Strengthening the Union as it Relates to Wales (First sitting)

Debate between Wayne David and Stephen Crabb

Tuesday 18th January 2022 General Committees

[Stephen Crabb]

I am sorry to respond to the hon. Member: it is not true that we have the worst covid death rate in the world. The standardised measurement of per 100,000 shows that Britain compares to similar sized nations such as Spain, France and Germany. There are a lot of other countries that have sadly experienced far greater deaths. Every single death is a tragedy, as the hon. Member is right to say. My other point in response is that decisions about public health in Wales were almost wholly the responsibility of the Welsh Government.

The decisions taken at UK level that affected Wales were around the financial architecture of how to support individuals, families and businesses. The public health measures were taken by the Welsh Government. As I will explain, generally the Welsh Government have veered to a tendency for more lockdown rather than fewer, wanting to be stricter, often on very flimsy scientific evidence—as the hon. Lady herself demonstrates in her question, to such little effect.

I draw hon. Members’ attention to the latest jobs data published this morning, with record job vacancies again and the employment picture continuing to improve. That is not what many people predicted for this phase of the pandemic, once the furlough scheme had been unwound. People were predicting a crisis of unemployment, but the truth is that that never happened. What happened was that the UK economy was well placed to rebound strongly last summer and it has continued to create jobs.

That is a really good thing, and it is down to the decision making of the Treasury team, to create that furlough scheme, which meant that there was not a tsunami of business failures and redundancies. Businesses were able to use that as a platform to grow again once the economy had been reopened. We do face challenges: the cost of living is certainly one of them, inflation, energy price hikes and, as revealed in this morning’s data, the fact that wage levels are not keeping pace with the cost of living, which is a serious issue that we need to address.

I reinforce the message of the Secretary of State that, when it came to those big decisions about how to get the country through the economy, the UK Government have been proved right. The Prime Minister continually emphasises the importance of seeing this as the one United Kingdom emerging from the pandemic. He is always incredibly polite and careful in his remarks about the Welsh Government and the First Minister. Even in private, when we coax him to say something critical about the Welsh First Minister, he is always incredibly polite, when sometimes we would like him to be stronger.

He is doing that in a genuine spirit of teamwork. That reflects well on the Prime Minister: he genuinely wants to foster a team UK ethos, respecting the fact that the Welsh Government have a different set of competences and have the freedom to take different decisions about public health protection measures. He is genuinely trying to foster an atmosphere of team UK.

[Wayne David]

I have a wry smile on my face because the right hon. Gentleman is talking about an individual we know does not exist. His view is not shared by the majority of his colleagues who are twittering and twattering in the corridors about the next leader of the party all the time.

[Stephen Crabb]

I am talking about our response to the pandemic and the Prime Minister’s determination to get this country through it as one United Kingdom, in the spirit of teamwork, as far as politics allows. I find the posture of Welsh Government towards UK Government throughout the pandemic disappointing and somewhat dismaying, because it is in contrast to the politeness from the Prime Minister about the Welsh First Minister and the sense of team UK that the Prime Minister has been trying to foster.

The stance of the Welsh Government has been constant, incessant criticism, complaint and grievance towards UK Government. I will highlight a few examples of the complaints from the Welsh Government, which are corrosive and not grounded in reality.

The most common complaint from the Welsh Government over the years is financial—they never get enough money from the UK Treasury. As Welsh politicians representing our constituencies, we always want more for our constituents if possible, but I have always regarded with a bit of suspicion the complaint that they do not have enough money. I look at some of the money that they have made available to Cardiff airport, to take a stake in sports car company TVR and some of the other odd investments the Welsh Government have made in certain property deals. I am a bit suspicious when they complain that they never have enough money. Certainly, when it comes to the pandemic, the sums of money that the Treasury has made available to the Welsh Government are unprecedented, really significant and really welcome.

