Wales Bill

Simon Hart Excerpts

Tuesday 14th June 2016 Commons Chamber

[Nia Griffith]

Indeed. As a long-time supporter of votes at 16, which is now Labour policy, I share my hon. Friend’s disappointment that that could be the case.

[Simon Hart (Carmarthen West and South Pembrokeshire) (Con)]

Does the shadow Secretary of State accept that the new electoral legislation might enable a Welsh Parliament or Welsh Government to impose compulsory voting on our country? Would she support that or oppose it?

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[Jonathan Edwards]

Had the hon. Gentleman been here during last night’s debate, he would know that I support the devolution of policing because of what has happened to the police helicopter service in Dyfed-Powys. It has been lost because policing is a reserved power. The helicopter services were not lost in Scotland or Northern Ireland, but the service has been lost in Dyfed-Powys because policing is reserved, and we now have a pooled service that is letting my communities down and letting his communities down.

[Simon Hart]

Will my hon. Friend give way?

[Glyn Davies]

Are you intervening on me or on the hon. Gentleman? Go on!

[Simon Hart]

I thought it might be helpful, before my hon. Friend replied to the Plaid Cymru intervention, to take careful note of the fact that the Dyfed-Powys police helicopter has not been lost, and that it would be a gross misrepresentation of the truth to claim that it has been.

[Glyn Davies]

I thank my hon. Friend; that is exactly what I was going to say.

I also want to touch on the question of devolution in regard to energy. We all pay a price when we support a Bill that is as comprehensive as this one, because there are often parts of the Bill with which we are very uncomfortable, and I have to say that devolving power over wind farms up to 350 MW to the Welsh Government really sticks in my craw. For me, that is a high price to pay to support the Bill. Perhaps I did not make what I meant absolutely clear in an earlier intervention, but we know that the Welsh Labour Government—perhaps supported by some of the other parties—are hugely enthusiastic about covering mid-Wales with wind turbines, wind farms and pylons. There has been a huge battle to try to stop them, but the Welsh Government are very keen to do it.

On 1 March this year—St David’s day—the United Kingdom Government passed powers over onshore wind to local government across England and Wales. In England, local government now has the power to make decisions on wind farms of any size, and that power has also been devolved to Wales. On that same day, the Welsh Government took that power unto themselves. In Wales, everything over 25 MW is therefore now decided by the Welsh Government in Cardiff, but in England local authorities decide this. That is one reason why I find this part of the Bill to be extremely difficult to support.

I am looking forward to the Committee stage, where we will debate a series of aspects of the Bill, as we are not able to touch on everything today. The Bill is really worth while. We can perhaps change one or two parts of it, but it is a good Bill that will bring more stability, more security and more democracy, in the sense that through financial accountability people will be more engaged with the democratic process than has ever been the case in Wales before. That is why I very much hope that the Bill makes its way through the House.

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[Jonathan Edwards]

I am extremely grateful for that intervention by the Secretary of State. His point about the Wrexham super-prison makes our argument for us. That facility has not been created to deal with the custodial needs and requirements of our country. That is partly why we will aim to remove the reservation on policing and prison services during the passage of the Bill.

My other major concern, as my party’s Treasury spokesperson, is the second-class settlement we are being offered in relation to fiscal powers. The Scotland Act 2016, which all Labour and Tory MPs based in Wales voted for, fully devolved air passenger duty and income tax—including, crucially, the tax bands and half of VAT receipts—to Scotland. The Scottish Government will now be responsible for raising over the half the money they use in all devolved expenditure. Yet, as the recent Cardiff University assessment, “Government Expenditure and Revenue Wales 2016”, notes, following the fiscal plans in this Bill, the Welsh Government will be responsible for raising only about 20% of the devolved expenditure for which they are responsible.

If the twin arguments for fiscal devolution are accountability and incentivisation, surely we need more ambition for Wales than what is currently on offer. After all, in essence, we are talking about keeping more tax revenues raised in Wales directly in Wales, as opposed to collecting them in London and sending them back. The Welsh Government should be responsible for raising the money that they spend. That is a very valuable principle in politics. We will seek to amend this Bill and the forthcoming Finance Bill to secure parity for Wales with Scotland, and challenge Labour and Conservative Members who supported these powers for Scotland on why they oppose them for Wales.

