Wales Bill

Debate between Owen Smith and Mark Williams

Wednesday 10th December 2014 Commons Chamber

[Owen Smith]

In a nutshell, the hon. Gentleman, who is expert in this matter, having been the Finance Minister for his own devolved Administration, explains why we are so concerned about the change. We are worried that the Tories are eager to legislate in haste to foist on the Welsh people the power to raise taxes in Wales.

Our concerns are not just obstacles that the First Minister has placed in the way of the change, as the Secretary of State suggested. They are reasoned questions about the nature of the powers that might be deployed and what their impact will be. We have been clear and consistent in saying that the Government need to meet three tests. It is not really for the Opposition to meet them, because we cannot. It is for the Government proposing the changes to meet them, but it is disappointing that they have not done so. The first test, as the First Minister made clear, is on the baseline for funding and the Barnett formula. That will need to be addressed before the changes can ever be accepted in Wales, because we will not recommend the devolution of income tax varying powers to Wales until we know that we will not be locking in a degree of underfunding. Secondly, we want to be clear that even if the Barnett question is resolved, Wales will be better off.

[Mr Mark Williams (Ceredigion) (LD)]

Although I share the Secretary of State’s impatience for the Assembly Government to be speedy in addressing the issue once the Bill is passed, does the shadow Secretary of State agree that the Government need to assess the funding shortfall? One way that could be done would be if the Government here and the Assembly Government again commissioned Gerald Holtham, for example, to assess the level of underfunding before we move forward, which I agree with the Secretary of State that we should.

[Owen Smith]

That is not a bad idea. We have recently heard Government statements about the reduction in the Barnett gap, and one can imagine that there would be such a reduction because public spending in England has been curtailed so dramatically under this Government, although we do not know that for certain. It is beholden on the Treasury to provide evidence of the current gap, and it would be sensible for it to consider making the process independent, not least because I do not think that we would fully trust what it might produce on its own.

Wales Bill

Debate between Owen Smith and Mark Williams

Tuesday 6th May 2014 Commons Chamber

[Owen Smith]

That was the justification that the Secretary of State used at the time and he would no doubt use it again today. Our view and the view of many people in Wales is that what he did in respect of the Agricultural Wages Board was a party political attempt to tie the hands of the Welsh Assembly by arguing that it was employment legislation and not legislation that related to agriculture, which is devolved to Wales. Many of the learned counsel who offered their opinions on the matter backed the view of the National Assembly for Wales. We will wait to see what the ruling is. My point is simply that a shift from the conferred powers model to a reserved powers model would militate against such apparent confusion on the part of the Secretary of State and ensure that we had greater clarity about where the line lies between the powers of this House and the powers of the National Assembly.

[Mr Mark Williams]

I concur with much of what the hon. Gentleman has said about reserved powers. However, does he agree that the issue is less about party politics than about the clarity in the devolved settlement? That is why some parties are committed to having the reserved powers model in our manifestos. That is the conclusion that most people have reached after Silk II.

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[Owen Smith]

Indeed; the hon. Gentleman’s party and my party are committed to having that in our manifestos. We see significant benefits in putting Wales in a symmetrical position to Scotland in respect of powers and in tying the hands of future Conservative Secretaries of State who might employ the same argument to tie the hands of the Welsh Assembly Government.

[Mr Williams]

Will the hon. Gentleman concede that Silk II found that the issue was about the clarity in the devolution settlement, rather than about party political motives and posturing?

[Owen Smith]

Absolutely; Silk said precisely that. I am saying today for the clarity of the Committee that we believe that the current Government employed the argument for party political purposes. They attempted to stop the Welsh Government doing what they wanted to do, which was to maintain the Agricultural Wages Board for Wales. That would have had significant benefits for some of the lowest paid workers in Wales. On that basis, I believe we can say firmly that Wales would be better off if we moved to a reserved powers model, with the greater clarity and additional safeguards that it would bring.

Finally, Madam Chair—[Interruption.] I beg your pardon, Sir Roger; I did not see you slip into the Chair, but it is a great pleasure to serve under your chairmanship once more. On the background to these clauses, we did not have much chance to discuss the so-called fair funding lock. The ability of the Welsh Labour Ministers in Cardiff Bay to determine whether they think the funding settlement for Wales is fair and adequate, in advance of their moving to adopt any of the powers of income tax—or any of the other taxes—is an important test. I hope that the Government will rise to that challenge at some point in the future.

Wales Bill

Debate between Owen Smith and Mark Williams

Wednesday 30th April 2014 Commons Chamber

[Owen Smith]

No. We all want to get on with the serious business before the Committee, not nonsensical point-scoring.

These are probing amendments. They explore the extent to which the Government agree with us that, in principle, it should be with the consent of the National Assembly that changes are made to elections that affect it.

[Mr Mark Williams (Ceredigion) (LD)]

I, too, am glad that these are probing amendments. I very much agree with the principle that the hon. Gentleman is establishing that these responsibilities should be devolved to the National Assembly, but what safeguards does he envisage operating there to ensure that gerrymandering, of which he has, sadly, accused the Government, could not occur in the National Assembly?

[Owen Smith]

The clear principle to which we are responding with these amendments was outlined by the Welsh Government in their response to the Green Paper produced two years ago. For the information of the Committee, that stated that

“no change to the Assembly’s current electoral arrangements should be made without the Assembly’s consent. This is the fundamental constitutional principle in issue. It is a necessary consequence of a constitution based upon the principle of devolution.”

