Wales Bill Debate

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Department: Wales Office

Wales Bill

Baroness Morgan of Ely Excerpts
Committee: 3rd sitting (Hansard - continued): House of Lords
Tuesday 15th November 2016

(7 years, 5 months ago)

Lords Chamber
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Baroness Morgan of Ely Portrait Baroness Morgan of Ely (Lab)
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My Lords, I support the amendment moved by my noble friend Lord Hain. The Welsh public sector workforce is the linchpin in ensuring that Welsh public sector authorities carry out their functions and provide services to the public. There is a well-recognised link between good employment practices and industrial relations within authorities and contractors and the quality of the services they provide to the public.

Since devolution, the Welsh Government have led with a distinct vision for public services, rooted in the principles of social partnership. These principles have guided the development of public service delivery in Wales, which is now distinct from that of England. As many noble Lords have noted, this amendment would not undermine the shared framework and protections in respect of employment and industrial relations, but would allow the Assembly to augment these where appropriate to support the effective delivery of devolved public services by Welsh public authorities. I ask the Minister how he thinks people based in London can have the first inkling of what is happening in our schools and hospitals, which are devolved.

For devolution to be meaningful, the Welsh Government must be able to continue to pursue social partnership, defining the relationship between public service employers and employees with integrity, transparency and trust. In proposing this reservation, the UK Government are seeking to divorce the terms of employment and industrial relations in public services from the delivery of those services. The reservation will fundamentally weaken the existing powers of the Government of Wales Act and will prevent Welsh Ministers exercising their legitimate functions prescribed by the Bill on public services. We know this because a leaked letter from the government legal opinion suggested that we currently have the rights over these powers.

I echo the point made by my noble friend Lord Murphy: let us avoid a future reference to the Supreme Court. This was supposed to be the final full stop in the whole legislative framework for the devolution settlement for Wales. If this goes through, I assure your Lordships that this will be not the full stop but the beginning of another battle.

Lord Bourne of Aberystwyth Portrait The Parliamentary Under-Secretary of State, Department for Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)
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My Lords, I thank noble Lords who participated in the debate on this part of the Bill concerning employment law. I thank the noble Lord, Lord Hain, for his very kind words in opening the debate.

To put this in perspective, I think it is common ground between the noble Lord, Lord Hain, and I that employment and industrial relations law is a reserved area. I am not sure that that view is shared by the noble Baroness. She seemed to be suggesting that somehow our reservation meant the end of civilisation as we knew it. It is fundamental to the country that we live in. The UK Government believe that the underlying legislative framework concerning rights and responsibilities in the workplace must be reserved. I believe as much as anyone does in good employment practice. I worked in the public sector in Wales before I went into the Assembly. I was a member of a trade union. I do not think I can still be a member of that trade union or I would be. It is imperative that we have good employment law and good industrial relations. I would not contest this. This is a very important area, but we want a simple, unified system in Great Britain. As the noble Lord acknowledged, this is not something that is devolved to Scotland. It was not considered by the Smith commission or the Silk commission and it was not part of the St David’s Day process.

The system we have allows workers to be clear on their rights, whether they are in the public sector or the private sector, in England or in Wales. This is a fundamental principle and I cannot accept that the law underpinning the terms and conditions of public sector workers should be different from the law that underpins the rights of other workers. Whether that leads to better rights, more rights or worse rights, it seems fundamentally wrong. It is important to have common minimum standards which apply to all workers throughout Great Britain to minimise uncertainty and cost for both workers and employers. This is a matter of employment law; it is not about public service delivery.

Furthermore, it seems clear to me that if public sector employers in Wales, which would include the Welsh Government and public sector authorities, want to grant more favourable wages or more holidays then they are able to do so. They can do that presently and there is no question of it being taken back. Also, the judgment on the agricultural wages Act in the Supreme Court is an exception to the reservation. There is no question of that being clawed back as that specific piece of law remains.

