Lord Wigley
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Lord Wigley
“Powers of the Assembly to extend the franchise to younger people
(1) The Assembly may legislate to extend the franchise for Assembly elections to every person in Wales aged 16 and over on the date of the election.
(2) The Assembly may legislate to extend the franchise for elections to local authorities and for any Welsh referendum, whether held throughout Wales or locally within Wales, to every person in Wales aged 16 and over on the date of the election.
(3) No resolution to extend the franchise to people aged 16 and over, under this section, will be valid unless supported by at least two-thirds of the Assembly members participating in the voting on such a resolution.”
Lord Wigley (PC)
My Lords, Amendment 2, tabled in my name and that of my noble friend Lord Elis-Thomas, seeks to enable the National Assembly to extend the right to vote to 16 and 17 year-olds. A number of amendments have been grouped with this one and they point in the same direction. If the amendment is passed, the Assembly would be empowered to determine whether those aged 16 and over could participate in Assembly elections, Welsh local authority elections and any Welsh referendum that may be held. Subsection (3) of the proposed new clause ensures that no such change could occur unless,
“two-thirds of the Assembly members participating in the voting”,
support the provision. As might be expected, the amendment was drawn up partly in response to the decision of the Scottish Government to empower 16 and 17 year-olds to vote in the September referendum, and having noted the outstanding take-up of that right in Scotland. By polling day, 109,533 16 and 17 year-olds had registered to vote in the Scottish referendum. The impact of that referendum has understandably been felt keenly in our debates on the legislation before us. Whatever people’s politics may be, I hope that I would be correct in asserting that the decision to allow those aged 16 and over to vote in that referendum was commendable and opened up democracy for a new generation. The sheer level of engagement in the referendum was staggering, and if we in Wales and indeed across the United Kingdom can try to emulate such engagement in politics and public life, that will be a tremendous success.
In terms of principle, I believe that there should be no taxation without representation. Young people aged 16 and 17 can have left school, be working and thus paying tax. They should have the right to vote on their representation in Parliament and the Assemblies which determine any such taxation. In 2012, the National Assembly for Wales voted in favour of lowering the voting age to 16, but at present, of course, it does not have the necessary powers to implement that decision. Amendment 2 would give it the powers to do so.
Voting at16 is common practice in many European countries, including Austria, Germany and Norway, as well as in Latin America, in countries such as Argentina and Brazil. I would like to see Wales lead the way in this matter, especially as Assembly Members have already signalled their intention to introduce such measures. My party, Plaid Cymru, is committed to this, and I know that other parties in Wales are also committed.
The other amendments in this group have the same objective. I realise that if the amendment is carried, the Government might want to tidy it up in another place, although the advice that we were given was that the wording was both effective and clear. At the very least, I hope that the Government will realise that there is a widespread wish for this to happen and will not stand in the way of such progress. I beg to move.
Lord Tyler (LD)
My Lords, in speaking to the amendments in my name in this group—Amendments 3 and 19—I can be relatively brief, since I proposed similar improvements to the Bill in Committee, as those who participated then will recall. The principle of including 16 and 17 year-old fellow citizens in the franchise is now an accepted fact. All parties in this Parliament have endorsed this change. Contrary to the doom mongers’ forecasts, a very high proportion of this age group registered to vote in the Scottish independence referendum—nearly 110,000, which is a remarkable figure. Incidentally, I received the Answer to a Question today indicating that nearly 500,000 young voters in the age group 16 to 18 are currently registering under the new system, so this is a success story under IER.
On 18 September, a very large percentage of those—thousands of them—voted in the actual referendum. In the words of the Intergenerational Foundation newsletter,
“16 to 24 year-olds actually favoured staying in the union by a small margin (35% to 33%) ... the idea that the vision of an independent Scotland would appeal to an iconoclastic streak among the youngest members of the electorate appears to have been misplaced”.
That is putting it mildly. Curiously, it seems that middle-aged men, not women, were the most influenced by the fantastical claims of the separatists. Therefore, if we were to exclude the less mature, the less well informed and the less rational, we might wonder just which cohort we should be excluding from the franchise. It is not the most young; it is others.
