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Commission on the Powers and Electoral Arrangements of The National Assembly for Wales

MINUTES OF PROCEEDINGS
of the
EVIDENCE OF MR RON DAVIES AM
held at
National Museum of Wales, Cathays Park, Cardiff
on
Thursday 26 September 2002

Lord Richard
Thank you very much for coming. You are one of the parents of devolution so it will be very useful for us to listen to what you have to say.
Could you for the record introduce yourself please. Then I would be obliged if you would perhaps give us a two or three minute introduction.
Ron Davies
Thank you for the opportunity to give evidence. Before I start I'd like to say that I have submitted a paper called "A Question of Attitude" it's a paper I prepared 2 years ago looking at the way the National Assembly handled legislation and I'd like to present that as evidence. Currently I am a member of the National Assembly representing the Caerphilly constituency - I was the Member of Parliament for Caerphilly until the last General Election.

I was Shadow Secretary of State for Wales from 1992 to the General Election in 1997, and then Secretary of State from 1997 to 1998 and responsible for the Devolution Act itself.

I think it’s probably as well that I recall for you a conversation that I had in the Autumn of 1992 when I was elected to the Shadow Cabinet and appointed Shadow Secretary of State for Wales by the then Leader of the Party, John Smith. He spent the first five minutes of our conversation raving at those people who didn't support devolution. After five minutes he stopped and looked at me and said "You are in favour of devolution aren't you Ron"? and of course I was in favour of devolution. He made it clear that what he wanted was devolution for Wales in exactly the same way as Scotland. So it was clear right from the outset that my brief was to deliver a parliament for Wales along the same lines as Scotland was getting. Of course the task was not quite as easy as that because the Labour Party in Wales - as you heard from the previous speaker - has had a rather ambivalent attitude towards devolution throughout the 20th Century. What I had to do was try to ensure that we had agreement within the Labour Party that allowed us to go forward into the General Election in 1997, and the almost inevitable referendum afterwards, with the Labour Party not having been split as it had been in 1979. I was satisfied that when John Smith was leader of the Labour Party I would get the backing I needed for what he wanted.

What then happened was that the leadership of the Labour Party changed and the present leader was much more cautious, the robust form of devolution that John Smith wanted was not what he was looking for. So the proposals were developed to reflect his attitude rather than John Smith's and they were put to the Labour Party in the 1995, 1996 and 1997 Conferences here in Wales and they were accepted. They were agreed unanimously by the Labour Party so in that sense we had done very well, we had achieved agreement. So we went into the 1997 election with agreement and I think the narrowness of the referendum result showed that had the Labour Party been divided we might have lost the referendum. So my strategy was to get as much agreement as possible within the Labour Party and to get that we had to make a lot of compromises.   Again, having listened very carefully to the previous evidence, the big issue at the time - as it is now - was the question of primary legislation. That was what separated the idea of an Assembly from the idea of a Parliament. And it was that issue of primary legislative powers that became the main battleground within the Labour Party. The powers that be within the party were not convinced of the case for primary legislative powers and the compromise was settled on therefore, that we would have an Assembly without those powers of primary legislation.

Lord Richard:
When it came to getting some of the proposals through Cabinet Committees, and enshrined in legislation, was there any attempt then to enlarge it to primary legislation?
Ron Davies
No, largely because I had an understanding with the party leader prior to the 1997 election that included an agreement on things that I think were novel and pushed the boat out a little further in terms of where the party leader wanted to go: things like Henry VIII powers and proportionality on which the party leaders were still undecided but we had agreement on that in the document which was then called The Road to the Manifesto. Having got agreement that that would be enacted I didn't attempt to go further but in exchange I would get what had been agreed enacted in legislation.

There were matters - which I am sure you will recall - on which there were discussions in the Committee that was dealing with legislation but they weren't essential matters, they were things like whether Ministers in the Assembly should be called Ministers or Secretaries. I was so confident that I pushed this issue to a vote and I lost and the term Secretaries was put into the Act. Of course in spite of this, as you know, one of the first things that happened in the National Assembly was that the titles were changed to Ministers.