If we had a diversified system of rights, workers might be reluctant to pursue the best progression opportunities in their organisation because they could get better rights in the private sector or the public sector—one or the other. They may find it more difficult to undertake collective bargaining and make their voice heard in isolation from colleagues in similar roles in Wales or the rest of Britain. I certainly believe in having strong industrial rights and strong employment rights—and obligations, too—but this has to be unified. As I said, both the Silk and Smith commissions came down in favour of a single employment regime, such as this, and there is nothing to prevent the Welsh Government or devolved public authorities agreeing specific arrangements with their staff, provided that they meet the requirements of employment and industrial relations legislation which apply across Great Britain.

The noble Lord, Lord Murphy, suggested that this amendment did not concern strikes. I am sure that I heard the noble Lord, Lord Hain, say that it related to altering the threshold, so it is about strikes and, as drafted, would certainly include the possibility of doing that. The Government could not sign up to that, nor to different rights on check-off or facility time. The rights should by all means be generous, but they should be unified across the country. I do not see that insisting on this is somehow apocalyptic in the way that some noble Lords suggested. The reservation of employment law ensures that there is a minimum floor of rights to offer workers key protections. At the same time, it recognises that each workplace is unique by allowing employers to provide additional pay or holidays in the public or private sector, if they want to do so.

Amendment 74 was put forward by the noble Baroness, Lady Humphreys, for the Liberal Democrats, and I have added my name to it for the Government. I am not sure whether that makes it an additional government amendment, but we are in agreement with removing the reservation relating to teachers’ pay. This has been a key priority for the Welsh Government and we are very happy to support this amendment. We have been listening on teachers’ pay and are content to support the noble Baroness’s amendment.

In relation to employment law, because we see specific difficulties regarding different rights in the public sector, some of which relate to the calling of strikes but do not affect pay and holidays—which the public sector can negotiate quite separately, as it does now—I urge the noble Lord, Lord Hain, to withdraw his amendment.

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Baroness Morgan of Ely Portrait Baroness Morgan of Ely
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My Lords, I shall speak briefly on the issue of devolution of S4C. In this rapidly evolving digital environment, it would not be sensible to attempt to devolve responsibility for broadcasting in its entirety to Wales. Broadcasting institutions play a vital role in creating that common cultural citizenship for people across the UK. That would not be strengthened by any attempt to define responsibility for them among its constituent parts. We should acknowledge that the broadcasting landscape is changing very rapidly and that there is no guarantee that the current structures will remain in future. In the meantime, it is vital that the UK role is reinforced by measures aimed at strengthening the particular contribution which broadcasters make in each of those constituent parts: improving the accountability of UK broadcasting institutions to the National Assembly and to Welsh viewers and listeners is vital. This improved accountability can best be delivered by strengthening the position of Welsh Ministers with regard to appointments made to the regulatory bodies governing broadcasting in Wales—I am sorry if I have veered off the point of S4C directly, but that is an important point to underline.

I now turn to the issue of devolving responsibility for S4C to the National Assembly. At first glance, it seems an absolute no-brainer. Like the noble Lord, Lord Wigley, I have worked for S4C: my first ever job was to be responsible for photocopying the “Fireman Sam” scripts. However, unless there are strong safeguards for the continued overall funding of the channel, devolution carries great risks. That overnight decision to remove the vast majority of S4C funding from the Department for Culture, Media and Sport to the BBC with absolutely no discussion with the channel was an immense insult. As the BBC is not devolved, S4C’s fate now lies to a large extent with the BBC. The current system is certainly unsatisfactory but, until we have a clear financial commitment from the Government to give the Welsh Government the money, it would be unwise to risk this great institution of broadcasting in Wales.

Lord Elis-Thomas Portrait Lord Elis-Thomas (Non-Afl)
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My Lords, as we have heard, we currently have substantial change in the structure of broadcasting. The BBC is going through major changes. The BBC Trust is moving out as a way of managing the BBC; personally, I welcome that. Ofcom is now playing a far stronger role in the whole question of content at the BBC. As part of the BBC structure, there will be from now on not only a director for Wales but also a member of the BBC board. So we have a new system of devolution internally inside the BBC. I was there at the time of the discussion with the noble Lord, Lord Crickhowell, and we were surprised at what we were offered by the then Government, which was the model of a traditional broadcasting authority. I have never believed that that was what was really required, and I still believe that we need to look at some stage at the governance of digital platforms in Wales and the rest of the UK, as well as internationally. We need to look at these issues in a new way.

