Wales Bill Debate

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Department: Wales Office

Wales Bill

Lord Howarth of Newport Excerpts
Tuesday 11th November 2014

(10 years, 1 month ago)

Lords Chamber
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Lord Crickhowell Portrait Lord Crickhowell (Con)
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My Lords, the noble Lord spoke with great passion but he is not right that all political parties are committing to going down this particular road. As far as I know, my own party has made no such commitment. I am still quite open-minded about the basic question. I have not made up my mind and am not necessarily hostile to it. I will listen with great care as the merits of the case are debated over the wider field. I may well finish agreeing with him that votes should go to 16 year-olds, although I have not got there yet.

I am brought to a halt, so to speak, for the same reasons that my noble friend Lord Deben referred to in his speech earlier—as did the noble Lord, Lord Empey. They spoke about devolution bit by bit and a series of random decisions. My problem is that, although I understand of course that these particular proposals are to apply only to votes in the Welsh Assembly or Welsh referendums, once you put 16 year-olds on the register and raise their expectation that they will have a vote it is very difficult to see how you can then say to them, “Oh, but you are not going to have a vote in general elections”. It also seems essential in a sensible democracy that if we are to move to a franchise at 16 for elections to the Westminster Parliament, that should be on the basis of all-party agreement and after proper consultation and consideration, not just because we have to keep up with Scotland or Wales.

I find myself contemplating the possibility that it is somehow not possible to take the 16 year-olds off the register when we come to general elections. I, in the Monmouth constituency, would find myself elected by an electorate that includes 16 year-olds, while in Herefordshire, across the border but 500 yards from where I currently live, the Member of Parliament would be elected without 16 year-olds voting. That would be an intolerable situation and totally unacceptable. Once again, we come back to all those who argued for some kind of proper consultation, whether it be a royal commission or whatever form it takes, in which we can reach a consensus and an all-party way forward rather than saying, “Oh, well, the Scots have done it and therefore the Welsh have to do it”. They can do it in their own Assembly, and that is fine by them, but we are not really saying—or are we?—that it is going to happen in general elections in Scotland and Wales, too. We are on a very dangerous path. I am perfectly happy to go down that path on the basis of proper deliberation and consultation, and agreement by the political parties. I am not prepared to go down it on the basis of ad hocery and “Gosh, we must keep up with the other chaps”.

Lord Howarth of Newport Portrait Lord Howarth of Newport (Lab)
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My Lords, I am a little less worried than the noble Lord, Lord Crickhowell, about the prospect of different rules applying for certain elections between Monmouthshire and Herefordshire. I tend to be of the view that a constitution breathes through its anomalies. Anomalies can give a kind of flexibility and help us cope with day-to-day developments in politics. Of course, I am not at all against the search for a wider coherence but it is very hard to find that ideal coherence. In the mean time, it is right to be responsive to the democratic aspirations of people, differ as they may in different parts of the country.

I am much in sympathy with the purport of this group of amendments. I recall that sixth-formers in my constituency of Newport in south-east Wales were curiously diffident about voting at 16. I used to ask them whether they thought it would be appropriate and there was a good deal of hesitation. However, if all the parties in Wales think that introducing this is the right thing to do, it is not for us to stand in their way. Wales should have the power to set its own electoral arrangements for elections that are strictly Welsh elections. We can look again at the wider issue of arrangements for general elections across the United Kingdom. I take the point made by the noble Lord, Lord Tyler, that the principle of no taxation without representation implies that the voting age should be reduced to 16 for elections to the Welsh Assembly. After all, we are contemplating in this legislation the possibility of income tax raising powers being devolved to Wales. It seems to me that that should probably follow.

Lord Crickhowell Portrait Lord Crickhowell
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The difficulty about that proposition is that the bulk of the money is still going to come to Wales from grants voted for in the Parliament at Westminster. Indeed, every change in that alters the position of grants going to Scotland. It is very difficult. If you want to start with the argument that you must have votes at 16 for everyone voting for the money, then you have decided that it has to go to the Westminster Parliament as well. Until that happens, you really cannot carry that argument too far.

Lord Howarth of Newport Portrait Lord Howarth of Newport
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The noble Lord is absolutely right about the significance of grants that I hope would continue to be made from the Government in London—the Government of the United Kingdom. I have some anxieties that the conferral of tax-raising powers on Wales may be the prelude to a rather drastic withdrawal of redistributive taxation and grant giving across the United Kingdom as a whole. The noble Lord is quite right that these are very difficult issues. I acknowledge the force of what he said on that particular point.

Where I have a reservation about this group of amendments is that they seem to envisage perpetual referendums. There is a reference in all of them to referendums. Personally, I very much hope that the people of Wales will not reach a point in their politics when they conduct a referendum on independence for Wales. I do not want to contemplate that. Nor would it be a good idea if the people of Wales developed the habit of conducting a series of referendums on ad hoc issues. To the extent that we resort to referendums to solve tricky issues in our domestic politics, we tend to undermine representative government and the Parliament of Westminster. I will just finish the point and then give way to the noble Lord, Lord Tyler. We would equally undermine the authority of the Welsh Assembly if it became a habit or reflex to have referendums, however populist that might be.