The other issue in relation to tax powers that must be addressed if the measure is to receive our support is the fiscal framework to accompany tax devolution. As we have seen with the debate surrounding the Barnett formula, words such as “fairness” and “non-detriment” are extremely opaque and open to interpretation. The Bill will put in place a Barnett floor to stop further funding convergence, but let us be clear that that is not the same as “fair”. A fair settlement would surely, at the very least, peg Welsh funding at the Scottish level, especially since that is what Labour and Tory Members of Parliament from Wales voted for for Scotland. I will let them explain to the people of Wales why they think that Wales deserves less support through public funding per head than Scotland.

Returning to the fiscal framework, I am glad that there seems to be genuine good will around a non-detriment principle, but that will need to be clearly outlined before we finally vote on the Bill. I would expect the Treasury, at the very least, to publish its recommendations in an official statement to the House during our proceedings on the Bill because Members of Parliament will otherwise be voting blind on the consequences of the tax proposals. I say this as a strong supporter of devolving job-creating levers to Wales, as I outlined earlier. However, neither I nor my colleagues will support the Bill if the UK Government intend to push a straightforward indexed deduction method. I note the significant concessions gained by the SNP Scottish Government on this issue, so I would hope that the Labour Government in Wales and the Wales Office here will be pushing hard for a suitable deduction method for Wales.

This vital issue is even more complicated than my favourite topic of Barnett consequentials, so we must get it right. We need a formula that will reflect the fact that the population of Wales, and hence our tax base, will grow more slowly than the UK average. We cannot be left in a position whereby a successful fiscal policy in Wales leaves us standing still in terms of Welsh revenues. Incentivisation can work only if the Welsh Exchequer is not at a loss before the process starts. Scotland has once again achieved a fair settlement, and so must Wales. It would be far easier to come up with a fair framework if we were debating full income tax powers similar to those awarded to Scotland—that is, full devolution of the bands and thresholds.

If the other main aim of fiscal devolution is to increase the political accountability of the Welsh Government, the sharing arrangement envisaged for income tax would continue to allow them to pass the buck. The shadow Secretary of State for Scotland, the hon. Member for Edinburgh South (Ian Murray), said that full devolution of income tax powers under the Scotland Act would stop the Scottish Government playing the politics of grievance. If Wales has a sharing arrangement, the politics of grievance will continue. In the interests of accountability, incentivisation and, critically, transparency, the UK Government need to revise their plans and fully devolve income tax powers to Wales.

This March, in an act of blatant electioneering, the previous Welsh Labour Government published an alternative Wales Bill that called for a separate legal system for Wales and the devolution of policing. I look forward to the Labour Opposition here tabling such amendments to the Bill. If they do, I will support them with vigour, but if they do not, Plaid Cymru will do so and the people of Wales will be able to judge for themselves whether the First Minister has any influence over his bosses here in Westminster.

In conclusion, I would like to highlight the policy areas devolved to Scotland that are not included in this Bill, which include legal jurisdiction, policing, prisons, probation, criminal justice, full income tax, VAT sharing arrangements, air passenger duty, welfare and employment, consumer advocacy and advice, gaming mechanisms, full energy powers and rail franchising of passenger services, to name but a few. As I have said before, it will be up to our political opponents to explain why they voted for those powers for Scotland, but are opposed to them for Wales.

That brings me to the forthcoming parliamentary boundary review, which has not been mentioned at all during the debate, but will reduce Welsh representation in this place to 29 Members. That means a loss of more than a quarter of Welsh seats in the House of Commons.

[Simon Hart]

The hon. Gentleman has drawn up a long wish list of things that he wants to be properly devolved. What is the difference between that list and independence?

[Jonathan Edwards]

I am extremely surprised by that intervention, because the hon. Gentleman voted for those powers for Scotland. Is he now saying that he voted for Scottish independence? That is incredible.

[Simon Hart]

The hon. Gentleman and I are good friends. He is a fine cricketer, but he is also a naughty boy. Will he just answer the question?

[Jonathan Edwards]

I will take that intervention in the spirit in which it was intended. Those powers now reside in the Scottish Parliament, so is the hon. Gentleman saying that Scotland is independent? That is ridiculous. I am sure that the good people of Carmarthen West and South Pembrokeshire will be delighted to hear that he is in favour of full Scottish and Welsh independence.

