(7 years, 7 months ago)
Commons ChamberThe chapter in the Brexit White Paper on securing trade deals with other countries contains no mention of Wales whatsoever. What influence will the Secretary of State give to the Welsh Government to do something about that so that Wales is not just an afterthought, as it is under the Tories?
The hon. Gentleman will recognise that the Welsh Government are represented on the Joint Ministerial Committee. I have made it a determination to engage proactively with the stakeholders in Wales, because they share a view that is not always consistent with that of the Welsh Government. Through my office, they have had a direct input into the great repeal Bill White Paper.
(7 years, 9 months ago)
Commons ChamberMay I welcome the hon. Lady to the Dispatch Box for her first Welsh questions? Last week GE Aviation announced a £20 million investment in Nantgarw. The UK and Welsh Governments worked together to land that significant employment opportunity, which will secure 1,200 jobs for more than two decades. My right hon. Friend the Secretary of State for International Trade always rightly underlines that every business in Wales is entitled to the same support as any business in England, and I am working closely with him on not only that but trade missions.
I recently met the unions. Following the positive outcome of the recent ballot, it is now vital that all parties work together to deliver the agreed proposals. We will continue to engage with the sector, as well as with the unions, the devolved nations and other partners, as we seek to find a long-term viable solution for the industry.
The International Trade Secretary is said to have stated that the Government should ignore those who argue for protection. Will the Welsh Secretary agree to argue for a proper trade defence mechanism for steel, if that is what is required?
I hope that the hon. Gentleman will look to this Government’s positive record, in spite of the scaremongering of many Opposition Members. There are already 41 trade defence measures in place and the outcomes speak for themselves. Rebar coming into the European Union has reduced by 99%, as has wire rod—the statistics speak for themselves. This Government are determined to take the right action to support not only free trade but Welsh and UK businesses and industry.
(7 years, 11 months ago)
Commons ChamberAs the Secretary of State considers Wales’s business links post-Brexit, will he give the highest priority to the Welsh steel industry, and will he not rule out a trade defence mechanism for steel if that is what is required to save Welsh steelworkers’ jobs?
I thank the hon. Gentleman for raising the steel industry. It is an extremely important industry for communities in Wales, but it is also of strategic importance for the whole of the United Kingdom. Last week, I met all the unions relating to steel, and we discussed the challenges that exist, as well as how the company, the pension trustees, the pensioners and the employees of the steelworks need to work their way through this. The Government stand ready to support the industry—we are determined to find a long-term, sustainable future for the steel industry—and I recognise its importance for Wales and for the UK.
(7 years, 11 months ago)
Commons ChamberI am pleased to open the debate on the amendments made to the Wales Bill in the other place. Given the number of Members who wish to speak in this relatively short debate, I shall aim to keep my comments relatively brief.
First, I place on record my gratitude to the peers who contributed to the scrutiny of the Bill during its passage through the House of Lords. It would be dangerous to try to name them all for fear of forgetting some, but a number who regularly attended briefing sessions and gave feedback throughout the process helped to get this important Bill through the other place without any Government defeats. I thank in particular Lord Bourne of Aberystwyth for steering the Bill so ably through the other House on behalf of the Government, supported by Baroness Mobarik as Whip for the Bill.
I also take the opportunity to place on record my thanks to a number of right hon. and hon. Members of this House. My right hon. Friend the Member for Chesham and Amersham (Mrs Gillan) started the process when she established the Silk commission in 2011. My right hon. Friend the Member for Clwyd West (Mr Jones) expertly guided through Parliament the Wales Act 2014, which implemented the Silk commission’s fiscal recommendations. I pay particular tribute to my right hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb). In his time as Secretary of State he took a number of bold decisions, most notably the establishment of the cross-party St David’s day process, which put in place the framework of the Bill. That was a bold move, as I have suggested—one that sought to bring all parties together to make a constitutional agreement that would bring both Houses together, understanding the politics of both sides of this House and of the other place.
My right hon. Friend was unstinting in his belief in the importance of the Bill and subjected himself to immense scrutiny with respect to its contents. I pay tribute to his work in setting the framework that has allowed my hon. Friend the Under-Secretary of State for Wales and I to take it through the Chamber.
It is also appropriate to pay tribute to Members on the other side of the House who played an important part in the scrutiny of the Bill, especially the former shadow Welsh Secretary, the hon. Member for Newport West (Paul Flynn), and his predecessor, the hon. Member for Llanelli (Nia Griffith), who was involved in the work, negotiations and discussions throughout the process, as well as the current Opposition Front-Bench team.
