It is a pleasure to have the opportunity to speak, Madam Deputy Speaker.
The Bill is the latest in a long line of Wales Bills to be presented to the House since the establishment of the Welsh Assembly. Part 1 of the Silk commission resulted in the Wales Act 2014, while part 2 has resulted in the Bill before us today, aside from its elements that were covered by the famous, great St David’s day agreement, which I am sure schoolchildren will discuss for the next 50 years.
The Bill represents the latest part of a long saga of political tinkering around the edges of devolution in Wales that has been a constant theme in political circles since the establishment of the National Assembly. Devolution has brought with it the possibility that Wales can make its own choices and go its own way, with its own Government elected by the people of Wales. The Welsh Government are entrusted by the people of Wales to act in their interest, and I am confident they have done so, in so far as they can under the current constitutional settlement. However, I believe that vast swathes of Wales have been turned off by the constant political debate over the constitutional arrangements. It almost seems as though the argument is, “Once we have the powers to Wales, all the problems in Wales will be solved.” That is a simplistic view of a complicated situation. What we need is certainty in a Welsh constitutional settlement that will last for longer than a few short years, or until we have the next commission funded by the Government.
This Bill is much better than the draft Bill. Like many Members, I had problems with the necessity test. To me, that was a simple case of a lack of understanding of devolution. It treated Wales as a Commonwealth outpost, with the Secretary of State doubling up as the governor-general. I am delighted, as many others will be, that the Bill removes provisions for a further referendum on income tax powers. I for one am looking forward to 23 June and the end of another referendum.
Until we settle this matter of constitutional certainty once and for all, considerable time—and, yes, political opportunity—will be spent arguing the merits of further constitutional change. As someone who came into politics to change the world, I do not want to waste the next five years, as we have the past 15, debating the dry subject of constitutional reform. That subject not only turns off the political commentariat, but costs money.
When the Silk commission was set up, the then Secretary of State for Wales gave it a budget of “around £1 million”. Overall, the Wales Office spent £1.3 million on the Silk commission between 2011-12 and 2014-15. If we do not show ambition with this Bill and leave more to be argued and debated for years to come, what will be the cost? How many more commissions will we need to create? A freedom of information request to the Wales Office found that the 2011 referendum on powers to the National Assembly was expected to cost upwards of £8.2 million. How many more referendums will we need to go through, and at what expense, before we reach a final constitutional settlement?
The real question and the real test of any Wales Bill, or any Bill that comes before us, is this: what in this Bill will speak to the people of Wales and address their day-to-day concerns? Although support for further powers for Wales is strong, with 43% of respondents to the BBC/ICM St David’s day poll this year saying that the National Assembly should have more powers, and only one in three people saying things should stay as they
are, the issue does not really enter the daily lives of my constituents. I cannot recall a single instance in the past few years when a constituent has written to me about the Welsh constitutional settlement. Indeed, when I was knocking doors just a month ago, not a single person spoke to me about the Wales Bill, the Silk commission or the Williams and Smith commissions. All these people have entered the lexicon of the commentariat who go absolutely mad for constitutional reform, but to the people on the streets, they mean absolutely nothing.
Having read the Bill, I think it is little wonder that people are switched off when the issues discussed are of so little relevance to their lives. The dry subject of constitutional reform might float the boat of commentators and politicians in this place and in Cardiff Bay, but it is simply not something that people talk to me about on the doorstep. The prospect of Wales switching from a conferred to a reserved powers model might have excited some, and the necessity test might have caused a row here and in Cardiff Bay, but I have to say that people on Blackwood high street in my constituency who are trying to feed a family on a shoestring budget, who are signing on in the jobcentre as they have still not been able to find a job, or who are desperately trying to find ways of making do after their disability payments have been slashed care very little about the Wales Bill.
The one element of the Bill that will have a direct impact on my constituents is the devolution of some—not all—income tax powers to the Assembly. I have long been an advocate of regional taxation. I genuinely believe that the challenges we face in Wales are different from the ones faced here in London, which is an economic powerhouse, and from those in the north, in Scotland and in other regions. However, as we pull ourselves to pieces over whether we can devolve income tax or have a referendum, we should reflect that this means nothing if we look at the Scottish model. The Scottish Parliament has never raised income tax or used the powers given to it in 1999. It seems an absolute moot point.
The fact of the matter is that we are an economy that is heavily based on the public sector, rather like in Northern Ireland and the north-east. If we are allowed to start reducing income tax rates, we may start attracting ever greater numbers of entrepreneurs and wealth creators to the Welsh economy. It is contradiction in terms that Northern Ireland, which has high public sector unemployment and fewer businesses and entrepreneurs than it should—very much like Wales—should be allowed to slash its own corporation tax in the hope of attracting more businesses, as its neighbour in the south has done, while Wales cannot.
Why is it good for Northern Ireland to have the power to alter corporation tax when Wales does not? Although it is true that Northern Ireland has a land border with the Republic of Ireland, which has notoriously low corporation tax rates, Ireland is still only a short distance from Wales, so we are competing with it. We are a small island race. We can get to Ireland and back in one day, yet we are not allowed to compete. Northern Ireland is allowed to reduce its corporation tax, attracting massive business to come in and create jobs, while we are to be fed with the scraps. Yet again, it seems that Wales is being forced into the role of the poor cousin. Do we want a powerhouse economy, moving forward and attracting high-tech, high-skilled jobs, or we do we want to continue to be reliant on the public sector and
grants from the European Union? Regardless of how the referendum goes in a couple of weeks’ time, that is no future for the people of Wales.
Wales is a country with access to cutting-edge technologies and a skilled work force. General Dynamics in Oakdale in my constituency, and BAE Systems in Glascoed, in the constituency of my hon. Friend the Member for Torfaen (Nick Thomas-Symonds), underline this fact. They attract some of the finest minds from our universities, but how can we attract more good people unless the Government are given the lever of corporation tax to encourage more large businesses to come to Wales, bringing jobs with them, and the lever of income tax so that people can have more money in their pockets to spend in our local economies, such as on the high streets that I mentioned earlier? I believe that that is the way forward.
As for the rest of the Bill, it seems that, again, there is a working group of officials from the Wales Office, the Ministry of Justice, the Welsh Government and the office of the Lord Chief Justice to monitor the prospect of a Welsh jurisdiction. That, surely, is legislating for legislation’s sake. The joint legal jurisdiction in England and Wales has been maintained for just under 500 years, and I believe that tinkering around the edges of that could cause more problems than it would solve. We must either commit ourselves to a wholesale split and devolution of policing and justice, or retain the union of the England and Wales legal jurisdiction.
Those are the questions that we should be asking in the Bill, but we are not asking them. Again, we are just tinkering around the edges. We shall be back here again in two or three years’ time with another Wales Bill, which will cause more constitutional uncertainty and more arguments in which people are simply not interested. The message, in my view, should be that the Bill could have been so much more. It could have settled, once and for all, the constitutional argument in Wales. It could have allowed constitutional arguments to be put aside, with a line drawn under them, so that we could get on with the things that really concern people: health, education and transport. Those are the bread-and-butter issues that affect families and constituencies across Wales.
The Bill represents yet more tinkering and yet more argument. It must be realised at some point that what we discuss in this place when we talk about the constitutional settlement is far removed from what concerns people in Wales. I support the Bill, but I am extremely disappointed, because it could have been so much more—it could have brought about the ambition that we need in Wales.
3.30 pm