| The Chamber movement is concerned primarily
with the interests of business. It is therefore principally
concerned with matters that directly affect members. We
recognise however that policy emanating from the Assembly
(or Westminster) which affects residents and consumers
impinges directly upon the prosperity of Wales and therefore
upon the business sector.
It is accepted that, if additional powers were to be
devolved to the Assembly, there is a risk that the influence
of Welsh MPs at Westminster, and indeed that of the
Secretary of State, may diminish. It is however clear
that the present position does not create confidence
in the ability of Westminster to recognise specific
Welsh needs in providing time for Primary legislation
within the Parliamentary timetable.
Of concern is the issue of funding. At present the
Barnett formula provides at least arguably a benefit
for the Welsh economy. Were the devolution of further
powers to provide an excuse for a fundamental review
of the provision of funding there would be considerable
concern within the business community. On the other
hand if one consequence of further devolution was greater
clarity as to both funding and responsibilities there
would follow greater accountability. This is not a benefit
however if the overall result was a reduced grant from
the Treasury.
The Assembly should also consider in the context of
its own increased powers whether or not there is an
argument for further devolution of powers to sub-Assembly
organisations. There is concern as to whether the current
organisation of County Councils is entirely appropriate.
There are a number of Councils which are too small to
meet effectively the obligations imposed upon them.
Regional strategic planning where it exists is not subject
to democratic accountability.
In the above context there is a strong argument for
the granting of tax raising powers to the Assembly on
the Scottish model.{ There may be a need to restrict
the Assembly’s powers in regard to Corporation
Tax and other business taxes so as to ensure that there
is no reduction in the relative competitive position
of the Principality.}
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