I wanted amendments 9 and 44 to be spoken to separately, to give right hon. and hon. Members the opportunity to consider the fiscal framework agreed between the UK Government and the Welsh Government. The amendments are directly linked to that agreement.
The agreement reached between the UK Government and the Welsh Government is an historic agreement that is fair for Wales and fair to the rest of the UK. During scrutiny of the Bill last summer, this House approved the removal of the requirement for there to be a referendum before Welsh rates of income tax were implemented, and the fiscal framework paves the way for the devolution of those historic tax powers from April 2019.
The block grant adjustment mechanisms that will take account of the devolution of stamp duty land tax and landfill tax are also part of that agreement, ensuring that the replacements for those taxes in Wales, which the Welsh Government are already legislating for, come on stream in April 2018.
While the Secretary of State is talking about the fiscal framework, may I welcome the lifting of the cap on borrowing for capital expenditure to £1 billion? That is not quite the £2 billion that Front-Bench colleagues in the other place asked for, but I welcome it as a step forward. Does the Secretary of State agree that that measure will give the opportunity to continue investment in infrastructure in Wales, both digital and physical, and can also contribute to increased productivity?
I am grateful to the hon. Gentleman for the scrutiny he provided at previous stages, and for his comments just now. I will come to the numbers later, but I hope he recognises that there was a mature discussion between two institutions, and he is absolutely right that this measure paves the way for the Welsh Government to use their new borrowing powers to legislate for and finance things that really matter to the Welsh people.
The agreement ensures that, when tax powers are devolved, the Welsh Government will have fair funding for the long term, taking into account Welsh tax capacity and treating population change consistently across tax and spending. In doing so, we are delivering on the independent Holtham commission’s ambition of a long-term fair funding settlement and agreement for Wales.
Indeed, I spoke to Professor Holtham only last week, and he is clear that this is a “very fair settlement” and that there is now no case to argue that Wales is underfunded. The Government previously stated that Wales receives a fair settlement. This cements that in place and enhances the settlement.
As I stated earlier, we have engaged constructively with peers, the Welsh Government, the Assembly commission, colleagues on both sides of the House and a range of other interested parties on the issues raised, and we have made changes to improve the Bill where there is a good case to do so. The Bill today is a better one as a result. The large number of amendments in the group is testimony to the fact that the Government have been open to improving the new devolution settlement where possible. I do not intend to discuss each amendment in detail, but I will draw some of them to the House’s attention.
We have amended the Bill to deal with concerns about how universities are treated in the new reserve powers model. During the Bill’s passage through the other place, concerns were raised by the higher education sector that defining universities as “Wales public authorities” might suggest that they should be classified more widely as “public authorities”. This was not our intention. Amendments 3, 4 and 115 resolve this issue by renaming “Wales public authorities” as “Devolved Welsh authorities”. This responds to calls from universities and Universities Wales. We have also ensured that the Open University will be defined as an authority that carries out a mix of devolved and reserved functions, reflecting its status as a UK-wide institution. This will allow the Assembly to legislate to confer functions on the Open University in devolved areas without requiring the consent of a UK Minister. We have also expanded the list of devolved Welsh authorities in response to concerns raised by the Welsh Government and others.
The Government have introduced several amendments relating to tribunals that resulted from extensive discussions with the Welsh Government, the Ministry of Justice and the senior judiciary and which are intended to improve the management of the workload of devolved tribunals and to maximise flexibility in the deployment of judicial resources in Welsh tribunals. The amendments tabled in the other place will create a statutory office of president of Welsh tribunals to oversee the work of the devolved Welsh tribunals. New schedule 5 provides for a two-stage process for the appointment of a person to this new statutory role. The new clauses will also allow for the deployment of judges between Welsh tribunals and reserve tribunals in England and Wales so that they might share expertise in a way that cannot happen under current legislation. These are important amendments that are the product of constructive work with the Welsh Government, the Ministry of Justice and others.
The Government’s key aim in introducing the new reserved powers model is to deliver clarity on the boundary between the Assembly’s competence and the competence of this Parliament, particularly in the light of the Supreme Court judgment on the Agricultural Wages Board settlement. Many amendments therefore either alter or remove altogether reservations contained in new schedule 7A to the Government of Wales Act 2006.
The Government have tabled a number of amendments to deal with the planning system and the law that governs the construction of buildings, responding to concerns raised by the Welsh Government. Amendment 71 devolves competence for planning in relation to railways, making it consistent with the position in Scotland. We have also brought forward amendments that replace the full reservation of compulsory purchase with one that covers only compensation. This was again in response to discussions between the UK Government and the Welsh Government.
