Wales Bill

Debate between Roger Gale and Hywel Williams

Tuesday 6th May 2014 Commons Chamber

[Hywel Williams]

I beg to move amendment 36,  page 21, line 18, leave out ‘, with the approval of the Treasury,’.

[The Temporary Chair (Sir Roger Gale)]

With this it will be convenient to discuss the following:

Amendment 37, page 21, leave out lines 26 to 31 and insert—

‘(1) On receipt of notice of an appropriate resolution of the Assembly, the Secretary of State shall by order amend subsection (1A) so as to vary, in the manner indicated by the terms of such resolution, the means by which Welsh Ministers may borrow money.”.’.

These amendments would enable the National Assembly to change the way money for capital expenditure is borrowed, including the issuance of bonds, without the need for consent by the Treasury or Resolution of the House of Commons.

Amendment 35, page 21, line 31, at end insert—

‘(6) The Secretary of State shall make arrangements for an independent report to be compiled on the issuance of bonds by Welsh Ministers.

(7) The Secretary of State shall lay a copy of the report specified in subsection (6) before each House of Parliament within three months of this Act being passed.’.

The Scotland Act 2012 enables the Secretary of State, by order and consent of HM Treasury, to change how Scottish Ministers can borrow money for capital purposes, for example, allowing the issue of bonds. Clause 19(5) of the Wales Bill contains the same provisions. This amendment seeks clarification on the power to issue bonds.

Amendment 34, page 21, line 38, at end insert—

‘and if that amount is more than the amount for which it is substituted it shall not thereafter be reduced below that higher amount’.

This amendment would ensure that when the Secretary of State raises the borrowing for investment limit, it cannot subsequently be reduced.

Amendment 5, page 21, line 38, at end insert—

‘(3B) The figure mentioned in inserted subsection (3A) shall be recalculated on an annual basis to maintain its value in real terms against inflation.’.

Clause 19 stand part.

Clause 20 stand part.

[Hywel Williams]

Amendments 36 and 37 would enable the National Assembly to change the way that money for capital expenditure is borrowed, including the issuing of bonds, without the need for the consent of the Treasury or a resolution of the House of Commons. Amendment 35 seeks clarification on the power to issue bonds. Amendment 34 would ensure that when the Secretary of State raises the borrowing for investment limit, it cannot subsequently be reduced.

First, on the issuance of bonds, subsection 32(5) of the Scotland Act 2012 enables the Secretary of State, by order, to change the manner in which Scottish Ministers can borrow money for capital purposes—for example, to permit borrowing by the issue of bonds. Subsection (5) of the Wales Bill contains the same provisions. This amendment seeks clarification on the power to issue bonds.

Following the Scotland Act 2012, the legislation left the door open for the Secretary of State to enable the Scottish Government to issue bonds in future. The UK Government later launched a consultation on bond issuance and announced in February of this year that Scotland is to get the power to issue bonds. There is only one problem: it will have that power only in 2015. In the meantime, the small matter of the independence referendum in September might intrude.

Scotland aside, I refer Members to the cross-party Commission on Devolution in Wales. Recommendation 19 ends with the words:

“We also believe that the Welsh Government should be able to issue its own bonds.”

Given that local government throughout the British Isles can issue bonds, it is an anomaly that the devolved nation Governments cannot also do so.

The Silk Commission’s first report stated that

“while bonds may be more expensive at present, a possible future scenario where they may be cheaper or more attractive to the Welsh Government cannot be ruled out. We therefore see no reason in principle for preventing the Welsh Government from being able to issue its own bonds in addition to borrowing from the National Loans Fund and other sources such as commercial banks.”

Our amendment calls for greater clarification and seeks to expedite the ability of the Welsh Government to issue bonds. We need movement on this issue to enable the Government of Wales, should they choose to do so, to drive investment in infrastructure, and so improve our economy.

Rural Communities

Debate between Roger Gale and Hywel Williams

Tuesday 17th April 2012 Westminster Hall

[Hywel Williams]

The hon. Gentleman makes a fine point. I had a hugely confusing conversation with the Welsh Government, some time ago, about historic and listed buildings being free of VAT. The conclusion, after 20 minutes of discussion, was agreement that they were free of VAT—but only for new build. Given that we were talking about historic and listed properties, the idea of building them anew seemed somewhat peculiar to me, to say the least.

I will conclude by saying that we have social housing in Wales, as elsewhere. Social housing is extremely valuable, but often it is of the wrong type, and in the wrong place. The ability of social landlords and local authorities to let houses in rural areas has been severely curtailed. In many villages in my area, social housing has been sold. It is not available. The proposed changes in housing benefit are unlikely to help. More people under 35 will be looking for houses in multiple occupation, of which we have few in rural Wales.

[Sir Roger Gale (in the Chair)]

Order. Before we proceed, I now have a fairly definitive list of hon. Members who have applied to speak. Although it is exceptional to do so, it may help if I give the names of those people, so that hon. Members not on the list may consider whether to intervene. From the Government Benches, in the order of application, speakers will be Mr Rory Stewart, Caroline Nokes, Sheryll Murray, Glyn Davies, Roger Williams and Neil Parish; and now that Mr Hywel Williams has spoken the only name I have from the Opposition Benches is Mr Ian Paisley. Any hon. Member not on the list has not so far indicated a wish to speak.