I am anticipating what the Minister is going to say. Far be it from me to disagree with my noble friend on this issue, with his experience as someone who was a member of the S4C board, but now is not the time to disrupt relationships; now is the time to strengthen them—and to strengthen the relationship practically between S4C as a production body and BBC Wales and the other platforms active in digital production in Wales.

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Moved by
68: Schedule 1, page 74, line 36, leave out “, deaths and places of worship” and insert “and deaths”
Baroness Morgan of Ely Portrait Baroness Morgan of Ely
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My Lords, I draw the attention of the Committee to the immense overcomplexity that has been introduced in the Bill by the Government insisting on the arbitrary reservation of powers. This amendment refers to the reservation of births, deaths and places of worship.

The first thing that will strike your Lordships is the fact that the other great milestone in life, marriage, is not covered here, nor is civil partnership. These are covered by a different clause—Clause 174. Nor, indeed, is adoption mentioned in this clause. That is mentioned in Clause 175. I do not know about other noble Lords, but I always understood that registrars covered births, marriages and deaths. The separation of these functions conducted by the same registrars is another example of the unnecessary complexity of the legislation as drafted. It would have been just as valid to introduce an amendment to remove all the reservations of arrangements for registering births, adoptions, marriages, civil partnerships, deaths and places of worship. This would have brought Wales into line with Scotland and Northern Ireland, where these matters were not reserved in the 1998 Acts, reflecting the decision of Parliament to legislate separately for these matters in those jurisdictions since the introduction of such registration in the 19th century.

Although the basics of registration arrangements in England and Wales are the same, there are already significant differences between the two countries. The use of the Welsh language in registration is a distinctive feature of arrangements in Wales. At those key points in life’s journey at which legal registration is required, to be able to use one’s mother tongue is clearly a matter of great importance. Registrars are appointed by local authorities and work within their structures, and legislative responsibility for local government is, of course, devolved to Wales.

My amendment, however, focuses on removing the reservation of the registration of places of worship. This registration is different from the others in two respects. First, it relates to the registration of buildings used for a particular purpose—places of worship—rather than to the registration of life events of individuals—birth, marriage, death. Secondly, it is voluntary. We do not in England and Wales require that places of worship be registered, and the Places of Worship Registration Act 1855 makes that clear. However, such registration is required if a place of worship is to be registered for the conduct of marriages or civil partnerships, or to gain exemption from council tax or business rates.

Places of worship have always played a vital role in Welsh society, but since the Welsh Church Act 1914, which led to the disestablishment of the Church of England in Wales, now the Church in Wales, in 1920, the law of England and Wales has acknowledged that the religious situation in Wales is significantly different from that of England. The Welsh Church (Burial Grounds) Act 1945 continued that separation of law regarding ecclesiastical property in England and Wales. The law in Scotland and Northern Ireland has always been different from that in England and Wales, and so these matters were rightly not reserved in the Acts of 1998 relating to those jurisdictions. The removal of the reservation of legislative responsibility for the registration of places of worship in Wales is therefore an entirely logical step now that there is a National Assembly to legislate for Wales, when it is surely no longer appropriate for Parliament to continue to legislate for Wales alone on such matters.

The Church in Wales is not an established church, unlike the Church of England. However, its incumbents retain the role of registrars for marriages conducted in their premises, and its church buildings remain exempt from registration, as in England. These matters remain governed by the Welsh Church Act 1914 and subsequent legislation of this Parliament which relates only to Wales. Moreover, in spite of its being disestablished in 1920, the Church in Wales still retains a historic obligation in common law to marry parishioners simply on the basis of residence, whether or not they are members of the Church. Now that there is an elected National Assembly, which can legislate for Wales, again it would seem appropriate that the Assembly should decide whether—and, if so, how—to amend these arrangements in the future.