As for amendments to schedule 1 more widely, we have demonstrated our willingness to devolve significant further powers to the Assembly where a clear rationale can be made for doing so. Amendment 80 removes the reservation relating to teachers’ pay and conditions. This was something that I was keen to devolve from the outset, but I recognised concerns that were expressed by colleagues on all sides of the House as well as by the teachers’ unions. Following constructive engagement with the First Minister and discussions between officials, we are pleased that we both came to the same conclusion—that education is a devolved matter and that it makes more sense for the Assembly and Welsh Ministers to decide the pay and conditions of teachers in Wales, particularly in the light of the greater divergence between the education models that exist in England and the education model that exists in Wales. It is sensible to devolve teachers’ terms and conditions.
Amendment 72 devolves the community infrastructure levy in Wales. That was a priority for the Welsh Government, and has been for a number of years. We have listened to the case that they made and we are again delivering on a demand made by them. We were happy to respond positively and constructively to these calls.
Finally, amendments 36 and 52 devolve legislative and Executive competence to the Assembly and Welsh Ministers to regulate the number of high-stake gaming machines, authorised by new betting premises licences in Wales. This is an issue in which the hon. Member for Swansea East (Carolyn Harris) showed particular interest and passion during the earlier stages of the Bill’s scrutiny. The Silk commission made no recommendation on the devolution of betting, gaming and lotteries, but we agreed as part of constructive dialogue with the St David’s day process to consider non-fiscal recommendations made by the Smith commission that it would be appropriate to take forward in Wales.
I, too, place on record my congratulations to my hon. Friend the Member for Swansea East (Carolyn Harris) on the success of her campaign on this issue. Does the Secretary of State agree that when statistics show that an average of £3,000 a day is being staked on these machines, it is very important to devolve these powers and for the regulations to be implemented?
I will come on to that specific point, because a review is being conducted by the Department for Culture, Media and Sport which will address the specific issues that the hon. Gentleman raises. For the moment, I shall stick to explaining the rationale behind the amendments on fixed odds betting terminals.
One proposal was for the powers to be devolved to stop the proliferation of these so-called fixed odds betting terminals. We concluded that these powers should be devolved in Wales, as they are in Scotland, coming out of the Smith commission. Amendments 36 and 52 therefore ensure that the Bill mirrors the provisions in the Scotland Act 2016 in respect of high-stakes gaming machines. The amendments apply to sub-category B2 gaming machines, and would provide the Welsh Government with a means to address public concerns in Wales regarding the proliferation of these machines. These machines were regulated by the Gambling Act 2005, which was introduced when the Labour party was in power.
The Opposition amendments would go much further than what is already devolved in the Scotland Act by extending this provision to all existing gaming machines with a stake of more than £2, and by devolving powers over existing licences. We did not believe that that was appropriate. As I mentioned a moment ago, the Government have already announced a review into the issue because we recognised the flaws in the 2005 Act. As a result, we are carrying out a thorough process to examine all aspects of gaming machine regulation, including the categorisation, maximum stakes and prizes, location and number of machines, and the impact that they have on players and the communities in relation to, for instance, problem gambling and crime. All those factors are potentially relevant and interrelated. The powers that we have agreed to devolve are intended to enable the Welsh Government and the Assembly to take action to prevent the proliferation of fixed odds betting terminals.
The review that we have announced is the appropriate mechanism for consideration of all those issues in a far more holistic way. I urge Opposition Members not to press their amendments to a vote, but if they pursue them, I shall do my best to respond to some of the issues that concern them. I urge Members to support the Lords amendments.
(8 years, 3 months ago)
Commons ChamberThat will a matter for the Welsh Government. I am seeking to give them absolute freedom over local elections, within the limitations in the Bill, but it is not right that any changes they bring about—which may well change the franchise, if they believe that to be appropriate—should have consequences for PCC elections, for which the Welsh Government do not have responsibility as they are reserved under the Bill.
The new clause also makes consequential changes to the provisions in the 2011 Act for giving notice of a vacancy in the office of the police and crime commissioner and the provisions on the eligibility of candidates.
Amendment 27 is the second technical amendment in the group. It removes the reference to section 14(1)(f) of the Planning Act 2008 from the definition of “relevant nationally significant infrastructure project” in the planning reservation. That section applies only to England so the reference to it in the Bill is superfluous.
Amendments 33, 49, 52, 55 and 57 are all also technical and address an issue with the numerous references to the legislative competence of the Assembly across the statute book. Since devolution began, Acts of Parliament have often sought to define policies by reference to the devolution boundary involving expressions such as
“the legislative competence of the Assembly”.
