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COMMISSION ON THE POWERS AND ELECTORAL ARRANGEMENTS OF THE
NATIONAL ASSEMBLY FOR WALES

MINUTES OF PROCEEDINGS

of the

EVIDENCE OF:

WAYNE DAVID, MP

held at

Committee Room 4B

House of Lords, Westminster

on

Friday, 14th March 2003

LORD RICHARD: Good morning. Thank you very much for coming, we are very grateful to you. The procedure we have been adopting with most witnesses is to ask them in effect to give a five minute or so introduction and then we can follow up whatever points it is the Commission might think appropriate. For the sake of the record, could you just formally identify yourself.
MR DAVID: Wayne David, Member of Parliament for Caerphilly. Thank you very much indeed for finding the time to take evidence from me this morning, I am extremely appreciative. I think the work that you are doing is of tremendous importance and I think that view is held by people up here as well as back in Cardiff and Wales generally.
Could I begin by saying that my support for devolution, my strong support for devolution, grew out of my practical experience as a Member of the European Parliament for some ten years. I saw at first hand how in most Member States of the European Union there are well established, albeit varying, forms of devolution taking place. I think the idea of a Europe of the Regions, small nations, is one which is well entrenched in the European political culture. I think those regions which do have well established forms of devolution tend to be countries with successful economies as well as dynamic and diverse cultures. That experience, combined with my experience in Wales of the proliferation of unaccountable government, the so-called quango state, coming together made the case for me very forcefully for the need for a new form of government.
However, my comments here today really are from two separate and distinct perspectives. Firstly, the experience I had working for the Youth Service in that interregnum between when I was a Member of the European Parliament and when I was elected here to Westminster and, secondly, my experience since 2001 as a Member of Parliament.
Could I say, first of all, that I worked for the Youth Service for the best part of two years basically as an education advisor and my main brief during that time was to follow through the Welsh clauses of the Learning and Skills Bill 2000, especially those which effectively empowered the National Assembly to create a new Youth Service in Wales. More specifically those clauses enabled the National Assembly to introduce a statutory obligation on local authorities in Wales to provide services for young people on the basis of partnership between the voluntary youth sector and the maintained youth sector. It was seen at the time as an alternative to the new Connexions service, which was being introduced in England.
After the successful passage of that legislation I played some modest role in helping the Youth Service prepare for the implementation of that legislation and saw what was happening with regard to the drafting of secondary legislation.
The points I would like to make which came home to me out of that experience were, firstly, how very little discussion actually took place in the House of Commons and the House of Lords about that legislation. Welsh members, even in Committee, did not to any great extent really focus on the provisions of these very important all-Wales clauses. It was because of that that, with the Wales Youth Agency, I organised a briefing session for Members of Parliament, and Mr Ted Rowlands came along to that, and we had a very, very good discussion. It seemed to me throughout the whole passage of the legislation that there was very little debate being generated internally inside Westminster, the pressure was coming from outside. I have to say too I think there was very little genuine appreciation amongst National Assembly Members about what the legislation actually meant for Wales and for the Youth Service and there was little realisation about how radical what was actually being introduced was. There were exceptions, of course, as far as the First Secretary, Alun Michael, Rhodri Morgan and, of course, Jane Davidson, who had a very deep and profound appreciation of what was being suggested.
I think that that whole experience certainly brought home to me how at that time at least there was something of a chasm between what was happening in practice and what Members of the Assembly and Members of the Commons' perceptions were of what was happening or was not happening.
My second perspective comes from my time as a Member of Parliament. I followed fairly closely the Health (Wales) Bill. That Bill, again, is of some significance in constitutional as well as practical terms. It expands the role of Community Health Councils, it establishes two statutory bodies for Wales, the Wales Centre for Health and the Health Professions (Wales). In contrast, I think, to the Learning and Skills Act, which I referred to, there has been a high degree of AM and MP involvement in the pre-legislative and the legislative process and that is more recently continuing in the Lords as well. The Bill was proposed by the Welsh Assembly Government, accepted in principle by the Westminster Government, but very importantly the proposals went through a pre-legislative scrutiny stage. It was debated in the Health and Social Services Committee of the National Assembly and by the Welsh Affairs Select Committee in this House and I believe they had joint sessions. It was also debated in more detail in the Welsh Affairs Select Committee, the Welsh Grand Committee and also on the floor of the National Assembly itself, and after that it went to the floor of the House of Commons and then proceeded on to the Lords. I think that process has by and large, although quite long and complex, been very successful. There has been a high degree of appreciation of the significance of this Bill.
Significantly, too, there have been modifications to the legislation made during that process, particularly after the pre-legislative scrutiny stage. The conclusion I draw from that is I think there are lessons to be learned, not least the importance of pre-legislative scrutiny but also the need for AMs and MPs and peers to work closely together on all devolution legislation.