In 2001, the Welsh Government established the Faith Communities Forum, which enables them to consult all religious faiths and not just Christian churches in a formal way. An excellent relationship has been established through that forum. This Parliament has no such consultative mechanism specifically with faith groups in Wales, and the UK Government are regarded by many as rather remote when it comes to such matters. If these reservations are removed, we can be confident that the Welsh Government and the National Assembly will have the mechanisms in place to ensure that any future changes are made in consultation with faith groups and others, such as humanists, with an interest in these matters. I beg to move.

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, I thank the noble Baroness for moving this amendment in relation to the civil registration of births, deaths and places of worship. I have listened carefully to her argument. Civil registration functions, including the registration and administration of births, deaths, marriages, civil partnerships, adoptions and associated functions, and the registration of places of worship, are overseen by the Registrar-General for England and Wales, and the Government do not have plans to devolve any of these functions. Perhaps I may try to explain some of the difficulties that would arise in relation to devolution and answer some of the issues raised by the noble Baroness.

First, the noble Baroness raised the issue of the Welsh language, which is obviously very valid in relation to registration. However, it is already possible to register events in both English and Welsh where the events take place in Wales. The registration Acts, as extended by the Welsh Language (Wales) Measure 2011, the Welsh Language Act 1993 and the Welsh Language Act 1967 enable any person who can speak and understand Welsh to make a bilingual registration. Welsh local authorities, by virtue of their obligations under their Welsh language schemes, should provide registration staff who can speak, write and understand Welsh to accommodate citizens who desire this service.

The current position is that the Places of Worship Registration Act 1855 extends to England and Wales. Amendments 68 and 69 seek to separate civil registration functions by specifically devolving responsibility for the registration of places of worship to the Assembly. There are clear efficiencies in administering the responsibilities across England and Wales, and the inevitable cost of separating after over 150 years would appear to be disproportionate to any wider benefit.

The Registrar-General is an independent statutory officeholder—appointed under Section 1 of the Registration Service Act 1953—who exercises functions through the General Register Office, set up under Section 2 of that Act. As the arrangements are well established, there are significant links to, and dependencies on, the provision of civil registration in a unified system across England and Wales, including the use of a single computer system for all registrations. It works well in its current form and it does not make sense to separate out one element of it. I have not heard of any particular groundswell of support for a change in the law in relation to marriage in Wales. It is, in any case, not a devolved matter, and it is a very complex issue, as one can imagine, with the diverse faiths that we have in this country.

However, I can reassure the noble Baroness on one specific point. Looking at faith and integration in the devolved Administrations, I have already been in contact with the devolved Ministers in Scotland, Northern Ireland and Wales. I have arranged meetings so that we can discuss issues such as this, and I have had a positive response from Minister Carl Sargeant in Wales and from the other Ministers. We will be looking at issues such as this in the devolved forum, although I have to say that the issue of marriage law is not specifically a matter for the Department for Communities and Local Government; it is a matter for the Ministry of Justice.

However, it is a very wide-ranging issue because of the nature of the conduct of marriages. Some faiths’ marriages are recognised automatically if they take place in particular religious buildings—specifically, those of the Church of England, the Church in Wales and the Society of Friends, and synagogues—but that would not be true of other faiths as things stand. At some stage, this whole area probably will be looked at. However, as I say, this is not my specific ministerial responsibility, so I say that without being certain whether it is proposed at the moment. I do not think it is, but no doubt at some stage it will be looked at.

I am happy to discuss this further with the noble Baroness but, as I say, the Government have no plans to devolve this function. Therefore, I ask the noble Baroness to withdraw the amendment.

Baroness Morgan of Ely Portrait Baroness Morgan of Ely
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My Lords, I will be very brief. I am not quite convinced by the argument that the separation would not lead to efficiency and cost savings—we could say that about almost all devolved areas of policy. The whole point here is that you need to respond to local needs. I am very happy to hear that the Minister has initiated the devolved forum to look at this, and I look forward to hearing more about that. It would perhaps be an idea for us to discuss this further. It is just another one of those things for which I can think of no good reason to retain it nationally. I have not been convinced that there is a good reason and so we will just have to agree to differ on that point. I beg leave to withdraw my amendment.