For example, a power to make subordinate legislation could be conferred on the Secretary of State for provisions that are not within the legislative competence of the Assembly where the provisions are within such competence. In determining for the purposes of UK Acts what is and is not within the Assembly’s competence, proposed new section 108A and proposed schedules 7A and 7B to the Government of Wales Act 2006 set out the relevant tests. However, provisions such as paragraphs (8) to (11) of schedule 7B include a consent mechanism whereby a provision will be within competence only if the consent of a UK Minister has been given.
Those consent mechanisms exist so that there is an appropriate role for UK Ministers in relation to Assembly legislation that affects reserved authorities—I underline that that means reserved authorities only. However, that requirement for consent is not appropriate when considering UK legislation. For that reason, amendment 33 disapplies any requirement for a UK Minister’s consent when the legislative competence of the Assembly is being interpreted in the context of UK Parliament legislation.
Amendments 49, 52, 55 and 57 ensure that, where Acts of the UK Parliament refer to the Welsh devolution boundary, they do so in accordance with the new reserved powers model as inserted by the Bill. Those are sensible and practical technical changes to ensure that the new reserved powers model of devolution is interpreted and applied consistently in respect of all UK legislation.
The next amendments resulted from ongoing discussions with the Welsh Government, the Assembly’s Presiding Officer and the Assembly Commission.
Before the Secretary of State moves on, I want to ask about the reserved powers model. He has mentioned the consistency of interpretation throughout the Bill, which is to be welcomed, but it would be useful if he could give at the Dispatch Box the commitment that it is the desire of the UK Government not to be going to the Supreme Court so much to argue about reserved powers. Let us have clarity going forward to avoid the number of clashes in the courts that there have been.
One key purpose of the Bill is to provide clarity of powers and responsibility. I want anyone who lives and works in Wales and outside to understand who is responsible for what. Therefore, the requirement to go to the Supreme Court to clarify individual points will be needless because of the clarity provided in the Bill.
The hon. Gentleman raises an important point. The adjustments to the auditing arrangements demonstrate the maturity of the organisation. Where the money from the Welsh Consolidated Fund is being used and is being spent, it is absolutely right that the Auditor General for Wales acts and scrutinises that. Where money is being used from UK departmental funds and the Treasury, it is right for the Comptroller and Auditor General to scrutinise and develop that. I will happily look at further detail in the issues the hon. Gentleman raises about the potential of joint projects, and I will come back to him in due course. But these adjustments have been made at the request of the Welsh Government, supported by the Auditor General for Wales and accepted by the Comptroller and Auditor General. I hope the satisfaction of those bodies will satisfy the concerns in the relevant question that has been raised.
So we do not agree with the proposal, but, as I have mentioned, positive progress has been made between the UK Government and the Welsh Government on the franchising arrangements. Outstanding issues remain, and the Welsh Government and UK Government have been working over recent months to get to a position that works for all passengers and both Governments.
In amendment 2 the hon. Member for Newport West proposes devolving powers over the community infrastructure levy. I am pleased to see that uptake of the levy in Wales has made some progress with three charging authorities now collecting the levy—Caerphilly, Merthyr Tydfil and Rhondda Cynon Taff. It is a key objective of national planning policy in both England and Wales that local planning authorities plan positively for infrastructure needs. The levy is an important mechanism for securing funding for infrastructure. This amendment ties with the calls of the Welsh Government, but I can also see that in many ways it makes sense to have a unified development levy system across England and Wales. Complexities across borders can hinder investment. I am not therefore minded to agree to the amendment. Much of the argument behind the calls for it has been that the policy does not work for smaller authorities, of which there are many in Wales, but I would point out that Merthyr Tydfil and Caerphilly are two of the smallest authorities in Wales and they have made effective use of the community infrastructure levy.
Amendment 60 seeks to establish Wales as a separate legal jurisdiction, an issue that was debated extensively as part of the pre-legislative scrutiny of this Bill and in Committee. In its second report, published in March 2014, the Silk commission recommended that there
“should be further administrative devolution in the court system”.
On the issue of the separate legal jurisdiction, while it is obviously sensible with an emerging body of distinct Welsh law to monitor and review that going forward, does the Secretary of State agree that what we must be careful of with a separate legal jurisdiction now is imposing separate legal jurisdiction service requirements and other things that would lead to Offa’s Dyke becoming a barrier to access to justice?