I think that devolution is very much a partnership arrangement, a partnership between London and Cardiff, between the two governments here and in Cardiff, but I also think profoundly it can be significantly improved with greater backbench Assembly Member and MP involvement. Certainly up here in Westminster there is a growing acceptance of the worth of pre-legislative scrutiny and I think that applies to all legislation, not just that which applies particularly to Wales.
I am slightly concerned, however, that since the advent of the Welsh Assembly there has been something of a distance growing between AMs and MPs. I think that efforts have been made by political parties to bring together politicians from both Houses but I think it has been spasmodic and has not really countered the trend which I think is in evidence now of members increasingly drifting apart and tending to do their own thing almost in isolation sometimes from what is happening in the other House.
I think that one of the issues that should be addressed is how we can ensure that members of both institutions work more closely together. I do not think it is enough simply to rely on goodwill or even political parties for that to happen, or, as is often the case, simply personal relationships. I actually think that relationship needs to be formalised and institutionalised for it to be truly effective.
I believe that one idea which might be worth looking at is the creation of a new kind of Welsh Grand Committee, a Grand Committee which would bring together Assembly Members and MPs who could then discuss legislation in its pre-legislative form. I think that would be extremely useful in a practical sense and would help to counter that trend which I described earlier of the two institutions pulling apart.
There is also debate going on in the House of Commons in the European Scrutiny Committee, of which I am a member, about the growing divide that exists between the House of Commons and the European Parliament. One of the suggestions that the European Scrutiny Committee has made is that there should be a European Grand Committee bringing together MPs and MEPs. Although we have not secured agreement for that in the House yet, nevertheless that kind of practical co-ordination is now taking place for the first time, I believe, since the European Assembly was established. I think that is extremely beneficial and significant.
Could I just say, finally, that one of the big issues obviously which I know the Commission has been addressing is whether or not the National Assembly for Wales should have more powers. I would just like to say something briefly specifically on that. Personally I think it is important to recognise that the current Devolution Settlement has validity. It has validity because it was a manifesto commitment from the party which won power in 1997 and also, of course, it was subject to a referendum of the people of Wales. As we all know the referendum was passed with a very slim majority, nevertheless a yes vote is a yes vote is a yes vote. I do not think we should minimise the significance of that. I do not think, quite frankly, it is valid for any politician to argue that that prospectus which was put to the people of Wales lacked any kind of intellectual integrity because it was a compromise of different views inside the Labour Party in particular. I think that was a sound proposal that was put to the people of Wales, it was thoroughly debated and openly debated and was accepted. I believe that if there is to be a major re-examination, an extension, of the Devolution Settlement then the new proposals should be put to the people of Wales in a fresh referendum. I have to say that would not be a decision which would be taken lightly by anyone.
The second point I would make is that by and large I think the Devolution Settlement is working well. We should not forget that we are in early days. I always shy away from having any kind of ideological fixation about the need for having more powers for the sake of having more powers. My approach to devolution is essentially pragmatic. What I am concerned about is what works, what is understood by people and what actually delivers the kind of policies which I and my party seek to represent. I noticed in yesterday's Western Mail a report by Professor Robert Hazell, I think, in which he is very critical of the Devolution Settlement and is very critical of the number of items of legislation which have been enacted by the Westminster legislature. I would say three things in response to those kinds of arguments. Firstly, I would stress that devolution is genuinely a partnership and for any partnership to work there has to be give and take on both sides. I also think too that devolution does redefine but in so doing reinforces the partnership between England and Wales, a partnership which is political, cultural and economic. I do not think we should be afraid of saying that. Devolution is not about separation, it is about having a better form of government.
Secondly, I think that there is a clear separation in the Wales Bill between primary and legislative powers but I think there is a tendency to forget sometimes just how significant enabling clauses which are passed in primary legislation can actually be for the Welsh Assembly. Again, I refer back to the point I made about the Learning and Skills Act. That, for example, contained enabling legislation for the Assembly to restructure the Youth Service as the Assembly so wanted. I think it is sometimes too simplistic to make that very crude divide of saying that there is primary legislation here, secondary legislation back in Cardiff; the fact is it is more complicated.
The third and last point I would make is that there has been a great deal of focus and debate on legislative powers but I do not think we should forget the significance of having devolution on the issue of public expenditure and the block grant. I think in terms of actually affecting people's lives that is probably more significant really than most legislation.
Having said all of that, I am not saying, however, that there should be no change. I think that we need to recognise the fact that we have a Transfer of Functions Order under section 22 of the Wales Act is significant, it has been used on four occasions to date and there is no reason why it cannot be used more extensively. I think too there does genuinely need to be a debate about devolving additional specific powers to the National Assembly. That debate needs to focus on specific areas, it cannot be a generalised debate. I do not think that anybody should shy away from having that kind of specific debate on specific areas.
When all is said and done, for me as a parliamentarian here, the real challenge is not about changing the Devolution Settlement, the real challenge is how to make it work more effectively and hopefully some of my suggestions, particularly the idea of a new kind of Welsh Grand Committee, will indeed help the Devolution Settlement be more effective.
