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Lord Falconer of Thoroton: Amendment No. 261A seeks to make it a duty of the agency to have regard to the conservation and enhancement of natural beauty and the conservation of the flora and fauna of Wales, as well as to have regard to the protection and conservation of buildings and sites of archaeological or historic interest.

I am sure the Committee is aware of the sterling work which the Countryside Council for Wales already does with respect to protecting the Welsh natural environment, and that of Cadw in preserving ancient and historical monuments in Wales. I trust that the noble Baroness does not suggest abolishing these bodies or duplicating their functions by placing these further duties on the WDA.

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If the noble Baroness is concerned that the WDA's economic development work might damage the natural environment or built heritage of Wales, I am happy to set her mind at rest. The WDA is, and will remain, fully subject to environmental and planning law, including that relating to the preservation of sensitive environmental sites and historic building. Furthermore, it will be open to the assembly, in directing the WDA, to ensure that it operates in a way which is sensitive to these issues while not jeopardising its key task of regenerating the Welsh economy.

The noble Baroness's amendment, Amendment No. 262ZA, seeks to include "recreational activities" among those included in the definition of "business" in the WDA Act. I had rather misunderstood the basis of the noble Baroness's amendment. I had thought that the concern was primarily for the tourism and leisure industry in Wales. However, from what the noble Baroness said in moving the amendment, it would appear that she is concerned about recreational activities carried on by the charitable or voluntary sector in Wales. The main purpose of the WDA is to regenerate the Welsh economy. The matters to which she refers are probably already included in relation to business. I shall contemplate the issue further and bring it to the attention of those who have more significance in this matter than myself. However, I believe that it would be inappropriate for the matters to be dealt with by the Welsh Development Agency.

Having pointed out that there is no need for these further duties, or that they are inappropriate, I invite the noble Baroness either to withdraw or not to move the amendment.

Lord Renton: I have not spoken so far on this Bill, for which noble Lords perhaps are thankful. However, this amendment appeals very much to me, and I felt that I should lend my support to it.

Despite what the noble and learned Lord has already said about the various bodies responsible for protecting the environment of Wales, will he confirm that the elected representatives of the assembly of Wales will also have responsibilities even if this amendment is not accepted?

Lord Falconer of Thoroton: I do not follow the noble Lord's question. They will certainly have responsibilities, but he has not asked in relation to what. I confirm that they will have responsibilities imposed on them by the Bill--and they will be very substantial responsibilities in relation to the running and governing of Wales--but I cannot go beyond that.

Baroness Anelay of St. Johns: I am grateful to the noble and learned Lord the Solicitor-General for his assurances in regard to Amendment No. 261A. I certainly have no intention at all of abolishing either the Countryside Council or Cadw, both of which do excellent work. In the light of the noble and learned Lord's assurances I beg leave to withdraw Amendment No. 261A.

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As to Amendment No. 262ZA, there may be some misunderstanding as to why I wish to move the amendment. I am grateful to the noble and learned Lord for perhaps agreeing that we might come back to it at another stage. I will take further advice on it. I feel that the particular concerns of the Open Spaces Society with regard to Amendment No. 262ZA may not have been met by the noble and learned Lord's remarks so far. I beg leave to withdraw Amendment No. 261A.

Amendment, by leave, withdrawn.

[Amendments Nos. 262 and 262ZA not moved.]

Schedule 11 agreed to.

Clause 130 agreed to.

Schedule 12 agreed to.

Clauses 131 and 132 agreed to.

Clause 133 [Winding-down]:

Lord Falconer of Thoroton moved Amendment No. 262A:


Page 64, line 26, leave out ("conferred or imposed on that Agency") and insert ("imposed on that Agency, or conferred on the Secretary of State,").

The noble and learned Lord said: I beg to move Amendment Nos. 262A and I shall also speak to Amendment No. 262B. These are drafting amendments. First, they remove the references in Clauses 133 and 139 to functions "conferred" on the Development Board for Rural Wales and Land Authority for Wales. This is superfluous. Only the term "imposed" is needed.