Lord Tyler Portrait Lord Tyler
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I just wanted to draw the attention of the noble Lord to the fact that there is of course a very considerable section of the Bill dealing precisely with referendums—or referenda, as I prefer to describe them. The noble Lord will have to accept that these are entirely relevant to the Bill and therefore a very likely prospect in Wales at some point.

Lord Howarth of Newport Portrait Lord Howarth of Newport
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They are relevant to the Bill but the fact that the Bill deals with referendums does not make referendums any more desirable. On the question of gerunds and gerundives, I hope that there is perhaps a noble Lord in the House who can resolve this issue between the noble Lord, Lord Tyler, and myself, and tell us whether they should be referred to as referenda or referendums.

Lord Cormack Portrait Lord Cormack
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My Lords, I am not rising to resolve that particular problem. Though I am by nature and inclination a referenda man, do not let us go too far down that line. I frequently agree with the noble Lord, Lord Howarth, who is a friend of long standing, but I cannot go along with him on much of what he said, although I agree with him emphatically that—I hope—the Welsh people will not wish to vote on independence. At the moment, the polls indicate that only 4% of them are inclined to move that way. Somebody interjects to say it is 3%; the proportion is going down by the minute.

I come at this from a slightly different angle: I believe that among the things that should be common to the United Kingdom as a whole is the franchise. That is why I was critical of the Prime Minister and others, who conceded to Mr Salmond votes at 16 for the referendum in Scotland. I have mentioned my highly articulate and intelligent 16 year-old granddaughter in this Chamber before. Of course, because 16 year-olds were going to have the vote, I engaged with her, and through her with others, on the subject, because it was of such significance. That was far more important than any single vote I have cast in over 50 years of having the franchise; when I was able to vote for the first time it was at the age of 21.

We did concede to Mr Salmond that 16 year-olds should have the vote—and I entered into the spirit of it within family and so on—but I regretted that we had done so. We must consider carefully the wisdom of giving the vote to 16 year-olds. After all, there are so many other areas of life we could talk about in terms of what people can do at 16; some will work and pay taxes and some will not.

Only yesterday in this House the noble Earl, Lord Listowel, introduced an amendment that the Government accepted. He made an exceptionally moving speech, and the Minister gave an extraordinarily generous reply. The substance of that amendment was that 17 year-olds apprehended by the police should be treated in a similar way to 16 year-olds. He advanced an extremely convincing argument, which the Minister accepted.

A 16 year-old cannot drive a car, and is not legally allowed to take a drink. There are, and I think there should be, rites of passage. I believe that there is a danger in giving votes to those who are in full-time school education—I distinguish clearly between school education, and university and further education. We ought to treat this matter extremely carefully. My noble friend Lord Crickhowell made a generous speech in which he said that he was not necessarily against the idea, but that it should not be dealt with as yet another piecemeal reform. We heard quite a lot about those in our earlier debate on this Bill today.

There I entirely agree with my noble friend. This issue has not been dealt with on a UK-wide basis; it has just grown, like Topsy. If we are to move in this direction, with all the implications for the age of majority and everything else involved with it, we should do so only as a result of comprehensive debate and discussion within both Houses of this Parliament. It should also be part of the remit of the constitutional convention or royal commission. A royal commission is the option that I personally would favour, and the noble Lord, Lord Richard, who is not now in his place, also came down on that side. Any such move should be part of the remit of any such convention or commission. We would not be serving the people of Wales, or any other part of the United Kingdom, well if we continued with this piecemeal approach.

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Baroness Randerson Portrait Baroness Randerson
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My Lords, the amendment we are in the process of drafting specifically relates to this referendum on tax-raising powers because there are discussions still to be had across all parties—I suspect there will be lively discussions during the coming general election campaign—on whether votes at 16 should be adopted on a much wider basis.

Lord Howarth of Newport Portrait Lord Howarth of Newport
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Will the Minister also explain the difference of principle which makes it appropriate for people to vote in this particular referendum at 16 but not to vote in other elections in Wales at 16?

Baroness Randerson Portrait Baroness Randerson
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There are various strands to that question. One point is that there must be a consistency in franchise across the United Kingdom in ordinary elections. It is also important to bear in mind that a referendum is in many ways a useful way for young people to be able to express their point of view in a very clear-cut manner. A referendum campaign is a very tight and straightforward campaign.

In the light of the Government’s commitment to bring forward amendments at Third Reading enabling the Assembly to decide whether 16 and 17 year-olds can vote in the income tax referendum, I urge the noble Lord to withdraw his amendment.

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Lord Elis-Thomas Portrait Lord Elis-Thomas
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Yes, agreement with the Assembly on the outcome—a need to negotiate an agreement. So there are two principles there. Indeed, the noble Baroness is right that this has been overtaken by the undertaking given earlier, but I did not even dream that we would have so many undertakings, so I tabled the amendment in expectation rather than in hope—and now my hope is about to be fulfilled.