LORD RICHARD: Thank you very much indeed. I think that has raised a number of very interesting points that I know we will want to pursue.
Can I start off by pursuing in effect the last point that you made which was that the object of the exercise as you see it is to make the Devolution Settlement work better but you then go on to say that you think devolution should take place in specific orders, not just the transfer of functions, in other words education being the responsibility of the Welsh Assembly or health being the responsibility of the Welsh Assembly or the Home Office, prisons should be. In other words, you would look at it in terms of individual subject matters and not in terms of powers which somebody has got at the moment that should be dissolved (?devolved?) or should be given to the Assembly. That is precious near revising the whole settlement, is it not?
MR DAVID: I do not necessarily think so, no. There are two issues, as you say. There is the issue of making the settlement work more effectively but I do not think that we should disguise the fact that there is a debate going on about, if you like, revising some elements of the settlement in key policy areas. I am saying there are two things taking place in parallel really. As of this moment I certainly know, for example, that there is a debate going on about the powers of the police. I am conscious of the fact that the four police divisions in Wales have said that they are mindful that there should be a devolution of at least some powers of the Home Office to the Assembly with regard to policing. What I am saying is we should recognise that there is a debate taking place and listen to the arguments rather than come to any knee-jerk reaction for or against.
My own view as things stand is that is one area where I do not think the case has been made but I am saying that nevertheless we should be aware that it is taking place. I think it would be wrong to see the devolution process as something that is completely set in tablets of stone one minute and then completely open to change the next. We should have a process of ongoing discussion and we should not be afraid of that. That in itself is a healthy consequence of devolution.
LORD RICHARD: I think that is absolutely right, it is a question of the form of the discussion and what the result of the discussion might be. You probably know that there is a lot of unrest among the lawyers in Wales about the form of the settlement, how complicated it is, the fact that it was done by transfer of functions rather than devolution of subject matter and the complications that has created. From what you are saying I take it that you would be in favour, if possible, of at least revising the form of the settlement so that it was more directed towards the subjects than it would be towards individual functions.
MR DAVID: In some ways I think that if you were perhaps approaching devolution in a different set of circumstances for the first time the approach could have been slightly different. At the end of the day it is a political judgement about whether or not the best approach is to work entirely with what we have got or to have a more radical departure and have a greater subject orientation as you are suggesting. I am not absolutely convinced that the time is right or the political situation is right for that change to be made quite frankly.
LORD RICHARD: But that is done in a sense. I take it from what you are saying that you do not think that there would be much parliamentary steam in Westminster for a new Government of Wales Act, to tear the whole thing up and start again with a different structure?
MR DAVID: No.
LORD RICHARD: You have got to recognise the parliamentary problems that there are here in getting legislation through. If you could turn it to subject areas rather than devolved powers without having to go through the whole process up here, you would get a tidier settlement, would you not?
MR DAVID: I think you possibly would. We may well move towards that in the future. Looking ahead to this process, I think one of the consequences of having greater co-ordination and mutual respect between AMs and MPs is that people might almost naturally move towards certain conclusions which would lead to precisely what you are suggesting. My concern, however, coming back to one of the points I made earlier, is that I think it would be a retrograde step if we allowed the friendly rivalry which we have at the moment to extend into sort of trench warfare because it simply becomes a question of whether one place holds on to its powers or another place grabs them rather than looking at what is the best way forward to achieve certain objectives in Wales. That is why I think the atmosphere and the climate is so very, very important before we can have any modest consensus about what the way forward might be. It is the approach that is the thing I would like to stress at this stage. I take a long-term perspective of how devolution might evolve over the years, it is not a quick-fix. It is that climate, that understanding, that mutual respect, which is so very, very important in order to move the debate on as it inevitably should.
SIR MICHAEL WHEELER BOOTH: A supplementary to the Chairman's question. You say that you are a believer, Mr David, in slowly pragmatically making things work but then you go on to say that you want to change the public expenditure arrangements which presumably would be more like the powers of Scotland.
MR DAVID: No.
SIR MICHAEL WHEELER BOOTH: What did you mean?
MR DAVID: No, I want to keep what we have got. The point I was making was there tends to be a great deal of focus in political debate in Wales on legislative powers, which is understandable, but I think there tends to be an under-estimation of the significance of the Devolution Settlement with regard to public expenditure.
SIR MICHAEL WHEELER BOOTH: In other words, that is really satisfactory?
MR DAVID: By and large I think it is, yes.
SIR MICHAEL WHEELER BOOTH: But this has been in a climate in which expenditure has been increasing and increasing.
MR DAVID: That is why it is so very, very important.
SIR MICHAEL WHEELER BOOTH: But supposing it changes.
MR DAVID: Yes.
SIR MICHAEL WHEELER BOOTH: Supposing instead of Gordon Brown dishing out money we have a lowering of the graph, would it work satisfactorily?
