My Lords, I thank all noble Lords for their valuable contributions to the debate this afternoon, particularly for the gracious remarks many have made towards the statutory instrument and the close and collaborative work between the Welsh and UK Governments that has resulted in it. I take the comments made by the noble and learned Lord, Lord Thomas of Cwmgiedd, and yes, it is arcane, but it is also very complex and it has taken me many hours to master. I am hoping, like him, that future legislation reflecting the devolution settlement is a lot less complex.
The order makes a number of amendments to Schedules 7(a) and 7(b) of the Government of Wales Act 2006. It enables the Senedd to remove concurrent powers, established in specified enactments, without needing the agreement of the UK Government. This directly addresses the concerns raised by the Welsh Government. It also clarifies the schedules by removing references that are no longer relevant following the EU exit and provides for a number of corrections where they are necessary.
I will endeavour to answer a number of the questions asked by noble Lords. I turn to the noble Lord, Lord Hain. I am particularly grateful for his kind words because I am well aware of his seminal role in the Government of Wales Act 2006. I am also very pleased that we removed the toehold that he feared we might try and retain. I note his comments on future dealings with the Senedd and will continue to pass these up to my “olders and betters” as he termed them.
As to his point about UKIM, the provisions in the Act will help the UK internal market, which will be of benefit to Wales. It should not be views as a threat to devolution. The Act merely seeks to maintain open borders for trade within our United Kingdom and it has the broad support of Welsh business. The Minister’s powers to spend in relation to specific devolved areas enables the Government to spend in Wales on UK-wide priorities and does not impact on the powers of the Senedd or the Welsh Government. The Act confirms the renewed status of subsidy control. State aid was previously, of course, an EU-level competence.
The noble Lord, Lord Thomas of Gresford, asked whether I could confirm the point about fisheries. The UK Government will not interfere with fisheries policies. The continued application of the consent requirements in relation to functions to regulate British fishing boats in the Welsh zone is consistent with the position under wider fisheries legislation, in which the Secretary of State retains concurrent powers in certain cases to regulate fishing boats of a devolved Administration fishing outside that Administration’s waters. Defra has committed to carrying out a review of concurrent fisheries functions to consider whether these are appropriate. The order will not affect the ability of Welsh Ministers to regulate Welsh fishing boats in Welsh waters. The noble Lord also asked whether Welsh Ministers and the Senedd can continue to exercise their functions unimpeded by the UK Government, and the answer is
absolutely, yes, they can. This order facilitates that by enabling the Senedd to cease certain concurrent functions without requiring the UK Government’s consent.
The noble and learned Lord, Lord Thomas of Cwmgiedd, did not actually ask me any questions but gave a lot of interesting background. I share his hope that the four nations will now move forward together in a more collaborative way, as we have seen in this statutory instrument. The noble Lord, Lord Wigley, asked about the removal of obligations under EU law. I can confirm that it will be the Senedd Cymru that will deal with all such non-reserved matters. In the 66 areas now transferred from Brussels to Cardiff Bay, it will be up to the Senedd to choose how they exercise those powers. I also confirm that all such EU obligations have been reconstituted into UK law, unless specifically amended by Westminster or the Senedd.
I acknowledge the tone of the noble Baroness, Lady Humphreys, and her regrets. I am therefore doubly grateful for the supportive comments on this instrument. I look forward to all the areas she mentioned seeing continuous support as we all work together to strengthen the union and continue to try and level up those areas that have been left behind. The power provided in the UKIM Act makes sure that the UK Government can invest UK taxpayers’ money in Wales. It will support Welsh people and businesses to recover and grow.
There will also be the new shared prosperity fund from 2022 and additional funding for 2021-22 which will total £220 million across the UK, enabling pilot
projects to be launched. Wales will not be worse off; EU structural funds have a substantial tail of funding over the next three years. As that funding tails off, the shared prosperity fund will increase.
The noble Baroness, Lady Hayter, asked whether further corrections are needed as a result of exit and whether the Welsh Government can make those corrections themselves. The answer is yes, if those corrections are in the devolved areas. The Environment Bill will include the equivalent provision to this order; it will be done by amendment. I share her frustration that it has been postponed but, to preserve the Bill, it was deemed appropriate that it be put off until early summer. The absolute goal is that it must obtain Royal Assent before COP 26 in the autumn.
I welcome the productive work that has taken place between the two Governments in the preparation of this order. I commend it to the House.