Lord Howarth of Newport Portrait Lord Howarth of Newport
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My Lords, I would be disappointed if the more radical interpretation of Amendment 4 that the noble Baroness, Lady O’Neill of Bengarve, has adumbrated were not to be the case. The National Assembly for Wales should have power to determine the electoral arrangements for the people of Wales whom it represents, in exactly the same way as the Parliament of the United Kingdom, subject to experts and objective advice, determines electoral arrangements for the United Kingdom.

I do not understand this paranoid insistence on standardisation in electoral arrangements. It could be that using the Scottish Parliament, the National Assembly for Wales and the electoral body in Northern Ireland as laboratory experiments would enable us to learn how better to conduct our electoral affairs and democracy. After all, this Parliament has foisted, or intends to foist on the people of Wales, the most absurd reorganisation of constituency boundaries. It would be much better for the people of Wales as far as possible to be able to determine their own electoral arrangements.

Lord Crickhowell Portrait Lord Crickhowell
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The noble Lord’s remarks have prompted a question in my mind. What is the role of the Electoral Commission in this connection? When we are dealing with constitutional affairs here, the Electoral Commission has a very important role. If this matter is being handed over in this way, is it going to have a role in relation to the Welsh Assembly?

Lord Howarth of Newport Portrait Lord Howarth of Newport
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The Electoral Commission has certain duties that are defined under statute and it offers authoritative advice. However, ultimately, these matters remain to be determined by the elective bodies in question, and that is how it should be.

I want to say a word about Amendment 5, proposed by the noble Lord, Lord Elis-Thomas, which seems to ask no more than that the National Assembly of Wales should take responsibility for its own standing orders. How could we possibly deny it that?

Baroness Morgan of Ely Portrait Baroness Morgan of Ely (Lab)
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My Lords, I add my appreciation of the fact that we have seen some significant movement during this debate, and I hope that we can continue in that vein for the rest of the day. I want to talk specifically about the agreement or necessity for the Assembly to agree to electoral arrangements. That is very much where the Labour amendment comes from. We have a proposition in this Bill, and we think it would be incorrect for the Assembly not to have a say.

In Committee, the Minister underlined the fact that the majority of the electoral proposals contained in this Bill had been discussed and agreed by the Welsh Government. That is important; there is an important principle here that should be respected. But the principle of devolution also means that it should be a formal process; the Assembly needs to agree to these measures formally and legally rather than have them handed down, even if it is through an agreement that is not as formal as we would like. It is important for us to move to a more legislative approach, and that is what we seek to do with our amendment.

It is also important to note that the Scottish Parliament has the power to make arrangements about Scottish parliamentary elections. That is a divided power between Scottish Ministers and the Secretary of State. So we are simply asking for a degree of consistency. This is a discussion that will go further when we come to Silk 2 and other arrangements. In the context of what we are talking about here the electoral arrangements being proposed should formally and legally be approved by the Assembly.

The Minister spoke in Committee about the danger of a piecemeal approach to devolution and said specifically in relation to elections that there was a need for a “comprehensive approach” across the UK for powers and conduct of elections. That is precisely what we are asking for here—a similar system to that which already exists in Scotland. We do not quite understand why there is a reluctance on this. Could the Minister specify whether there is a principled objection to this or whether this is a question of timing?

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Lord Anderson of Swansea Portrait Lord Anderson of Swansea
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Amendment 7 stands in my name and in the name of my noble friend Lady Morgan. My initial submission is that the area covered by the amendment should be a matter for the National Assembly and that it should not be for us to intervene. I note the two-thirds, super-majority suggestion. Given that the current membership of the Assembly is 40 directly-elected Members and 20 elected on the list system, that proposal would mean that the list system—even if it were deemed to be inappropriate—could not be judge because, on the “turkeys not voting for Christmas principle, those on the list system would be unlikely to vote for it to end.

The Government saw in the Bill, quite properly, a way in which to implement Silk 1. Clause 2 stands as an eccentric—something outside Silk 1. These are the only matters that deviate from the Silk recommendations, and one is constrained to ask why this is used as a vehicle for this important change. I shall not cover the same ground that we covered at Second Reading, although we did not consider this matter in Committee. However, I wish to counter the charge of naked partisanship that was used. Your Lordships may recall that I mentioned the significant comments of leading Conservative and Liberal Democrat spokesmen. It is significant that their comments were made freshly after the actual experience of dual candidacy. Perhaps memories are now fading; for example, regarding the experience of the Clwyd West constituency election in 2003. It was won by Labour’s Alun Pugh. However, three of the other candidates—Brynle Williams, Conservative; Janet Ryder, Plaid Cymru; and Eleanor Burnham, Lib Dem—all became Assembly Members as a result of the regional list. It was a certain Alice in Wonderland world in which everyone was a winner; everyone had a prize.