MR DAVID: Wales should always get more money, there is no doubt about that. The first point you make that public expenditure has been increasing is enormously significant. As I say, an increase in public expenditure, well and carefully used, will have a much greater impact upon the lives and the well-being of the people of Wales, I would suggest, than changes in policy, changes in legislation. That was the point I was making.
The second point is there is also a debate going on about whether or not the Assembly itself should have revenue raising powers of one kind or another. It has been suggested, for example, that as far as the English regions are concerned there is a very modest suggestion that the English regions themselves should have some kind of revenue raising power. That may or may not be the case. I think the real issue is whether or not the Welsh Assembly should have tax raising powers. Personally I would be strongly against that, or certainly I think the case has not even begun to be made for that, not least because Wales has got a very, very low tax base. My primary concern is not about developing abstract concepts of devolution but developing devolution as a means to bring about policy which will improve the lives of people.
LAURA McALLISTER: Can I ask you a very fundamental question that concerns something you said quite early on in your remarks about the burden of proof for recommendations for change now because you described some of the justification for the current settlement and it would be possible to take issue with one or two things that you said because the referendum itself was not on the exact proposals that we now have of course, it was a pre-legislative referendum and there have been significant changes from the White Paper to the Government of Wales Act, which I know you are fully aware of. Of course it does have legitimacy and validity in that it was a manifesto commitment. I just wonder, and this is very crucial to us, where does the burden of proof lie now? Is it with those who are seeking to justify and defend the current settlement with some tweaks or is it with those who are suggesting that there needs to be a rather more fundamental or radical change, possibly in the form of primary legislative powers or in some other direction? I would like you to answer in the context of some of the public opinion shifts that there seem to have been. The latest polling suggests that a primary legislative body is more popular than other options at this point in time. What is your feeling on that question?
MR DAVID: I think the case has to be made for change. My starting point, and most people's starting point, is we have what we have and if we are going to alter that the case has to be made for that change to come about. As far as public opinion is concerned, I think that it is very difficult to come to a balanced assessment of where public opinion is. I think it is very easy to suggest that if people are dissatisfied with the health service, for example, then if it is put to them that the way to solve that is for the Assembly to have more powers they will obviously say yes to that. I do not think it necessarily means that people are intellectually or even emotionally committed to having a fully legislative parliament in Wales. People's consciousness is a long way from that. I think most people accept that we have a Welsh Assembly, they want it to be successful, but you could equally argue, equally unfairly, that there are a lot of misgivings about the Assembly and a lot of discontent about how it is functioning. I think much of that criticism is unfair. It is a huge jump to make from, on the one hand, recognising people's disaffection with the Assembly and to say, therefore, obviously it needs to have more powers, is it not?
On this issue perhaps public opinion needs to be led and nurtured. Yes, things have moved on. I think few people seriously argue these days for an abandonment of the Assembly. It is recognised as an institution and a focus for Welsh life, and that is a huge step forward in itself. I also think that its First Minister is a popular figure in Wales and that is important for the credibility of the institution, that should not be under-estimated. It is a huge step to then argue that because we have made that kind of modest progress over the last few years that, therefore, people feel there is a need for the Assembly to have huge new powers. I do not think that naturally follows.
LAURA McALLISTER: In a certain way one could argue that the past four years have been our equivalent of a constitutional convention. It has been said to us by some in quite categorical terms that that has been the case and we did not have any mature political debate on devolution I would say, and I am sure you would agree with this, prior to the referendum or prior to the Government of Wales Act, so in a sense we have had to learn as we have gone along. We were told by the Secretary of State at the time that the proposal was a compromise and that it tagged along with the Scottish legislation and so on, that it was not anybody's ideal scenario. This goes back to my original question about the burden of proof. If nobody was terribly happy with the original settlement as it was set before us, why are we in a position where we are struggling to defend it? Why should the burden of proof not be on those who are struggling to defend it? That was my original question.
MR DAVID: I understand the drift of your argument but I cannot say I wholly agree with it. Politics, to use a cliché, is the art of the possible. Politics always involves compromise, whether we are talking about inside a political party or between political parties. However, I think one of the impressive things about the Government of Wales Bill and Act was that there was a great amount of genuine consensus in Wales at the time, inside the Labour Party and between political parties, and I think there was genuine agreement that that was a huge step forward. It was not just the lowest common denominator, I think it was more than that. For the Secretary of State at the time to argue that it was anything less than that actually devalues his own contribution towards achieving that consensus, in fact. What we have seen operating, despite its complexities, has been quite impressive.
I do accept your point that in Wales there has not really been a mature kind of debate about constitutional change. I think that happened for the first time in the run-up to the referendum and we have to recognise it is a debate which is continuing. That is why the process of change will take place incrementally over a period of time. The only thing I am concerned about is that there is not a knee-jerk reaction to perceived shortcomings but a frank and open debate as to how we can go forward together. That means also, however, that people do not simply defend the status quo for the sake of defending the status quo. There are things which can be improved upon in the legislation but let us have an honest and frank debate about it and let us not polarise the debate into ideological factions.
