Devolution (Scotland Referendum)

Debate between Pete Wishart and Jonathan Edwards

Tuesday 14th October 2014 Commons Chamber

[Jonathan Edwards]

I am grateful for that intervention, and it is a point that I am sure we will make quite clear when it comes to the general election.

I think we can be sure that the new powers for Scotland will fall far shorter than the promised devolution max. That will be a huge disappointment to the 1.6 million people who voted yes, and especially to the hundreds of thousands—if the polls are to believed—who changed their minds at the last minute. In Wales, the growth in the political confidence of the Welsh people continues at breakneck speed. An ICM poll within days of the result in Scotland indicated that the people of my country want far greater political control over their lives. In spring, during the proceedings of the Wales Bill, I warned the UK Government that it would be superseded by events in Scotland— and that is indeed the case.

In the immediate aftermath of the Scottish result, the First Minister of Wales called for home rule all round, although I strongly suspect that his version of home rule is far less ambitious than mine. When asked what powers he wanted, he could come up only with a reserved powers model for our National Assembly. That, although important, is hardly the sort of stuff to get excited about and it is a million miles away from what most people would see as genuine home rule.

In contrast, Plaid Cymru published last month a detailed position paper entitled “Bring our Government Home: Proposals for empowering Wales”. The paper called for the current Wales Bill to include all the recommendations of the Silk commission, rather than the cherry-picking we saw from the UK Government, and, crucially, for a second Wales Bill to mirror the powers that will be made available to Scotland. We have labelled this second Bill a balancing bill, to end the practice of Wales playing catch-up with Scotland.

We are also calling for a radical overhaul of the discredited Barnett formula, which has ill-served my country. This needs to be coupled with increased fiscal powers for the National Assembly—beyond the current Wales Bill. If Scotland is to get 100% income tax powers as recommended by the Tory Strathclyde commission, Wales should have the same powers. Plaid Cymru’s ambition is to improve the Welsh economy so that we can stand on our own two feet as a country. This will not be achieved for as long as we are dependent upon fiscal transfers from London, whereby Welsh taxes are collected by the Treasury and a share is sent back to fund Welsh public services.

[Pete Wishart]

I am wondering whether my hon. Friend is aware of any representations made by the First Minister of Wales to whatever Committee has been set up so that Wales can get these powers.

[Jonathan Edwards]

My hon. Friend raises an interesting point. The First Minister made a big play about his call for a constitutional convention, but in response to a question we tabled to the Deputy Prime Minister last year, it appears that the First Minister has made no representations to the UK Government at all.

The Welsh Government need to be incentivised to grow the Welsh economy, and that can be achieved only by fiscal responsibility.

Before I conclude, I would like to comment briefly on the proposals for English votes for English laws in this House. As a point of principle, I do not have a problem with what the UK Government are advancing, pending two resolutions. First, the Welsh budget is determined by spending decisions on public services in England that are devolved. I cannot see how English votes for English laws can be introduced until the Barnett formula is replaced; otherwise, Welsh MPs will be barred from voting on measures that might impact on the Welsh budget.

Secondly, we will have to move to a symmetrical devolution settlement within the UK; otherwise, there will be several tiers of MPs, creating potential chaos during votes in this place. If the Union is to survive, it is crying out for someone with a bit of vision to bring forward proposals for a lasting settlement. Far be it from me to offer advice, but it seems to me that an obvious solution would be fully to empower the National Assembly for Wales, the Scottish Parliament and the Northern Ireland Assembly. This place should be turned into an English Parliament, with the Lords performing the role of a confederal Parliament or Senate.

The political ground is moving under the feet of Westminster. If the current British state is to survive to celebrate its centenary—considering the creation of the Irish Free State in 1921—the Westminster establishment has to acknowledge that the aspirations of the people of Wales and Scotland for far more powers over our national democratic institutions must be met.

Finance (No.2) Bill

Debate between Pete Wishart and Jonathan Edwards

Tuesday 8th April 2014 Commons Chamber

[Jonathan Edwards]

The hon. Gentleman always makes very intelligent points. I believe that he is talking about the Laffer curve. I will discuss the optimal rate of taxation later, but I agree wholeheartedly with his comments.

A report for the Office for National Statistics entitled “The Effects of Taxes and Benefits on Household Income, 2011/12”, which was released in July 2013, showed clearly that, while income tax is progressive, as it should be, the effect of indirect taxes such as VAT means that the bottom fifth of the income groups pay the most out as a percentage of their gross income at 36.6% in taxes, while the top fifth pay 35.5%. The overall tax system is therefore still heavily weighted in favour of the highest earners. Plaid Cymru believes in progressive taxation irrespective of the timing and state of the wider economy. We believe that those with the broadest shoulders should bear the burden of taxation. A Scandinavian model of progressive taxation is part of our DNA.