To the suggestion that this is new and that the only country in the world to have had a similar ban on dual candidacy is Ukraine, Professor Roger Scully said in his evidence that a number of Asian countries have a similar ban. I cite Taiwan and South Korea. New Zealand, New Brunswick and Prince Edward Island in Canada have in recent years considered bans on dual candidacy. It is not, as has been suggested, confined to Ukraine. It is best surely that the normal rules should apply. If someone is rejected by the electorate in an election, that same person should remain rejected by the electorate and not come in by the side door and be on a par with other candidates.

The implication in suggesting that there should be dual candidacy is that we have a dearth of suitable candidates in Wales. That is not my experience. I recently watched a selection in my former constituency as an interested observer. I have seen many other candidate selections and there is a very good list of quality candidates who are ready and available for selection. We demean Welsh politics by suggesting that we do not have sufficiently able, competent people available.

I note the submission of the Electoral Reform Society Cymru, which is, if I have interpreted it correctly, that it wishes to rescind the ban on dual candidacy but impose a supermajority. Obviously we must respect its view, but equally recognise that this is not an ex cathedra statement. Yes, we respect it, but we in this case are the cathedra: it is we who dispose. The arguments against dual candidacy arising from the experience prior to 2003—I cited in the past not just Clwyd West, but the position of Llanelli—are sufficiently cogent for us to say that this matter should remain as it is. We should continue the ban on dual candidacy. It is, after all, in the interests of democracy that if someone is rejected by the electorate they should remain rejected by the electorate.

Lord Howarth of Newport Portrait Lord Howarth of Newport
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My Lords, I want to say a word or two in support of my noble friend Lord Anderson. The principle that party-political candidates stand as individuals should not be ignored. People are not simply representatives of their parties: they are individuals and characters. Electors form judgments about their individual suitability to represent them in the Assembly. That is why I think that the permission to offer dual candidacy is wrong in principle.

Happily, the National Assembly for Wales has not been subject to the same pressure of scandal and disgrace as the House of Commons in respect of expenses, but there can be no doubt at all that when electors voted in the 2010 general election they formed their judgment, in the case of certain candidates, on the basis of those candidates’ personal records. That is the background to the introduction of the recall legislation. It is against that spirit to say that a candidate is no more than the representative of a party and that if that candidate does not win the first past the post part of the election that same individual candidate can acceptably come back on the list.

Even if it was not for that consideration, voters feel that it offends against an instinctive sense of political propriety that people should run as candidates under first past the post, lose the election and then turn up an hour or two later elected on the list system. That was offensive, and it was absolutely right that the previous Labour Government remedied the error that they had made in the original devolution legislation. The Government of Wales Act 2006 removed the possibility of people standing as candidates twice in the same election. It is regrettable that the coalition—here it is a coalition not just of Conservatives and Liberal Democrats, but also of Plaid Cymru—is seeking to restore a system that is designed by them to be advantageous to minority parties. It is entirely acceptable that under the electoral system we have for elections to the National Assembly for Wales extra provision is made to ensure that minority parties are represented there. However, we must avoid what was generally taken in Wales to be an abuse, whereby defeated candidates come back and reappear, contrary to the clearly expressed wishes of electors.

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Lord Anderson of Swansea Portrait Lord Anderson of Swansea
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My Lords, I hear what the noble Lord, Lord Norton, says. He argues on a point of principle that the choice of the electorate should not be channelled in any way in respect of dual candidacy. He mentioned the position on the continent. He will know that the stream is moving strongly against an accumulation of mandates on the continent—certainly in France, which I know reasonably well. When I represented Swansea, I would have loved to be the Mayor of Swansea at the same time and, perhaps, to have had another mandate. That would have been very useful in cross-fertilisation and no doubt added to my local standing. I work on the simple principle of practicality. People tend to vote for the party, which stands against the principled point which the noble Lord enunciated. Also, no person can serve two masters. My experience in the other place was that, if done properly, it was a full-time job. Equally, as we add to the responsibilities of the Assembly, if an Assembly Member is to do the job properly, that is also a full-time job, and the electorate should not be short-changed by allowing a person to do the two jobs. They will do one well and the other not.

Lord Howarth of Newport Portrait Lord Howarth of Newport (Lab)
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My Lords, we should be grateful to the noble Lord, Lord Norton of Louth, for inviting us to reflect on the principle involved here. When he comes to respond to the debate, perhaps he would give us the benefit of his thoughts on how his principle would apply if, as has been proposed, there should be a senate of the nations and regions of the United Kingdom. Admittedly, I understand that the proposition is that members of the senate should be indirectly elected: they should be sent from the Assemblies and Parliaments of the nations and regions of the United Kingdom. However, I should be grateful for the noble Lord’s guidance as to what principle ought to apply there: whether he considers that a dual mandate in those circumstances should be permitted by law, discouraged or something that the rules of the political parties should embrace—or would he advise a degree of caution in the matter?

Baroness Morgan of Ely Portrait Baroness Morgan of Ely
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Briefly, it is a good idea in principle for there to be a cross-fertilisation of people from Westminster to the Assembly. That principle was particularly important when the Assembly was set up. However, there is a recognition that there is a time commitment to both the institutions. We now have a situation where the people in the Assembly already do not have the time. We will be talking later about possibly needing more Assembly Members. We do not have the people to do the job at the moment. My point back to the noble Lord is that, although I understand that there should be a principle that the electors can choose who they want, there are other principles that need to be considered. There are the practicalities of how that would work but also the needs of the institutions themselves. Those points should also be taken into account.