HUW THOMAS: I heard what you said earlier in terms of accepting the fact that at present some of the ways in which the powers are defined to the National Assembly are complex and that you felt there was a need to perhaps simplify a little bit by having subject areas. I would like to explore a little bit more on that. From the evidence we have heard, numbers of people have mentioned that they come against this point in a particular bit of legislation and the Assembly is then stuck until primary legislation time can be found for that to be ironed out, assuming that it cannot be dealt with by a Transfer Order. I am just wondering what the framework of that legislation might look like. For example, if you take the Health Bill that you were referring to, do you envisage that actually might only be a two clause Bill going through Parliament saying "The National Assembly may make such provision as it deems fit for the following purposes..." and just leave it like that so you widen the ambit? Is that the kind of thing you had in mind?
MR DAVID: I think to some extent that has been happening. In a sense that was the point I was making really. That enabling facility which has been used and which could be more extensively used is a way, in a sense, to resolve the kind of difficulties to which you refer. In many ways it is an easier and less confrontational route to take for some people rather than simply devolving the whole policy area, to simply have more clauses in the UK legislation which enables the Welsh Assembly to pursue its own policies.
HUW THOMAS: That still maintains the relationship though, does it not, that the Assembly has to rely on Parliament and parliamentary time which is at a premium?
MR DAVID: That is right.
HUW THOMAS: Under the present arrangement where you have a degree of shared agendas at UK and Wales, Scotland level, you might say that could be managed. Is the constitutional arrangement that we have got sufficiently robust to withstand the clash of different perspectives in Wales and the UK?
MR DAVID: My idea of devolution, which comes out of my political beliefs, is that devolution is bringing power closer to the people, it is not manufacturing situations in which you get clashes between legislators and clashes between nations. That is why I think that my approach is as it is. I want to see the current arrangement made more effective. If you take a subject area like education, for example, the reality of the England and Wales in which we live is that whilst there is room for divergence from agreed positions as far as Wales is concerned, I do not think there is a case to be made out for a completely different educational system in Wales. Some people would agree and others would disagree, but that is a political debate. I am approaching this on the basis that devolution is about taking England and Wales' principles and modifying them to Welsh circumstances to address particular needs in Wales.
There is a current debate going on about our top-up fees, for example, and some people have argued very strongly that that issue should be devolved to the Assembly. I think that is a good example of how we should look at something which is extremely complicated and emotive in a very detailed and systematic way because there are all kinds of implications which follow on from any decision which might be made to devolve that issue. I think that it would be nice to come forward with neat headlines and snappy slogans but the situation we are in actually requires detailed analysis.
LORD RICHARD: I do not think the Commission would be very good at snappy slogans!
PETER PRICE: You mentioned a minute ago that the settlement was not the lowest common denominator. What would have been the lowest common denominator, if this was not it, in the context of the establishment of the Scottish Parliament at the same time with the powers it was given?
MR DAVID: That is a very, very difficult question. A retrospective, hypothetical question.
PETER PRICE: In practical terms, what would have been?
TED ROWLANDS: An English Regional Assembly I suppose, that is the lowest common denominator.
MR DAVID: That is probably right.
LAURA McALLISTER: How does a regional assembly differ from the executive model of devolution bearing in mind the White Paper on the English regional system?
MR DAVID: Off the top of my head, thinking back to my reading of the English proposals, certainly the secondary legislative powers which have been suggested for the English regions are significantly less than what Wales currently has. Also, the block grant arrangement is different as I recall, quite fundamentally different. I think there are quite profound differences and, as Mr Rowlands said, in a sense we could have ended up with a minimalist model which reflected what is being suggested for the English regions now, that was clearly a possibility.
I was involved in the debate inside the Labour Party myself at the time about precisely the extent of legislative powers in particular and I know that debate jumped from one policy area to another policy area, and that is the nature of politics. I am not pretending that there was any great intellectual validity to one particular argument in one particular meeting, it was an ongoing, flowing, evolving situation, and that I think applied right across the political spectrum in Wales. At the end of the day it was significant that a significant body of Welsh public life were able to unite around this proposal and to take it forward.
PETER PRICE: I am not going to pursue that line because there were two very interesting themes that came out of what you were saying as to where you want to see the settlement going forward. One was looking case by case at the possible transfer of functions and the other was the institutional developments. First of all, on the transfer of functions you raised one, the issue of police powers, and implicitly financing, and then you said you thought there the case has not yet been made out.
MR DAVID: No.
PETER PRICE: Where do you think that things have gone a bit further than the case not having been made out, that you are at least inclined to support a move of function?
MR DAVID: Again, taking up the theme I mentioned earlier about pragmatism and practicality, I think the experience of the foot and mouth crisis certainly showed that there was scope there for certain powers to be devolved to the Assembly and possibly the response of Government could have been better to that crisis if the Assembly had been empowered to a greater extent than it was. However, I am not sufficiently a constitutional expert to say whether or not that requires an extension of legislative powers or can be done on the basis of Orders.
