Wales Bill Debate

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Department: HM Treasury

Wales Bill

Mark Williams Excerpts
Tuesday 24th June 2014

(9 years, 11 months ago)

Commons Chamber
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Nia Griffith Portrait Nia Griffith (Llanelli) (Lab)
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The new clause calls on the Secretary of State to issue a report on the further legislative steps needed to move to a model of reserved powers for the National Assembly for Wales. It seeks to prepare the way for Wales to enjoy the reserved model of powers, so that legislation should set out the areas that are reserved for the UK Parliament, rather than trying to define all the areas that Wales can legislate on.

The current situation is that the model of devolution in operation for Wales is the conferred powers model. Following the referendum in March 2011, the National Assembly for Wales was empowered to make primary legislation in the 20 broad policy areas. Therefore, the areas where the National Assembly can legislate are conferred upon it and listed in the statute. However, Scotland and Northern Ireland enjoy the reserved powers model, which means that the legislation sets out the areas where the devolved legislature cannot legislate—areas that are reserved to the UK Parliament.

Mark Williams Portrait Mr Mark Williams (Ceredigion) (LD)
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At least three parties in the House support the reserved powers model, but can the hon. Lady explain what is meant by subsection (2) of the new clause? The hon. Member for Arfon (Hywel Williams) made this point. It says:

“Part 2, except the referendum-related provisions and sections 19 and 20 shall not come into force until the report has been laid in accordance with subsection (1).”

What is that caveat? What is the hold up in moving towards a reserved powers model in the new clause?

Nia Griffith Portrait Nia Griffith
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That provision is to ensure that the report is actually laid. That is the point of it. It says, “Let us make sure that this is a genuine part of what happens during the passage of the Bill, rather than the issue being kicked into the long grass.” Otherwise, the danger is that the new clause, which asks for further progress on reserved powers, would just be kicked into the long grass. That would be the problem. It is integrally linked now with the progress of the Bill.

Mark Williams Portrait Mr Williams
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Is there any link with the point made by the hon. Member for Arfon about the financial provisions of the Bill?

Nia Griffith Portrait Nia Griffith
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The whole point is that this is what we want to see. We are committed to a reserved powers model and that is what we would like to see progress on. It seems a missed opportunity not to have that in the Bill, so we want to put it in.

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Mark Williams Portrait Mr Williams
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I share the passion for the reserved powers model. The point the hon. Lady is making about the contrast with Scotland and Northern Ireland is an admirable one. My party leader has said that. So has Plaid Cymru and elements of her party, but why do we need subsection (2) of the new clause? I do not understand. Why can we not proceed with the reserved powers model anyway?

Nia Griffith Portrait Nia Griffith
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The important thing is that we are firmly committed to the reserved powers model and we wanted to find a way to put that in the Bill. We have put it in the new clause in this way because that is what we have been advised.

The Silk commission part 2 makes the recommendation that Wales would be better served by the reserved powers model, and it therefore seems to us that the Bill provides an ideal opportunity to pave the way for that change. Not to do so would be a missed opportunity, which is why we are proposing the new clause. The model is already there for Scotland and Northern Ireland.

My right hon. Friend the Leader of the Opposition confirmed our commitment to a reserved powers model when he announced at Welsh Labour conference that Labour has a manifesto commitment for next year’s general election to introduce a

“new Government of Wales Act, with powers assumed as devolved to Wales, unless specifically reserved. Bringing Wales into line with Scotland—modernising and advancing the devolution settlement for generations to come.”

Labour is the party that brought devolution to Wales and Scotland. It remains the only party that is committed to and can deliver devolution in the UK and get the best deal for Wales. Therefore, let us look at why we believe that the reserved powers model would serve Wales better than the current model.

As the Welsh Government told the Silk commission:

“The reservation model is a technically superior method of devolving legislative competence on a devolved legislature. In our view, the conferral model is incapable of prescribing with any degree of certainty exactly what the Assembly can legislate about…The Welsh model therefore lacks…clarity and certainty, and much time is spent addressing potential arguments about whether provisions of a Bill relate to such undefined subject-matter.”

Indeed, the submission from the Hywel Dda institute of the Swansea university school of law also concluded that

“the reserved powers model is, in principle, superior in terms of accessibility, clarity, stability, sustainability, effectiveness and consistency with the principle of subsidiarity”.

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As we know, subsidence plagues the south Wales valleys, and there is inevitably a relationship between it and the plight of many houses in valley communities. That prompts the question: is housing that is affected by subsidence within the scope of potential legislation? The answer is yes, but a strict reading of the 2006 Act as it stands does not make that very clear, because of the different ways in which the various exceptions are listed. I believe that a reserved powers model would make such instances much more intelligible, and much less fraught with difficulties of, in particular, a legal nature.
Mark Williams Portrait Mr Mark Williams
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Some parts of the Act contain even more obvious problems. No doubt the hon. Gentleman will be as alarmed as I was to read in the Western Mail about a survey that suggested that 40% of people thought that the national health service in Wales was directly administered from this place. There is an issue about the clarity of our democracy and our systems, even when it comes to core issues such as that.

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Mark Williams Portrait Mr Mark Williams
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It is a privilege to say a few words in support of the Bill on its Third Reading.

The Silk commission made a serious attempt to tackle the deficiencies in the devolution settlement, notably the lack of responsibility and accountability at Cardiff Bay. Those principles have been carried forward in the Bill. In assessing the funding system, Silk properly identified what was required—not just accountability but economic incentivisation, empowerment, efficiency, equity and, above all, responsibility.

I applaud the Bill and thank my right hon. Friend the Secretary of State and his team in the Wales Office.