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Lord Wigley Portrait Lord Wigley
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My Lords, I am delighted to have added my name to this amendment and very much support what the noble Lord, Lord Elystan-Morgan, said. At an earlier stage of the Bill, we had an opportunity to go into this issue in some detail. I will not repeat that or repeat the arguments that he has put forward. I will just underline that, ideally, I would like to see the control of the number of seats, as with other aspects of the Assembly, in the hands of the Assembly itself. However, an amendment on that will not be forthcoming now, which is why I am very glad to support this amendment.

Although noble Lords made persuasive cases at an earlier stage for the membership of the Assembly to be more than 80—to be 100 or even 120, as the noble Lord, Lord Elystan-Morgan, said—I accept that 80 is a logical number to go up to now. As my noble friend can confirm, the design of the building is such that it can expand to accommodate 80 Members without too great difficulty, so that at least avoids any additional cost in that regard.

As an elected Member of the Assembly in the first four years, I found the work pressure enormous. I accept that the nature of the work was a little different then. There were probably more committee meetings and they have been rationalised, possibly because of the pressure on Members’ time. I was on five committees and I was finding that very difficult indeed. Sometimes people say, “Ah, well, you should be there from nine o’clock on a Monday morning onwards”, but that does not overcome the problem of a shortage of Members to sit on all the committees.

An increase to a membership of 80 would also allow for the possibility of having a greater range of expertise in the Assembly cohort. I know from my time there of the benefits of having Members with first-hand medical experience; I think of Dr Dai Lloyd. All parties have people with various types of expertise. Clearly, the more Members you have, the better chance you have of getting a full balance of expertise.

I felt the pressure when there was no more than a secondary legislative role for the Assembly. To do justice to the increased workload of a full legislative role, and not having a second Chamber to go through the detail—I am not arguing for there to be one—much more attention needs to be given to scrutiny of legislation on a line-by-line basis. That requires people with the time, commitment and ability to do the job.

I very much hope that the Minister, if the proposed new clause is not accepted, can indicate that this question will be taken on board between now and St David’s Day.

Lord Howarth of Newport Portrait Lord Howarth of Newport
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My Lords, the noble Lord, Lord Elystan-Morgan, made his case in masterful fashion and has given a political explanation of why he confines his proposal for an increase in the size of the Assembly simply to 80, not a higher number.

As the noble Lord, Lord Cormack, said in the debate on an earlier amendment, in constitutional change form should follow function. A rigorous analysis is needed of the functions that the National Assembly for Wales already has to perform and the functions that are increasingly to be devolved to it. This legislation provides that the Assembly should take control to a significant degree of income tax and borrowing. The obligations that will fall upon the Members of the Assembly are not therefore solely in terms of additional legislative scrutiny but invigilation of public expenditure, authorising expenditure, and controlling and examining its quality. Whether the National Assembly for Wales would wish to replicate the sort of committee structure that we have in this Parliament, such as the Public Accounts Committee in the House of Commons, I do not know. That should rightly be a matter for the Assembly. However, what is beyond doubt is that the scale, range, complexity, difficulty and importance of the tasks that the Assembly has to undertake have been growing, are growing and will continue to grow.

Therefore, following the example already given by the Electoral Commission in Wales in certain respects, further analysis should be made of the membership required in order for the Assembly to manage to perform the tasks that the people of Wales, and indeed the United Kingdom, will expect it to carry out. For that reason, I very much welcome the spirit of the amendment. I would be happy if it were to be accepted but it would be seen only as a provisional step. It might be preferable that further work be carried out on this proposition, so that we can see exactly where, in practice, it should take the National Assembly for Wales.

The noble Lord, Lord Wigley, wisely and realistically observed that there is a constraint on physical space in the Assembly building. However, we should not be unnecessarily deterred by that factor. After all, when the House of Commons was reconstructed after the war, Winston Churchill, as Prime Minister, thought it appropriate deliberately to recreate a Chamber that would be a pretty tight squeeze for all its Members. That works rather well so we should not be worried.

Lord Elystan-Morgan Portrait Lord Elystan-Morgan
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The words Churchill used were, “a sense of crowd and urgency”.

Lord Howarth of Newport Portrait Lord Howarth of Newport
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The noble Lord always has a sense of historical drama. He imports that even to these very proceedings. We are grateful to him.

Lord Richard Portrait Lord Richard (Lab)
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My Lords, I support the noble Lord, Lord Elystan-Morgan. As long ago as 2004, when the commission that I had the honour of chairing looked at this issue, we came to the conclusion that there was a need—not just a desirability but a need—for the number of Members of the Assembly to be increased. We based that conclusion on the fact that not enough Members were untouched by government—if I may use that phrase—to man the committees in a neutral and oppositional way. If that was true then—and I firmly believe that it was—it is even truer now, and will increasingly be in the future.