PETER PRICE: But animal health is something where effectively there is a shared responsibility at the moment with a lot of the powers in that area already being with the Assembly but certain of them not. If we look at something that might be of much greater impact, is there any area that you can think of where currently it is largely in the hands of the Home Office or some other UK ministry where you think that there may be a good case for transferring?
MR DAVID: One of the areas which springs to my mind is the issue of regional policy, industrial policy generally. There is a debate which has started in earnest now about the reform of the European Union's Structural Funds and Westminster Government has just issued a paper which argues really for greater flexibility to be introduced with regard to the use of Structural Funds and also the implementation of EU State Aids. Within that debate there is room for greater flexibility to be given to the regions, the small nations, of the United Kingdom. For instance, the Bevan Foundation, which some of you may have heard of, a left of centre modest think-tank, is about to produce a paper which argues for a number of policy areas to be developed and I think one of the things that paper is going to suggest is that there could be greater flexibility as far as operating aids, as they are known in technical terms, which would give a facility to the Welsh Assembly Government to actually intervene to modify, for example, business tax rates to enhance the competitiveness of the Welsh economy. Again, I think that is a very practical debate which we ought to have and personally I believe there is a lot to be said for doing that. It certainly happens in different parts of the European Union and I think there have been instances of it occurring in Northern Ireland as well. That is one area that I think would have a big impact on the development of the Welsh Assembly as something which impacts on people's everyday lives.
PETER PRICE: But it implies that you would give tax varying as opposed to what you were talking about earlier, ruling out, seemingly on political grounds, tax raising powers, which comes down to the same thing, does it not?
MR DAVID: No. I think the approach to the two areas we are talking about is fundamentally different. What we are talking about here is an agreement with the Treasury in the United Kingdom so that Welsh businesses would have less of a tax burden placed upon them in recognition of the difficult economic circumstances in which they are operating in the Welsh economy.
PETER PRICE: But is that not the current situation, the Assembly can always go to the Treasury now and say "We would like to do this" and if they have Treasury agreement then it is done? In other words, the power of what you are now saying would not be devolved but would rest with the Treasury.
MR DAVID: I think of there being some kind of mechanism so that the collective view of the Assembly would place central government under some kind of obligation. I accept that is a difficult concept to think through and I am not pretending for a moment I have thought that one through entirely. That is one area which does need to be looked at very, very carefully. When we talk about taxation I would be reluctant simply to argue the case that the Assembly should have powers to vary those kinds of taxes and also more general taxes as well. I think there needs to be an understanding that if the Government in London is talking about having greater scope to introduce industrial and regional policies outside of Brussels' influence then the same principle should apply to the regions and the nations of the United Kingdom as well. Subsidiarity should be taken down to the region, the sub-state level.
VIVIENNE SUGAR: You said earlier on that devolution brings power closer to the people but we have heard a lot of evidence which suggests that the current form of settlement in Wales means that Welsh people do not understand where the power lies, but everybody has got a right to understand their government because you cannot make an informed opinion at the ballot box if you do not know who is responsible for what, who is accountable. I just want you to talk to us about your experience as a constituency MP. There is a well-known MP, a well-known AM, and yet I think I would put money on the fact that you get a lot of people coming to your surgeries with issues that are devolved and a lot of people going to the AM about issues that are not. I would like you to talk a little bit more about that. If we stick with the current settlement, what more do you think can be done to get better public understanding of where responsibility and power actually lies?
MR DAVID: What you are saying is absolutely true. Many of my constituents in Caerphilly back both horses, if you like, if they have got an issue. They often go to see Ron Davies and come to see me at the same time and sometimes try to play us off one against the other really and try to have healthy competition between us as to who can help them most. That is not necessarily a bad thing.
One of the things that I think our two offices at a constituency level agreed after a few months was that it was inevitable that, for whatever reasons, people would choose to go to both or one or other of their representatives. Frankly, it has proved impossible in practice to say to someone "Sorry, you cannot come to my surgery tomorrow because your issue is a devolved issue" and vice versa.
VIVIENNE SUGAR: Then how can they judge your performance?
TED ROWLANDS: Outcomes.
VIVIENNE SUGAR: You are the witness now, are you?
TED ROWLANDS: I apologise.
MR DAVID: In a sense the way devolution has worked out is partly because we have a Labour Government and a Labour led Assembly people just think in terms of the party of government. If they have got a problem, frankly they are not interested whether it is devolved or not, they simply want the problem solved. For example, and I am sure Mr Rowlands would agree, nearly half of the people who come to my surgeries are concerned about local council issues and half of my constituency work is focusing on the local authority rather than anything else and it is exactly the same with the AM as well. In a sense that reinforces one of the points I was making earlier, that people are not really obsessed with the fine detail of the Devolution Settlement, what they are concerned about at the end of the day is whether or not they have got good hospitals, short waiting lists, decent schools and so on. That is why my focus as a politician is looking at ways in which their desires can be fulfilled. I am very much outcome driven rather than process driven by looking at the minutiae in simply an abstract constitutional sense.