The hon. Gentleman has made an important point and contributed in Committee to that effect, which considerably influenced a number of Members who had raised questions and concerns as the issue was debated. The hon. Gentleman’s expertise in this area should be well-heeded by those who want to see Wales flourish with a distinctive body of Welsh law, but who also recognise that the joint jurisdiction has worked and served well and effectively, and sends a clear message to potential investors and operators in Wales over the clarity and simplicity that is provided.
Many of the recommendations relating to administrative devolution in fact reflect the current position in Wales: the senior courts already sit in Wales, the administration of Welsh courts is overseen by HMCTS Wales, and court sittings are co-ordinated locally. The broader question of the case for devolving legislative responsibility was one of the key issues examined in the cross-party discussions under the St David’s Day process. Members will be aware that, as set out in the St David’s Day agreement, there is no political consensus to devolve justice. My party’s 2015 election manifesto made it clear that we would continue to reserve justice and policing. The Government are fully committed to maintaining the single legal jurisdiction of England and Wales. It has served Wales very well. It is also our firm view that it is the most effective, efficient and consistent way to deliver justice.
(8 years, 6 months ago)
Commons ChamberThe hon. Gentleman raises an extremely important point. The intention of this Bill is to provide that clarity, from which there will be the opportunity for greater communication. All Members in this House and stakeholders have the responsibility to help to communicate this, but one key function of the Bill is to provide a clear line between what the UK Government are responsible for and what the Welsh Government are responsible for, so that anyone living or working in Wales clearly knows not only who to give credit to when policies are going right, but who to hold responsible where policies or the impacts of policies are not as effective as the policymakers might have thought at the outset.
Does the Secretary of State agree that one of the other reasons why clarity is so important is so that we have far fewer examples of the Welsh Government and UK Government ending up arguing about things in the Supreme Court? Would clarity not assist in reducing that?
The hon. Gentleman is absolutely right about that, and this is the function of many of the clauses and much of the motivation behind them.
The Bill also strengthens Welsh devolution by devolving further powers to the Assembly and the Welsh Ministers. To complement the Assembly’s existing powers over economic development, the Bill devolves responsibility for ports in Wales. That will enable the Welsh Government to consider the development of ports in Wales as part of their wider strategies for economic development, transport and tourism. Major trust ports will remain reserved, given their national, UK-wide significance. That means Milford Haven, given its importance to the energy security of the whole of the UK, will remain reserved. We are also devolving consenting responsibility for all energy projects in Wales up to 350 MW, aside from onshore wind projects which are being devolved through the Energy Act 2016.
The Bill also streamlines the consenting regime for energy projects, providing a one-stop shop for developers by aligning associated consents with the consents for the main project. When the Welsh Government make a decision on a new energy project, they will also be responsible for consenting to the new substations, access roads and overhead power lines relating to that project.
(8 years, 7 months ago)
Commons ChamberGiven the Secretary of State’s previous answer on the effectiveness of tariffs, why do the UK Government keep being at the head of a blocking minority for reform of the lesser duty rule? Is it not the case that they simply have not done enough to save the British steel industry?
The hon. Gentleman is confused about the impact of the lesser duty rule, which relates to the framework. There are currently 37 trade defence measures in place. Where the European Commission has acted within the lesser duty rule, it has had a significant effect, be it in rebar, wire rod, seamless pipes or cold-rolled flat products. I could highlight a whole range of speciality steels where the tariffs are working within the lesser duty rule, because otherwise there would be an impact on other manufacturers and other costs. We need to work within the rule because it currently operates effectively.
(8 years, 10 months ago)
General CommitteesCertainly, the Wales Office and the Government will listen to all the points that are expressed, but I was merely highlighting the one example that we have in modern history of a constitutional convention and how complicated that became to give a context for the difficulty of trying to resolve some of those issues.
I remind people who have been extremely critical of the draft Bill, the St David’s day agreement and the process that the Secretary of State undertook, of the Richard Commission and the amount of time that that spent, only to be rejected by the Government of the day. That left us with a complex situation and the LCO mechanism. How many of us remember how complicated that was, whether we were in the Assembly or in Westminster? It is therefore a bit rich for some people to suggest that there is a simple and straightforward way of resolving the issues. We are keen to listen to and develop the debate, and the draft Bill was published in that spirit.
To underline the points that were made at the outset, there is a lot of rhetoric and misunderstanding. Some comments that have been made in Committee are simply inaccurate. I will pick up on some of them shortly, including those made by the hon. Member for Clwyd South. The draft Bill is ambitious and extends significant amounts of new powers to the Assembly. Matters that have been raised—be it the necessity test or the consents—are not about limiting Assembly powers. There is no Machiavellian plot to clip the Assembly’s wings. It is about giving the Assembly the powers, with two Governments that have responsibility for matters that relate to Wales: the legitimate Welsh Government, who will have legitimate powers over devolved matters, and the UK Government. Who knows? In the long-term future, there may be a Labour Administration, although I do not expect that to happen for at least another two or three general elections. However, in future, Opposition Members in this Committee Room, who may be Ministers in such an Administration, could be grateful for the powers that the Bill will grant to marry the interface between Wales and the UK Government.