The first debate we had today was on whether the Assembly should move to a constitution based on reserved, rather than devolved, powers. Remarkably, the House agreed that we should move to a reserved powers model. Not only that, the Minister gave some pretty strong undertakings that she and the Secretary of State for Wales also took that view and were holding talks to achieve it. If the Assembly moves to that model then the need for an increase in the number of Members of the Assembly is increased. I hesitate to use lawyers’ phrases, but, a fortiori, the argument is underlined and indeed is strengthened.

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Lord Tyler Portrait Lord Tyler
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My Lords, I am delighted to be a cosignatory of Amendment 15 in the name of my noble friend and others. I want to take issue to a very limited extent with both my noble friend and the noble Baroness, Lady Grey-Thompson, who I think are being slightly too pessimistic about the level of interest of young people in registration. The Scottish example is wonderful in that respect, but it is also true that Bite the Ballot, to which reference has been made, has made some real progress this year. It has been by making sure that it there is peer-to-peer encouragement—I do not mean Peer in the sense of Members in this House, I mean the real reference of young people to young people of the issues that are at stake. I have today had an Answer to a Question from the Minister for the Cabinet Office. My Question was:

“To ask Her Majesty’s Government what action they are taking to improve electoral registration rates among those attaining the age of 18”.

I will not read the whole Answer because it is substantial, but just two important paragraphs:

“To support the transition to Individual Electoral Registration, the Government has invested £4.2 million in 2013/14 shared across every ERO in Great Britain and 5 national organisations to support the costs of activities aimed at increasing the rate of voter registration.

The Government has also introduced online registration in Great Britain. As of midnight 28 October, 478,177 16-24 year olds had registered online”.—[Official Report, 10/11/14; col. WA 4.]

In a relatively short period this is a success story. I do not think that we should be too depressed or pessimistic about this problem.

As the Minister will know, I have sat for some time on a small cross-party informal group advising the Electoral Commission. Therefore I take very seriously indeed the guidance it gives us. In its note on this part of the Bill and the amendments to the Bill, it says:

“We strongly support the principle of EROs—

that is obviously electoral registration officers—

“visiting schools and talking to young people about democratic participation. This should form part of their local strategies to promote electoral registration generally and to target those groups who are least likely to be registered to vote … All 22 EROs in Wales have specific plans in place highlighting how they will work with schools and the further education sector in order to engage with attainers and young people”.

I think there is a consensus across the House—certainly among all those who have already spoken—that this is an important issue. Maybe, however, the concern some of us have is whether it is appropriate for statute. Is it appropriate to be in the Bill to this extent and in this detail? Hence the very brief amendment that I endorse.

I accept, however, that my noble friend the Minister may well feel that the Government are already committed —in supporting the Electoral Commission financially, and in terms of guidance and instruction where that is appropriate—to make sure that what we are seeking will happen with or without this amendment. I therefore look forward with interest to hearing how the Minister feels that we can best achieve the objectives which I think we share throughout the House.

Lord Howarth of Newport Portrait Lord Howarth of Newport
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My Lords, is it not a principal purpose of education to enable young people to think for themselves, to form views on informed and discerning bases and to take good decisions? In no sphere of life is this more important than democracy. Education should be a preparation for democracy. That is why I support these amendments, and very particularly Amendment 14.

Lord Bew Portrait Lord Bew
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My Lords, I support Amendment 13 very much in the spirit of the noble Lord, Lord Lexden, who has already explained the successes in electoral registration which have characterised the situation in Northern Ireland. I add one word of caution: in the last general election, 14 of the 20 constituencies with the lowest turnout were in Northern Ireland. There is still plenty of work to be done. The Assembly, I am glad to say, now has a good outreach programme. Only yesterday my colleague at Queen’s University, Belfast, Professor Rick Wilford, spoke to representatives of 50 schools in Stormont itself. The Electoral Commission is attempting to engage radically with young people.

The noble Lord, Lord Tyler, will not be surprised to learn that there was a great spike in the interest of young people in response to the Electoral Commission’s efforts after the decision was announced that votes would be available to those aged 16 in Scotland—a very obvious and clear spike of interest.

Broadly speaking, the noble Lord, Lord Lexden, is correct. There have been successes in the registration programme in Northern Ireland which are quite remarkable. I can see no reason why similar methods cannot work in Wales. I simply add that in struggling against the alienation of young people, a number of approaches will be necessary.

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Lord Rowe-Beddoe Portrait Lord Rowe-Beddoe
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My Lords, I support Amendment 16, standing in the name of the noble Baroness, Lady Morgan of Ely. It is very clear what it says, and without trying to rehearse arguments previously made, I want to discuss the devolution of air passenger duty. I refer your Lordships to my register of interests with regard to Cardiff Wales Airport. The Silk 2 implementation stated that long-haul air passenger duty should be devolved. The arguments put forward in Committee have been considerably amplified—perhaps extended—recently by an unlikely ally in Mr Willie Walsh, the chief executive officer of International Airlines Group, which as noble Lords know, incorporates British Airways and Iberia.

