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The Chairman of Ways and Means (Sir Alan Haselhurst): With this, it will be convenient to discuss the following amendments: No. 10, in page 1, line 8, leave out 'National Assembly for Wales' and insert 'Welsh Assembly'.

No. 2, in page 1, line 9, leave out 'Assembly' and insert 'Senedd'.

No. 142, in page 1, line 9, leave out 'for' and insert 'of'.

No. 19, in page 1, line 9, leave out 'Cynulliad Cenedlaethol' and insert 'Senedd Genedlaethol'.

New clause 3--Power of Assembly to make primary legislation--

'.--(1) Where a function has been transferred to the Assembly under section 22, Her Majesty may by Order in Council provide that the power to make laws in respect of that function shall be exercisable by the Assembly.
(2) Laws made under subsection (1) shall be known as Acts of the Assembly.
(3) An Act of the Assembly is not law so far as any provision of the Act is outside the legislative competence of the Assembly.
(4) A provision is outside that competence so far as any of the following paragraphs apply--
(a) it would form part of the law of a country or territory other than Wales.
(b) its effect would be to modify any provision of this Act,
(c) it relates to a function in respect of which Her Majesty has not made an Order in Council under subsection (1), or
(d) it is incompatible with any of the Convention rights or with Community law.
(5) An Act of the Assembly may modify a provision made by or under an Act of Parliament, whenever passed or made, if the modification is otherwise within its legislative competence.
(6) Any provision of an Act of the Assembly is to be read, so far as possible, so as to be within the legislative competence of the Assembly and is to have effect accordingly.
(7) Proposed Acts of the Assembly shall be known as Bills; and a Bill shall become an Act of the Assembly when it has been passed by the Assembly and has received Royal Assent.
(8) The Assembly shall make standing orders setting out the procedures to which a Bill shall be subject.
(9) The validity of any proceedings leading to the enactment of an Act of the Assembly shall not be called into question in any legal proceedings.
(10) Every Act of the Assembly shall be judicially noticed.

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(11) This section does not affect the power of the Parliament of the United Kingdom to make laws for Wales.
(12) An Order in Council under this section may contain any appropriate consequential, incidental, supplementary or transitional provisions or savings (including provisions in the form of amendments or repeals or enactments).
(13) No recommendation shall be made to Her Majesty in Council to make an Order in Council under this section--
(a) unless a draft of the statutory instrument containing the Order in Council has been laid before, and approved by a resolution of, each House of Parliament, and
(b) in the case of an Order in Council varying or revoking a previous Order in Council, unless such a draft has also been laid before, and approved by a resolution of, the Assembly.'.

New clause 4--Secretary of State to bring forward tax varying proposals--

'(1) Subject to section (Power of Assembly to make primary legislation), the Secretary of State shall, before making an order under section 148(1) of this Act, lay before Parliament proposals to put in place an income tax varying power for the Assembly.
(2) The tax varying power under subsection (1) shall be limited to a maximum variation of three per cent above or below the prevailing basic rate of income tax for the United Kingdom.'.

Mr. Wigley: It is a great pleasure to move the first bank of amendments in the Committee stage of this very important Bill. The Government of Wales Bill will, I hope, provide a new structure of government in Wales, which will enhance democracy and enable the people of Wales to take decisions for themselves in those areas that are committed to the National Assembly Wales; they hope that those decision-taking powers will be adequate to make a difference in their everyday lives.

The amendment in my name and those of my hon. Friends, amendment No. 52, refers to our feeling that the assembly should be known as a legislative assembly. Legislative power is a very important power indeed in giving the national assembly the ability to make the difference to which I referred in areas within its competence.

Several other amendments linked with amendment No. 52 deal with the name of the assembly and associated matters, but I shall refer in these opening remarks to the need for legislative powers. In creating a National Assembly for Wales, we are creating a body which I hope will be able to get to grips with issues in Wales on which we need a different policy from that which exists for the United Kingdom as a whole or for England and Wales, within the context of this Chamber.

The logic of creating a national assembly is that, where circumstances are different in Wales, there is a need to be able to follow policies that are different. Under the Bill, the extent of the powers of the assembly will be tied in one direction by financial constraints, in that it will work within a block grant and will have no tax-varying powers. It will be tied in another direction by the legislative framework that has been laid down by Westminster. If it is impossible to move in either direction, the assembly's freedom of action will be very limited indeed.

The areas of competence of the assembly are matters of great importance, such as education, health, local government, language and culture, and many matters in which we in Wales have our own needs and our own characteristics and priorities.

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Those differences were recognised by the establishment of the Welsh Office in 1964 and by subsequent policy developments of successive Governments. Since then, legislation has been passed by the House that has been deliberately tabled to deal with the needs of Wales alone. I should like the assembly to have legislative powers of that sort, so I hope that the Bill will be interpreted along those lines. I hope that Ministers will be able to tell us about the extent of the assembly's powers to deal with legislative questions.

The White Paper and the earlier debates on the referendum acknowledged that the assembly will have some legislative functions, for example, to deal with orders--secondary legislation, as it is generally called. It is possible that the Bill's functions relating to, for example, the Welsh Development Agency will, in effect, be equivalent to amending primary legislation. To say the least, such a function requires clarification, so that we know the extent to which that power can be developed. In order to discover exactly what the assembly can do, we need to know the precise role of that legislative capacity. Provision for that exists in the Bill, but we need to know how far that goes.

Four years ago, a Bill was put through the House that dealt exclusively with the local government needs of Wales. The assembly should have the power to deal with such legislation in the future. There may be several ways of doing so, which we can explore. Perhaps my hon. Friend the Member for Ynys Mon (Mr. Jones) will deal with that, should he catch your eye, Sir Alan.

We should consider how the assembly could be linked with the existing legislative process of Westminster, so that policy changes required to legislation on local government, education or the Welsh Development Agency could include an input from our own assembly. Wales should not be totally dependent on this Chamber and this Parliament for any modifications to existing law.

We are aware that Scotland is to have a Parliament with full legislative functions. It will be possible for that Parliament to make full-scale legislative changes in those areas over which it will have competence. If there was a subsequent change in education policy as a result of legislation passed in the House, that would not apply to Scotland, because the Scottish Parliament will pass its own education Acts. The people of Scotland will therefore be safeguarded against a right-wing Government who sought to impose policies contrary to their democratic wishes. They will be able to withstand that.

My understanding is that the Bill does not offer a similar power to Wales. During the referendum campaign, however, I heard Ministers say that it might be possible to stop the enactment of legislation that would otherwise be imposed on Wales by a Government of perhaps a different colour from the current one. The possibility of that power should be explored in Committee, so that those in the assembly know exactly what they could do in terms of promoting legislation and withstanding that which is not wanted by the majority of people in Wales, as reflected by membership of that national assembly.

I want to clarify the legislative role of the assembly, and it is important to bear it in mind that such legislative powers are not draconian. We should remember that, apart from the proposed Scottish Parliament, the Stormont Parliament of Northern Ireland, when it was up and

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running, had similar legislative powers, as do the Isle of Man and the Channel Islands, which can make their own laws.

Mr. Donald Anderson (Swansea, East): Stormont was not called the legislative assembly of Stormont. Surely the essential point is that, when one defines, one limits. To call the assembly a legislative one would in part be a deception, because it will be capable of more than that, while having limited legislative powers. Why deceive people?

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