One of the other grievances of the Welsh Government, as you know, Mr Davies, is about a lack of communication and dialogue between them and the UK Government. We both sit on the Welsh Affairs Committee, Mr Davies, and have had the chance to ask the Secretary of State about that, as well as other UK Ministers and Welsh Ministers. We are very grateful that Welsh Government Ministers make themselves available for our evidence sessions. The testimony we have heard from so many Welsh Government Ministers is that their own Departments’ dialogue with the UK Government is really good—lots of meetings and discussions. That backs up the point that the Secretary of State made in his testimony to the Committee that there has been an almost unprecedented number of meetings and forums between the UK Government and the Welsh Government during the pandemic. Far from it being a period when, somehow, the UK Government have been snubbing or not valuing the opinion of the Welsh Government, the pandemic has set a high water mark of engagement between UK Government and devolved Government.

The third grievance we have heard continuously from the Welsh Government, which is demonstrably false, is that somehow the UK Government were taking unsafe, reckless decisions about reopening the economy. We heard that very recently from the Welsh First Minister. The data just do not support that. As I said, every death is a tragedy in this country, but there is no evidence to suggest that the stricter—sometimes oddly strict—measures that the Welsh Government have taken have been based in sound science and have achieved any better outcomes. I look at some of the decisions that the Welsh Government have made around their restrictions, such as that nonsensical ban on outdoor parkruns, criminalising people wanting to go to their workplace—they could go to the pub but they could not go to work. There is a whole range of these things that are odd and divisive, and have made the Welsh Government and Wales an outlier in the United Kingdom.

Oral Answers to Questions

Debate between Wayne David and Stephen Crabb

Wednesday 18th November 2015 Commons Chamber

[Wayne David (Caerphilly) (Lab)]

1. What steps the Government are taking to support the steel industry in Wales.

[The Secretary of State for Wales (Stephen Crabb)]

I would like to start by putting on record the enormous sense of solidarity felt by all people across Wales with the French nation. We stand with them shoulder to shoulder in these difficult and anxious days.

The steel industry in Europe is facing a perfect storm as a result of a glut of cheap imports, falling prices and high energy costs. With nearly half of the UK’s primary steel industry employed in Wales, we fully recognise the impact of these global challenges on Welsh steelworkers and their families. We are working closely with the industry and with the devolved Administrations to do everything possible to support the industry at this time.

[Wayne David]

We on the Labour Benches associate ourselves with the Secretary of State’s words about the people of Paris.

On 28 October, the Secretary of State for Business, Innovation and Skills attended an extraordinary meeting of the Competitiveness Council on the steel industry. Following that EU meeting, plenty of warm words were issued in a written statement, but can the Secretary of State tell the House what practical measures were agreed to help the steel industry in this extremely difficult time?

[Stephen Crabb]

I thank the hon. Gentleman for the question. Before I answer it substantively, I should make the House aware that there has been an explosion in the past hour at the Celsa Steel plant in the constituency of the hon. Member for Cardiff South and Penarth (Stephen Doughty). Our thoughts are with the workers at this time and with the emergency services who are at the plant as we speak.

On the practical response to the global challenges facing the steel industry, the hon. Member for Caerphilly (Wayne David) will be aware of the specific practical working groups that we established following the national summit. Those engage the Welsh Government as well as the Scottish Administration, and action has been taken by the Business Secretary at a European level to get our European partners to focus much more seriously and more urgently on tackling dumping and bringing forward state aid clearance so that we can fully compensate our steel industry for the higher energy costs that it faces.

Government Policies (Wales)

Debate between Wayne David and Stephen Crabb

Wednesday 26th November 2014 Commons Chamber

[Stephen Crabb]

Absolutely, I welcome the fall in unemployment in my hon. Friend’s constituency. During the shadow Secretary of State’s speech, I was looking through Labour Members’ constituencies. Many of them saw increases of 60%, 70% and 80% in unemployment under the last Labour Government, whereas unemployment in those constituencies is now falling.