In an article in the Times on 30 October—it was after our Committee meeting; it would be flattering to consider that Mr Walsh was actually watching our proceedings—he takes it much further and calls for a total abolition of this tax across the whole of the United Kingdom. It was a stunning headline but when analysing what he said, and doing a little more research, it is worth making a mark as to what was behind his statement. He said that this tax, permissions, or whatever it may be,

“should be consigned to the annals of history”.

The argument put forward is that the estimated £3.5 billion that the Treasury receives would be more than offset by a boost of some 0.5% to our GDP and the creation of some 60,000 jobs.

The interesting thing is that it is possible to avoid this tax, and people do. For example, a family of four flying economy to the United States pays £276. A Japanese visitor flying back home from London to Tokyo pays £81. This may well have a connection with the flattening level of Japanese visitors to this country, both business people and tourists, over the last 10 years. This tax is a disincentive. Holland got rid of it after 12 months and has never looked back, so there is something to be said for replacing this tax.

I may be proved wrong but I believe that Scotland could well be getting something out of this. We all know what happened in the Republic of Ireland but what we do not know and do not realise is the damage that is done to Northern Ireland because of the hundreds of thousands of people who start their long-distance flights south of the border as £276 is a lot of money for a family of four flying economy. I support the amendment. I am sorry to bring up air passenger duty again but at present it is, I am afraid, a rather hot subject.

Lord Howarth of Newport Portrait Lord Howarth of Newport
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My Lords, these amendments utter an important warning. It is one thing to devolve minor taxes, such as development land tax and landfill tax, it is another to devolve more significant taxes such as air passenger duty, of which the noble Lord, Lord Rowe-Beddoe, has just spoken. But when it comes to the major taxes such as income tax and corporation tax, very deep thought needs to be given to the viability of such devolution if the United Kingdom is still to hang together. It worries me very much that we can toy with such propositions without them having been thought through. My noble friend is absolutely right to insist that, in the event of further proposals for tax devolution being made, deep thought needs to be given to them, led by the Treasury, and there needs to be a responsible debate across the United Kingdom because we risk unravelling if we continue to play these games.

Baroness Randerson Portrait Baroness Randerson
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My Lords, the issue underpinning Amendments 16 and 20 is symmetry between devolution settlements. Noble Lords have set out three guiding principles to support tax devolution. We believe that it should have cross-party support, be based on evidence and not be to the detriment of other parts of the UK. Based on the second of these principles, the Government have been consistently clear that decisions on devolution must be treated on their own merits using all the available evidence. This reflects the fact that what is right for one country is not necessarily right for another. The devolved countries are different and so, rather than seeking to achieve symmetry, it is more important that the three devolution settlements work in the best interests of the people of Wales, Northern Ireland and Scotland.

I point out to noble Lords that there are obvious differences. Reference has been made to the land border between Northern Ireland and the Republic of Ireland. The nature of the border between England and Wales is very different from the nature of the border between Scotland and England. Differences of that nature do affect decisions on devolution. Above all, we are determined to work in the best interests of each of the individual countries. Most recently, for example, we have removed the income tax lockstep from this Bill.

In response to the questions asked by noble Lords, I refer them to the Silk 2 report. Corporation tax was part of those recommendations, so it will be a natural part of those four-party discussions. I stress that both the Prime Minister and the Deputy Prime Minister have pledged to put Welsh devolution at the heart of the debate, and that is what the Secretary of State and I are seeking to do in discussions with the four party leaders. I hope that noble Lords will believe that our timetable for those discussions proves that we are determined to press ahead. I therefore ask the noble Baroness to withdraw the amendment.

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Baroness Morgan of Ely Portrait Baroness Morgan of Ely
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My Lords, I turn now to the issue of fair funding for Wales. The Labour Party is keen for this Bill to pass because, for the first time, the Welsh Government will be allowed to borrow money. That is essential to help kick-start the economy, following years of government cuts, which have impacted in particular on the infrastructure budget—essential for investment and driving the economy of Wales.

We agree that in order to help leverage this funding, Wales should have landfill tax and stamp duty tax devolved to it. As we suggested in Committee, the Labour Party does not object in principle to income tax devolution to Wales but we have a key concern. Before embarking down this route, which must have the support of the people of Wales—demonstrated in a referendum—we need to be sure that Wales will not be left worse off than it is now.

We have real concerns that the funding issue in Wales has still not been comprehensively addressed. We now know that the Barnett formula will remain in place, but there is widespread acknowledgement that it has done no favours to Wales. It does not reflect the needs of a nation that has an older, sicker population and a more rural make-up, thereby adding to the costs of providing essential services. We accept that negotiations on this issue have been taking place between the UK Government and the Welsh Government and that there is recognition that a floor should be put in place to ensure that Wales does not lose out. That process was started through a statement in 2012, which acknowledged the problem, but we are looking for a more definitive agreement.

The four-party, cross-party agreement that came from the Assembly in the past month asked for,

“an updated assessment of the current level and likely future direction of Welsh relative funding”.