Not unexpectedly, several Members raised the necessity test, and I will not have time to go round all those who mentioned it. Let me clear up the misunderstanding that exists. The necessity test applies only when the Assembly seeks to legislate in relation to England, in relation to reserved matters and in relation to underlying principles of criminal and private law. It has nothing to do with the Welsh Government legislating in Wales on a devolved matter. The necessity test is about when something touches reserved matters and matters that could be deemed to be the responsibility of the UK Government.
I will give a practical, straightforward example relating to the education of a child with special educational needs. If that child, from Wales, is being educated in a school in England, Estyn would naturally have the responsibility for inspecting the provision for that child in the school in England. It would not have the authority to close the school in England, because that would be a matter for the UK Government, but it would have the power to go to that school in England. The necessity test is about making the Welsh legislation effective when it crosses the English border. That is one practical example: there are a whole host of higher education institutions that have bases in England. The necessity test is about making the Welsh legislation effective as it applies to England. That is the scope and the scale of the necessity test. It is about enforcing legislation made by the Assembly.
Can the Minister confirm that that necessity test is taken from Scots law, where it is used in far narrower circumstances? Ministers are trying to massively broaden it in the Welsh context. Will he confirm that that is the case? Because it is.
I am grateful to the hon. Member for Torfaen. The reason I highlighted that practical example was to reject completely some of the accusations that have been made in a number of speeches about not granting the Welsh Government the powers to act in those devolved areas. The hon. Member for Torfaen made a point about legislation relating to horses. That is absolute nonsense as the Bill is drafted.
I would like to give way, but in the limited time I have left I will not. I will happily write to the hon. Gentleman and share with any other interested hon. Member why the example relating to horses is not relevant. I apologise, but I have two minutes left and I want to talk very briefly about the “separate” and “distinct” jurisdictions.
The hon. Member for Dwyfor Meirionnydd came forward with the very practical suggestion of having the “distinct” jurisdiction governed by the geographical border. However, that in itself curtails the powers of the Assembly when it is enacting legislation in relation to England. That is an example of the complexity here: should we pursue the model presented by the hon. Member for Dwyfor Meirionnydd, we would roll back powers. This complexity explains why we are trying to tease out these issues, so that we can bring forward amendments that will work for Wales, but will also work for the UK Government.
In the minutes that remain, I want to talk about the Crown consents, the so-called English veto. I absolutely reject the accusations and the phrase. More than 50 legislative consent motions have been agreed between the UK Government and the Welsh Government over the past five years when the UK Government have touched devolved responsibilities. That is the responsibility of a mature Administration. If the Welsh Government want to act on non-devolved responsibilities, quite clearly a Crown consent would be the mature, natural approach to follow. If it works, and legislative consent motions have worked well over the past five years, in a mature debate, why cannot that work in the other way? The suggestions of rejecting and opposing them would be to grant the Welsh Government powers extending well beyond any other settlement. I do not think that that is what the Labour party wants and it is certainly not what the Conservative party wants. Plaid Cymru might want that, but it has a respected position, which is to seek independence. I do not think it is what the Labour party or the Government want.
(8 years, 10 months ago)
General CommitteesCertainly, the Wales Office and the Government will listen to all the points that are expressed, but I was merely highlighting the one example that we have in modern history of a constitutional convention and how complicated that became to give a context for the difficulty of trying to resolve some of those issues.
I remind people who have been extremely critical of the draft Bill, the St David’s day agreement and the process that the Secretary of State undertook, of the Richard Commission and the amount of time that that spent, only to be rejected by the Government of the day. That left us with a complex situation and the LCO mechanism. How many of us remember how complicated that was, whether we were in the Assembly or in Westminster? It is therefore a bit rich for some people to suggest that there is a simple and straightforward way of resolving the issues. We are keen to listen to and develop the debate, and the draft Bill was published in that spirit.