Amendment 68 withdrawn.
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Moved by
71: Schedule 1, page 75, leave out line 28
Baroness Morgan of Ely Portrait Baroness Morgan of Ely
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I am sorry, my Lords, but I seem to be monopolising things a little this evening. In moving Amendment 71, I will speak to all three amendments in the group. The first relates to the community infrastructure levy—a planning charge that was introduced by the Planning Act 2008 as a tool for local authorities in England and Wales to help deliver infrastructure to support the development of their area.

In Wales, local planning authorities currently have the power to charge a levy. These authorities all prepare local development plans for their areas, which include an assessment of their future infrastructure needs, for which the levy may be collected. The authority can set charges based on the size and type of the new development. It can set different rates for different geographical areas and for different intended types of development. The levy is intended to encourage development by creating a balance between collecting revenue to fund infrastructure and ensuring that the rates are not so high that they put development across the area at serious risk. The levy can be used for a variety of infrastructure projects, such as roads and transport, schools and educational facilities, and even flood defences, medical facilities and sports and recreation facilities. As long as these have been identified in the authority’s local development plan then it can address this issue and appeal to the fact that it can have a community infrastructure levy.

The Welsh Government argued for the devolution of the community infrastructure levy in their evidence to the Silk commission in 2013. The issue was not addressed by the commission and thus did not feature in the UK Government’s St David’s Day document. However, the levy is inextricably linked with the delivery of already devolved responsibilities. The Secretary of State has not, to my mind, made the case for reserving the community infrastructure levy and we believe that this reservation should be deleted.

On the issue of compulsory purchase orders, these are an essential facet of highways and planning, both of which are devolved matters. In addition, compulsory purchase orders are essential to education services, to housing provision and to the NHS. Again, these are all devolved. The reservation of compulsory purchase of land in the Wales Bill would constitute yet another rolling back of power on what was previously a silent subject. The proposed reservation, if implemented, would cause unnecessary difficulties across a range of devolved activities that are underpinned by powers of compulsory acquisition of land.

Reserving the whole subject of compulsory purchase of land would risk rolling back, or at least creating uncertainty about, powers over the range of legislative competences already noted. Reform proposals across all these areas that may require adjustments to land acquisition powers would be likely to run into concerns about whether such powers are ancillary and necessary within the meaning of paragraph 2 of new Schedule 7B, issues upon which we have already touched. As it stands, the reservation is wholly unjustified and wholly unexplained. In this context, we need more laser-like focus on the more limited set of issues on which a common England and Wales approach is really necessary.

Finally in this group, I address the issue of buildings. Executive functions to set standards for the design, construction and demolition of buildings through binding regulations have already been transferred, with some exceptions, to Welsh Ministers under a 2009 transfer of functions order. Reservation 186 narrows the current competence of the Assembly, while Clause 47 extends the executive functions of the Welsh Minister. Removal of this reservation would therefore achieve a closer alignment of executive functions and legislative competence in Wales. As things stand, should Welsh Ministers wish to change current primary legislation governing Wales in relation to building standards, a request would have to be made to the UK Government, proposals agreed with them and time found in the parliamentary calendar. This would be a sledgehammer to crack a nut.

I am wholly unclear as to why the UK Government think that the legislative framework for buildings in Wales can be amended only at Westminster. Again, this seems a wholly unjustified and narrow approach to the Welsh devolution settlement. Prior to this, a renowned constitutional expert said that the previous Wales Act covered everything except the kitchen sink. He added while considering this report that in this Bill, the Government have even reserved the kitchen sink. I hope that your Lordships agree that the Government have simply gone too far in pushing back Assembly powers. Will the Minister explain in particular why he thinks that,

“the regulation of … services, fittings and equipment provided in or in connection with buildings”,

needs to be devolved? I beg to move.