[Wayne David]

What would the Secretary of State say to my constituents in Lansbury Park, who, because of the policies of his Government, now find themselves living in the poorest ward in Wales?

[Stephen Crabb]

I have been to the hon. Gentleman’s constituency: I had a fruitful set of meetings with people working at the coal face in terms of supporting people in long-term unemployment and helping them back into work. I realise that there are challenges in the Welsh economy and that sections of Welsh society are still not seeing the full benefits of economic recovery, which is why there is no complacency on the Government Benches, but I must point out that his local authority is working very well with the Department for Work and Pensions, in preparing for the roll-out of universal credit, which will make a difference to the lives of people in his constituency.

[Jonathan Evans]

Is not the answer to the hon. Member for Caerphilly (Wayne David) that the Lansbury Park estate did not become poor in the last four years, and that throughout all the years he has represented the area, it has been one of the poorest in Wales? It is only since the coalition came to office that unemployment has started falling, whereas when Labour was in office, it went upwards.

Wales Bill

Debate between Wayne David and Stephen Crabb

Tuesday 24th June 2014 Commons Chamber

[Wayne David]

That is a fair point, and I will touch on it a little later. We have asymmetrical devolution in the United Kingdom; we have different forms of devolution in different parts of the UK. While there are good reasons for that, it does not help the general public’s understanding of what is devolved and what is not devolved. If we had greater consistency in the bedrock of devolution between Northern Ireland, Scotland and Wales, that would help that public understanding. Some may say that strictly speaking the Northern Ireland settlement is not quite akin to the Scottish settlement, but nevertheless in effect we have a reserved powers model in place and it would be advantageous if Wales were to follow their examples.

As Members, and in particular my hon. Friend the Member for Llanelli (Nia Griffith), have said, there has been an unfortunate conflict between central Government and the Welsh Government through the Supreme Court. There have been three referrals of legislation to the Supreme Court. We have heard about the then Local Government Byelaws (Wales) Bill, which the Government here in London questioned. They asked for the Supreme Court to make an adjudication, and the position of the Welsh Government was upheld, but we must consider the amount of time and effort that went into questioning such a relatively small measure and whether that meant there was better government.

I feel I must quote the Counsel General for Wales, Theodore Huckle QC, who has said that

“it took five Supreme Court Justices…several of the UK’s leading constitutional lawyers and a great many officials across three Governments to decide it was lawful to make minor changes to the way Welsh local councils deal with things like dog-fouling and loitering in public lavatories.”

That raises this question: what sense is there in that? How on earth can that be defended as good government? It cannot be.

[Stephen Crabb]

I genuinely wonder whether the hon. Gentleman is suffering from amnesia, as he was a part of a Government who created that exact system. If he does not think the Supreme Court is the relevant mechanism for resolving disputes between two Governments over legislative competence, then what is, under the reserved model he supports?

[Wayne David]

I just think it is very important to learn. I know that is anathema to the current Government, but if we recognise that devolution is a developing process, it is vital that we learn and make things better and, when things are clearly not as they should be, make improvements. That is a good way to approach government.

--- Later in debate ---

[Wayne David]

I have no qualms at all about talking about England, because we are a United Kingdom, but if I deviated from my notes and spoke at length about England, you would take me to task pretty quickly Madam Deputy Speaker.

It is important to recognise that the Local Government Byelaws (Wales) Act was not a one-off. We have seen an attempt—perhaps most significantly, politically—to prevent the Welsh Government from carrying through their legislative plans for the agriculture sector. That is a far more emotive issue, particularly for workers who are directly affected by this Bill—or, as may happen, the lack of it. However, that reinforces the constitutional point that the current situation is unsatisfactory, facing as we do ongoing legal challenges on the basis of politics, rather than, as my right hon. Friend the Member for Torfaen (Paul Murphy) said, Members sitting down together where there is a genuine dispute between the two legislatures and working things out.