The House has voted on this measure only once, during the resolution votes following the 2012 Budget debate. I am delighted that it was Plaid Cymru and Scottish National party Members who called that vote. The shadow Chancellor must have been having an off-day, because the entire parliamentary Labour party abstained, apart from two honourable exceptions, the hon. Members for Bolsover (Mr Skinner) and for Newport West (Paul Flynn), if my memory serves me correctly. Although Labour Members voted against the Government’s 2012 Budget, which reduced the 50% rate to 45%, they missed the only vote that we have been able to have directly on the reduction of the top rate.

[Pete Wishart (Perth and North Perthshire) (SNP)]

I am sure my hon. Friend will agree that what happened to the Labour party that evening was cataclysmic. Does he have any explanation as to why the Labour party missed that vote that evening? Something from the Whips Office suggested headless chickens, but that would be showing disrespect to headless chickens. Does he have any idea why Labour abstained on what was one of the key policies at that point?

[Jonathan Edwards]

Unfortunately, I cannot enlighten my hon. Friend, other than to say that the Western Mail informed me that senior Labour staff described it as a “balls-up”.

To be slightly more serious, I was happy that, in response to an intervention from me last week on Second Reading, the shadow Chief Secretary, who is in his place, said that should Labour form the next UK Government, it would restore the 50p top rate for the duration of the next Parliament. I would certainly support that, and I look forward to doing so if there is a Labour Government. My understanding before his answer was that Labour was proposing a temporary increase in the top rate, so I welcome that development. I hope that during today’s debate, the Labour Front-Bench spokesman will confirm that that will be its policy at the next election and beyond.

Owing to the manner in which Finance Bills are processed, it is impossible to press to a vote amendments to alter tax band rates, which is why both new clause 4 and Labour’s amendment 4 call for a review from the Treasury of the impact of re-introducing the 50p rate. The 2011 Budget included the provision of a review to reduce the 50p rate. As I said, nobody foresaw the Treasury introducing such a policy within a year. In other words, the 2011 Budget provisions were a sop to Tory donors that their party was minded to reduce the top rate at some point in the future. The following Budget then introduced the policy.

Proponents argue that the reduction in the additional rate to 45p has led to a windfall for the Treasury because of reduced avoidance and evasion. I noticed in the lead-up to the Budget last month that some Tory Back Benchers were making the case for a reduction to 40p for this Budget based on higher than expected tax receipts—some £9 billion—following the top rate changes. In the newspapers this morning the hon. Member for Taunton Deane (Mr Browne) was making a similar call for his party to adopt the 40p top rate come the general election. He is not in his seat, so perhaps he has been told to go somewhere else. I find that argument difficult to swallow as individuals seeking to avoid tax at a 50p rate would surely be minded to do so with a 45p rate. The higher than forecasted tax receipts used to justify a further cut in the top rate was surely as a result of higher than projected economic performance, and therefore a 50p rate would have brought in even more receipts for the Treasury.

Finance (No. 2) Bill

Debate between Pete Wishart and Jonathan Edwards

Thursday 18th April 2013 Commons Chamber

[Jonathan Edwards]

The hon. Gentleman makes a powerful point. That is especially the case in Wales, as the Welsh Government own our national airport.

It is clear that the Bill is the appropriate legislative vehicle to move this issue forward. There is a clear precedent and, as I said, I believe the Treasury should accept the amendment, as it includes all the minor taxes recommended by Silk.

The Labour Welsh Government have recently acquired Cardiff airport, and the ability to attract long-haul flights to Cardiff would significantly improve the airport’s competitiveness. Cardiff airport has 1.5 million people in its catchment area and long-haul flights could attract people from even further afield. The development of Cardiff airport could act as a spur to growth in the south Wales economy, bringing in greater foreign direct investment through better business links, in turn bringing jobs and growth.

Quite frankly, I am amazed that the Labour party has not tabled its own amendment. That goes to show that the First Minister has absolutely no influence over his bosses down here. On Tuesday of this week, he stood in the National Assembly telling the Members and the people of Wales that

“the most important thing is to ensure that Silk part 1 is progressed”.

I would expect Labour MPs to file through the Aye Lobby when we vote, or his authority will be fatally undermined—but as the Labour Whips have sent them home, that will not be the case.

The fact that the Treasury has not used the Finance Bill to implement Silk also shows once again that Wales is an afterthought in the machinations of the British state. Those powers should be devolved, yet there is delay even though it is apparent that there is broad consensus among the main parties who represent Welsh constituencies, as evidenced in the Grand Committee debate and despite the fact that the commission received representations from all parties. Each month that passes by without these powers being devolved, the Welsh economy further deteriorates with job and economic prospects diminished, hopes and dreams shattered and lives ruined.

Over Easter, I attended a major forum meeting organised by Carmarthenshire county council to move the proposed Llandeilo bypass project forward. Despite being high up the Welsh Government’s priority list as a transport infrastructure project, it is being held up as a result of the savage cuts to capital budgets in Wales. If the amendment is successful, it will enable the Welsh Government to access borrowing powers to move the scheme and many others like it forward. In Carmarthenshire there is cross-party support for the project, and I would like to close by kindly informing my political opponents that should they fail to support the amendment their grandstanding in supporting projects such as the Llandeilo bypass will be exposed and there will be a heavy political price to pay in my constituency—a constituency I believe the Labour party view as a target seat come the next Westminster election.

