Regional Development

Lord Elystan-Morgan Excerpts

Tuesday 12th March 2013 Lords Chamber

[Lord Newby]

My Lords, I very much welcome that, but I revert to my earlier answer. The north-east has in effect had to reinvent itself in terms of the balance of employment, which it has done reasonably well. However, it has been comparing itself, as my noble friend did, with the City, which has had an existing strength in financial services—one which grew almost exponentially during the period that he is talking about.

[Lord Elystan-Morgan]

My Lords, would the Minister not agree that, given the parlous condition of the Welsh economy, there would seem to be an unanswerable case for a reappraisal of the Barnett formula in the light of its incapacity to serve the acute needs of the land and nation of Wales?

[Lord Newby]

My Lords, as the noble Lord knows, the Barnett formula is much discussed. The Government are not planning to change the Barnett formula during the course of this Parliament. We are trying to find a more constructive way forward. The Secretary of State for Wales is working very closely with the First Minister of Wales, looking at a raft of specific measures—whether it is possible new borrowing powers for Wales or the business case for electrification of the north Wales railway—to bring about specific changes which, it is hoped, will boost growth in the medium to long term in Wales.