To underline the points that were made at the outset, there is a lot of rhetoric and misunderstanding. Some comments that have been made in Committee are simply inaccurate. I will pick up on some of them shortly, including those made by the hon. Member for Clwyd South. The draft Bill is ambitious and extends significant amounts of new powers to the Assembly. Matters that have been raised—be it the necessity test or the consents—are not about limiting Assembly powers. There is no Machiavellian plot to clip the Assembly’s wings. It is about giving the Assembly the powers, with two Governments that have responsibility for matters that relate to Wales: the legitimate Welsh Government, who will have legitimate powers over devolved matters, and the UK Government. Who knows? In the long-term future, there may be a Labour Administration, although I do not expect that to happen for at least another two or three general elections. However, in future, Opposition Members in this Committee Room, who may be Ministers in such an Administration, could be grateful for the powers that the Bill will grant to marry the interface between Wales and the UK Government.
Not unexpectedly, several Members raised the necessity test, and I will not have time to go round all those who mentioned it. Let me clear up the misunderstanding that exists. The necessity test applies only when the Assembly seeks to legislate in relation to England, in relation to reserved matters and in relation to underlying principles of criminal and private law. It has nothing to do with the Welsh Government legislating in Wales on a devolved matter. The necessity test is about when something touches reserved matters and matters that could be deemed to be the responsibility of the UK Government.
I will give a practical, straightforward example relating to the education of a child with special educational needs. If that child, from Wales, is being educated in a school in England, Estyn would naturally have the responsibility for inspecting the provision for that child in the school in England. It would not have the authority to close the school in England, because that would be a matter for the UK Government, but it would have the power to go to that school in England. The necessity test is about making the Welsh legislation effective when it crosses the English border. That is one practical example: there are a whole host of higher education institutions that have bases in England. The necessity test is about making the Welsh legislation effective as it applies to England. That is the scope and the scale of the necessity test. It is about enforcing legislation made by the Assembly.
Can the Minister confirm that that necessity test is taken from Scots law, where it is used in far narrower circumstances? Ministers are trying to massively broaden it in the Welsh context. Will he confirm that that is the case? Because it is.
I am grateful to the hon. Member for Torfaen. The reason I highlighted that practical example was to reject completely some of the accusations that have been made in a number of speeches about not granting the Welsh Government the powers to act in those devolved areas. The hon. Member for Torfaen made a point about legislation relating to horses. That is absolute nonsense as the Bill is drafted.
I would like to give way, but in the limited time I have left I will not. I will happily write to the hon. Gentleman and share with any other interested hon. Member why the example relating to horses is not relevant. I apologise, but I have two minutes left and I want to talk very briefly about the “separate” and “distinct” jurisdictions.
The hon. Member for Dwyfor Meirionnydd came forward with the very practical suggestion of having the “distinct” jurisdiction governed by the geographical border. However, that in itself curtails the powers of the Assembly when it is enacting legislation in relation to England. That is an example of the complexity here: should we pursue the model presented by the hon. Member for Dwyfor Meirionnydd, we would roll back powers. This complexity explains why we are trying to tease out these issues, so that we can bring forward amendments that will work for Wales, but will also work for the UK Government.
In the minutes that remain, I want to talk about the Crown consents, the so-called English veto. I absolutely reject the accusations and the phrase. More than 50 legislative consent motions have been agreed between the UK Government and the Welsh Government over the past five years when the UK Government have touched devolved responsibilities. That is the responsibility of a mature Administration. If the Welsh Government want to act on non-devolved responsibilities, quite clearly a Crown consent would be the mature, natural approach to follow. If it works, and legislative consent motions have worked well over the past five years, in a mature debate, why cannot that work in the other way? The suggestions of rejecting and opposing them would be to grant the Welsh Government powers extending well beyond any other settlement. I do not think that that is what the Labour party wants and it is certainly not what the Conservative party wants. Plaid Cymru might want that, but it has a respected position, which is to seek independence. I do not think it is what the Labour party or the Government want.
(9 years, 1 month ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure to serve under your chairmanship, Ms Dorries, for what I think is the first time. I congratulate the hon. Member for Torfaen (Nick Thomas-Symonds) on securing the important debate, particularly as it is his first Westminster Hall debate. We have had an interesting discussion and I am grateful to the hon. Members for Neath (Christina Rees), for Swansea East (Carolyn Harris), for Ogmore (Huw Irranca-Davies), for Dwyfor Meirionnydd (Liz Saville Roberts), for Caerphilly (Wayne David) and for Merthyr Tydfil and Rhymney (Gerald Jones) for their contributions. I will do my best to answer all the points made.
I want to underline that the Government remain committed to delivering the St David’s day Command Paper, which will create a stronger, clearer and fairer devolution settlement for Wales. That, of course, includes the funding floor that the hon. Member for Torfaen and others have called for. The St David’s day agreement led to the draft Wales Bill, which was published on 20 October and is being considered as we speak.