Lord Richard
Given that background and the blueprint if you like of the Act that you were responsible for, has it worked out the way you thought it would?
Ron Davies

No, the construction that we had was very much an Assembly, it wasn't an attempt to replicate a Parliament, it was an Assembly, and therefore the architecture of the Assembly was very clear, it was about inclusivity, it was about power sharing, it was about having a system of Committees where information, power and decision making would be shared. It was based on a degree of proportionality so that the elected representatives from all parties in Wales would be included. It was based on the idea of partnership so we wrote into the Act partnerships with business, with local government, with the voluntary sector and we ensured that we would at least have a committee for the North and the other regions.

The construction therefore was an inclusive Assembly - a unique model of government designed for the particular circumstances here in Wales. What happened of course, particularly since the coalition government was established some time ago, what happened is that we are increasingly seeing now the development of a parliamentary style operation with the de facto separation of powers within the corporate body between the Office of the Presiding Officer on one hand and then the self-named Welsh Assembly Government on the other.

Lord Richard
Could you help me on this - what was the thinking behind the corporate body?
Ron Davies
There are two parallel, linked strands, the first one would be to fit the legal requirement that there had to be a Body to which the powers would be devolved, so we had to create some sort of entity. In the case of Scotland, that was the Executive. Within the initial planning period of 1995-97 there were all sorts of coded words within the Labour Party to describe what we were planning and the idea of a corporate body was more reassuring to people who didn't want to go down the Parliamentary road because it didn't smack of a Parliament. As I think the previous speaker made clear there were two arguments with the Labour Party, there weren't three, nobody was saying we wanted an Assembly. On the one hand you had people saying we want a Parliament and on the other hand people were saying we don't want any Body. So a compromise between the two was found and the idea of a corporate body gave reassurance to those people.
Lord Richard
It’s creaking now.
Ron Davies
Certainly I think the operation is creaking now because what we have is a single parliament, we have a government which acts as a government, we have an institution that tries to act as a parliament, but it isn't constructed to act as a parliament. Members don't have the capacity or research support to challenge the government. We have a committee structure that is hybrid: Ministers sit on them as of right and the committees have notionally a power of policy development. Ministers feel very pressured if they are questioned Select Committee style - they feel that somehow the Committee is being unfair to them, that that is not part of a inclusive process, so yes it is creaking.
Lord Richard
What else hasn't worked out the way you thought it was going to?
Ron Davies
I think the point is worth making again that the form of government we have now is infinitely better than we had before 1997 and in that sense I am very proud of it. But that doesn't mean to say it couldn't be better. So the question is in what ways. I think we have improved governance in Wales as you have already explored, there are a number of reasons why we had devolution, one of those clearly was the idea of the democratic deficit. There were others relating to the performance of public services and indeed the national question: identity and image and nation building. But the question that really resonated with the public during the 1990s was the question of the democratic deficit, the issue of quangos, the issue of the Secretary of State, the issue of legislation going through Parliament. I think that we have done that, I think we do have a form of government now that, despite its imperfections, despite the sense of isolation that comes from its distant geography, I think we have opened up Wales. I think if you ask people in local government, in the voluntary sector, industry, the universities, there's a general sense of much more open, transparent, democratic form of government. That we have achieved.

I think where we are not yet punching our weight is in the development of policies which are unique and distinctive, which are made in Wales and I think that is impacting on the public consciousness, I think that is one of the reasons that public attitudes in Wales are changing and people are saying…well, if we are to have devolution lets have it with real powers. I think that the Conservative Party must take some credit for that change, because they had at a very early stage to come to terms with devolution and decide what their attitude was going to be. And several of the Tories have said, if we have to have devolution, let’s make it work, and on issues such as agriculture particularly, on the issue of crops, the Conservative Party in the National Assembly were arguing that the Assembly should have primary powers. I think that was an indication of how attitudes are changing, and I think there is a public perception outside the Assembly that the Assembly isn't yet doing the things that it could be doing and people are saying well, if it’s there to stay let’s make sure it’s got the proper powers.

