Wales Bill

Debate between Lord Hain and Baroness Randerson

Report stage (Hansard - continued): House of Lords
Wednesday 14th December 2016 Lords Chamber

[Baroness Randerson (LD)]

My Lords, I look forward to the Minister’s response to this because he is not on a good wicket at the moment. This is not a good week to be defending privately run franchises or arguing that railways run by the private sector are automatically the solution to all our problems. I reassure the Minister that on these Benches, we are not massive fans of nationalisation either—we are fans of what works. As you study franchises across Britain and railways across Europe and the world, you will see that all sorts of configurations work in different circumstances and that similar configurations do not work in other places. There is no one solution.

I do not think it is necessarily appropriate for the Welsh Government to be trying to run a railway service. However, it is conceivable that the Welsh Government might wish, for example, to enter into a partnership with the private sector on some kind of joint venture, or to set up some sort of novel structure, of which they would be a part, perhaps on a not-for-profit basis. I remind the Minister that Transport for London is a real success story in many respects, and has a structure that quite clearly includes a government element. I also remind the Minister that when the Government were forced to take over the east coast main line from a failing private sector franchise, they did rather a good job of running the railway and saving the situation. Therefore, we support in principle the idea of giving the Welsh Government the freedom to decide what shape of franchise they want and to participate in that process if they wish to do so.

I realise that the Minister will say that there are practical difficulties because the railway runs not just in Wales but in England. If the rail franchise is run by the Welsh Government, it might be regarded as slightly irregular, I suppose, for the service in England, but no more irregular than the private sector franchise being run by the Dutch state railway company, which is what happens in England at the moment. I also realise that we are talking about a long way into the future, because the processes for the next franchise will not be prepared until 2028. For that reason, I hope the Minister will listen and think about this. There is value in playing the long game on the railways and in looking at how we can get the best investment in services in the long term. One thing that would persuade the Welsh Government to invest in railways in Wales would be to give them a little more power and control over them.

[Lord Hain (Lab)]

My Lords, in supporting my noble friend Lady Morgan’s excellent speech, I make one brief point. The Welsh Government are not seeking to have their civil servants run the rail franchise—I do not believe anybody thinks that that would be a good idea—but to configure the right package for Wales. We can take the example of Welsh Water. To be precise on this and, I hope, not pedantic, Welsh Water is a not-for-dividend company. It is not a not-for-profit company. It has to make profits to invest. Any entity taking over the Wales rail franchise would have to do the same. But Welsh Water is run much more efficiently than privatised water companies in England because it can raise its capital at a far cheaper rate on the market than private companies—noble Lords can look at the figures—because it does not have to satisfy the shareholders’ speculative roundabouts. The amendment would give the Welsh Government the opportunity to invite bids of that kind.

Finally, if the Minister is serious about his support for devolution to Wales, why does he not respond to the Welsh Government’s specific request to have this amendment carried into statute?

Trade Union Bill

Debate between Lord Hain and Baroness Randerson

Tuesday 19th April 2016 Lords Chamber

[Baroness Randerson (LD)]

My Lords, I frequently disagree with the way the Welsh Government operate but I defend totally their right to do so under the devolution settlement. If anything is within their rights, it must be their relationship with their employees.

Since the Agricultural Wages (Wales) Bill judgment by the Supreme Court, which occurred when I was a Minister in the Wales Office, it has been clear that the Government would not win on the issue at stake in this part of the Bill. The Welsh devolution settlement was simply much broader than we had all assumed, and that applied to the Welsh Government as well as to the Government here in Westminster. The new Bill, which is in draft form but will be extensively rewritten and I very much hope will come back next year, will probably provide much more certainty. However, we are working with the situation we are in now, with all its uncertainties and faults.

I say to the Government today, from my party: I have added my name to the amendment because we believe that the Government were well overstepping the mark on this issue. The Government must treat devolution with respect and not grudgingly. I regret that the concessions here have been made at the last minute, when the Government have their back against the wall. They should have seen reason a long time ago. However, for all that, I am very grateful that the Government have conceded on this issue.

[Lord Hain (Lab)]

My Lords, I say to the noble Lord, Lord Wigley, that on election manifestos it is quality, not quantity, of words that counts in the end. In supporting this amendment, I refer to the Members’ register, where I have declared an interest. I also remind the House, as did my noble friend Lady Morgan, that the Welsh Assembly, on a legislative consent Motion, voted against by 43 votes to 13—13 Conservatives—making very clear the Assembly’s view on the principle here. They were voting not so much on the detail of the matters that we have been discussing in this House on this Bill but on the principle of the Government’s seeking to override the devolution settlement under which devolved public services are devolved, as well as other services, such as agriculture.

That brings me to the question of the Supreme Court judgment in 2014, to which the noble Baroness, Lady Randerson, referred. That was very clear. Their Lordships made crystal clear their view that even though employment law was a reserved matter, nevertheless, in the operation of those services devolved to Wales—in this case, agriculture and the agricultural wages Bill that the Welsh Assembly had passed—that was a matter proper to the Welsh Assembly to legislate upon. The Supreme Court upheld that. I have seen legal opinions by an eminent QC, commissioned by the Wales TUC. I also know that the Welsh Government have had strong legal advice. Should it be necessary—it may still be—to go to the Supreme Court to challenge the UK Government’s position on the principle involved, the Welsh Government would probably win.

As I said to the Minister earlier when speaking on the Enterprise Bill, at stake here is the principle of devolution. Where services and matters are devolved, that should be a matter for the Welsh Government and the Welsh Assembly to legislate upon, not for this Parliament.

I dealt with these issues in great detail on Second Reading on 11 January and also in Committee on 8 February, so I will not detain the House further with those detailed arguments. I would just caution that the future of the United Kingdom is at stake. We know that the Scottish Government want to take Scotland out of the United Kingdom. It does not do any service to those of us who believe in the importance of retaining the United Kingdom, for all the benefits that it brings us in making us stronger together rather than weaker apart, to undermine by the back door the devolution settlement in a way that, I fear and regret, the Government have been doing on this Bill.

I ask the Minister to reflect further and maybe come to an understanding with the Welsh Government and their Public Services Minister, Leighton Andrews, in particular. I know that the First Minister, Carwyn Jones, has written to the Prime Minister about the way that this will work in future. The new Wales Bill—which we understand will introduce a reserved powers model, although it has been hugely controversial—may resolve this matter, but it may not, as we saw with the Supreme Court judgment. I think that we must tread very carefully on this ground, and I regret that, on this occasion, in this Bill, the Government have not done so.