The Assembly asked for those talks to be completed by January 2015, and this seems to be realistic in terms of a timetable, as the Secretary of State for Wales suggested. He wants a devolution settlement by St David’s Day, 1 March. We are therefore happy that we know that something will happen, at least by 1 March, in terms of reserved powers. We are looking ideally for another little present for us for St David’s Day.

The Minister suggested in a recent answer to a question on the Barnett formula in your Lordships’ House that, in terms of funding, Wales now receives 114% of the UK average. This is welcome information but it would be useful for us to have sight of this evidence. Would the noble Baroness or the noble Lord be willing to share the data that demonstrates that 114% has been reached? It is worth noting that the figure quoted by the Minister was at the very bottom of the range that Gerry Holtham, in his report, indicated was an acceptable and fair level of funding, which ran from 114% to 117%.

There were a few factors that determined the lower levels of funding that arose as a result of the funding formula. The 114% could be considered fair only if we did not undertake to include Welsh-language education provision in Wales, for example. They do not do that in England, so it is not included in the Welsh figures. Also, Wales has already made an upwards adjustment on council tax receipts. If England applied the same formula, Wales would be eligible for more money in the block grant. Those two examples alone mean that fair funding should probably be more like 116%, rather than 114%.

We also know that Wales will lose out once public expenditure starts to rise again, which is why we need this sorted once and for all with a long-term commitment. If we can secure a commitment to the floor being in place—even if that does not happen in practice until Wales holds a referendum on income tax powers, alongside the outcome of the continuing discussions on the off-set required in Barnett—I believe we will then be well on our way to securing a decent and fair funding outcome. However, we are not there yet, which is why, central to the introduction of income tax powers for Wales, we need to be assured that the Welsh Government are happy with the outcomes of those negotiations. That is why we have tabled the amendment.

Lord Howarth of Newport Portrait Lord Howarth of Newport
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My Lords, I support the amendment that my noble friend has just moved. It is as important as any other that we have debated today. I cannot see a satisfactory future for devolution in Wales until the Barnett nettle has been grasped. It is scandalous that no Government have dealt with this problem since the mid-1970s when the formula was introduced. Cumulatively, since devolution was introduced, Wales has lost out on some £5 billion of funding that it ought to have had, had there been a fair funding formula based on needs rather than on population.

It is true that the gap between what Wales ought to receive and what it does receive has narrowed somewhat in recent years, but we have to anticipate that, as economic growth continues to recover, so the gap in funding and the unfairness of funding will be exacerbated again. It is therefore imperative that there is no further procrastination on this and that the Government agree, with real urgency, to act to secure a just settlement for Wales. The Government were quick to respond to political pressures in Scotland. Political pressures in Wales have been expressed in gentler terms so far, but there will be a continuing sense of injustice that will undermine all the other efforts that we make to establish harmonious and satisfactory political arrangements on devolution for Wales. There are, of course, wider issues affecting the relationships between the nations and regions of the United Kingdom as a whole. I look forward to the Minister giving us a very positive response to the amendment.

Baroness Randerson Portrait Baroness Randerson
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My Lords, I always enjoy the conversion of the Labour Party to the idea that the Barnett formula is unfair. The noble Lord, Lord Howarth, made a very important point, which is that it is scandalous that this formula has lasted for so long without anyone inquiring into it. I can assure noble Lords that the Government are aware of the issues and have taken measures to ensure that they are addressed.

This amendment would make the devolution of an element of income tax conditional on changes in funding arrangements. Specifically, the First Minister has raised this issue on numerous occasions, saying that he would not be prepared to recommend devolution of income tax unless fair funding were obtained. The amendment suggests that the Welsh Government have to confirm that they are content with the way in which funds are allocated to Wales from the UK Government before the element of income tax can be devolved.

This Government have already recognised that there has been convergence between the levels of funding in England and Wales since devolution. We took steps in the matter just two years after taking office. In October 2012, we set up a joint process with the Welsh Government to review the levels of funding in Wales and England in advance of each spending review. If convergence is forecast to occur over the spending review period, there will be a joint discussion of options to address the issue in a fair and affordable manner. That system worked well in advance of the 2013 spending round and confirmed that spending is not forecast to converge during the period up to 2015-16. It also established that relative funding levels in Wales were within the range that the Welsh Government’s own Holtham commission regarded as fair. In that context, the noble Baroness, Lady Morgan, quoted the 114% figure that my noble friend Lord Newby referred to last week. I am happy to write to her, and to set out further detail on that figure.

In relation to ongoing discussions about the funding situation, following the first meeting of the Joint Exchequer Committee between the UK and the Welsh Governments last month, we have now further committed to revisit jointly the review process in the light of the powers in the Bill. In other words, we have agreed to find a way of facilitating fair funding. The Government therefore believe that there is a sound basis for an early referendum to be called and I urge the Welsh Government and the Assembly to do so as quickly as possible.

I hope that I have assured noble Lords that the Government are aware of the issues on funding and are addressing them in discussions with the Welsh Government, who are fully conversant with our plans. I urge the noble Baroness to withdraw her amendment.