The Bill will build a stronger Wales in a strong United Kingdom by devolving important powers over energy, transport and local government and Assembly elections. It will also make devolution work better, as the Assembly and the Welsh Government will be clear about the powers they have and the challenges to which they need to be able to respond.
I reaffirm the Government’s commitment to the introduction of a funding floor alongside the next spending review. It is worth clarifying the current positon of funding, which is an ever-dynamic environment. The Holtham commission’s report, to which the hon. Member for Torfaen and others referred, was established by the Welsh Government to analyse the relative level of needs in Wales compared with England in 2009 and 2010.
The work by Professor Holtham and his commission has had a significant impact on informing the debate in Wales and I pay tribute to him for his work. The report set out a range from 114% to 117% of comparable English funding per head in which it thought that funding for the Welsh Government would be “fair.”
The report also highlighted that the relative levels of funding provided to the Welsh Government had converged towards the average level of funding for comparable activities in England since the start of devolution. It was therefore interesting to hear the hon. Member for Ogmore talk about the increase in the Welsh block grant from £7 billion to £14 billion, because relative funding for Wales in that period deteriorated. It was from the commission’s range that the Welsh Government claimed that they were underfunded by £300 million back in 2010.
On the Barnett squeeze, the coalition Government conceded that that had happened in 2012. Why has nothing been done in three years?
I will come to that point in a moment, but it is worth remembering that the Command Paper, which was agreed by all parties, was published earlier this year and that committed specifically to acting within the next spending review period. As I said, the Barnett floor and spending commitments for Wales will be published alongside that.
The £300 million spoken about compared with a budget of roughly £15 billion. It is also worth noting that when Holtham reported, there was total identifiable spending in Wales of approximately £29 billion.
A lot has changed since 2010, both financially and politically. A joint statement in 2012 by both Governments recognised the resonance of this issue in Wales. In particular, it recognised the Welsh Government’s concerns that their funding would converge further towards English levels. However, joint work with the Welsh Government at the previous spending review confirmed that funding is not forecast to converge during the period to 2015-16. That refutes the points made by several Opposition Members; that was joint work agreed with the Welsh Government. Furthermore, Holtham’s logic also illustrated that the relative level of funding per head had risen, or diverged to use the technical term, and it is now in the range that the commission regarded as fair.
I am grateful to my hon. Friend for that. I smiled as various points were being made in the Chamber that underlined not only the inaction during that period of Labour Administration, but the differing messages that are coming from Labour in Westminster and in Cardiff Bay.
On the first point, given the intervention from the hon. Member for Cardiff North (Craig Williams) and the Minister’s response, I assume that they are now praising the last Labour Government’s investment and not trying to make out that it was our spending that caused the crash. On the second point, it is quite clear that we see the Barnett floor as a useful first step towards a needs-based solution in the future. There is no inconsistency in that.
The position has already moved since the hon. Gentleman’s first contribution to this debate.
To make some progress on the specific points raised, a lot of questions were asked about the timing. I remind hon. Members that earlier this year in the St David’s day Command Paper we committed, for the very first time, to introducing a floor to the level of relative funding provided to the Welsh Government, alongside the spending review. This Conservative Government made that historic commitment and we absolutely stand by it. On the question of urgency, we stand by what we said before the election and will deliver that.
The right hon. Member for Leigh (Andy Burnham) has admitted that when the Labour party was last in power and he was Chief Secretary to the Treasury he knew that the Barnett formula
“wasn’t fair to Wales and there would need to be changes”,
yet Labour did absolutely nothing about it. I will not accept any crocodile tears from Opposition Members. Although the right hon. Member for Leigh has since made that explicit comment, no action was taken in that whole period other than a diverging funding settlement for Wales relative to the rest of the United Kingdom.
(9 years, 3 months ago)
Commons ChamberMy hon. Friend makes an important point, and his constituency depends significantly on income from the tourism sector. He rightly highlights the fact that every tourism business is a business, and the changes that we have made to make this a more entrepreneurial, innovative and growth-driven economy not only help every business but have particular relevance to the tourism sector.
Next month Blaenavon world heritage site in my constituency will host the UNESCO world heritage youth summit. Will the Minister congratulate Blaenavon on that, and agree how important it is that we showcase our world heritage sites in Wales to the world?
I am grateful to the hon. Gentleman for drawing the House’s attention to that issue. The summit is important and I congratulate Blaenavon and wish the community well. I remember UNESCO awarding world heritage status to Blaenavon. The Welsh Government did a good job promoting the area, and the UK Government have a part to play in developing that further.