only be varied in tandem, without the right to vary one rate independently of the other? In other words, if the Welsh Government wanted to bring down the top rate from 45 pence to 40 pence—an 11% reduction—there would have to be a 25% reduction in the standard rate of income tax, making such a choice totally impossible. Does she understand that the Holtham and Silk reports rejected such a lock-step approach? This not only denies the voters the choice of policy, but also flexibility to the Welsh Government and binds them into a straitjacket of relativities imposed on them by Westminster. Why do a Government who claim to support greater tax-varying flexibility in theory refuse to deliver it in practice?

[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.

Wales: Financial Powers

Debate between Lord Wigley and Baroness Randerson

Monday 4th November 2013 Lords Chamber

[Lord Wigley]

To ask Her Majesty’s Government what plans they have to give additional financial powers to the National Assembly for Wales.

[The Parliamentary Under-Secretary of State, Wales Office (Baroness Randerson) (LD)]

My Lords, the Government announced on Friday that they will implement the key recommendations made by the Silk commission in its first report and will enable the Welsh Government to use their existing limited borrowing powers to improve the M4 motorway as soon as possible. I will issue a Written Statement on this to your Lordships’ House this afternoon.

[Lord Wigley (PC)]

My Lords, I hope that this Question standing on the Order Paper helped to expedite the long-awaited response from the Prime Minister, which I welcome as far as it goes. Will the Minister confirm that she and the Government accept that the Silk report presented a balanced package, and that cherry picking that package would unravel it? Will she therefore state by when the other 20 or so recommendations that were not covered on Friday will be announced? Will they be in the Statement that she will make this afternoon? In particular, will she give an assurance that the legislation necessary to enact all the commitments that were made on Friday will be on the statute book before the next general election?

[Baroness Randerson]

I thank the noble Lord for his Question. Undoubtedly the continued interest in this issue from all sides of the House and well beyond it will have had an influence on ensuring that we had a positive response to the Silk commission’s first report. The Silk commission made 33 recommendations but the announcement on Friday did not go into detail on many of those. A full response to the Silk report will be issued in the next couple of months so that we will be able to deal with this by the end of the year. The intention is that a draft Wales Bill will incorporate Silk recommendations that the Government have accepted, where legislation is necessary. The Government intend to pursue that, if possible, in the fourth Session of this Parliament.

Local Authorities (Contracting Out of Tax Billing, Collection and Enforcement Functions) (Amendment) (Wales) Order 2013

Debate between Lord Wigley and Baroness Randerson

Tuesday 12th March 2013 Grand Committee

[The Parliamentary Under-Secretary of State, Wales Office (Baroness Randerson)]

My Lords, this order will allow local authorities in Wales to make arrangements for an external provider to undertake some of the new administrative functions created by the introduction of council tax reduction schemes from 1 April when council tax benefit is abolished. These changes are part of the Government’s wider policy of decentralisation.

I will provide a little more detail on the contracting out order. It will amend the Local Authorities (Contracting Out of Tax Billing, Collection and Enforcement Functions) Order 1996. Currently under the 1996 order, local authorities in Wales can contract out functions connected with the administration and collection of council tax—for example, the calculation of an individual’s council tax liability or the serving of demand notices. Local authorities in Wales can also currently contract out the operation of the council tax benefit system under the Contracting Out (Functions of Local Authorities: Income-Related Benefits Order) 2002 if they choose to do so—arrangements that will cease once council tax benefit is abolished.

While some of the new administrative functions related to the introduction of council tax reduction schemes are already covered by the 1996 contracting out order, such as the processing of applications, some are not. To ensure that local authorities in Wales have the freedom to contract out all the new administrative functions, this order amends the 1996 contracting out order for Wales to add the following new administrative functions: first, the issuing of council tax reduction decision letters; secondly, the payment of a reduction amount under certain circumstances where the billing authority is of the opinion that it would be appropriate; thirdly, the serving of a penalty notice in connection with an offence committed with a reduction; and, fourthly, the repayment of amount paid in connection with a penalty under a local scheme—a penalty that has been subsequently quashed.