The conclusion I come to is that we need a system that transcends party politics: a constitutional arrangement that is seen to be fair to everybody, and that respects the integrity of the United Kingdom but also the development of devolution in Wales; a settlement based on a reserved powers model that is far more intelligible to people in Wales, and that will help them to understand far more easily the basis of our devolution arrangements in Wales and the United Kingdom as a whole.

[Stephen Crabb]

The hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) said that the purpose of amendment 8 is to ensure that the Welsh Government can use their new borrowing powers to invest in projects that they, rather than Her Majesty’s Treasury, want to take forward. I should point out that the Bill already provides Welsh Ministers with complete flexibility to decide how to use their borrowing powers, in much the same way that they have complete flexibility regarding their resource and capital budgets. I wonder whether the hon. Gentleman was confusing the requirements for the early borrowing powers with the wider borrowing powers the Bill sets out. Regarding the former, he is right that there is a specific agreement between the Welsh Government in Cardiff and the UK Government—specifically the Treasury—to facilitate early movement on a strategic project of importance to the Welsh nation and economy: namely, the M4 upgrade. So, rather than it being a project imposed from above by the UK, it is very much demand-led from within Wales.

Wales Bill

Debate between Wayne David and Stephen Crabb

Monday 31st March 2014 Commons Chamber

[Stephen Crabb]

I am criticising Opposition Members on two counts. One is the amount of time that they took talking about a relatively minor issue, when they could have used their time to better effect by talking about the real, everyday concerns of the people of Wales who will be affected by the measures in the Bill. I also criticise Opposition Members on this issue because they are wrong. They are in the minority. All other parties support the measure. Wales is the only country with such a ban on dual candidacy.

[Wayne David]

Will the Minister give way?

[Stephen Crabb]

I have been very generous with my time, and I am not giving way again.

The Bill provides the Welsh Government with the means to take active steps to improve the lives of hard-working people in Wales. It will allow the Welsh Government to tailor devolved taxes to best fit the specific needs of Wales; it will make them accountable for some of the money they raise, not just the money they spend; and it will give them the tools to grow the Welsh economy. It also provides them with the means to make much needed investment in critical infrastructure in Wales and, if they choose, to call a referendum to devolve a portion of income tax. It is a Bill I am pleased to commend to the House.

Question put and agreed to.

Bill accordingly read a Second time.

Wales Bill (Programme)

Motion made, and Question put forthwith (Standing Order No. 83A(7)),

That the following provisions shall apply to the Wales Bill:

Committal

The Bill shall be committed to a Committee of the whole House.

Proceedings in Committee

(2) Proceedings in Committee of the whole House shall be completed in two days.

(3) The proceedings shall be taken on the days shown in the first column of the following Table and in the order so shown.

(4) The Proceedings shall (so far as not previously concluded) be brought to a conclusion at the times specified in the second column of the Table.

Women in Wales

Debate between Wayne David and Stephen Crabb

Tuesday 16th July 2013 Westminster Hall

[Stephen Crabb]

The danger when looking through any particular demographic lens—we could have been debating the impact of policies on young people, older people, disabled people or people from ethnic minorities—is that we are lured into making generalisations and over-simplifications. We have had a bit of that this afternoon, so hopefully I will inject some balance into the debate.

The starting point, of course, is the economic context and the enormous financial crisis that still faces this country. It is worth putting on record again—I know that Opposition Members will roll their eyeballs at this—that the reason why we are having to take very difficult decisions about public expenditure, and the reason why we are having to restore discipline to our national finances, is the financial mess that the Labour party left after 13 years in government. I will go further: future generations of women and girls would not thank us if we shirked our responsibility now and did not address the deficit and the debt. They would not thank us for the burden of debt that we might hand on to them if we did not take the difficult decisions that we are taking.

[Wayne David (Caerphilly) (Lab)]

I say with all due respect that we have had three years of this Conservative-led Government, and the record is now wearing a bit thin. It is no longer valid, if it ever was, to blame everything on the previous Government. Surely to goodness the Minister can form a better argument in defence of what he has done.

