Wales Bill Debate

Full Debate: Read Full Debate
Department: Wales Office
Monday 12th September 2016

(7 years, 11 months ago)

Commons Chamber
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Lindsay Hoyle Portrait Mr Deputy Speaker (Mr Lindsay Hoyle)
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Order. I know the Secretary of State has a lot to tell us, but I am sure he is aware that quite a lot of other Members would also like to speak. Will he bear that in mind?

Kevin Brennan Portrait Kevin Brennan
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On a point of order, Mr Deputy Speaker. If we are under a severe time constraint, I wonder whether you could tell us how long we have for this debate?

Lindsay Hoyle Portrait Mr Deputy Speaker
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The debate has to finish by 7.57 pm. I call the Secretary of State.

Alun Cairns Portrait Alun Cairns
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Thank you, Mr Deputy Speaker. I will of course make swift progress, as you have requested.

Amendment 61 seeks to devolve legislative competence to the Assembly over Welsh language broadcasting and other Welsh language media. The Welsh language is a critical part of our cultural heritage in Wales, and the Government’s continued commitment to Welsh language broadcasting is a key element of preserving the language. It is a source of great pride for me that S4C was established by a Conservative Government over 30 years ago, and I note the welcome from a number of stakeholders for the statements made by the BBC on the funding of the channel. This demonstrates our commitment to the Welsh language. The proposal is not recognised by stakeholders and operators in this field, and neither was it called for by the Silk commission or the St David’s day agreement.

Amendment 66 would remove the requirement for the Assembly to seek the consent of UK Government Ministers for an Act of the Assembly that would modify the functions of a reserved authority if such an Act related to a Welsh language function. It is obviously right that the Welsh Government should have the freedom to act in the interest of the Welsh language, but it is also right that when those policies or obligations extend to reserved matters, a UK Government Minister should also approve them. This means that the UK Government have the responsibility to see the Welsh language protected in reserved areas too. That is not the sole preserve of Members of the Welsh Assembly; we all have a responsibility towards the Welsh language.

Amendments 68 and 69 seek to provide that future Assembly legislation altering the specification or number of constituencies or regions, or the number of Members they return, would be subject to agreement by a majority of Assembly Members rather than a super-majority. I think the hon. Member for Newport West is being rather mischievous in tabling these proposals, particularly in the light of the news—which Members heard about today and which will be made public tomorrow—about the potential changes to constituencies that send Members to this place.

The Smith commission recommended a two-thirds majority for Scottish Parliament legislation seeking to change the franchise, the electoral system or the number of constituency or regional Members. This was provided for in the Scotland Act 2016 and the UK Government committed in the St David’s Day agreement to implement the same arrangements for Wales. I believe that I have explained clearly why I cannot support the Opposition amendments and, on that basis, I urge Opposition Members to withdraw them in due course.

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Paul Flynn Portrait Paul Flynn
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indicated assent.

Lindsay Hoyle Portrait Mr Deputy Speaker (Mr Lindsay Hoyle)
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It may seem pretty good to some hon. Members, but we are drifting a little from where we should be. I know we are encompassing everything we need to, but I do not want to open up a full-blown debate on the House of Lords.

Stephen Doughty Portrait Stephen Doughty
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I agree with many of the points my hon. Friend has made about the democratic deficit we could be heading towards. He said that the boundary review is to the Government’s advantage, and clearly that is their intention. But it is clearly not to the liking of all those on the Government Benches, as we saw from some of the points of order and comments coming from Conservative Back Benchers last week. Does he agree that the Government might well be stoking up trouble on their own side with this democratic atrocity?

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Guto Bebb Portrait Guto Bebb
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I met the Welsh Language Commissioner in August. We have subsequently written to her, highlighting the fact that the concerns raised in relation to the operation of the 2011 Measure have no grounds. In other words, the 2011 Measure is not affected by the Bill. There will be an impact if a subsequent Welsh Language Measure is passed by the Welsh Assembly, but it does not affect the way in which the legislation—

Lindsay Hoyle Portrait Mr Deputy Speaker (Mr Lindsay Hoyle)
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Order. In fairness, I let the first one go on far too long. If you do not want to sum up at the end, do not try to sum up halfway through. Interventions have to be short. There are still another three speakers to come. I am very tolerant, but I am being tested.

Hywel Williams Portrait Hywel Williams
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Thank you, Mr Deputy Speaker. This matter will probably be addressed again when the Bill goes to another place. Perhaps we could have some discussions with the Welsh Language Commissioner in the meantime, to see whether her concerns are still justified.