Lord Richard
That’s a more generalised feeling as opposed to a focused thing on individual policies.
Ron Davies
I was expressing a general impression.
Lord Richard
Are you surprised at the poll this week?
Ron Davies
No I'm not surprised at all, I thought that was precisely what would happen. I try not to be one of the devolution anoraks because I do talk a lot about devolution, because people want to talk to me about devolution. That is the sense that I've got, that even though the institution is not greatly loved, there is a sense of ‘since we've got it let’s make it work’, I guess the same thing applies to Westminster or to European institutions.
Lord Richard
And the ‘let’s make it work’ point is let’s give it powers of primary legislation…..
Ron Davies
That’s not the form of words which is on the lips of every man that I speak to in the Machen Working Men’s Club. The issues we are talking about of primary or secondary powers are only talked about by those of us who take an interest in devolution but I think when you see issues such as the crisis facing the countryside, issues like education, crime, and the police service, I think people’s perception, quite rightly is ‘why doesn’t the Assembly do something about it?’, I think they are prepared to leave it to the chattering classes to construct what is necessary to allow the Assembly to do something about it. I think there is a sense of frustration that we can’t do something about it, not ‘why can’t we have primary powers?’
Lord Richard
What about tax powers?
Ron Davies
Taxation has never been an issue as far as I am concerned, for a number of reasons. The big issue as far as I'm concerned in the 1990s was getting over the hurdle of creating an institution, that was a big single issue. In a sense the question of powers was not the central issue, the big issue was are we going to break the log jam that had existed by then for almost 100 years and create a democratic institution. I looked at the question of tax raising powers in that context and I took the view that it was going to be difficult enough to win the referendum anyway. If we argued the case for home rule for Wales, and at the same time raised the spectre of extra taxation that wouldn't have helped us. There were two other elements. First of all I think at the time we would only have raised something like £40 million or something of that order compared with an overall budget of, at that time, something like £4 billion. The other element was the position of the Welsh economy, we have a very integrated, long border with England - if you look at the economies of South East Wales and North East Wales, they are very integrated with the economies of Severnside and Deeside. There was always the prospect, particularly in the light of the referendum that we would have had, of big firms, big companies, big employers, individuals saying: ‘do you think I would live one side of the Severn and pay extra tax when I could move the other side… you must be joking.’ Now it just wasn’t worth engaging in that argument and of course as public expenditure has increased in Wales and central government increasingly over the last 4 or 5 years has found methods of taxation other than income tax the issue of personal taxation through income tax has assumed less importance.
Huw Thomas
You referred a number of times to Kevin’s comments to us and I got the sense from what you were saying, that you were genuinely surprised to find that in the end that there weren’t blocks of policy being allocated to Wales, it was very much a question of whatever stood as the Secretary of State powers at the time moved to the Assembly. Was that one of the compromises you had to go through, or did you believe that there would actually be blocks of responsibility passed say for education?
Ron Davies
We took the decision fairly early, it was important in terms of the strategy that I had in opposition and afterwards in government, to ensure we could move with minimum delay. It's an important point that the incoming Labour government wanted to fight the referendum as quickly as possible for two reasons. One of which I am proud and one of which I am less proud. The one of which I am less proud is that we wanted to catch the public mood after the election - we wanted to get the referendum out of the way as quickly as possible. The other was perfectly legitimate, we thought we might have come to Parliament (and we were planning this in 1995, 1996, 1997, not knowing what the result of the general election was going to be) having to rely perhaps on a dozen Lib Dems to get a majority, thinking that there might be rebels on our own side. So we wanted to get it out of the way as soon as possible, we wanted to legislate as soon as possible after the general election so we could get it on the statute book and the government of the day could get on to the other real issues that mattered to ordinary people. The issue that I faced was that if I said in opposition and in Cabinet Committee, look all I want to do is transfer my powers to the National Assembly, powers which have already been devolved to the Secretary of State, nobody could really argue and that was what happened. I knew that was going to form a very, very ragged edge in the powers - as we have seen time after time since. But had I argued then – let’s take the case of DEFRA , for example - that on this issue of animal health we really need to have a serious look at the extent to which we can devolve some powers and we need to tidy up this ragged edge, we'd still be talking today. I just couldn’t afford it because