There was another testimony from the noble Baroness, Lady Liddell of Coatdyke:
“Does the Minister agree that the quality of debate among 16 and 17 year-olds during the referendum debate was astonishing? I admit I was wrong; I was one of the people who thought that it was wrong for the franchise to reduce the voting age to 16. I was comprehensively proved wrong. I heard some of the best debates I have ever heard in a lifetime in politics from 16 and 17 year-olds”.—[Official Report, 16/10/14; col. 295.]
My noble friend Lord Cormack, whom I am pleased to see in his place, made a similar confession on 29 October:
“My eldest grand-daughter voted at the age of 16. I do not necessarily agree with the noble Baroness, Lady Liddell, on that, but I know that my grand-daughter and all her classmates took this matter exceptionally seriously”.—[Official Report, 29/10/14; col. 1261.]
Lord Cormack
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.
Lord Wigley
I am grateful to the noble Lord for giving way to me; he knows that I have very much respect for him. Does he not accept that, in its own way, this entire Bill is, in his terminology, piecemeal reform, in that it is reform for Wales and not across the United Kingdom? If we were to go down his road in all matters relating to devolution, we would not be able to do anything for Wales, Scotland or Northern Ireland unless it was also acceptable in the regions of England, or in England as a whole. Is that really what he is advocating?
Lord Cormack
The respect is mutual, may I say. My noble friend—I shall call him that—and I have known each other for a very long time. We have travelled together and talked together on a whole range of issues, and frequently found ourselves in agreement, not least about the fact that his wife is one of the most accomplished harpists in the whole of the United Kingdom.
Lord Wigley
My Lords, I am very grateful to the considerable number of noble Lords who have taken part in this important debate. A number of issues have come out that go well beyond the Bill we are discussing. I welcome the statement made by the Minister. It is a step in the right direction. One issue has come out loudest and mostly clearly. It started to raise its head in the earlier debate. It is the extent to which there is acceptance in this Chamber and at Westminster that we are now living in a pluralist democracy. By virtue of having devolved Governments and of having accepted devolution as a means of acting not only in Wales, Scotland and Northern Ireland but in London as well and possibly within England, we have accepted that things will be different in the different areas. There is no point whatever in having devolved structures if one does not accept the consequence that decisions will differ from area to area. The question that then arises is about which of the matters that we discuss here really do need to be decided on a UK level because of the basic nature of those decisions and which decisions can be devolved without making a considerable difference to what some Members of this Chamber would regard as the essential unity of the United Kingdom. That is something that has to be decided before one goes down the road of looking at commissions, conventions and all the rest.
I picked up one point that the noble Lord, Lord Forsyth, made. He referred to a convention slowing matters down. Perhaps he used those words inadvertently, but they were the words that he used. I can understand, possibly, from his point of view, that that is how people would want to see it, but if that is the general approach of establishing a commission or a convention, it would also raise a lot of questions, not least in Scotland, if there are ideas that all this is going to slow down the whole process that has been so focused on in recent weeks.
Lord Forsyth of Drumlean
I ought to be old enough not to have fallen into that trap. I was suggesting that, rather than rushing to solutions on a piecemeal basis and in a pre-election period, these issues need to be considered carefully. I have no desire to delay this matter. The sooner we stop talking about the constitution and concentrate on the issues that matter to our country, the happier I will be.
Lord Wigley
Many of us believe that getting the right devolution package is essential to all the countries of these islands in order to enable us to go on tackling the problems of day-to-day life in the economy, education, the health service and all the rest. That is basic. That is the purpose of it. I accept entirely that one does not make rushed decisions, particularly on constitutional matters, but neither should one be delaying them because delay is what causes frustration and sometimes brings the structures of government in these islands into question. We need to be able to take the proper decision on the right basis in a timely manner and in a way that carries people with us.
With regard to issues such as voting in referenda in Wales—I was very grateful to the noble Lord, Lord Cormack, for his kind remarks which I will pass on to my dear wife Elinor, who will be very grateful—I see nothing wrong in deciding these things in Wales. That applies to local elections or referenda that relate to matters purely within Wales. I understand that we could not decide in Wales alone to have votes at 16 for a UK election because that is the nature of the body. I was therefore very grateful to the Minister for the commitment to bring forward an amendment at Third Reading. I welcome the fact that that amendment will give the Assembly the right to take the decision with the two-thirds majority to which my noble friend Lord Elis-Thomas referred. That is the right approach. The decision should be there, but there should be safeguards. The two-third majority builds in that safeguard.
