Devolution and the Union

Hywel Williams Excerpts

Thursday 20th November 2014 Commons Chamber

[Mr Raab]

As usual, my hon. Friend makes a cogent and eloquent point. That point is actually made by the SNP in its submission to the Smith review—that the logical consequence of full financial devolution would indeed mean the overhauling of the Barnett formula. I thus say to SNP Members that there may be potential for a nascent consensus on some of this—if it can be reached and grasped.

[Hywel Williams (Arfon) (PC)]

Does the hon. Gentleman agree with the Prime Minister when he said in the Liaison Committee this morning that Barnett reform was “not on the horizon”?

--- Later in debate ---

[John Glen]

No, I am going to continue with my speech.

That cannot be done on the basis of one short-term fix. In the next Parliament, the Government should establish a fair funding commission that would look comprehensively at the distribution of spending across all Government Departments over all regions and all aspects of that distribution. It could clearly take into account economic geography, a consistent definition of sparsity, demographic inequalities and historical differences in funding settlements. I believe that it would then quickly become clear that the distribution of taxpayers’ money is complex and that some proposals to deal with spending disparities are too simplistic. Fiscal devolution at a national level is not sufficient by itself. Some residents in Wales might use NHS services across the border in Herefordshire, for example, and vice versa, and it is important that we take account of such scenarios.

We also need to recognise the tension between the needs of metropolitan and rural communities, which particularly concerns my constituents in Salisbury. A fair funding commission would allow us to make mature, long-term decisions about funding levels based on comprehensive data and an appreciation of all the relevant factors across the whole United Kingdom. A wide range of options for reform would be available, including reviewing the baseline for formulas or introducing a fair funding consolidated grant.

[Hywel Williams]

Does the hon. Gentleman agree with the findings of the commission that looked into funding for Wales, which found that Wales had been chronically underfunded for many years?

[John Glen]

I favour a fair funding commission that would examine all funding across the United Kingdom at the same time, not the cherry-picking of reviews. We must ensure that any solutions are led by the will of our constituents. The clear reaction against regional assemblies, following the referendum in the north-east, must lead us to think carefully about the different affinities of different parts of the United Kingdom to the idea that their community, county, nearest city or region should be the locus of power and allocation of resources.

--- Later in debate ---

[Hywel Williams (Arfon) (PC)]

Yesterday’s Evening Standard—not a paper that I read that often, or that I always agree with—noted that the political system was in danger of collapsing, that the financial crisis had caused an economic meltdown, and that the MPs’ expenses scandal, media phone hacking, and police corruption had eroded trust in the established institutions. People are turning away from the established parties, and in England the response has been increasing support for an insurgent political party that, ironically for Members from nationalist parties, offers more Westminster, more privatisation, more austerity and more neo-liberal economics.

In Wales and Scotland, people are increasingly persuaded that a different political direction and social justice will be secured by empowering our national democratic political institutions. I was sceptical about the Unionist vow to Scotland, and am even more so now, given the twisting and slithering from the Unionist parties.

[Several hon. Members]

rose—

[Hywel Williams]

I will not give way. I do believe that some powers will be made over to Scotland, though I suspect that these will fall short of devo-max, modern home rule, or the new federalism proposed by the no campaign. In Wales, national political confidence is growing. Independence is a goal for a minority, but importantly, the majority of Welsh people reject the status quo.

[Jonathan Evans]

Will the hon. Gentleman give way?

[Hywel Williams]

I will, to the hon. Gentleman.

[Jonathan Evans]

I am grateful. I intervened in the certainty that the hon. Gentleman would get another minute from it. He ought to share with the House the fact that the last poll in Wales that I saw indicated that support for independence in Wales had reached 3%.

[Hywel Williams]

I thought that the hon. Gentleman might raise that point. Support for the status quo was at 37%; 63% of the population wanted a change, and the poll offered four choices. I said earlier in my speech that a minority supported independence, and I am one of that minority.

[Paul Flynn (Newport West) (Lab)]

We have all heard the worrying suggestion that the vow that changed the result of the referendum in Scotland might not be honoured fully. If it is not, will that not invalidate the vote and entitle people to ask for another?

[Hywel Williams]

I was very glad to allow another Welsh Member to take part, and ironically, he made a point about Scotland. He is entirely right. I wish there were more Welsh Labour MPs here to participate in the debate.

During proceedings on the Wales Bill, we warned the Government that the Bill would be superseded by events in Scotland, which I think has indeed been the case. After the referendum result was known, the Welsh First Minister, Carwyn Jones, called for home rule all round. When asked what powers he wanted, he could suggest only a reserved powers model. That is important, but it is unlikely to inspire the sort of enthusiasm and political engagement that so animated the yes campaign.

Looking more closely at Labour, it seems to have seized Carwyn’s plan much as a shipwrecked sailor might hug a bobbing, upturned piano—sufficient to keep him afloat, but unconvincing as a permanent solution to his predicament. Labour’s predicament is founded on being petrified of plans for English votes for English laws and their failure to adopt devo-max many years ago, not to mention being horribly tainted by campaigning shoulder to shoulder with the proudly Unionist Tory party. The shadow Secretary of State for Wales, who is not in his place, memorably calls himself a proud Unionist. I am surprised that he is not here to proclaim that Unionism.

Carwyn Jones made a big play about his call for a constitutional convention, as we see Labour doing in its rejected amendment. I tabled a question to the Deputy Prime Minister last year, asking what representations he had received from the First Minister on the matter. His answer was “None”. Carwyn was proclaiming a constitutional convention but had done nothing about it. Calling for a constitutional convention is clearly a simple Labour holding line. It is too little, too late, catching up on what was necessary yesterday—a reserved powers model—rather than the powers required for the future.

In contrast, Plaid Cymru last month published a detailed position paper, “Bring our Government Home: Proposals for empowering Wales”. It calls for the 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. It would be a balancing Bill, at last ending the practice of Wales playing catch-up with Scotland.

The people of Wales want parity of powers with Scotland. As I mentioned, a poll taken almost immediately after the vote in Scotland found that 63% of people wanted parity with Scotland. The Westminster parties ignore that, and it will be to their cost. They have vowed that the Barnett formula will stay in place, and the Prime Minister echoed that this morning when he appeared before the Liaison Committee—he said very clearly that Barnett reform was not on the horizon. We say that the case against the Barnett formula has been proved in Wales. Even the Labour First Minister says so.

We say that we must have funding equality with Scotland, which means that on a pro-rata basis Wales should receive an extra £1.2 billion a year. That goes well beyond the current Wales Bill. Plaid Cymru’s ambition is to improve the Welsh economy so that we can stand on our own two feet. That will not be achieved in the long run while we depend on fiscal transfers from London. To speak plainly, the Welsh Government need a kick in the pants. Growing the Welsh economy can be achieved only through fiscal empowerment.

Lastly, on English votes for English laws, there are several important considerations to be resolved before that can take place. We heard earlier that only eight pieces of legislation over the past four years could be identified as English-only. The point has been made that changes to the NHS and its funding in England have profound implications for Wales. The hon. Member for Cardiff North (Jonathan Evans), of course, has many constituents who access the health service in England. I cannot see how English votes for English laws can be introduced simply, but I think that it is a fair principle if it can be done. The obvious solution, as far as we are concerned, is to fully empower the National Assembly for Wales, the Scottish Parliament and the Northern Ireland Assembly.