it didn’t fit with the Parliamentary timescale. Equally with the Department of Education and the Department of Health, if we’d engaged in that debate we would have started a whole series of turf wars across Whitehall. This would have invited everybody there not only to say why we couldn’t have any more powers, but actually to reverse the telescope a bit and then say: ‘oh well we were prepared to devolve these matters to the Secretary of State, because bear in mind the Secretary of State is subject to collective Cabinet responsibility and English Ministers could always gang up on the Secretary of State for Wales and bring him into line but if those powers are devolved than you can’t exert collective responsibility’. So had you opened up that debate at that time it would have been a whole series of turf wars right across Whitehall and therefore, even though it was going to create this very ragged edge across the competencies, I took the view that if we accept the powers as they are it would be much easier.
Huw Thomas
In fact the powers that you devolved, the Secretary of State's powers themselves, were often exercised on a joint basis with England. So if you weren't actually looking at something that was a clean break you were looking at things where the Assembly from the very beginning had to start working with Westminster and in going for that you must have had very clear understanding that it was going to go up against the buffers very quickly
Ron Davies
No, not that it would run against the buffers, no. But the issue that we had to face shortly after the Election was actually to write the White Paper. I had met the Permanent Secretary before the election several times to discuss what would happen in the event of a Labour Government but after the election, in the early summer of 1997, we had to produce a White Paper very quickly. That had to go before Parliament in July in order for us to meet our provisional timetable and that meant that we only had a couple of months to produce our White Paper. And when you’re up against that sort of timetable, time was of the essence - you had to take very focused decisions, and therefore the focused decision at that time was the principle that you devolved the Secretary of State's powers, of course there would be problems, but those problems would have to be solved afterwards. So I accept the fact that there was a very ragged edge across all the powers and functions: some were devolved to Cardiff, some were retained, some were with the Secretary of State for Wales and some were exercised jointly. That was certainly the case in Agriculture and Animal Health. So of course those were difficulties but at the time, because of the way Parliament and Government operates, they were difficulties that could be put off for another day.
Huw Thomas
Would it be fair to say that you always thought there would be a Government of Wales Amendment
Act ?
Ron Davies
No, that would be giving me a degree of foresight that I didn’t have at the time. The process of Government I’m afraid is not that sophisticated - it really is a question of saying I've got two months to get a White Paper before Parliament. I can recall having discussions with the other departments who were going to lose some sense of control over certain areas and I would always say, ‘well of course you understand that devolution will mean the capacity for policy difference’ and it would just seem their eyes would glaze over. I think their attitude was either ‘it doesn't matter because it’s in Wales’ or they were thinking to themselves ‘if you think that’s a problem we’ll sort it out in Cabinet after devolution’. So if you’re asking me was there a carefully considered analysis of the powers that would be devolved and the impact that would have on other Government Departments and whether that could be put in the context of a set of arrangements to allow for dispute resolution - that was not the world we were in and Government’s not like that.
Lord Richard
My recollection of those meetings within Government is that the main focus of attention was on the pattern of Scottish Devolution and the effect of that and that you managed, so to speak, to tuck yourself behind it and avoid a great deal of argument which would otherwise have taken place on the basis that what we’re doing is devolving Secretary of State powers and it’s just a matter of working out how you would do it.
Ron Davies
That's absolutely right and the result of that of course is that we managed to get the Welsh White Paper before the Scottish White Paper. The Scottish Referendum came first for constitutional reasons but after that we were able to get the Government of Wales Bill before Parliament before the Scottish Bill. Certainly the tactic was just to tuck behind Scotland - let the Scots handle the big issues and for us to benefit.
Tom Jones
Diddorol iawn oedd y ffordd roeddech chi’n esbonio yr anghenion gwleidyddol i greu Papur Gwyn ar frys ac yn y blaen. Mae pob un ohonom ni’n derbyn bellach fod yna gymlethdod yn y system, ac i bobl tu allan, etholwyr a phobl sy’n delio hefo’r llywodraeth mae gynon ni fyd cymleth dros ben. Does neb yn siwr iawn lle mae’r cyfrifoldeb yn gorwedd – gyda’r Cynulliad, neu yn y byd amaethyddol ydy o’n gorwedd hefo DEFRA ynglyn ag iechyd anifeiliaid neu ynglyn â pholisiau amgylcheddol. Beth ydych chi’n feddwl sy’n rhaid digwydd rwan i neud y system yn fwy syml, fel bod pawb yn deall yn union lle mae’r cyfrifoldeb’. Ai mater o newid anghenion a phwerau cyfreithiol a phwerau primary neu mater o ddealltwriaeth newydd rhwng adrannau o’r llywodraeth?

