Commission on Devolution in Wales

Cheryl Gillan Excerpts

Tuesday 11th October 2011 Written Statements

[The Secretary of State for Wales (Mrs Cheryl Gillan)]

I informed the House on 19 July that the Government would establish an independent Commission on Devolution in Wales this autumn to review the present financial and constitutional arrangements in Wales. I said that I would make further announcements after recess.

I am now able to inform the House that the Commission will be chaired by Paul Silk, Clerk to the National Assembly for Wales from 2001 to 2007 and a former Clerk in this House. He will be joined on the Commission by two independent members. They are:

Dyfrig John CBE, Chairman of the Principality Building Society;

and

Professor Noel Lloyd CBE, a former Vice-Chancellor and Principal of Aberystwyth University.

In addition, there will be four party political members who are each nominated by one of the four political parties in the National Assembly for Wales. They are:

Professor Nick Bourne (Welsh Conservatives nominee);

Sue Essex (Welsh Labour nominee);

Rob Humphreys (Welsh Liberal Democrats nominee); and

Dr Eurfyl ap Gwilym (Plaid Cymru nominee).

The Commission members have, between them, extensive expertise and experience in financial and constitutional matters in relation to Wales. I expect the Commission to consult widely on its proposals, and to make recommendations likely to have a wide degree of support.

The terms of reference for the Commission reflect the fact that it will carry out its work in two parts. In part I, the Commission will look at the case for the devolution of fiscal powers to the National Assembly for Wales, and recommend a package of fiscal powers that would improve the financial accountability of the Assembly, and which are consistent with the United Kingdom’s fiscal objectives.

In part II the Commission will look at the powers of the Assembly, and recommend modifications to improve the present constitutional arrangements.

The Government worked closely with the Welsh Government and all the parties in the Assembly in drafting the terms of reference. The full terms of reference for the Commission are attached at annex A, and I have also placed copies in the Library of the House.

The Commission will report to me and, in relation to part I, also to the Chancellor of the Exchequer. It will be supported in its work by a small secretariat of civil servants drawn from the United Kingdom Government and the Welsh Government. It will make every effort to report on its recommendations in relation to part I in the autumn of 2012, and on part II during 2013.

Commission on Devolution in Wales—Terms of Reference

An independent Commission will be established to review the present financial and constitutional arrangements in Wales. It will carry out its work in two parts:

Part I: financial accountability

To review the case for the devolution of fiscal powers to the National Assembly for Wales and to recommend a package of powers that would improve the financial accountability of the Assembly, which are consistent with the United Kingdom’s fiscal objectives and are likely to have a wide degree of support.

Part II: powers of the National Assembly for Wales

To review the powers of the National Assembly for Wales in the light of experience and to recommend modifications to the present constitutional arrangements that would enable the United Kingdom Parliament and the National Assembly for Wales to better serve the people of Wales.

In undertaking part I, the Commission should:

provide independent advice on the case for improving the financial accountability of the National Assembly for Wales consistent with the fiscal and constitutional framework of the United Kingdom;

consult widely on a package of fiscal powers which would improve the financial accountability of the National Assembly for Wales;

make recommendations on whether a package of fiscal powers could be devolved to the National Assembly for Wales which are likely to have a wide degree of support; and

consider and make recommendations on how best to resolve the legal and practical implementation issues from devolving a package of fiscal powers, including consistency within the United Kingdom.

Part I will be completed before work on part II begins.

In undertaking part II, the Commission should:

examine the powers of the National Assembly for Wales, and in particular:

the boundary between what is devolved and non-devolved;

whether modifications to the boundary should be made at this stage; and

any cross-border implications of such modifications;

consult widely on any proposed modifications to the current boundary;

make recommendations on any modifications to the settlement likely to have a wide degree of support; and

consider and make recommendations on how best to resolve the legal and practical implementation issues from those modifications.

The Commission will not consider, in part I, the Holtham Commission’s proposals for funding reform in Wales, including Welsh Ministers’ existing borrowing powers, which are being dealt with through a separate bilateral process between the United Kingdom Government and the Welsh Government; and, in part II, the structure of the National Assembly for Wales, including issues relating to the election of Assembly Members.