Because the abolition of council tax benefit also means that local authorities in Wales will no longer be able to rely on their current investigatory and enforcement powers for social security benefits, Welsh Ministers are making regulations to provide local authorities with replacement powers to tackle fraud in relation to council tax reduction schemes. These regulations will introduce new penalties, the collection of which has also been included as a function that could be contracted out under the 2013 order. Local authorities that choose to contract out functions will be expected to monitor the services delivered by their contractors. We expect the decisions taken by the contractor to be of the same standard as that of a local authority officer and subject to the same levels of confidentiality and data protection.

Local taxpayers’ rights will not be affected by this legislation. The same rights of appeal to the local authority and to the Valuation Tribunal for Wales will remain. While this order does not expand on the current provisions for the administration of council tax reduction schemes, it will carry out an essential function by enabling local authorities in Wales to choose how to deliver their local schemes, whether by using internal resources, external providers or a mixture of both. It is important that we provide local authorities with the tools they need to deliver a cost-effective council tax system. I commend this order to the Committee.

[Lord Wigley]

Perhaps I may ask for clarification on a couple of points by the noble Baroness. First, am I right in saying that the interpretation of this order is the provision of greater powers of privatisation for local authorities if they choose to use them? Is that the implication—services that would otherwise be in-house in local authorities can be undertaken by private companies on their behalf?

Secondly, I refer to Article 2 on,

“Amendment of the Local Authorities (Contracting Out of Tax, Billing, Collection and Enforcement Functions) Order 1996”.

In subsection (2), there is reference to,

“the Detection of Fraud Regulations”.

Are these regulations that have already been made? Are they made by the Assembly or here? Is there already a statutory instrument in effect on that, or are we awaiting something to be confirmed?

--- Later in debate ---

[Baroness Randerson]

My Lords, I thank noble Lords for their questions and remarks this afternoon. In principle this order does not change the way that councils deal with council tax. To deal with the first point of the noble Lord, Lord Wigley, it has always been possible for councils to contract out billing, collection and enforcement. Councils have been able to appoint an external provider to undertake some administrative functions. This order simply enables this to continue under the new arrangements from 1 April when council tax benefit will no longer exist.

As always I will try my best to answer the questions that noble Lords have asked. The noble Lord, Lord Wigley, asked whether this would mean greater privatisation. This order does not extend the powers that the local authorities already have to contract out their administrative functions in relation to council tax. As I have said, it allows them to apply them to the new council tax reduction schemes that are no longer part of the social security benefit system.

[Lord Wigley]

The Explanatory Note says that the order provides additional functions by way of authorising contractors. In other words, it goes beyond what was there before. Otherwise, presumably, we would not need it.

--- Later in debate ---

[Lord Wigley]

I do not want to go on unduly about this but, as I understand it, the legislation that we are dealing with today, here, was not scrutinised in the Assembly because it did not fall within the Assembly’s powers. If I understand correctly what the noble Baroness is saying, part of it—the part dealing with the fraud—does fall within the Assembly’s powers. The only point that I would make is that this underlines the need to simplify all this; matters are either devolved or they are not. That would make life very much simpler for everybody.

[Baroness Randerson]

The noble Lord makes an interesting point. It is something that we have come across on a fairly regular basis, that responsibilities are split in a way that is sometimes not obvious and sometimes surprising.

I move on now to the points made by the noble Lord, Lord Rowlands, who asked if there is more contracting-out now. I simply point out that this has always happened—for example, currently only three of the 22 local authorities in Wales have in-house bailiffs. Contracting-out on billing and bailiff services is very common. But a great deal of work has been done by the Welsh Government and by individual local authorities to have codes of conduct and best practice examples to ensure that bailiff services are run by improving standards over the years. A great deal of progress has been made on those issues.

Civil Enforcement of Road Traffic Contraventions (Representations and Appeals) (Wales) Regulations 2013

Debate between Lord Wigley and Baroness Randerson

Tuesday 29th January 2013 Grand Committee

[Baroness Randerson]

Annual parking enforcement reports are already in existence on the enforcement activities of those authorities which have civil enforcement of parking. In future, these annual reports will include bus lane and moving traffic offences. Although the concern for statistics is entirely correct, and although I am saying to noble Lords that the current statistics are of limited use, in future the desire to get more statistics will be fully satisfied. There will be annual reports.

I will review what is available and consult the Welsh Government over this. If I believe that they can add anything useful to our discussion today, I will write to noble Lords. However, from what I know of the statistics that exist, they will be of little relevance when applied to the future.