[The way you explained the political requirement to produce the White Paper quickly was very interesting. We all now accept that the system is complex and to people outside, electors and those who deal with Government it is a very complex world indeed. No-one is sure where responsibility lies – with the Assembly or, in the agricultural sphere, does it lie with DEFRA on animal health or on the environmental policy side. What do you think needs to happen now to make the system simpler so that everyone understands where the responsibility lies – is it a matter of changing the legal requirements and powers or is it a case of a new understanding between government departments?]

Ron Davies
Dwi’n deall y cwestiwn ond fe hoffwn i ateb yn Saesneg os mae hynny’n iawn.
[I understand the question but I would like to answer in English if that's all right]

The question of perception of people outside is very important and is one of the reasons I think that has impacted on the Aberystwyth study to which reference has been made before. I think this issue of clarity is very important, its also very important for people outside to get that degree of certainty. It's also important for the self perception of the Assembly. You will recall the Calf Processing Scheme which I think hit the image of the Assembly. There was something that was a good idea which had been worked up with agricultural interests and then the Assembly found that it couldn’t do it. I think that was so damaging to the prestige of the Assembly. How can we get this greater clarity? I think that what we have to do is look both at the areas which are devolved and at the extent of the powers.

In terms of the areas I think that we do need to have a serious debate about the animal health powers. I was one of those in government who was in favour of conceding animal health powers because I never took the view that if you think in terms of us discharging European obligations particularly in the field of animal health, I just could never envisage a situation where you would have a different regime in Wales for example for dealing with BSE. It just didn’t seem to be logical to create separate regimes for dealing with Animal Health powers given the extent of cross border trade and stock movements and therefore I think that there is a strong case for rationalising those powers. Even though the Assembly is asking for those powers I would be very surprised if they were conceded by DEFRA - I think we won’t get those powers.

I’ll give you another example which I think is a better one and that is a question of Police and Home Office powers. Everybody now talks about a holisitic approach to government services and the need to get communities working together and to create a relationship between housing, economic development, education, health, strong communities. The problem is how can you have integrated cross-cutting government when the bulk of the services are devolved, certainly health and education and community development are, and one of the central services, police, is not devolved. As it happens the police have been very pragmatic and are working very responsibly almost as democratic partners in the various initiatives that are taking place. But the police are actually unhappy now, they don’t get any political direction from the Assembly although part of their funding comes from the Assembly. They can see that there is this close relationship between the National Assembly and the other organisations and some of the Chief Constables will tell you, off the record or on the record I don’t know, that some of their colleagues in England look jealously at their colleagues in Wales where people can be very close to Ministerial decision making. So I think that's a better example, of those areas and functions - I think police powers will go a long way towards tidying up that ragged edge.

The other issue is, of course, legislative powers and specific primary legislative powers. I think there are a number of faults in the present system. We're not dealt with in a common way in Bills which affect Wales, you might have a Health Bill which devolves more powers, you might have an Education Bill which doesn't devolve any powers, you might have an Environment Bill which gives some powers to the Secretary of State for Wales. There's just no consistency between Government departments and that can't be right. And the other problem we have is that there isn't actually a process which is open to democratic scrutiny. If I can give you the example of the Education Act which went through this year there were some 30 clauses in that Bill relating to Wales, some 30 clauses on the face of the Bill which dealt with the curriculum in Wales including provision for the Welsh language, which were actually dealt with in the Westminster context. We didn't have a debate in the National Assembly, those proposals didn't come before us on a matter which is completely devolved. Because it was devolved I understand a lot of Parliamentarians took the view well, this is a matter for the National Assembly we don't have to try to second guess the government or to tell the National Assembly what to do. I just can't understand the rationale for having an Education Act with 30 clauses relating to Wales on devolved matters such as the National Curriculum without either consultation or giving powers to the National Assembly. There are other examples where it is necessary to tidy up that ragged boundary - I think some powers, notably police, should be devolved as well as other areas where there is not that policy impact on the English departments for example, local government. Indeed John Redwood thought that because he created Unitary local government here in Wales when they didn't have it in England - so we had devolution in that respect under Mr Redwood. So as long as what is happening in Wales doesn't impact on England I think Government departments are covered. Therefore I would argue very strongly that on matters which are entirely discrete to Wales - reorganisation of the Health Service, delivery of education, environmental protection, transport, policing, community regeneration - in all those things which don't impact on England (in fact we might have initiatives in Wales, with beneficial lessons for England) I think that’s as far as I would want to see the ragged boundary tidied up - by some functions and by some powers.