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Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, I thank the noble Baroness, Lady Morgan, for proposing these amendments.

Amendment 71 would devolve to the Assembly competence to legislate for how infrastructure funding should be collected in relation to development. This is currently accomplished through the community infrastructure levy, which applies across England and Wales, and the mechanisms we use to raise funding for infrastructure to support development are undoubtedly important. I appreciate the points made by the noble Baroness and I am aware of the issues raised on the matter in the other place. In addition, the Welsh Government have argued persuasively in discussions with the UK Government that the community infrastructure levy should be devolved. I can therefore confirm that, as the Secretary of State announced on 31 October, we are content to devolve competence over the levy to the Assembly and I expect to table a government amendment on Report to achieve this. I hope that that is reassuring to noble Lords.

The noble Baroness, Lady Morgan, made some interesting points, when speaking to Amendment 72, about why she believes that the compulsory purchase law in its entirety should come within the legislative competence of the National Assembly and not be reserved to the United Kingdom Parliament. The debate has highlighted the lack of clarity that exists in the current devolution settlement. As compulsory purchase is a so-called “silent subject”, the United Kingdom Government and the Welsh Government have formed different views on the extent of the Assembly’s legislative competence in this area.

This reservation has been the subject of detailed and productive discussions between the United Kingdom Government and the Welsh Government. The United Kingdom Government consider that legislating on the general rules and framework of the compulsory purchase system, such as the compensation regime in the Land Compensation Acts, falls outside the Assembly’s current legislative competence. However, we accept there are arguments that the Assembly could confer or modify powers in legislation for bodies to acquire land by compulsion for devolved subjects. These would include powers for local authorities to acquire land for housing, planning or education purposes, among others.

I assure the noble Baroness that discussions between the two Governments on this reservation are at an advanced stage and appear to be going well. Discussions are fruitful. I would therefore like to reflect further on her points as the Government conclude their consideration of the extent of this reservation.

Amendment 73, also tabled by the noble Baroness, Lady Morgan, seeks to remove the reservation concerning building standards and building regulations. The noble Lord, Lord Howarth, also spoke with effect on this. Before responding to the amendment, I note that, through earlier transfer of functions orders and Clause 47 of the Bill, Welsh Ministers will have powers to make building regulations in respect of almost all buildings in Wales. There will now be parity in England and Wales as to buildings for which building regulations may be made by the Secretary of State and Welsh Ministers respectively. As drafted, the noble Baroness’s amendment goes considerably wider than this to devolve competence to the Assembly over building standards. I am aware that this devolution is being sought by the Welsh Government. There are some genuinely difficult issues here in terms of organisations currently exempted from the application of building standards in England and Wales. I am none the less happy to reflect on this further, with a view to returning to it on Report.

I hope I have been able to provide reassurance to the noble Baroness and I ask her not to press her amendments.

Baroness Morgan of Ely Portrait Baroness Morgan of Ely
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My Lords, things are getting much better. We have had three positive replies. I thank the Minister for his constructive approach on those issues. We look forward to working with him much more closely on them in the next few weeks, and to new amendments coming, we hope, on Report. I beg leave to withdraw the amendment.

Amendment 71 withdrawn.
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Lord Rowlands Portrait Lord Rowlands (Lab)
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I support my noble friend because I worry about taxation. It can be very regressive in an individual context. There is a history of it, and it could be not only in income tax but in VAT. We should be very careful before we proceed down that road.

Baroness Morgan of Ely Portrait Baroness Morgan of Ely
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I endorse the views of my two colleagues on the Labour Benches. I think it would increase budget volatility for the Welsh Government without enhancing their powers in any meaningful way. I underline one other point, and that is that we would, potentially, have different rates in England and Wales. Imagine the chaos that that could cause communities and businesses on both sides of the border. The economies of England and Wales are closely integrated and I am mindful that having varying rates applied on opposing sides of the border could pose significant issues in the long run, so I am really sorry—it always pains me not to agree with my noble friend Lord Wigley—but I cannot support this amendment.