Secondly, the amendments change the wording of these clauses to reflect that used in similar provisions in Clause 143. The Secretary of State will need the assistance of the Development Board for Rural Wales and the Land Authority to carry out functions conferred on him by Clauses 133 and 139. Inserting the words as printed would require each body to provide it. I beg to move Amendment No. 262A.

On Question, amendment agreed to.

Clause 133, as amended, agreed to.

Clauses 134 to 138 agreed to.

6.15 p.m.

Clause 139 [Winding-Down]:

Lord Falconer of Thoroton moved Amendment No. 262B:


Page 67, line 12, leave out ("conferred or imposed on that Agency") and insert ("imposed on that Agency, or conferred on the Secretary of State,").

The noble and learned Lord said: I have just spoken to this amendment. I beg to move.

On Question, amendment agreed to.

Clause 139, as amended, agreed to.

Clause 140 agreed to.

On Question, Whether Clause 141 shall stand part of the Bill?

Lord Roberts of Conwy: There has been very little parliamentary discussion of the housing issues raised by

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the transfer of functions of Tai Cymru Housing For Wales to the Secretary of State under Clause 141. All we know is that this body, which had a budget of nearly £63 million in 1997-98, is being absorbed into the Welsh Office which will perform its functions for the time being.

As to the long-term future of these functions, there is very little light cast in the Bill although housing is listed in Schedule 2 among the 18 fields in which functions are to be transferred by order to the assembly.

Paragraph 3.31 of the White Paper, A Voice for Wales, states:


    "the restructuring of Tai Cymru's responsibilities will give local authorities a significantly enhanced role in co-ordinating the delivery of local housing strategies matched to the needs of their areas. They will also have the power in appropriate circumstances to provide new housing themselves".

It seems that the Government have not yet quite decided how housing responsibilities are to be divided. It seems that there is to be some reallocation of duties to local authorities. Will the Minister give some indication of the likely course of events? Housing is traditionally a very important subject in Wales, as elsewhere. It would be remiss of us simply to pass these functions back to the Welsh Office without any comment at all in Parliament.

Lord Williams of Mostyn: There is not a specific amendment relating to Clause 141. I understand the concerns that have been expressed and I will undertake to write further to the noble Lord, Lord Roberts of Conwy.

Clause 141 agreed to.

Schedule 13 agreed to.

Clause 142 [Transitional provisions]:

Lord Williams of Mostyn moved Amendment No. 263:


Page 69, line 18, after first ("or") insert ("by Housing for Wales or the Housing Corporation for the purpose of or in connection with").

The noble Lord said: Amendments Nos. 263 and 264 are technical amendments. They are required to correct an omission from the Bill in relation to the functioning of the Housing for Wales' lending responsibilities when they are transferred to the Secretary of State under Clause 141(2).

Housing for Wales is a qualifying lender under Section 376(4) of the Income and Corporation Taxes Act 1988. It can give mortgage interest relief at source in respect of some 20 mortgages and loans. Some of the loans have been made by Housing for Wales and we have provided for those in the Bill. Other loans inherited by the Secretary of State were made by the predecessor authority, the Housing Corporation in Wales.

Without these changes the Secretary of State would be unable to give mortgage interest relief at source. That would be undesirable and these amendments simply tidy up the situation. I beg to move.

On Question, amendment agreed to.

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Lord Williams of Mostyn moved Amendment No. 264:


Page 69, line 24, leave out from ("Wales") to end of line 26 and insert ("and are made or commenced before its functions are transferred, and
(b) for Housing for Wales or the Housing Corporation in any instruments, contracts or legal proceedings which relate to any property, rights or liabilities transferred by section 141(2) and are so made or commenced.").

On Question, amendment agreed to.

Clause 142, as amended, agreed to.

Clauses 143 and 144 agreed to.

Clause 145 [Accounts, audit and reports]:


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