Ted Rowlands
I'd like to come back to that in a moment - it sounds like a bit more than tidying up Ron. Let’s just go back to something you said at the beginning, because you described the compromise that was created to bring the Devolution Bill through and that’s where the body corporate came from. I can remember during the devolution debates which you led and also you repeated in the Gregynog lecture that ‘the body corporate doesn't weaken,’ you said, ‘the political process but strengthens it.’ I mean I never saw you describing that to us as an unhappy compromise that had to happen to get the thing through, but as something very positive to create a new kind of spirit and political life, not to ape or copy the Westminster parliamentary model. Now do you still stand by that ideal that the body corporate construction was essentially an integral institutional part of the new politics and therefore there's this drift towards a parliamentary structure that is in fact going away from the spirit of the original concept.
Ron Davies
Well, certainly, on the latter part of your question the answer to that is absolutely yes . It is not drifting away from it is departing from it absolutely. The question is an absolutely fair one - it's down to the political realities. I was very much an artisan in these matters, I had my marching orders. It seemed to me that an idea of a corporate body - not just the corporate body per se but the things that went with it in terms of the structures and the idea of inclusivity - that’s what we constructed and that’s what I wanted to see. I believe that that could have worked and I believe that it could work but what's happened is the exigencies of politics I suppose. I think the civil servants deserve tremendous credit for the way they worked hard to make the corporate work as best they could. But once the decision was taken two years ago to create, a coalition, I noticed myself, and I've certainly been told by other senior people within the National Assembly, that the attitude of the civil service changed. Within the committee it was no longer ‘we're all in it together, let’s try to work out a synthesis’. Now the situation was ‘we now have a Minister to service, back to the old Whitehall style, we now have a Minister to protect, our job is to protect the Minister’. How do you protect the Minister? well one way is to make sure nobody has access to the same information, that you are able to pull a rabbit out of the hat at a particular time.

That really has had, I think, a substantial effect on the operation of committees, that was not what I envisaged when we were developing a consensual politics, that is personally not what I would have wanted to have seen. But in a sense we have now gone down that road and that is what is making the system now creak. It can go either way, you can go back to the consensual politics but I think the parliamentary idea is too strong in the minds of a lot of people, whereas a lot of politicians who have 30 or 40 years service might see the merits of a rather more consensual approach. But the political system places a premium on confrontation and those were the pressures on the ideal of a corporate body