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Guto Bebb Portrait Guto Bebb
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I beg to move, That the clause be read a Second time.

Lindsay Hoyle Portrait Mr Deputy Speaker (Mr Lindsay Hoyle)
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With this it will be convenient to discuss the following:

New clause 1—Maritime and Coastguard Agency

“(1) In section 1 of the Coastguard Act 1925 (transfer of the coastguard to the Board of Trade), at the end insert—

“(4) The Secretary of State must consult the Welsh Ministers about the strategic priorities of the Secretary of State in exercising functions under subsection (1) in relation to activities of Her Majesty’s Coastguard in Wales.

(5) In subsection (4) “Wales” has the same meaning as in the Government of Wales Act 2006.”

(2) In section 292 of the Merchant Shipping Act 1995 (general functions of the Secretary of State) at the end insert—

“(5) The Secretary of State must consult the Welsh Ministers about the strategic priorities of the Secretary of State in exercising functions under subsection (1) in relation to the safety standards of ships in Wales and protecting the health and safety of persons on them.

(6) In subsection (5) “Wales” has the same meaning as in the Government of Wales Act 2006.””

This new clause would amend the Coastguard Act 1925 and the Merchant Shipping Act 1995 so as to require the Secretary of State to consult the Welsh Ministers on the Secretary of State’s strategic priorities in relation to the activities of the Coastguard in Wales, including as regards health and safety on ships in Wales.

New clause 6—Tax on carriage of passengers by air

“(1) In Part 4A of the Government of Wales Act 2006, after Chapter 4 insert—

“Chapter 5

Tax on carriage of passengers by air

116O Tax on carriage of passengers by air

(1) A tax charged on the carriage of passengers by air from airports in Wales is a devolved tax.

(2) Tax may not be charged in accordance with that provision on the carriage of passengers boarding aircraft before the date appointed under subsection (6).

(3) Chapter 4 of Part 1 of The Finance Act 1994 (air passenger duty) is amended as follows.

(4) In section 28(4) (a chargeable passenger is a passenger whose journey begins at an airport in the United Kingdom), for “England, Wales or Northern Ireland” substitute “England, Wales or Northern Ireland”.

(5) In section 31(4B) (exception for passengers departing from airports in designated region of the United Kingdom) for “England, Wales or Northern Ireland” substitute “England or Northern Ireland”.

(6) Subsections (3) to (5) have effect in relation to flights beginning on or after such date as the Treasury appoint by regulations made by statutory instrument.””

This new Clause would make air passenger duty a devolved tax in Wales, on the lines of section 17 of the Scotland Act 2016.

New clause 7—Assignment of VAT

“(1) The Government of Wales Act 2006 is amended as follows.

(2) In section 117 (Welsh Consolidated Fund), after subsection (2) insert—

“(2A) The Secretary of State shall in accordance with section 64A pay into the Fund out of money provided by Parliament any amounts payable under that section.”

(3) After that section insert—

“117A Assignment of VAT

(1) Where there is an agreement between the Treasury and the Welsh Ministers for identifying an amount agreed to represent the standard rate VAT attributable to Wales for any period (“the agreed standard rate amount”), the amount described in subsection (3) is payable under this section in respect of that period.

(2) Where there is an agreement between the Treasury and the Welsh Ministers for identifying an amount agreed to represent the reduced rate VAT attributable to Wales for that period (“the agreed reduced rate amount”), the amount described in subsection (4) is payable under this section in respect of that period.

(3) The amount payable in accordance with subsection (1) is the amount obtained by multiplying the agreed standard rate amount by—

10

SR

where SR is the number of percentage points in the rate at which value added tax is charged under section 2(1) of the Value Added Tax Act 1994 for the period.

(4) The amount payable in accordance with subsection (2) is the amount obtained by multiplying the agreed reduced rate amount by—

2.5

RR

where RR is the number of percentage points in the rate at which value added tax is charged under section 29A(1) of the Value Added Tax Act 1994 for the period.

(5) The payment of those amounts under section 64(2A) is to be made in accordance with any agreement between the Treasury and the Welsh Ministers as to the time of the payment or otherwise.”

(4) The Commissioners for Revenue and Customs Act 2005 is amended as follows.

(5) In subsection (2) of section 18 (confidentiality: exceptions) omit “or” after paragraph (j), and after paragraph (k) insert “, or

(l) which is made in connection with (or with anything done with a view to) the making or implementation of an agreement referred to in section 117A(1) or (2) of the Government of Wales Act 2006 (assignment of VAT).”

