Wales: Devolution

Lord Maclennan of Rogart Excerpts

Thursday 19th July 2012 Lords Chamber

[Lord Maclennan of Rogart]

My Lords, I congratulate my noble friend on initiating this discussion. I hope that the House will forgive the intrusion of someone from the north, rather than the west, of the United Kingdom. I promise that I shall be brief.

I can see that the problem of asymmetric devolution has not made life easier for Wales. It is my hope that the work of the Silk commission will feed the discussion as to what tax arrangements are most suitable for the whole of the United Kingdom. We do not live in a homogeneous, single, unitary state. There are substantial variations in need, which have been alluded to by the noble Lord, Lord Anderson, and others who have spoken in the debate. However, it seems to me that our approach, nationally—by that I mean as part of the United Kingdom—is somewhat too fractured. It would be appropriate to pull together the thinking of Holtham, Calman, Silk, and all the other inquiries that are going on into these matters, with a view to taking the step that has been alluded to as the desirable end point by my noble friend of some form of federation for the country. I say “some form” because it is quite clear that the United States form has built imbalance into the prosperity of the different states. However, that need not be the case, as is made abundantly clear by the experience of the Federal German Republic.

Looking at what is happening in Scotland is not necessarily the right way to approach what is to be done in Wales, because the Scottish situation is far from stable. The degree of satisfaction that may arise from the Scotland Act is yet to be determined. It is certainly my view that equitability as between the different nations and regions of this country should be a prime concern and one should not simply address the local difficulties as though they were unique.

It is time to ask some questions of the Government regarding the Silk inquiry, and my noble friend Lady Randerson has done just that. In particular, I should like my noble and learned friend Lord Wallace to indicate when he replies to the debate what the state of the discussion is between the two Governments as regards borrowing. Is it confined to borrowing from the Treasury or does it also encompass the possibility of private borrowing for public intentions? The urgency of that issue seems to have been recognised by virtually all those who have given evidence to the Silk inquiry and it seems that that could be done without seriously upsetting the British economy.

What has been interesting is the extent to which there is an express desire within Wales for greater control over taxation, although I noticed what the noble Lord, Lord Anderson, had to say about the down side. However, that could be rectified by making sure that the distribution of public—United Kingdom—funds takes more account of need than is the case with the Barnett formula. I hope that the Government will give some indication as to how they would wish to progress. The postponement of decisions on Barnett is definitely damaging to the coherence of our United Kingdom.

If economic success leads to an increase in the Welsh budget, it should not follow that there should be an immediate reduction in central government funding. These matters fluctuate in the short term and it is important that the infrastructure of the economy should be underpinned and that problems such as the greater rurality of Wales are taken into account and a more equitable solution is produced.

I urge the Government to take note of the inquiry in another place, chaired by Mr Graham Allen, into the possibility of a convention on a constitution for the whole United Kingdom. There is much merit in that. Evidence from the Silk inquiry and of those who have been giving such careful consideration to these matters as they affect Wales should be fed into such a convention. However, it should not be expected to deliberate and come up with immediate results but rather, in the manner of the Scottish convention, take its time to come up with a solution that will satisfy the different parts of the United Kingdom, I know that that goes beyond the ambit of this debate.

[Lord Wills]

I am grateful to the noble Lord for giving way. He makes an important point. Can he clarify his thinking about this constitutional convention? Should it be literally along the lines of the Scottish constitutional convention or should it have a more demographically representative element and therefore be much more akin to a deliberative assembly, the conclusions of which would not be binding? Which sort of model does he think would be preferable in this case?

[Lord Maclennan of Rogart]

I would hope that we can learn from the experience of the Scottish convention: that it should not be confined to certain political parties; that it should be representative of varying and discrete interests; and that it should be deliberative. The serious groundwork being done by Silk—and earlier by Holtham, Calman, and so forth—should be borne in mind and taken into account. This should not be led by politicians who have come to it with a defined end point; but rather, it should emerge as something like a national consensus following a national debate.