Memorandum submitted by Sustrans Cymru,
BMA Cymru and the NAHT Cymru
"FIND OUT
IF WALES
IS BEING
SHORT-CHANGED",
DEMAND INDEPENDENT
COALITION
A coalition of leading experts in the transport,
health and education fields are calling on whoever forms the next
Welsh Assembly Government to set up an independent inquiry into
how Wales is funded.
Sustrans, the sustainable transport charity,
The British Medical Association (BMA Cymru Wales) and The National
Association of Headteachers (NAHT Cymru) are demanding a fresh
look at the workings of the Barnett formula: the mechanism used
to decide levels of public spending in Wales.
"Too few people understand the way the
Barnett formula works. We need to clear the dense funding fog
to see if Wales is being well served" said Dr Tony Calland,
Chair of BMA Cymru Wales. "Could the Welsh NHS be missing
out on millions because the formula is out of date? We need to
know".
The organisations have joined forces to urge
the next Welsh Assembly Government to set up a high-level inquiry
modelled on the independent Richard Commission to examine if the
`Barnett' formula is still fit for purpose.
"Until now the debate over the Barnett
formula has been party political. Our call for a transparent examination
of the way Wales is funded comes from civil society. This is too
important an issue to be left to politicians alone." says
Lee Waters, National Director of Sustrans Cymru.
The cross-party body would commission independent
research into the way Welsh public services are funded by the
Treasury and take evidence from both experts and people in all
parts of Wales. The committee would be drawn from civil society
and appointed by nomination from the parties and from open advertisement.
"Arguments about the fairness or otherwise
of the Barnett formula have been raging for years. It's time for
all sides to sit down and examine the facts together and try to
form a consensus view" said Anna Brychan, Director of NAHT
Cymru. "We think that the establishment of a Richard -style
Commission will help us end the claim and counter-claim nature
of the debate so far" she added.
NOTES
— Sustrans is the UK's leading
sustainable transport charity. Its vision is a world in which
people choose to travel in ways that benefit their health and
the environment. It is achieving this through innovative but practical
solutions to the UK's transport challenges.
This year Sustrans celebrates its 30th anniversary,
it was founded in Bristol on 7 July 1977. During 2007 there will
be a variety of activities to mark the year, including a "Change
Your World" campaign to encourage people to switch a car
trip to a more sustainable method and a celebratory cycle ride
and party.
— NAHT Cymru—The Association
for All School Leaders.
The NAHT represents more than 28,000 school leaders,
including virtually every Special School head, 85% of all Primary
School heads, and over 40% of all Secondary School heads in Wales,
England and Northern Ireland.
The British Medical Association represents doctors
from all branches of medicine throughout the UK. It is a voluntary
association with about 80% of practising doctors in membership.
Its membership of almost 127,000 includes 12,000 medical students
and nearly 4,000 members overseas.
ARTICLE PRINTED
IN THE
GUARDIAN
The funds are unfair.
Treasury forecasts suggest tough financial times
ahead for the Welsh assembly—prompting fresh questions about
the way it is funded.
LEE WATERS
27 March 2007 3:59 pm
This afternoon the Welsh first minister, Rhodri
Morgan, will get to his feet in Richard Rogers' debating chamber
for perhaps the last time. After today's question time assembly
members will pack up their offices and head out on the campaign
trail.
Elections used to be predictable in Wales. Not
any more. With an all-time low turnout expected, Labour's minority
administration face an enormous challenge. A coalition of some
kind in Cardiff Bay is all but assured. The question is, between
who? Will the combined might of Labour and the Liberal Democrats
be enough to govern? Or will there be a rainbow coalition, bringing
the Conservatives into power with Plaid Cymru and the Lib Dems?
Whoever governs will find tough financial times
ahead. Treasury forecasts show that year-on-year increases in
the assembly's block grant during its third term will be half
the current 3%, leaving very little room for manoeuvre. This will
inevitably provoke fresh questions about the way Wales is funded.
The current formula drawn up by Joel Barnett,
a treasury minister in the late 1970s, is population based. Wales
has roughly 6% of the UK's population and gets an uplift of about
6% when spending increases are announced for England. So an extra
£100 million for the NHS, announced by Patrica Hewitt, will
feed through to a boost of about £6 million to the assembly's
budget for Welsh ministers to spend as they see fit.
But is it fair? The formula doesn't take into
account the fact that Welsh income levels are among the lowest
in Europe. Nor does it factor in the legacy of ill health left
over from heavy industry. In short, the formula takes no account
of Welsh social and economic need. Indeed, experts reckon that
Wales is losing out on between £300 million and £800
million a year.
But the real point is that nobody knows.
That's why a coalition of leading experts in
the transport, health and education fields are calling on whoever
forms the next Welsh assembly government to set up an independent
inquiry into how Wales is funded.
The sustainable transport charity Sustrans,
the British Medical Association (BMA Cymru Wales) and the National
Association of Head Teachers (NAHT Cymru) have joined together
to show that Welsh civil society is no longer content to allow
a conspiracy of silence to dictate the pace of the debate.
Too few people understand the way the Barnett
Formula works. Journalists have difficulty explaining it and can't
persuade their editors it's "sexy" enough. And much
of the political elite don't want to rock the boat. As a result,
no one is talking about it.
The last time a "partnership government"
was formed in the Welsh national assembly it set up an independent
commission on the future of devolution under the former leader
of the House of Lords, Ivor Richard. It commissioned research,
took evidence from experts and held public meetings. And most
importantly, it formed a consensus on the way ahead.
It's time for a similar body to look into the
Barnett formula. This is too important an issue to be left to
politicians alone.
March 2007
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