I regret that there is no willingness to look at this question in terms of elections. I hope that at some future stage, possibly in the context of a broader debate, that matter can be given further consideration. On the basis of the very significant step taken by the Government in this matter, I beg leave to withdraw the amendment.
Lord German (LD)
My Lords, I am pleased to move this amendment standing in my name and that of my noble friends Lord Thomas of Gresford, Lady Humphreys and Lord Roberts of Llandudno. I do not wish to repeat what I said in Committee but it would be worth outlining the two purposes of this amendment. First, it would reinstate the names of the candidates on the regional ballot paper; and secondly, it would reduce from 12, as it is now, to six the maximum number of names on the ballot paper.
The first of those objectives requires an order which, of course, can be tabled within six months or so of the next elections to the National Assembly for Wales. But, of course, the second of those matters requires primary legislation and was a block in the 2011 Assembly elections. I remind noble Lords that the names of candidates appeared on all the ballot papers for the regional ballot in Wales for the National Assembly for Wales, except at the very last elections in 2011 when they were removed.
I have three reasons for bringing the amendment forward in this format again. The first is to establish what progress has been made on the proposal. Originally it was that of the Electoral Commission—to reduce the number of names on the ballot paper from 12 to six and to examine timing issues. The second reason is to see whether it is possible, in this debate, to establish the views of the political parties towards the proposal that names of candidates should be on the ballot paper. The third is to try and establish accurately the reasons why candidates’ names were removed from the ballot paper and judge on that basis whether these reasons can be looked at afresh. Like many noble Lords, I would not want an acceptable solution ruled out because of the lack of primary legislative time.
On the first point on progress, I have read the consultation letter from the Electoral Commission, and much of what it says is that the barriers to putting the names on the ballot paper are to do with the interests of the administrators rather than the voters. It is to do with the fact that it takes some time to unfold them, lay them out flat and count them. Having stood in the regional ballot for the National Assembly for Wales, I do not think that I ever got away from a count before 7 am the following morning. That was in 2011 when I was present, as it was for the previous three elections. I do not think that it is markedly any different in time depending on the way in which the ballots are counted. That is not a reasonably rational solution. It is curious that in the letter which the Electoral Commission sent out to all the political parties and interested parties on this matter in its consultation recently, it did not mention the need for primary legislation to implement one of its proposals, which was its proposal back in 2009.
I have seen a letter to the Minister, which was copied to me by the Electoral Commission, which would lead us to believe that once the Secretary of State at that time had ruled out reducing the number of names on the ballot paper, that primary route was no longer a possibility. As my noble friends who put their names to this amendment will know, and as noble Lords here will know, we are reviewing the whole position of the way in which the National Assembly is treated. It seems to me that this is a real opportunity to examine the issue once more. I am sure that noble Lords would not want a recommendation from the Electoral Commission’s recent consultation which effectively said the same as it did in 2009—that the solution of only six names is not possible because, as at that time, the Secretary of State says that primary legislative parliamentary time cannot be found.
I turn now to the second point, which is the views of the political parties. The Electoral Commission’s evidence-gathering session has ended and all political parties in Wales have made their positions clear. I know the position of the Welsh Liberal Democrats. As noble Lords can see, the amendment follows closely my party’s policy, so I am happy to move it. I guess from the sympathetic words I received in Committee from the noble Lord, Lord Wigley, that Plaid Cymru supports putting the names back on the ballot paper. Perhaps my noble friend can tell us in her response whether her discussions with the Secretary of State indicate that the Conservative Party supports placing the names on the ballot paper. The position of the Labour Party still remains a mystery to me, but I am sure that I will be enlightened in the course of this discussion.
Lord Wigley
Before the noble Lord concludes his remarks—I support his general thrust—does he accept that if the noble Baroness, Lady Randerson, as Minister, moves ahead with the undertakings that she gave on the earlier group of amendments, her provisions may well allow the Assembly to decide this issue for itself, as opposed to us taking the prescriptive decision in the way in which it is laid down in the amendment?