PAUL VALERIO: Can I follow that similar vein with your experience as a post devolution MP and relationships not simply with your own AM but with regional AMs. I appreciate that political parties are likely to be different in that context but one thing that we have to consider is the numbers game. We may consider that the Assembly should have more members and if we do that as to how they should be elected. What sort of experiences can you give to us that would lead us one way or the other? Do you feel that the regional lists have too close an identity with a single constituency, that perhaps a national list would remove some of that poaching element that exists, or whether that is something we have to learn to live with?
MR DAVID: I am a firm believer in first past the post. One of the reasons I am inclined to support the current arrangements for Assembly elections is that, of course, the majority of Assembly Members are elected by the first past the post constituency system and that system is well understood and well respected by the electorate. The difficulties in terms of representation are caused by the regional top-up members in that no-one identifies, quite frankly, to South Wales Central or South East Wales, they mean absolutely nothing. I say that as the former MEP who used to represent one of those former Euro constituencies. However, I am not so sure it would be any better if we moved to an all-Wales top-up list. I suspect not.
I think really the strange system that we have got to achieve a degree of proportionality, and I will accept the reasons for that, is something we simply have to live with. In my view there is no ideal model electoral system, there are even weaknesses with first past the post, which I support, but I think part of a mature democracy is to recognise that there are shortcomings in whatever system we seek to adopt.
LAURA McALLISTER: Can you explain why you support first past the post because I was going to ask you as a follow-up what you thought of the STV system? I may be pre-empting your answer. I imagine it is because of the constituency link and the identity but STV can also replicate that in some respects. Would you rule that out as a system on your own preferences?
MR DAVID: I take your point and STV is one of the least objectionable forms of PR. I still prefer first past the post because, as you say, there is this constituency link which I think in many ways is the essence of our parliamentary democracy but also it is something which is well understood by people. I think for a democracy to be credible there needs to be that understanding of the electoral system and support for the electoral system which clearly first past the post has got amongst people. I think that is very, very important.
Could I say that I think there is a tendency often amongst political commentators to devalue the role of constituency representation. I do not know if Mr Rowlands would agree but I can make a comparison between how people relate to me as a Westminster MP and how they related to me as a Member of the European Parliament and it is nothing to do with profile in an all-Wales sense, it is your ability to be rooted in a relatively small geographical area and your ability to go around and meet people formally, informally, in pubs, clubs, Women's Institutes and so on, which really establishes your credibility as a parliamentary representative. I think the same thing applies to Assembly Members who are elected on that basis as well.
For me, it would be a great shame to move away from that. Most people I represent I think would feel uncomfortable about such a move.
TED ROWLANDS: Viv rightly chided me, so I am not going to become a supplementary witness. I will not be drawn by your last observations. I found the early part of your evidence an interesting contrast between the Learning and Skills Bill and the Health Bill. The Learning and Skills Bill was the one and only Bill I did in a post-1999 situation. I suppose the reason why the Youth Agency clauses were not debated - I was tempted - was that in fact the argument was it was a done deal, that you had been very successful in persuading both the Westminster Government and the Assembly Government to agree this alternative provision to the English Connexions service. It left backbenchers in a situation where we were repeatedly told that there was not much point because the government had done the deal. Has that happened since?
You are saying that the pre-legislative process has changed that from my experience. The pre-legislative process is the one that matters, is it? There is a Planning Bill before the House now with Welsh clauses and say you wanted to take a sceptical look at them, for example, would you not be told that, in fact, this was a done deal between the Welsh Assembly Government and the Secretary of State and Don Touhig and, therefore, you had not got any right or reason to knock the clauses around?
MR DAVID: You make some good points, I think.
TED ROWLANDS: If that is the case, does it not rather mean that the legislative process has been demeaned a bit by it?
MR DAVID: I am not here as a government spokesman.
TED ROWLANDS: I know you are not.
MR DAVID: I am here as a backbench Member of Parliament. I think that one of the things that needs to be emphasised is the need for greater backbench involvement. That involvement must mean not simply being lobby fodder and nodding through the done deal, as you say, but actually being involved in the legislative process so that you can have a real effect. That is what I want to see happening.
TED ROWLANDS: I was interested because your observations prompted my thoughts about our Scottish visit. We went to Scotland and the Scottish led Parliament is a unicameral legislature. I think there are question marks as to whether it has become a sausage machine and there is concern that there are not sufficient degrees of scrutiny or effective scrutiny, or there might not be in the future, as a result of this one and only time to do it. In a way you are almost describing a curious new kind of bicameral legislative process by which the Bill would be worked on at both ends and there would be also the capacity to have a joint meeting and together Westminster and the Assembly legislate. How far would you want to take that? Do you think there could be a justifiable case for the Assembly initiating a Bill through this process as much as reacting to a Bill that is coming from the Westminster end?
MR DAVID: In a sense, the Welsh Assembly Government does initiate things at the moment. The suggestions initially come from the Welsh Assembly Government, are talked through, discussed, and agreement is reached with the Secretary of State for Wales and then the debate is about finding parliamentary time and so on.