Media Plurality (Wales)

Simon Hart Excerpts

Tuesday 13th October 2015 Westminster Hall

[Hywel Williams (Arfon) (PC)]

I congratulate the hon. Member for Aberconwy (Guto Bebb) on securing this debate. The topic has been of concern to me throughout my political career, from the campaigns in the ’70s and ’80s to set up S4C to today, via the debate on media plurality in July, during which the hon. Member for Newcastle upon Tyne Central (Chi Onwurah) spoke eloquently. At that time, if I remember correctly, I said that Welsh broadcasting, specifically Welsh-language broadcasting, is an issue for the entire UK in that S4C is probably the largest contributor to the diversity of UK broadcasting, providing so many hours in a language other than English. Were one the ubiquitous Martian, arriving on this planet and looking at broadcasting in the UK, where would one look for diversity? S4C would obviously be what that Martian would see.

I must take issue with what the hon. Member for Montgomeryshire (Glyn Davies), who is no longer in his place, said about the subsidy for S4C. One could argue that the licence fee is just a subsidy. I do not know why we should single out S4C as having a subsidy; ITV is subsidised by the advertising industry. Subsidy is a pejorative term and we should not be using it.

As the hon. Member for Aberconwy said, Wales now has a clearer identity than at any point over several hundred years at least, but it is not in the league of the “Great British” identity, with TV schedules containing the Great British this and the Great British that. There are not that many listings for the Great Welsh this or the Great Welsh that, but Wales has a clear media identity. Paradoxically, the sources of information available to our population seem to get more precarious and narrower.

The hon. Gentleman referred to the incredibly high penetration of newspapers from England. People in Scotland get their news from domestic sources, but people in Wales get their news from sources outside Wales. One could almost compare the situation to the infamous entry in the Encyclopaedia Britannica that read, “For Wales, see England.” That could be the case here. The interesting thing to note is that if one looked at the entry for England, there was virtually nothing about Wales, which rather says it all—plus ça change.

There is a legitimate concern that Trinity Mirror owns both large—largish—newspapers in Wales, the Daily Post and the Western Mail. The hon. Gentleman referred to News International, and the situation in Wales is something of a monopoly. Although other newspaper companies exist—the hon. Member for Ceredigion (Mr Williams), who is no longer in his place, referred to the Cambrian News, which is widely read, and the Tivy-Side Advertiser—the papers in the national forum, if such a thing exists, are owned by the same company. That is not such a concern regarding content, but for the newspapers’ general future direction. I made a point about the quality of online provision and the pressure on journalists to get the “click”. They have to formulate their reports in such a way that allows them to be put online quickly, which leads to issues of quality.

New technology allows all kinds of options, not only in newspapers, but on television. I was recently interviewed by a journalist who set up his own camera and sound recording equipment and then rushed around the back to ensure that everything was working and then rushed around the front to question me. I am unfortunately old enough to remember being interviewed by local broadcast journalists with two or three crew, and by national or UK-wide journalists with two Land Rovers-full of crew, who turned up in Caernarfon to interview me.

Falling circulation is a problem common to all newspapers, but I agree with the hon. Gentleman that the problem is particularly acute in Wales given the centrality to the national debate of the small number of newspapers. As there are really only two quasi-national newspapers, any fall in their circulation is of deep concern.

The hon. Gentleman mentioned the Institute of Welsh Affairs, which is to publish a report on 11 November showing that the circulation of Welsh newspapers has again fallen dramatically. The statistics that I have do not give much depth, but they report a fall of 60% in the circulation of the South Wales Echo and a 33% drop in sales of the Daily Post. I do not know over what period that relates to, but it gives an impression of the trend. It is also reported that the Western Mail now sells only 17,815 copies a day, which must be a concern for a national newspaper.

[Simon Hart (Carmarthen West and South Pembrokeshire) (Con)]

On that point about the Western Mail being a national daily newspaper for Wales, it has barely ever featured on the reading agenda in my part of west Wales. That is not an insult to the paper; we have just never read the Western Mail in Pembrokeshire and not much in Carmarthenshire either. Is the hon. Gentleman’s point that we are somehow worse off as a result of not having access to the paper? We have never really historically had one at all. I do not quite understand why this is the tragedy that he makes it out to be when it has never been an issue for us.