(6) After that subsection insert—

“(2B) Information disclosed in reliance on subsection (2)(l) may not be further disclosed without the consent of the Commissioners (which may be general or specific).”

(7) In section 19 (wrongful disclosure) in subsections (1) and (8) after “18(1) or (2A)” insert “or (2B)”.””

This new Clause would allow the payment into the Welsh Consolidated Fund of half the receipts of Value Added Tax raised in Wales, on the lines of section 16 of the Scotland Act 2016.

New clause 8—Youth Justice

“(1) Youth justice is a devolved matter.

(2) The Assembly may establish a non-departmental body accountable to the Assembly to be called Youth Justice Board Cymru to carry out all the existing functions of the Youth Justice Board in relation to youth justice in Wales.

(3) The Assembly may make provision in relation to youth justice in Wales concerning any of the subject matter of—

(a) sections 8 to16, 37 to 42, 47, 48, 65 to 79, 97 and 98 of the Criminal Disorder Act 1998, and

(b) the Youth Justice and Criminal Evidence Act 1999.”

This New Clause would establish a separate youth justice system for Wales, in line with the recommendations made by the Silk Commission.

New clause 9—Apprenticeship levy

‘(1) In Part 4A of the Government of Wales Act 2006, after Chapter 4 insert—

“Chapter 5

Apprenticeship levy

116O Apprenticeship levy

(1) The Treasury must make separate provision in regulations for apprenticeship levy charged to a person in Wales with a pay bill.

(2) The Treasury must lay an annual report before the Assembly and the House of Commons on the amount of apprenticeship levy raised in each tax year from persons in Wales.

(3) The Treasury must consult the Assembly before setting a levy allowance or a relevant percentage applicable to persons in Wales.””

This New Clause paves the way for apprenticeship levy introduced in Part 6 of the Finance Bill 2016 to be a devolved tax.

New clause 11—Duty to keep the devolution of policing under review

“(1) The Secretary of State and the Welsh Ministers must keep the functioning and operation of policing in Wales under review, including keeping under review the question of whether policing should be devolved to Wales.

(2) In exercising their duty in subsection (1) the Secretary of State and the Welsh Ministers must have regard to—

(a) divergence in policing as between England and Wales,

(b) the need to treat the Welsh and English languages on the basis of equality, and

(c) any other circumstances in Wales affecting the operation of policing, the maintenance of public order and the prevention and detection of crime.

(3) The Secretary of State and the Welsh Ministers may appoint a panel to advise them on the exercise of their functions in this section.

(4) The Secretary of State must make an annual report on policing in relation to Wales to the Welsh Ministers.

(5) The Welsh Ministers must lay the report before the Assembly.

(6) The Secretary of State must lay the report before both Houses of Parliament.”

This new clause would require the Secretary of State and Welsh Ministers to keep policing in Wales under review and, in particular, the need to devolve policing.

Amendment 70, in clause 36, page 29, line 18, leave out “350” and insert “2000”.

This and related amendments would lift the limit on the Welsh Government’s legislative competence in the field of energy from 350 megawatts to 2000 megawatts.

Amendment 71, page 29, line 22, leave out “350” and insert “2000”.

See amendment 70.

Amendment 72, page 30, line 3, leave out “350” and insert “2000”.

See amendment 70.

Amendment 73, page 30, line 17, leave out “350” and insert “2000”.

See amendment 70.

Amendment 74, page 30, line 38, leave out “350” and insert “2000”.

See amendment 70.

Amendment 75, page 30, line 43, leave out “350” and insert “2000”.

See amendment 70.

Amendment 76, page 30, line 48, leave out “350” and insert “2000”.

See amendment 70.

Government amendment 23.

Amendment 77, in clause 38, page 32, line 17, leave out “350” and insert “2000”.

See amendment 70.

Amendment 78, page 32, line 18, leave out “350” and insert “2000”.

See amendment 70.

Government amendment 24.

Amendment 79, page 32, line 32, leave out “350” and insert “2000”.

See amendment 70.

Amendment 80, page 32, line 34, leave out “350” and insert “2000”.

See amendment 70.

Government amendments 25, 45 to 47, 50, 53, 54, 56 and 58.

Amendment 81, in schedule 6, page 111, line 7, leave out “350” and insert “2000”.

See amendment 70.

Amendment 82, page 111, line 10, leave out “350” and insert “2000”.

See amendment 70.

Government amendment 59.