[Stephen Crabb]

The context is important, and it is valid. I reject what the hon. Gentleman says.

The Labour party is committed at the moment to cutting £7 out of every £8 that the coalition Government are cutting. The Labour party has said that it is committed to that level of budget cuts. Of course, it will not say where. I listened to the hon. Member for Newport East give a long list of cuts to which she objects, but she will not say what her party would have cut. She is also not saying that her party, if it were in government, would actually increase spending on any of those services. I hope she will forgive me for saying this, but it is a little disingenuous to attack all the efforts that we are making to restore discipline to our national finances without also being up front by saying, “As a party, if we were in government, we would probably be cutting all of these things, too.”

National Assembly for Wales

Debate between Wayne David and Stephen Crabb

Wednesday 6th February 2013 Commons Chamber

[The Parliamentary Under-Secretary of State for Wales (Stephen Crabb)]

I congratulate the hon. Member for Swansea West (Geraint Davies) on securing this Adjournment debate on the Green Paper on future electoral arrangements for the Assembly.

Hon. Members will recall that we debated the Green Paper in Westminster Hall on 3 July last year. I was not in Westminster Hall for that debate and I am not sure whether the hon. Gentleman was. I have watched the video and read it in Hansard and neither makes for a particularly edifying experience. It was not a particularly good debate, so it is worth revisiting some of the issues this evening.

Some hon. Members from Wales participated in the consultation and are keen to know where we have reached, particularly, as the hon. Member for Swansea West said, in the light of the vote last week on the Electoral Registration and Administration Bill—I will come to that in a moment. I was going to say that this debate is timely given that vote, but I will not congratulate the hon. Gentleman on that because, as the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) has reminded us, it is keeping us all from the football. We are, however, grateful to him for keeping us updated with scores. That might prove to be one of the more interesting points of the debate this evening.

My right hon. Friend the Secretary of State for Wales has made it clear that following last week’s vote in the House the Government will not now take forward the Green Paper proposals on Assembly constituency boundaries. I hope that answers one of the questions raised by the hon. Member for Swansea West. Indeed, the Government have been clear all along that the changes to the make-up of Assembly constituencies proposed in the Green Paper—either reinstating the link between Assembly and parliamentary constituencies, or retaining 40 Assembly constituencies but making them a more equal size—would be predicated on Parliament approving the proposals of the four UK boundary commissions for new parliamentary constituencies.

The hon. Gentleman opened his remarks by stating his delight that the proposals for revised parliamentary constituency boundaries were defeated, but I thought he gave the game away as to his agenda this evening. I think he is throwing up a smokescreen for the vote that he and his colleagues took that evening, which was not only a vote against fairer-sized parliamentary constituencies across Wales and the UK, but a vote against cutting the cost of politics.

[Wayne David]

The Minister says the motivation was cutting costs but will he explain why his Government are in the process of creating 50 extra peers for the other place?

[Stephen Crabb]

We will not take any lessons from the Labour party on spending money. The hon. Gentleman was a distinguished Minister in the previous Government and perhaps bears more responsibility than most, in terms of collective responsibility, for some of the decisions taken by that Government with such disastrous financial consequences for this country. We will take no lessons from the Labour party on the good use of resources.

I think that the hon. Member for Swansea West and his colleagues will come to regret the vote that they took last week, which was, as I have said, against fairer-sized parliamentary constituencies and cutting the cost of politics. Voters want more out of democratic system; they want more value for money and to know that their votes count. The hon. Gentleman’s constituency has an electorate of 60,000 or 61,000, but some of his colleagues have 94,000, 95,000 or 96,000 constituents. He should be able to see as well as anyone the inbuilt unfairness in the current system of parliamentary boundaries.

--- Later in debate ---

[Stephen Crabb]

I have been clear about the consequences of the vote taken in the House last Tuesday—I was disappointed with the outcome—and that we will not proceed with the aspect of the Green Paper that deals with changes to Assembly constituency boundaries.