Roger Williams Portrait Roger Williams (Brecon and Radnorshire) (LD)
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Many tributes have been paid to my constituent, Mr Paul Silk. It is extraordinary that because of the quality of the work that he and his fellow commissioners did, the Bill has gone through relatively easily, even with a few minor amendments.

Mark Williams Portrait Mr Mark Williams
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I very much agree with my hon. Friend. Paul Silk has done the politics of consensus a great service. The commissioners, from all four parties, sometimes had to make compromises but arrived at an agreed report on two occasions. That is a mark of Paul Silk’s chairmanship and the quality of those commissioners.

Of course, my right hon. Friend is a Conservative Secretary of State—

Bob Stewart Portrait Bob Stewart
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A very good one.

Mark Williams Portrait Mr Mark Williams
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Indeed—he is a very good Secretary of State on many issues.

I remind my hon. Friend the Member for Montgomeryshire (Glyn Davies) that this is a coalition Government and it is a Liberal Democrat achievement that we have got this far with this Bill. Last week I was at a book launch, as was the right hon. Member for Dwyfor Meirionnydd (Mr Llwyd), to celebrate the life of the late Emlyn Hooson—one of my hon. Friend’s illustrious predecessors—who on St David’s day in 1968 put forward a Parliament for Wales Bill that did not get very far. It is a mark of his work and that of many others from other political parties that we have reached this point today, albeit crystallised by my right hon. Friend the Secretary of State.

Elfyn Llwyd Portrait Mr Llwyd
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Is it possible that the hon. Member for Montgomeryshire (Glyn Davies) is being churlish?

Mark Williams Portrait Mr Mark Williams
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I could not possibly comment, but I will give way to him.

Glyn Davies Portrait Glyn Davies
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I would just like to say that the late, great Baron Hooson was a wonderful Member of Parliament who served Montgomeryshire and Wales with distinction for many, many decades; I do not want to be accused of being churlish.

Mark Williams Portrait Mr Mark Williams
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My hon. Friend says that with great sincerity, and I know him to be a sincere man. I just wish to place on the record the fact that the process of devolution has been an achievement of politicians of all parties—Liberals, Conservatives, and friends from the nationalists and from the Labour party—over the years. That process of consensus has to continue if the process of devolution marches on.

Susan Elan Jones Portrait Susan Elan Jones (Clwyd South) (Lab)
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I would not wish the hon. Gentleman to continue without mentioning one of his predecessors, Lord Elystan-Morgan, who made an interesting point in his autobiography, saying that when he started his political career—many of us know that he did not spend his life in just one political party—he would not have dreamt that the process of self-government and devolution would have gone on to the extent that it has.

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Mark Williams Portrait Mr Mark Williams
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I thank the hon. Lady for that intervention, and I agree with that. I can promise her, very much in the spirit of what the right hon. Member for Torfaen (Paul Murphy) said, that Lord Elystan-Morgan and others of our respective Welsh teams will be working very hard on this Bill to make necessary amendments to make it all the more workable and successful.

I wish to talk about one regret I have about this Bill, which is the lockstep, an ideal that, as a devolutionist, still confounds me. I agree with my hon. Friend the Member for Montgomeryshire on that matter. I recently read a military definition of the lockstep—I am alarmed that the hon. Member for Beckenham (Bob Stewart) is here, because he may correct me on this—which talked about how, when marching, all the marchers’ legs should be moving in the same way at the same time. Of course the Silk commission suggested something different, recommending that income tax rates should be capable of variation independently to create better economic conditions in Wales.

We have heard from the Secretary of State and from the Opposition about giving the Assembly Government the tools to do the job, and that is what I want this Bill to do. We should, however, be mindful of what Paul Silk said in his report, which was that the availability of capacity borrowing powers is contingent on the level of income tax devolution available to the Welsh Government following a successful referendum. He said that the lockstep model is less attractive and would therefore discourage the Welsh Government from pursuing devolution and the additional capital borrowing powers that would accompany it. He was right, and I regret the fact that he had to say that. I regret the response of the Labour party to the Bill and what Paul Silk said. I am clear that we have not heard the last of this, and I encourage Conservative Members to examine what their colleagues in Scotland have said about the lockstep and act accordingly, because those tax-varying powers really would enhance the tools available to Government.

I agree with Professor Dylan Jones-Evans who said that the important thing is to give the Government, of whichever colour, the powers to do the job. That is about grown-up government, and about respecting other Governments and other jurisdictions’ capacity to do the job; it is not about “nanny knows best”. Our friends from Plaid Cymru will agree with that characteristic, as much as Liberals and Conservatives will. That is a principle behind the Bill and I hope we can take it further. Welsh Liberal Democrats want to see flexibility of income tax powers without the Scottish lockstep model. Nevertheless, the Bill represents a huge step forward—although it does not provide the strides that some of us would have hoped for.

That brings me to the reserved powers model for the future, which I support. I could not support the Labour amendment on Report, as it struck me as a fudge, although outside the Chamber I was assured by the shadow Secretary of State that it was anything but. I wish to reiterate what Liberal Democrats, including the Deputy Prime Minister, have said, which is that we support the reserved powers model. The challenge Paul Silk set was for every party in this House to sign up to the reserved powers model at next year’s general election. The debate about devolution and the progress made have been a journey of stops and starts, but I believe the reserved powers model is the way forward and I endorse what Paul Silk has said.

Finally, there is an old adage that time and tide wait for no man. I believe that the tide of devolution in Wales is flowing fast and no Government, including this one and, indeed, future ones should be left behind.

Question put and agreed to.

Bill accordingly read the Third time and passed.