Guto Bebb Portrait Guto Bebb
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I will speak first to the Government amendments in the group, before turning to the amendments tabled by Opposition Members. Most of the Government amendments deal with technical changes to the energy and environment provisions in the Bill; I will discuss those first.

Clause 36 delivers the St David’s Day agreement on the devolution of energy consents, giving the Assembly and Welsh Ministers a substantially greater degree of autonomy in determining the shape of devolved energy policy in Wales. We implemented the decentralisation of consenting responsibilities for all onshore wind projects earlier this year. The Bill will devolve to Wales specific consenting responsibility for all other electricity generating projects up to and including 350 MW in size.

It is important that the Welsh consenting authority has the ability to take measures to ensure the safety of offshore renewable energy installations and those who might come in contact with them. Discretionary powers already exist in the Energy Act 2004 for the Secretary of State to designate safety zones around such installations and to determine the conditions that will apply to the operation of such zones. New clause 5 extends those designation powers to Welsh Ministers in respect of offshore installations up to and including 350 MW in size in Welsh waters—that is, territorial waters up to the 12 nautical mile limit, and beyond, into the Welsh zone—and establishes appropriate arrangements for managing instances where an intended safety zone is likely to extend beyond Welsh waters.

Amendments 50 and 59 make consequential changes arising from new clause 5. Amendment 50 amends the 2004 Act to establish that regulations made under the new clause will be subject to the negative resolution procedure in the Welsh Assembly. Amendment 59 introduces tailored transitional provisions for the purposes of the offshore renewable energy safety zone provisions in the new clause. It provides that applications for the determination of safety zones received prior to the commencement of the devolution provisions will continue to be the responsibility of the Marine Management Organisation.

Government amendments 45, 46, 53 and 58 make consequential changes to ensure that the new consenting regime put in place by the Bill operates smoothly. The Bill devolves to Welsh Ministers the ability to use the consenting regime that already exists under section 36 of the Electricity Act 1989 for the purposes of granting consent for electricity generation projects up to and including 350 MW in scale in Welsh waters. We recognise that, in due course, Welsh Ministers may wish to modify and improve the offshore consenting regime and, in doing so, apply a consistent regime between territorial waters and the Welsh zone, where the Assembly does not exercise legislative competence.

Amendment 45 will give Welsh Ministers the ability, through a regulation-making power, to make modifications that can apply in territorial waters and the Welsh zone, avoiding any inconsistencies between the two areas and providing more clarity for developers. In establishing regulation-making powers to enable Welsh Ministers to modify and improve the offshore consenting regime in due course, we are keen not to encumber them with restrictions and requirements that might frustrate them in doing so. Amendment 46 therefore serves to disapply in Wales certain aspects of the 1989 Act, leaving Welsh Ministers with greater flexibility for the future.

Amendment 53 makes technical changes consequential on the new devolution boundary that will operate between Welsh Ministers and the Secretary of State once the devolution of electricity generation consenting powers in Welsh waters and marine licensing functions in the Welsh zone is in place. The changes cater for the fact that a marine licence might in future be deemed by Welsh Ministers to be part of a development consent order under the Planning Act 2008.

Amendment 58 introduces tailored transitional provisions for the purposes of the devolved electricity generation consenting provisions of the Bill. In effect, it provides that applications received prior to the commencement of the devolution provisions will continue to proceed to a final decision by the Secretary of State.

Amendments 23 and 24 make technical drafting changes to clause 38 to reflect the fact that, in the onshore context, devolved electricity generation consenting in Wales will be carried out within the regime of the Town and Country Planning Act 1990. To avoid ambiguity, the inclusion of the concept of “planning permission” simply reflects the language of that Act.

Clause 42 provides Welsh Ministers with further executive responsibilities in the Welsh offshore region. However, we need to ensure that licensing functions that are reserved activities under the Marine and Coastal Access Act 2009 remain with the Secretary of State in the Welsh offshore region. Amendments 25 and 54 to 56 modify the 2009 Act to clarify the devolution boundary so that, for example, enforcement officers appointed using devolved powers have no powers to enforce part 4 of the 2009 Act, relating to petroleum production or exploration; the amendments also exclude the Welsh inshore and offshore regions from waters in respect of which the Marine Management Organisation exercises certain consenting and safety zone functions.

Amendment 56 modifies the 2009 Act to give Welsh Ministers powers to make regulations about the application procedure when they are both the marine licensing authority and the harbour order authority or generating station authority. Finally, amendment 47 simply removes an obsolete reference to Assembly measures.

The Government amendments are all sensible and necessary, and serve to deliver a clearer devolution boundary, one of the key aims of the Bill.