(8 years, 4 months ago)
Commons ChamberI thank my hon. Friend for making one of his classic interventions. I touched on this when I spoke about the heart and head. I disagree fundamentally with a lot of what the Welsh Labour Government do, but I support the institution of the Welsh Assembly, and I want to strengthen it and one day return a Welsh Conservative Government who have the levers and powers to get on and do the job.
I will touch on bus regulations a little later. I refer Members to my declaration of interests: I served on the board of a major bus company for many years, and I welcome the bus regulations we are giving to the Assembly, because of the importance of issues such as integrated transport.
I do not want to jump around the issues too much, but the hon. Member for Islwyn (Chris Evans) mentioned corporation tax, and there is always something else to get. Now business rates are with the Assembly. In terms of the Cardiff city deal and getting high-value companies from London to Cardiff, we have discretion over business rates, and we can do exciting things with them. Rather than talk about more powers again, we should encourage the hon. Gentleman’s colleagues in the Assembly to put a visionary bid together with the powers they already have, if we manage to get this Bill through with income tax included.
I was talking about the fact that we need certainty now in the constitutional settlement. I would be happy to see corporation tax devolved in the Bill, in the hope we will not be revisiting this, as we have done over the last couple of years. The reason I mentioned corporation tax is the example of the Republic of Ireland, which has been very successful in getting some large companies to headquarter there.
I accept that point, but I hope the hon. Gentleman sees where I am coming from. Complacency sinks in when we give the Assembly more powers. It thinks, “Right, we’ve got them, and rather than think about what to do with them, we’ll think about what we want to ask for next.” What could be done with corporation tax and what can already be done with business rates is a good example of that.
I want to talk a little about the capital side of this. The more revenue streams and accountability we are able to give the Welsh Government, the more capital they can borrow, so the more capital they can put into infrastructure projects off their own bat, and we can judge them on the success of that. The Commonwealth games bid will require some capital. More revenue streams, and more accountability and transparency in being able to raise money, would mean that we could make a Commonwealth games bid in Wales. We could put more into the south Wales metro, too, and top up the Cardiff city deal. At the moment, the Welsh Government come to Westminster to access borrowing powers—the old Welsh Development Agency powers, for example—but this Bill tidies things up: it enables the Welsh Government to get on and hopefully deliver for the people of Wales. If they do not, we can more appropriately judge their failure or success.
I have touched on the worrying parts of the RIFW scandal and how I see that as an example of a lazy approach and attitude within the Welsh Government and Welsh Assembly more broadly, but I want to move on to the single legal jurisdiction question for Wales. I believe that a single legal jurisdiction of England and Wales has served us well and should be maintained. Although we acknowledge that the Assembly is now going to make a greater body of law, and I commend this Bill for tackling what has been a very thorny issue, I agree that the disruption and cost of establishing a separate legal jurisdiction is not justified at this time. A separate jurisdiction would create upheaval and huge cost for no good reason.
Another issue that has been modified owing to the scrutiny of the draft Bill is the formal recognition in this Bill of a body of Welsh law made by the Welsh Assembly and Welsh Ministers—or Welsh Secretaries, as I should now call them. This change reflects the importance placed on this matter during the revision process in the past few months. Most of the debate on a distinct or separate jurisdiction revolved around the necessity test, and I am hoping that the Bill in its present form will have lanced that boil. I am sure that we will hear more about that from Plaid Cymru Members later. The Welsh Affairs Committee, on which I am proud to serve, concluded that the necessity test was wrong and recommended that it be replaced. I therefore welcome the Secretary of State’s approach to this issue.
The body of Welsh law continues to grow. I have made the point in the Welsh Grand Committee and the Select Committee that the Assembly is making Welsh laws and a body of Welsh laws exists, and that the Assembly should have the security and confidence to stand up and say that, rather than constantly looking for reassurance from Westminster that it can have its own body of laws. We can now build our legal infrastructure around the body of Welsh laws, but we would risk economic and commercial damage if a separate jurisdiction were pursued. We would risk a flight of talent, given that Cardiff has strong professional legal services. We would also face problems with our universities. The University of Aberystwyth is in the constituency of the hon. Member for Ceredigion (Mr Williams), and I would not want to put it or any other Welsh university in a position of having to debate whether to teach English or Welsh law to international students. That might be a difficult one for the dean of law at Aberystwyth. For all those reasons, I support the Government’s belief in maintaining a shared legal jurisdiction, and I welcome the work being undertaken by representatives of the Lord Chief Justice’s office.