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Mr. Richard Shepherd (Aldridge-Brownhills): All this adds to the marginalisation of Welsh Members of the House of Commons. Is not the way to meet that to give all the powers that have been outlined to the Welsh Grand Committee, for example? I include in that legislative powers and the disbursement of moneys.
We would thereby retain the integrity of the Union, plus the integrity of the role of the directly elected and responsible Welsh Member of Parliament, who is elected on a franchise that surely covers issues such as transport, education and social services. At the same time, we would maintain--this is the point that worries my right hon. and hon. Friends--the integrity of the Union.
Mr. Davies:
I understand the hon. Gentleman's argument, but I find it difficult to take it from a Conservative Member. I say that with the greatest respect, because I know that he is an honourable and independent-minded Member. The House will know that I value independent-minded Members.
For four years in opposition, I tried to persuade the then Conservative Government to allow the Welsh Grand Committee to meet and to have the power to debate the matters to which I have referred, let alone to take decisions. The Conservative Government's track record on these matters was pretty poor. They would not even let the Welsh Grand Committee meet.
The House is, of course, part of our sovereign Parliament, and nothing that is included in our proposals for devolution will in any way impinge on the integrity of the House. We are talking about the administration of Welsh affairs, which are currently devolved to me as Secretary of State. It is those powers that enable me to act in an administrative capacity and to initiate secondary legislation that will be transferred to the directly elected Assembly of the Welsh people. There is no question of the sovereignty of the House being impinged.
I was talking about the impact of an Assembly on the Welsh economy. One of Wales's leading economists, Brian Morgan, has studied the most authoritative report yet on the economics of devolution produced by MacKay and Aras. It shows that, in the modern world, factors such as education and training, innovation and communication infrastructure, drive economic growth. Macro-economic factors, such as money supply and interest rates, are best left as stable as possible, with diversity and flexibility pursued locally.
That is just what the Welsh Assembly is about: local democratic control of the locally delivered services that make an economy thrive. It is our best chance ever to break out of the vicious circle of decline that has left the Welsh economy languishing for two long and weary decades.
Brian Morgan said:
There will be an auditor-general for Wales who will, in addition to auditing the Assembly's accounts, be able to examine particular areas of spending to ensure that maximum economy, efficiency and effectiveness is being achieved. The auditor-general's reports will be published, and the audit committee will be able to consider them and pursue issues as necessary.
Only the highest standards of propriety will be acceptable, and propriety does not begin and end with finances. The highest standards of conduct will be required of the Assembly and its members. It will conduct its business openly and in a spirit of partnership with local government, business, unions and the voluntary sector. It will promote sustainable development and equal opportunities for all. The use of the English and Welsh languages will be equally valid. Those principles will be reflected in the standing orders of the Assembly that will govern its procedures.
From the outset, we shall apply the strictest codes of conduct for members with a full declaration of interests. The Tory system of sleaze and greed and peddling of political influence to serve personal not public interest will have no part in our new system of government.
The Assembly will serve Wales's interests. It will have to improve the performance of the Welsh economy and the quality and delivery of services such as education and health. I want to ensure that the Assembly has the tools to do the job from the outset. We shall therefore create in the primary legislation a new economic powerhouse and introduce immediate further changes as we dismantle the Tory quango state.
I know that some of my colleagues would urge me to go further and faster, but I believe that we have the right approach. We said in our manifesto that we would specifically empower the Assembly to reform and democratise the quango state. That is precisely what the White Paper proposes. All public bodies that operate solely in Wales will be subject to the democratic control of the Assembly. It will make the appointments, set the strategic framework, provide the funding, and hold the bodies concerned to account.
The Assembly will be given sweeping powers to restructure the quango state. It will be able to abolish most of the executive and advisory bodies that report to it. However, I cannot empower it to restructure five bodies that, like those for the national lottery and the museums, were established under royal charter or warrant. Moreover, the Government have concluded that three other bodies--the Countryside Council for Wales, the
Higher Education Funding Council for Wales, and the Welsh National Board for Nursing, Midwifery and Health Visiting--should retain their independent status.
Mr. Ieuan Wyn Jones (Ynys Mon):
Will the Secretary of State clarify the position of the Welsh National Board for Nursing, Midwifery and Health Visiting? The chief nursing officer currently reports directly to him. Will he tell us and the people of Wales whether, under the new arrangements, the chief nursing officer will report to the Assembly or to him?
Mr. Davies:
I shall provide a general explanation so as to put the answer into context. The principle that we are applying is that those responsibilities that are currently vested in me will, with one or two minor exceptions, be transferred to the Assembly by transfer order. It follows, therefore, that the functions that I discharge will become the responsibility of the Assembly. Those people who report to me directly and exclusively will report to the Assembly.
Mr. Ted Rowlands (Merthyr Tydfil and Rhymney):
Will my right hon. Friend give way?
Mr. Davies:
I shall give way in a moment, because I know that my hon. Friend is concerned about this matter.
The Welsh National Board for Nursing, Midwifery and Health Visiting is currently subject to a review on a United Kingdom basis, and it would be wrong to pre-empt that review and to pass to the Assembly the discharge of professional responsibilities.
Mr. Rowlands:
Will my right hon. Friend clarify the position of the Higher Education Funding Council for Wales, which is not a minor body? It has a budget of£145 million, and is one of the largest, top-ten quangos. If the Welsh Assembly is not to be responsible for that budget, presumably the council will remain accountable to the Secretary of State. Will responsibility for the budget stay with the Secretary of State? If not, where will it lie?
Mr. Davies:
The Countryside Council for Wales, the Higher Education Funding Council for Wales and the Welsh National Board for Nursing, Midwifery and Health Visiting will not be subject to the Assembly's specific powers to restructure quangos. We took that decision in respect of the Higher Education Funding Council for Wales, because the principle has been established, certainly for the greater part of this century, that university funding should be the responsibility of an arm's-length body.
Mr. Rogers:
Where will it lie?
Mr. Davies:
With respect to my hon. Friend, he should let me answer my hon. Friend the Member for Merthry Tydfil and Rhymney (Mr. Rowlands), and if he then wishes to intervene, I shall give way to him. These are important matters, and I want to ensure that we deal with them sensibly.
"The elements favoured by the new growth theorists are exactly the areas in which the Assembly will have power to influence developments."
25 Jul 1997 : Column 1128
How long will Conservative Members, who are still sentimentally attached to centralist theories, take to realise that it is local democracy delivering local growth in an environment of national and, indeed, European stability that strengthens regions and nations?
The Assembly will provide excellent value for money, by giving the people of Wales a greater say in their own affairs and in how those resources should be spent. We will ensure that the Assembly observes the highest standards of propriety in handling those resources. It will apply the principles of government accounting, and an accounting officer will be answerable to an audit committee chaired by a member of a minority party in the Assembly.
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