Ted Rowlands
I think that is a very helpful answer. For me one of the central questions that we are going to have to ask ourselves is that if that is the case then the type of committee structure that you've got which hasn't got access to all the information, which is unsupported even by comparison with Select Committees in the House of Commons, things have to change one way or the other. Which way would you advocate to this Commission that it should go? Which type of political structure would you advise us to follow?
Ron Davies
Well I'm not sure if it is my role to be an advocate but if you are asking what the options are - I think one of the options is that we keep the body that we've got and somehow learn to live with that problem. But we're not learning to live with it at the moment because we've got this division between OPO and WAG which is creating tensions which are not providing for the effective government of Wales. So we could go back to try to recreate that consensual approach and I think there is great virtue in that consensual approach, by the way and certainly my experience in the Assembly didn't deter me from that but there are crucial issues that we could address: I will give you three. We could address the issue of the economy. I think there's a pretty broad consensus about the sort of things that we could be doing, and if we could get out of the confrontational mode I think we could reach pretty broad agreement about that. The issue of the countryside is another one where, apart from the issue of fox hunting, there's broad agreement across the piece about the need to sustain family farms, the need to build sustainability into the process of agriculture, the need to reduce food miles and have accountability in food production and so on. There could be broad agreement there but we haven't got it because we concentrate on the things that divide us. And the other that is perhaps more sensitive is the Welsh language. There's very broad support across the piece for the Welsh language but of course, politicians being what politicians are, when there is an election coming up if you see your political opponent making a mistake you jump on that and that’s what happening within the National Assembly. Issues like that are becoming politicised when they needn't be politicised. You can find a different way of doing things more akin to a Select Committee in the House of Commons where that degree of partisan difference finding is minimised. I think we could have done that and that was one option and that means the Government also being much more open with the Assembly and sharing information.
Ted Rowlands
Almost a right of the Assembly to have information - I mean that’s the difference isn't it? In a body corporate as I understood it Assembly officials actually had to service the Assembly not the Ministers - is that right? That was the concept?
Ron Davies
That was my intention certainly. Very early in the Assembly's life it emerged that Committee papers were being vetted by Ministers - that was the first time to my knowledge that that happened. I found out that the papers that were being written by officials to inform the deliberations of Committees were then being vetted by Ministers to make sure there was nothing that was out with the agreed position, the Government line as it were. The free flow of information is very valuable. We were talking about legislation earlier on - the Memorandum of Understanding between the Cabinet and the Government in Whitehall requires confidentiality so when a Government Minister in Wales is making a bid for a legislative slot there will be a lot of correspondence and a lot of argument between departments in London as to the merits of the legislation, why it should be accepted why it shouldn't be accepted and so on, and all of that is subject to rules of Cabinet confidentiality. In that sense, and I think this is a very important point, the National Assembly has some characteristics of actually a Government department. It isn't a freestanding, independent legislature it is actually tied in, as the old Welsh Office was, to Cabinet collective responsibility because if the Minister can't get the agreement of the relevant Ministry in Whitehall for legislation, then the Minister can't go back to the Assembly and say "look I really wanted to do it, but these reasons, time or policy differences I can't do it". In that sense what we've got at the moment in the National Assembly is a body which is constrained by lack of information and lack of resources.

Coming back to the question which invited me to say which of the options I would advocate, I declined to answer that and said that there were two ways, one is to recreate that idea of a consensual Assembly, which I think can and could work. The other alternative is to say: ‘politics being what politics is, we can't do that - we've now got to move forward towards a more parliamentary system’. I think that would require new legislation, clearly new primary legislation at Westminster and that would have implications for the powers of the Assembly. For example, you could take a knife to it so that those functions that are devolved would now carry primary powers as in Scotland but that would have implications for the size of the Assembly for example because, we have 60 at the moment which could work in an Assembly but I don’t think 60 could work in a Parliament which has the Parliamentary institutions which are necessary to challenge an Executive.

Lord Richard:
Would you accept that the more powers the Assembly has, the more likelihood it is that the body corporate principle won’t work? If you give it Parliamentary powers it will act as a Parliament rather than as a corporate body.
Ron Davies:
I think that’s inevitable, yes, but I’m not surprised at that because the corporate body still exists in the sense of its first purpose of having a body to which powers are devolved. But in the second sense, you know, it no longer functions as a corporate body. There is this attempt all the time, I don’t want to comment on that or criticise it, it’s an attempt all the time to distinguish the Government of the National Assembly from the National Assembly itself.
Viv Sugar:
Could I raise the question of inclusivity? When you were talking earlier you seemed to be using ‘consensual model’ and ‘inclusivity’ as almost interchangeable words. In the Western Mail last week you were quoted as saying that, ‘reviewing progress since the referendum, there have been many positive improvements, but in other areas the progress hasn’t been as rapid as I would have hoped, it’s not as inclusive as I would have wanted.’ Are there any points about the constitutional and electoral arrangements that we’re looking at which you would want to make from that point of view - what do you mean by inclusivity?
Ron Davies
I think the best example I can give is to refer back to the previous answer I gave about developing an economic development strategy, developing the response to the Welsh language, developing a coherent strategy for the rural areas, easily identifiable areas where an inclusive approach could provide a strategy which is agreed not only across the parties, but across the stakeholders as well. I think that’s what I meant by being disappointed that we’re not more inclusive, and the areas which I’m disappointed about are also key policy areas. But that may well be a product of the fact that the National Assembly internally has been climbing back over the issues which have arisen from its corporate body status. There have been attempts all the time to try to decide how we’re going to deal with that and there is this inherent tension between the Government and the opposition and that has pushed the Assembly down the road of more confrontational politics, less inclusive politics.
Viv Sugar:
What about inclusiveness in terms of the mix of AMs - occupations, race and so on. What about the regional dimension to inclusiveness as well?
Ron Davies:
Well, at the end of the day people will elect who they want to elect and it is very difficult for politicians to try to construct something that will have a mix of people representing the whole cross section of society. The only way to do that is by having very large numbers of constituencies and then political parties trying to ensure that they’ve got someone from this valley and that valley, they’ve got a farmer, they’ve got a baker, they’ve got a manager and so on, and I think that introduces an element of artificiality into politics. It certainly doesn’t guarantee that you will necessarily get the most effective representatives. But it has another drawback as well and that is that it causes enormous distance between the elected and their electorate. You asked about the list members, the regional members. I think that they’ve made a very useful contribution to the National Assembly in that they have introduced the political balance that we were looking for because I think the National Assembly would be a less representative body, and I swallow hard when I say this, if it didn’t have seven or eight Conservatives there. They do bring a dimension and if 25% of the people of Wales vote Conservative, under one argument they are entitled to have that degree of representation. I think that has actually produced an Assembly which represents Wales as a whole but that system has some defects, and the principal of those defects is the sense that those list members have not really identified with a regional interest, they are representing a political interest.