[Pete Wishart]

No chance, not with you there.

[Jonathan Edwards]

Well, I am grateful for that comment.

Plaid Cymru has made jobs and the economy its absolute priority. That is why we have tabled this amendment on air passenger duty. We want to create a modern and prosperous Wales, and unlike our political opponents we have little faith in London Governments of whatever colour achieving that ambition. That is why we want the tools to get on with the job ourselves without delay.

Higher Education Fees

Debate between Pete Wishart and Jonathan Edwards

Thursday 9th December 2010 Commons Chamber

[Jonathan Edwards]

The hon. Gentleman makes an interesting point that comes from his personal experience, and I am sure that everyone in the House has listened to those concerns. A very serious accusation has been laid at the door of not only this Parliament, but those before us. It is that, having benefited from free education paid for by taxation, we are pulling the drawbridge up behind us and leaving others to pay.

I need not remind hon. Members that the Labour party, whose Members are now complaining so passionately about an increase in tuition fees, was the party that first broke the compact with our young people and undermined the concept of free education for all. Fees were introduced in 1998, with a higher rate following in 2004. The very fact that this new funding regime is being introduced by a statutory instrument indicates that this is a continuation of Government policy, rather than a new development.

[Pete Wishart]

We all know the record of the Labour party, which includes having introduced tuition fees, but does the hon. Gentleman share my surprise that Scottish Liberal Democrats will be voting for this English-based measure? It offers no benefit for Scotland, only pain and hurt. Does he welcome the opportunity that his nation and my nation will have to cast their verdict on the Liberal Democrats next May?

[Jonathan Edwards]

As always, my hon. Friend makes an excellent point. Education is a right, not a privilege. The benefits that a highly skilled and well-educated population and work force provide are crucial if we are to maintain our position in the world, and to continue to develop a knowledge and value economy. In Wales, we believe that with the right support we can become a small, clever country, like our Scandinavian friends, delivering a better quality of life for our people. That is why last week’s announcement by the Welsh Government is to be welcomed. It shows why it is important that we have our own Government in Wales, so that policy can be based on our values as a nation. It is also why I believe the electorate of Wales will vote next March to confirm further powers for the National Assembly, so that Wales can achieve full political sovereignty over devolved policy areas.

Many hon. Members will not have heard that announcement in detail. Made by a different Member for Rhondda than we usually hear from in this House, the announcement by the “One Wales” Government affirms that: they do not support full cost or near full cost fees; they do not believe that higher education should be organised on the basis of a market; and they do not believe that it is sustainable in the long term for the UK to adopt a policy of having the highest tuition fees for higher education in the world outside the USA.

In “One Wales”, we in Plaid Cymru and Labour, committed ourselves to doing whatever was possible to mitigate the effects on Welsh-domiciled students if the Westminster Government lifted the cap on fees, because we believe that access to higher education should be based on academic ability, not the ability to pay. In other words, the increase in fees for Welsh-domiciled students, whether they study in Wales, England, Scotland or Northern Ireland, will be paid for by the Welsh Government. Welsh-domiciled students will continue to be eligible for subsidised loans to meet the cost of fees up to the current level.

Fixed-term Parliaments Bill

Debate between Pete Wishart and Jonathan Edwards

Tuesday 16th November 2010 Commons Chamber

[Jonathan Edwards]

I can answer the hon. Gentleman’s point simply: hardly any.

Returning to the point about candidates, I am confident that my party will have no difficulty in finding quality candidates the length and breadth of Wales, although it might be a different matter, of course, for smaller parties, such as the Liberal Democrats. However, ensuring quality coverage, so that the electorate can become familiar with the people, and not only the party, for whom they are voting, will be doubly difficult if they are all fighting for air time.

[Pete Wishart (Perth and North Perthshire) (SNP)]

I am sure that my hon. Friend is looking forward, like I am, with great anticipation to finding out how the Minister will reply to this debate. On Second Reading, the Deputy Prime Minister said that he was minded to move the date of the election. Is my hon. Friend aware of any Government amendments dealing with this matter, or is this yet another Liberal broken promise?

[Jonathan Edwards]

My hon. Friend makes an important contribution. Obviously, if there had been changes since Second Reading, I would not have had to make this speech or table these amendments.

[Jonathan Edwards]

I made it clear earlier that my preference is for four years and, as the hon. Member for Rhondda has said, the norm has been three years and eight months. Why go to five years, therefore, if the norm over the past 200 years has been three years and eight months? That seems tried and tested.

[Pete Wishart]

Why on earth should it not be this House that moves its dates? When this Bill was introduced, the Government knew there was to be a Scottish parliamentary election in 2015? Is it not the ultimate disrespect that this place expects the Scottish Parliament to move on its behalf?

[Jonathan Edwards]

Once again, my hon. Friend makes an important point.