Lord German
I understand, but I repeat what I said in Committee—that it is a matter of timing. We are talking about a decision for the 2016 elections, which require an order some time between six and nine months before those elections take place so that ballot papers and everything else can be put in place. But importantly, if the Electoral Commission were to think that it needed primary legislation, this may well be the only opportunity to have it in place before 2016, given that you need to have it in place well in advance of the elections. I remind noble Lords that the current legislation states that a political party can place a maximum of 12 names on the ballot paper. However, there are only four vacancies. I am not wedded to six persons but it seems fairly reasonable that, if you had a candidate who had held a seat on the regional ballot, you are not likely to get five deaths in a row which would mean that you had nobody left on your list to fill that vacancy. Certainly, that was the view of the Electoral Commission.
Finally, I tried to establish why the names were removed in the first place. There is something of an inconsistency in the letters from the Electoral Commission on this matter that I have received and seen. It said that there was no legislative time available and therefore its recommendation of having only six names maximum in order to have a shorter ballot paper—one that was easier to manage and easier for voters to see without the print being so small that you could not read the names—was rejected by the Secretary of State because there was no time in which to introduce primary legislation. The second letter I have seen does not say that in such stark terms. It simply says that the Secretary of State rejected this proposal. I wonder whether anybody can throw any light on that issue. If we are going to put the names of candidates back on the ballot paper, we should not have a restriction placed upon us by virtue of primary legislation.
In the first three elections to the National Assembly, when the names were on the ballot paper, postal voters could also see the names and see who they were electing. In those early elections there was the possibility of candidates being on both ballot papers at the same time—a position which will be re-established under the clause we are debating. That meant, of course, that people could see the read-across from both ballot papers and make their decision accordingly. In other words, if the same names were on both ballot papers, that provided more information to the voter. Taking the names off, of course, meant that the postal voters could not see the names of anyone and would not have a clue who they were electing, which is a fundamental process in our elections, as it is for the European elections in Wales, where we do see the names of candidates on the ballot paper.
In conclusion, I would like to ascertain what progress has been made, try to establish the political parties’ views on this and ask my noble friend what progress we can now make to bring back the names on the ballot paper, especially in relation to the other parts of Clause 2 which are so relevant to this amendment.
Lord Wigley
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
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 Wigley
My Lords, I am very pleased to follow the noble Baroness, Lady Grey-Thompson, and to indicate that there is all-party support for the amendments. Noble Lords will be aware of the letter which has been circulated by Bite the Ballot, signed by all four party leaders in Wales and pressing the importance of the matter.
We have heard in several debates about the degree of consensus in Wales, and this is another example of it. Where there is such consensus, we should build on it. The fact that education is a fully devolved matter and that it will now be possible, as the Minister indicated earlier, for those aged 16 and 17 to take part in the referendum on income tax, when it comes, underlines the need for us to maximise registration.
I very much hope that the Government will be able to respond to the points made and look forward to hearing the Minister’s response.
The Lord Bishop of Coventry
My Lords, it is 94 years since the voice of the bishops in Wales has been heard in this House but, as my noble Lord Roberts implied, I thought it right to consult the Church in Wales, and the Archbishop of Wales in particular, about the amendments, which seem to me to have a great deal of merit, to see whether their voice might be heard today indirectly, as it were. As a result, I can say that the Archbishop of Wales has asked me to convey to your Lordships’ House that the bishops of the Church in Wales are very supportive of the amendments. Indeed, I understand that they also support the extension of the franchise, as was proposed and discussed earlier, but I chose to concentrate my consultations on these amendments.
As are Members of your Lordships’ House, the bishops in Wales are very conscious of and concerned about low levels of political engagement in Wales. The Church in Wales has been working hard on its own structures to increase participation in its governance, especially among young people, so it is very glad to give its backing to the amendments as practical steps in national government both to encourage a higher level of voter registration, especially among young people, and, as a necessary corollary, to further political education in the schools and colleges of Wales.
On a more personal level, I believe that the bishops of the Church in Wales are right to support the amendments. I hope that what is done in Wales will model ways forward—somewhat along the lines described by the noble Lord, Lord Howarth—as laboratories of best electoral processes for the whole of the UK, as was underlined by the noble Baroness, Lady Grey-Thompson. We need ways to improve levels of voter registration and to educate and, moreover, inspire young people in the responsibilities and opportunities of political engagement.
The amendments seem to me to be of great help in hooking young people into the political process, so that when they are entitled, they are primed and ready to go.