Of the three questions I have highlighted, the most pressing is on the length of Assembly terms. Hon. Members will be aware that, as a result of concerns expressed by the Welsh Government during the passage of the Fixed-term Parliaments Act 2011, the Assembly election scheduled for May 2015 was deferred by one year until 2016 to avoid a clash with the next general election. That is a good example of the UK Government listening to the concerns raised by the Welsh Government and, to address another point the hon. Gentleman raised, collaborating with them. That is a one-off change. The two elections are set to coincide again in 2020 unless provision is made to prevent it.

A majority of respondents to our consultation favoured a move to five-year terms to reduce the likelihood of elections coinciding in future. The decision is a finely balanced one—good arguments have been made in support of both options—but however we decide to proceed, we are mindful that electors in Wales should be clear on how long they are electing their representatives for. Importantly, all four political parties in the Assembly favoured a move to five-year terms. It is worth putting that on the record.

In the Green Paper, the Government set out our intention to repeal the prohibition on a candidate at an Assembly election standing in both a constituency and a region. All three Opposition parties in the Assembly favoured removing the ban, but I acknowledge that, overall, a small majority favoured retaining the prohibition in their responses to the consultation. A significant majority of respondents agreed with our proposal to prevent Assembly Members from sitting in Westminster.

The hon. Gentleman mentioned competency—that issue was discussed at length during the debate of 3 July 2012. I should point out that the Government are simply operating within the framework that the previous Government set out in the Government of Wales Act 2006. As he knows, the Act states that competency and responsibility for electoral arrangements for the Welsh Assembly resides at Westminster. There is a Silk process—part 2 was launched recently, which provides a great opportunity for people who have concerns and other ideas to contribute. The Government have made it clear that we will listen and read very carefully all submissions to Silk part 2. We will announce our response in due course. The hon. Gentleman was not in the House at the time, but other hon. Members in the Chamber were, and I remind him that they supported the previous Government’s legislation and the framework that retains competency and responsibility for Welsh Assembly elections at UK level.

[Wayne David]

The Minister indicates that a large part of the Green Paper is redundant because of last week’s events in the House. Will he issue another Green Paper? If not, the consultation was on a largely flawed document.

--- Later in debate ---

[Stephen Crabb]

The hon. Gentleman is an experienced parliamentarian and I think he is trying to tempt me to say more than I am able to at this stage. The Green Paper presented a package of changes and proposals. As hon. Members recognise, one significant part of the package is not being proceeded with, so we now have to look at the other elements on their own terms and decide how we can proceed with them, and, if we proceed with them, what would be the best legislative vehicle for them. I am not, therefore, in a position to give him all the information he is looking for this evening, but I am sure we will come back to it.

[Wayne David]

The Minister mentioned that £3,000 had been wasted because a large chunk of his document is now totally irrelevant. Does that £3,000 include the time civil servants spent on the element that has been ditched?

[Stephen Crabb]

If ever there was a false premise to an intervention, that was one. It was not wasted at all. We had extremely valuable responses to the consultation that will feed into our deliberations about the other parts of the Green Paper package. [Interruption.] The hon. Gentleman laughs. If we were not consulting, he would be the very first Member to stand up and complain about a lack of consultation. We can never win with the Opposition: there is either too much consultation or not enough consultation, or we are going too fast or going too slow. Actually, we think we have the balance right. We are taking the time to do this properly. We know that the most timely part of the changes will be, as I said earlier, the need to make a decision about the length of the Assembly term—whether we move from four years to five years—and we will proceed on that in a timely manner.

Oral Answers to Questions

Debate between Wayne David and Stephen Crabb

Wednesday 16th January 2013 Commons Chamber

[Wayne David (Caerphilly) (Lab)]

We all know that millionaires benefit from the Government’s tax policies. Will the Minister tell us how many millionaires there are in Wales?