On the Lord Chancellor’s powers, it was thought appropriate that provision about appeals, notification and adjudication should be made by the Lord Chancellor. This is not a devolved matter. The UK Government have worked closely with the Welsh Government to introduce the package together. The process of co-operation between the two Governments has worked well in this case. The noble Lord, Lord Wigley, asked about the estimated cost passed to the local authorities. There is no estimate of the cost. The enforcement is not being entirely transferred to local authorities, because, as I have already said, the police will retain enforcement alongside local authorities. However, I emphasise that local authorities have welcomed the opportunity to enforce these contraventions. It is expected that the schemes will be self-financing within a year.

[Lord Wigley]

If there is no estimate made of the cost, how on earth can they say they are self-financing?

[Baroness Randerson]

That is the basis on which the provisions, in terms of the parking regulations, have been applied. This is not an entirely new scheme, in that this approach applies already in London, so there is the example of London to be followed. But there is also the example of how the parking enforcement has worked, and that has been very successful. For example, in Cardiff it has been possible to apply that self-financing approach very effectively. In the event of there being a surplus generated by civil enforcement at the end of the year, it must by law be spent on transport purposes. Those purposes are listed within the regulations, so it is very tightly controlled.

Local authorities have welcomed the opportunity to enforce these contraventions. They believe that it will lead to a more effective and efficient bus service and an easier traffic flow. It is not an approach that would immediately attract rural areas, perhaps; we are talking primarily about urban areas. I emphasise that local authorities are not obliged to take up these powers; they do so only if they wish. It is for them to determine the suitability of the scheme.

The noble Lord, Lord Anderson, referred to the bodies which were sent the consultation documents. The Welsh Government’s consultation documents are published on their website and were issued to numerous organisations. If the noble Lord wishes I can ask Welsh Ministers for a copy of their consultation circulation list.

--- Later in debate ---

[Lord Wigley]

I am sorry to delay the Committee, but I cannot allow this point to go by. Will the noble Baroness refer to page 21 of this document, where at the bottom of the Explanatory Note there is a reference to the Welsh Government’s website? Will she look at it and decide for herself whether “www.xxxxxxxx” is an appropriate address?

[Baroness Randerson]

I assure the noble Lord that I will deal with that as a matter of urgency after this debate finishes.

Welsh Government: Tax-varying Powers

Debate between Lord Wigley and Baroness Randerson

Tuesday 27th November 2012 Lords Chamber

[Lord Wigley]

To ask Her Majesty’s Government whether they will take steps to enable the Welsh Government to have greater tax-varying and borrowing powers.

[The Parliamentary Under-Secretary of State, Wales Office (Baroness Randerson)]

My Lords, the Government established the Silk commission to look at the case for devolving fiscal powers to Wales, and the commission reported its findings last Monday. The Government are very grateful for the expertise and rigour that the commission has brought to this important work. We will now carefully consider its recommendations and assess whether they are right for Wales and for the UK as a whole. The Government will respond to the report in due course.

[Lord Wigley]

My Lords, I welcome the noble Baroness to the Dispatch Box to answer questions in this way, not least because not so long ago she was asking exactly the same questions as I am asking today. Does she accept that the Welsh Government have no borrowing powers at present other than to cover temporary revenue shortfalls—a power that has never been used—or residual WDA powers, which are offset against the DEL budget and therefore provide no additional benefit? Now that the Silk report has come forward, as the noble Baroness mentioned, unanimously recommending that the Welsh Government should have new powers to borrow to fund capital investment over and above the DEL budget, as well as powers to issue bonds, can she give an undertaking that the Government will quickly move to provide these powers for the Welsh Government?

[Baroness Randerson]

The noble Lord will appreciate that, as the report was published only last week, it is very early to make decisions. I can make no firm comments about the outcome of the process that we are going through at the moment. However, on borrowing, it is important to recognise that in October a joint announcement by the Secretary of State at the Wales Office, the Welsh Government and the Chief Secretary to the Treasury acknowledged that in principle the Government agree to borrowing powers for the Welsh Assembly, and we anticipate the potential of the Welsh Assembly having the right to raise and levy taxes in order to offset those borrowing powers.