That is a clear expression from the Welsh Government on the centrality of their view in any changes to legislation which affect the elections to their Chamber—to the Assembly in Wales. That is something we wish to explore today with the Government.

Clearly, the Bill arises from the shift to a five-year fixed-term Parliament for this place. Three separate pieces of legislation needed to be amended as a consequence—the Scotland Act 1998, the Northern Ireland (Miscellaneous Provisions) Act 2014, and now the Government of Wales Act 1998. Labour is not opposed to fixed-term Parliaments, as the hon. Member for Forest of Dean (Mr Harper) will recall. In previous manifestos, including the last manifesto, Labour has consistently pledged to shift to fixed-term Parliaments, but we have consistently said that a five-year fixed term for any institution was too long.

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[Owen Smith]

That may well have been foreseeable. Labour has acknowledged that it was a mistake to draft the legislation in such a fashion that it became possible for would-be Members of the Assembly to nest like cuckoos in individual constituencies for a period, anticipating their entry to the Assembly via the back door. However, we did not imagine that the measure would be used so shamelessly as it was by parties in the Secretary of State’s Clwyd West constituency.

[Mr Mark Williams]

Has there been the same acknowledgement that such a measure was a mistake for elections to the Scottish Parliament or the Greater London authority, in which dual candidacy is still permitted?

[Owen Smith]

The hon. Gentleman makes a good point, and we should consider this matter right across the piece. The evidence of elections in Wales that is before our eyes, particularly in Clwyd West, but in other seats as well—Llanelli springs to mind, where wannabe Assembly Members perched for a significant period, only to contest the seats under first past the post—suggests that the measure will be abused. It has not of course been abused elsewhere, but it has been abused in Wales. That is why we as representatives of Wales, who were then in government but are now in opposition, are seeking to prevent this Government from amending the law for Wales so that we guarantee that such sorts of abuses do not take place in future.

[Mr Williams]

If the principle runs so deep and the risk of abuse is so great, surely the hon. Gentleman should talk to his colleagues in Scotland and London about reforming the systems there, rather than picking—quite frankly—on the National Assembly for Wales and the people of Wales.

[Owen Smith]

As all hon. Members do, I talk regularly to colleagues in other parts of Britain, but we are now addressing legislation that relates to Wales. The evidence relating to Wales that is before our eyes—from recent history in the Secretary of State’s own seat—suggests that there is a problem there and that the measure has been abused. As best we understand it, public opinion also supports my contention that the system should be retained and that the proposed ban should not be lifted.

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[Owen Smith]

It was indeed commissioned by my dear and hon. Friend the Member for Caerphilly (Wayne David), but the Bevan Foundation, as the Secretary of State will know, is a non-aligned charitable foundation. It would surely contest quite vigorously the implication—which I am sure he does not mean to make—that it is in any way aligned to the Labour party.

Of course, it is not just evidence from the Bevan Foundation that is important. International evidence suggests that this form of gerrymandering is not supported by the public. In New Zealand, for example, public opinion research conducted by the independent review committee, which is part of its Parliament and appointed to examine the electoral system, found that one key criticism was that it was possible for MPs to be defeated in an electoral contest but returned to the House through their position on the list—clear evidence that it is not just in Wales that people are concerned about that.

In fact, it is not just in New Zealand that there are concerns. In New Brunswick in Canada, an independent commission endorsed the ban on dual candidacy stating:

“The Commission heard that in some jurisdictions where candidates are able to run simultaneously on both ballots, voters are displeased with the case where a candidate is not successful in a single member constituency, but is elected anyway by virtue of being placed on the top of a party’s list.”

Evidence from two notable democracies—Canada and New Zealand—shows that it is not just those in the Labour party and in Wales who are worried about that process.

Of course, it is not just Labour Members who have been concerned about this issue: it used to be a concern of Members on both sides of the House. For example, Lord Crickhowell, a former Conservative Secretary of State for Wales, has said that the arrangements were “really pretty indefensible”. I would have thought that was a clear statement, but the current Secretary of State clearly does not agree.

Perhaps Liberal Democrat Members agree with the Chief Secretary to the Treasury who said when we last debated this in 2006:

“I should also point out that the Secretary of State for Wales has said that if the Commission had considered what he called the systematic abuses carried out by list members in Wales”—

which I have described here today—

“he would have reached the same conclusion that we have”—

“we” in that case being of course the Liberal Democrats—

“namely that a ban on dual candidacy is the only effective solution.”

We therefore have many examples from across the world, from Wales and from across the House of people’s concerns about the way in which the system has been abused.

[Mr Mark Williams]

The hon. Gentleman mentioned New Zealand and the international precedents that he asserts back his case. Is he aware that the final report of the commission that looked into the system in New Zealand concluded:

“It is proper and desirable…that political parties can protect good candidates contesting marginable or unwinnable electorates by positioning themselves high enough on their list to be elected”?

The New Zealand experience resulted in the ban being thrown out.

[Owen Smith]

I am aware of that: the point that I was making is that concern is felt about this issue across the world. It is not a narrow, partisan point: it has been widely discussed in other jurisdictions where this or similar systems have been applied. It has been suggested that this only applies in Wales, but that is not true. There are similar election arrangements in several Asian countries, including South Korea and Taiwan, where they have a similar ban on such behaviour.

[Mr Williams]

The key point is that the New Zealand experience validated the approach that the Government are taking in clause 2.

[Owen Smith]

I understood the point that the hon. Gentleman was making: I was merely pointing out the significant concerns in New Zealand that remain.