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Lord Hunt of Wirral Portrait Lord Hunt of Wirral (Con)
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My Lords, I have to start with an apology. I think this is the first occasion on which I have ever disagreed with my noble friend Lord Rowe-Beddoe. I cannot agree to his proposed new clause—“Tax on carriage of passengers by air”—for three reasons. I hope that when I say what I am about to say, he will recognise that I worked very closely with him in attracting inward investment to Wales and, indeed, in and around Cardiff Airport.

My first point is that, sadly, this debate, like so many debates about the great country where I was born, is centred on south Wales. There has been no mention, apart from a sudden reference just now by my noble friend Lord Wigley, to Liverpool and Manchester airports. I view the airports of England and Wales as a whole, and I will come to a solution in a moment, but Cardiff is certainly not the airport of choice for people living in and around where I was born. It is certainly not the airport of choice for those in central Wales. Indeed, the needs of a large part of the geographical territory of Wales are not met by Cardiff.

Secondly, I have never been a strong supporter of air passenger duty. No doubt, when all the volumes are written and all the Cabinet papers published, it will be seen that I was never a supporter of APD or insurance premium tax. However, I have to acknowledge that it is a very clever way of raising revenue—so much so, as the noble Lord told us, that I think it now totals £3.1 billion a year. The noble Lord seeks, with the best of intentions, at one single airport, to make it possible for the owners of that airport—by the way, I think there is a conflict between owning the airport and setting the tax—to be able to move the duty up or down. Because it is such a clever way of raising money, if the Welsh Government were ever a little short of revenue—and I think they usually are—it would be perfectly possible for them, under his proposed new clause, to raise the amount of revenue from APD. I just do not think I want to go down that route.

Thirdly, there is an urgent need to develop a better policy for regional airports. I am aware that the Government published a consultation paper—last year, I think—looking at the future of regional airports. We are, after all, the Parliament of the United Kingdom, so I would have thought we had to look at regional airports across England and Wales to find the best possible policy for ensuring their success.

I think there are three possibilities. The first is to devolve air passenger duty within England and Wales, a possibility that, if I recall correctly, was raised. Secondly, rates could be varied from airport to airport, with a view to strengthening the claims of that particular airport. Thirdly, we could give much more aid to regional airports. I recall, and the noble Lord may remember this, that several of the companies that decided to make substantial inward investment in Wales cited the efficiency of Heathrow Airport as the reason they were able to come to Wales.

As the Parliament of the United Kingdom, we ought to look at the policy for regional airports as a whole. I do not know whether the Minister can give us any idea when we will see a policy applying to regional airports in England and Wales, but I hope we will soon. In the meantime, do not let us go off in one direction or another in favouring or disfavouring one particular airport. We have to strengthen regional airports in England and Wales as a whole.

Baroness Morgan of Ely Portrait Baroness Morgan of Ely
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My Lords, I agree with the case eloquently put by the noble Lord, Lord Rowe-Beddoe, and others. A reduction in air passenger duty would help air passengers, support growth and jobs and cut costs for businesses. I urge the Minister to support this amendment.

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, I thank noble Lords who have participated in this debate on air passenger duty, specifically the noble Lord, Lord Rowe-Beddoe, who has served with distinction in so many areas of public life in Wales, not least in relation to Cardiff Airport. His very good work is being carried on by Roger Lewis.

As we committed to in the 2015 St David’s Day agreement, the Government have considered the case and options for devolving APD to the Assembly, informed by consideration of the impact this would have on regional airports in England, as they happen to be; as things stand, Wales has only the one international airport, in Cardiff.

It is clear from the debate that noble Lords are aware that Cardiff and Bristol airports are about an hour apart, and the population density of the border area there means that more than 4 million people live in the overlapping catchment areas of the two airports. I must take issue with the noble Baroness, Lady Randerson, with whom I am normally in agreement as she is normally very fair: the distance from Cardiff and Glasgow airports to the English border is not the relevant one. There is no international airport in Berwick-upon-Tweed. It is a long while before you get to an international airport, which is Newcastle.