[Stephen Crabb]

The hon. Gentleman knows as well as I do that there are relatively few millionaires in Wales. What I can tell him is that in every year of this Parliament, they will be paying more tax than they did in each year of the last Labour Government.

Oral Answers to Questions

Debate between Wayne David and Stephen Crabb

Wednesday 28th November 2012 Commons Chamber

[The Parliamentary Under-Secretary of State for Wales (Stephen Crabb)]

The economy is our top priority, and I am very pleased that unemployment in Wales fell by 5,000 over the last quarter and by 14,000 over the last year. In October 2012 there were 21,000 people in Wales who had been claiming job seeker’s allowance for 12 months or longer.

[Wayne David]

Does not the fact that long-term unemployment in Wales has risen for 17 consecutive months demonstrate that the Work programme has been an abysmal failure?

[Stephen Crabb]

It demonstrates nothing of the sort. The statistics published yesterday for the Work programme should not be the basis on which its overall success is judged, because it is a long-term programme. Many of the biggest gains from the programme will be seen in the second year, and statistics will follow this time next year.

UK and Welsh Governments (Finance)

Debate between Wayne David and Stephen Crabb

Tuesday 11th September 2012 Westminster Hall

[Stephen Crabb]

There are established processes in place, through the comprehensive spending review, for looking at all those issues. I hope that the hon. Gentleman will take me at my word when I say there is a genuine commitment among the new team in the Wales Office, and our colleagues in the Treasury, to work with Ministers in the Welsh Government to explore those issues in depth, and ensure that Wales gets the fairest possible outcome.

The hon. Member for Arfon raised some other financial matters. Progress has been made on the issue of the housing revenue account, about which the hon. Member for Carmarthen East and Dinefwr spoke so powerfully in, I think, November 2010. The Government are working with the Welsh Government on how the HRA in Wales can be abolished, in line with the approach taken in England. We agree that any reform of the HRA subsidy system would need to be fiscally neutral, as it was in England. I know that Plaid Cymru Members have strong feelings about the current system, but Ministers here and in Cardiff agree that it is not unfair to Wales. However, they are considering ways to improve it. Discussions are continuing, and we are currently awaiting clarification from the Welsh Government to proposals that they made in August. I emphasise, again, that we are operating within the framework of the UK fiscal system, and need to bear in mind the consequences to other parts of the system of change affecting Wales.

Hon. Members should be aware that the former system of end-year flexibility has now been replaced with a new budget exchange system. In designing that system, the Government worked closely with the Welsh Government and have implemented a system that provides increased flexibility for the devolved Administrations to manage their own underspends. The Welsh Government have signed up to that approach, as indeed have the other devolved Administrations. I want to make one point about underspends. Generally it is not good to have many of them. Administrations should plan prudently as well as spend prudently, and if they do that, and carry out their spending plans efficiently, there should not really be any case for large underspends at the end of the year.

I hope that I have dealt with all the points that the hon. Gentlemen raised. I look forward to hearing the outcome of the talks.

[Wayne David (Caerphilly) (Lab)]

I welcome the Minister to his position—to both of them, in fact. He is a remarkable person, as he is able to spend so much time both as a senior Whip and a Wales Office Minister.

I want to ask him about the future, and how he sees the work of the Silk commission progressing to part II. Will he talk about the future constitutional relationships? Will there be dialogue with the commission on the West Lothian question, for example?

[Stephen Crabb]

Part II of the Silk commission goes way beyond the subject that we are debating, as the hon. Gentleman knows. It looks at wider devolution in Wales, and the potential for devolving other powers. Part I, which has more of a bearing on what we are discussing, looks at potential fiscal devolution; so, tempted again as I might be, I am not going down that path.

[Wayne David]

We have got plenty of time.

[Stephen Crabb]

I know we have plenty of time, but I am still not going to talk about that issue when we are debating funding issues.

Question put and agreed to.