Baroness Morgan of Ely
My Lords, it is getting late, but I want to move this amendment, in which we seek to future-proof the legislation before us. It is clear that constitutional reform north of the border will move forward apace now that commitments have been made in the referendum—and, of course, these commitments must be respected. However, we need to understand that reforms of Scotland are likely to have an impact on Wales. In this amendment, we are asking the Government to undertake a commitment promising that if new taxes are introduced in Scotland we will need a review of the impacts on Wales and to probe whether there will be any benefits from introducing such measures in Wales.
I will give noble Lords the example of corporation tax, to which I am sure the noble Lord, Lord Wigley, will refer. If corporation tax were to be introduced in Scotland, there would undoubtedly be an impact on Wales. Let me be clear—the Labour Party does not want to see devolution of corporation tax to Scotland. It is hard enough to get large corporations to pay the tax that is owed already and the last thing that we want to see is a race to the bottom in terms of taxation across the UK with the consequent knock-on effect on the limited pot available for public expenditure. But the reality is that Labour is not currently in the driving seat in Scotland, and we are not sure what is going to come out of the Smith commission, so if corporation tax is introduced in Scotland and if it were to undercut corporation tax in Wales, or if we were to see a similar kind of thing being introduced on air passenger duty in Scotland, and being introduced and then reduced in Wales, it would be more difficult to attract inward investment into Wales.
We are asking for a degree of flexibility to be able to respond to whatever is introduced in Scotland. If we do not write that into the Bill, we could be waiting for a wholesale constitutional reform debate to be settled but, in the intervening period, Scotland may have started off that process of undercutting us on corporation tax, for example. Scotland may have whipped in and claimed advantage over other parts of the UK, and I do not think that we should allow that to happen.
We do not know where we are heading in terms of direction of travel on devolution. We do not know what the timetable is for constitutional reform, and we need this amendment as a belt and braces approach to protect Wales from the possible introduction of taxes that could be damaging. If the Minister is not going to accept this amendment, I would like to know how she proposes to protect Wales if the situation were to arise.
Lord Wigley
My Lords, I have listened to the noble Baroness, Lady Morgan of Ely, with interest. There are certainly arguments in support of symmetry in constitutional terms; they usually lead to various forms of federalism. If the Labour Party is indeed moving towards a federal approach, that is certainly an important development.
I wish to address Amendment 20 in my name, which would provide that, if corporation tax were devolved to Scotland it should certainly be devolved to Wales or be available. Noble Lords may recall that I tabled an amendment in Committee proposing that if corporation tax were devolved to either Scotland or Northern Ireland, it should also be devolved to Wales. I based that on the fact that all four parties in the Assembly had agreed that this was needed, and that the Silk commission said that corporation tax should be devolved to Wales if it was devolved to Northern Ireland. The response that I elicited from the Minister, Lord Newby, on that occasion, was entirely centred on the comparison with Northern Ireland, not with Scotland. He based his argument on two factors: first, that Northern Ireland has to compete with the lower corporation tax in the Irish Republic. Wales also has to compete with Ireland for footloose inward investment projects, tourism businesses that cross the sea, and in the agricultural food sector, for example, in cheese manufacture. We share a maritime border with Ireland so I refute his argument on that count.
Secondly, the Minister argued on the basis that the tax devolution to Northern Ireland is in order to help it to rebalance its economy, with the implication that Wales does not need to rebalance its economy. That is absolute poppycock. Wales has the lowest GVA per head of any nation or region in the UK, following the rundown of coal, steel and slate. We desperately need to rebalance our economy. I am seriously concerned that a Treasury Minister, for whom I have very great respect, should have been advised by Treasury officials that Wales does not need economic rebalancing.
The Government do not recognise Wales’s needs vis-à-vis Northern Ireland. Be that as it may, the Minister did not try to defend not devolving corporation tax to Wales if it was, indeed, devolved to Scotland. I understand that this has been raised in the context of the Smith commission that corporation tax should be devolved to Scotland. Certainly, in the pre-referendum pledge the impression was given that the devo-max model being touted would include fiscal autonomy, and that certainly includes corporation tax.
In tabling the amendment I am seeking an assurance that if Scotland gets control over corporation tax the question should be firmly on the agenda of similar provision for Wales. I hope that on this occasion I get a more conciliatory response from the Minister, not just for me but for all four parties of the National Assembly that seek such powers.
Lord Rowe-Beddoe
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.