Oral Answers to Questions Debate

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Department: Wales Office

Oral Answers to Questions

Lord Murphy of Torfaen Excerpts
Wednesday 29th June 2011

(12 years, 10 months ago)

Commons Chamber
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The Secretary of State was asked—
Lord Murphy of Torfaen Portrait Paul Murphy (Torfaen) (Lab)
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1. What recent discussions she has had with the First Minister on the remit of a commission on devolution and funding for Wales.

Cheryl Gillan Portrait The Secretary of State for Wales (Mrs Cheryl Gillan)
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The Government are committed to a Calman-like process for Wales and will be putting forward proposals. I have discussed the issue with the First Minister, and will be continuing to have discussions with relevant colleagues and of course the First Minister.

Lord Murphy of Torfaen Portrait Paul Murphy
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The Secretary of State will know that the Northern Ireland Executive can borrow money and the Scottish Government will soon be able to borrow money, but the Welsh Government cannot. With the cutback in capital spending on schools and hospitals, is it not now time for the right hon. Lady to enter into immediate negotiations with the Welsh Government and the First Minister so that the Welsh Government can also borrow money?

Cheryl Gillan Portrait Mrs Gillan
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I thank the right hon. Gentleman for that question. He is effectively asking why Wales is the only home nation without borrowing powers. It is fair to say that the new borrowing powers for Scottish Ministers, which are set out in the Scotland Bill, will not take effect until 2015-16, which is in line with our commitment not to change the system until stabilisation of public finances. May I make it clear that we are not ruling borrowing powers for the Welsh Government in or out at this stage.