I would make a couple of points. The first point I would make is the contrast I made between the two items of legislation was that I think, yes, partly because it was the early days of devolution, a done deal was done and the Government was keen simply to enact that as quickly and as painlessly as possible from its point of view. If anything, I think that did a disservice to the Youth Service and the debate that should have taken place. It is not enough simply to enact legislation as quickly and as painlessly as possible, it is actually important to have a debate about it amongst elected representations and thereby get support for the ideas in that legislation from the people you represent. I felt in a sense that did not really happen with that set of clauses.
The contrast I made with the NHS (Wales) Bill was there was a great deal of debate and there was pre-legislative scrutiny as well. For example, my contact with the Community Health Council has been very, very positive because they have followed very closely what has happened to that legislation, they have fed ideas to myself and other MPs and they really feel a sense of ownership and that means that the Bill will be extremely effective and introduce some enthusiasm.
What I am saying is although sometimes the process can be complicated as a consequence, it is worth making the effort to ensure that there is that kind of enthusiasm generated behind the legislation and also you actually get the legislation right.
TOM JONES: There is a snag with that because there is a doubling effect on voluntary organisations, for example, and unless there is a structure to it, which means they do have to go through a proper consultation within the Assembly, they then have to start again. If they do not do it means you may be less informed about the process of the Assembly advice. We need to ask people to provide two briefings, unless the pre scrutiny happens at the same time and jointly, as you suggested earlier on.
MR DAVID: Absolutely. Coming back to the earlier point, to ensure this kind of process works effectively as it could we need to look at structures which brings together AMs and MPs. Ideas are generated in a consensual basis between representatives from the two institutions. Can I make one final point, my concern is, if I am perhaps excessively blunt, sometimes the approach towards Welsh legislation being introduced here is, we will do it as quickly and as painlessly and with as little fuss as possible and we can move on to something else. I do not think that is good enough. There needs to be maximum transparency, openness and co-operation for the devolution settlement to work as effectively as it could. That is my main point.
TED ROWLANDS: How much political and parliamentary will is there at this end to make the whole legislation process of the kind you are describing work? My own experience is it is pretty jealous of its sovereignty and all of the rest of it and anything that smacks of procedural sharing of that sovereignty tends to be dismissed. Are your thoughts that they would have a good chance of running here, firstly amongst your Welsh colleagues and secondly with the Leader of the House and the powers that be here?
MR DAVID: I think it is important in a political sense to recognise the validity of what you are saying. One of the reasons why I am a keen advocate of this greater co-operation and idea share is that I honestly believe that the devolution settlement will only be improved and moved on if there is a high degree of consensus established. The worst scenario would be for the Assembly and the Welsh Assembly Government to be pressing for something very, very strongly, for example, and not just a Westminster Government, but the overwhelming majority of Welsh MPs simply to say, "no, are not having it, we are against it". I think we should do everything we can to avoid such a situation developing.
My concern is that if you simply have a kind of institutional protectionism then you are not looking at what is best for Wales and what policies are needed to bring about effective government, you are simply defending your own vested interests. That is why, again, I think it is so important that all of us who believe in devolution do not allow that entrenchment to take place. There is actually a greater feeling of unity of purpose developing.
SIR MICHAEL WHEELER: You served in different parliamentary institutions, you know this one, do you think there is a hope at all of the kind of things that we suggest, the Welsh Grand Committee meeting with the National Assembly or the European Grand Committee would actually be agreed to by the House of Commons, which has all of the powers in the world but does not use them because you are kept in order by the whips?
MR DAVID: I am an optimist, if there is a strong case there changes can come about. Can I just say one other thing, perhaps, finally, my experience as an MEP has coloured my approach to this issue, as I said at the start. One of the things that is frequently in evidence is a negative relationship between the European Parliament and between Westminster. That is a statement of fact. It has not got to be like that. There are good examples of genuine co-operation and partnership in evidence there. What it requires for that entrenchment to be broken down is political will. As I say, I think it could happen in that relationship between the European Parliament and Westminster, it can equally happen to an even greater extent than what happens now, I am not saying things have become entrenched, but we can have that co-operation between AMs and MPs. In order for that to happen it is not enough to rely on goodwill, on personal relationships and intergovernmental co-operation it is necessary to have structures in place so that back-benchers can work together.
PETER PRICE: Can I make a request, it is not a question, that is that the institutional part of what you said today would be extremely useful as a paper if you had an opportunity to work out the detail and put it down on paper at some point.
LORD RICHARD: Why do we not wait until we see the transcript and if we do not get it out of the note perhaps you can ask Wayne to produce the paper. If it is already on record it seems stupid to ask for that piece of paper.
Can I thank you very much indeed, it was very useful, very helpful. We explored a number of issues that frankly you can only explore with somebody at the sharp end, that was what was really important about it. Thank you very much indeed.
MR DAVID: Thank you.

 

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