I think that you can probably address that in other ways but the lesson I have learnt is that the National Assembly now needs a different type of representation. We use the parliamentary constituencies for a very good reason, by the way. I mentioned right at the outset how people are frustrated in getting the legislation on the statute book. One of the issues that we considered way back in 1995-96 was the question of multi member constituencies, of creating new constituencies. Had we done that of course we would have had to have had a Boundary Commission and that process would have taken forever and a day and that would have frustrated our overall political timetable. So we had to settle on the existing constituency arrangements, parliamentary constituencies and European Constituencies. However if you are trying to move away from those existing arrangements, as I think you have to move if you are looking for a larger body, I think that you could say "well maybe instead of having 40 constituencies we will perhaps have 80 constituencies". I’m not going to have 2 members per constituency because that dilutes it down, but perhaps have a Boundary Commission and create 80 smaller constituencies, dividing the existing constituencies into two. I think - I have not done the sums - but I would hazard a guess that if you were to create 80 small constituencies, (bearing in mind that we are now talking about the creation of a Parliament and contingent upon that we understand that representation at Westminster would be affected as it has been in Scotland) I think that you would probably build in a greater degree of proportionality than you’ve got at the moment. I think you would find that a lot of constituencies, if they were halved, would produce 2 elected members from different parties. That would move away from the rigid proportionality that we’ve got at the moment, but if you’re going to recommend changes to the electoral arithmetic you have to accept the fact that you can do it in a radical way.

Laura McAllister:
Might it also be the case that if you do move to a different electoral system that it might aid inclusivity in terms of moving away from party influence in the way the Additional Member System works. You mentioned a moment ago that people will elect who they want, well they will elect who the party’s put up for them to want in many respects under AMS. If you had a slightly different electoral model, there’s a possibility for smaller parties and non-aligned people to offer themselves up for election in a very realistic way. Is that something that may aid the inclusivity part of the representation remit?
Ron Davies:
I haven’t thought about that. My instinct however, is that if you have smaller constituencies it would be easier for people with a strong local cause to be elected, like the GP in Kidderminster. If you have a small constituency of 30-35,000 people then you would get people who are much more robust and independent and seen to be representing that particular locality rather than a big political party. They actually get it in local government, even though there are broad swings in favour of political parties. If you have strong candidates of, whichever party, they can be elected in local government and I suspect that what we will see in future elections to the National Assembly is people being less committed to the parties and I think that might free up the system, if that’s what we’re looking for.
Peter Price:
The first stage of our exercise is to look at how the existing powers are working and to do that on the basis of evidence. Do you think that the Assembly has sufficiently settled down in the way it works that one can now take evidence and say "this is how it is working?" To what extent is it still evolving and where would you point us in terms of the kind of evidence we should be looking at?
Ron Davies:
On the question of an evolving institution, I don’t take the view that there is a settled state in constitutional relations. Particularly in terms of the European context, the Post-Nice Agenda, we can see rapid development of regional government of whatever sort within the EU and certainly if you look at the 1000 years of Parliamentary democracy, or eight hundred years, there was never a period where people have sat back and said "oh, well this is fine, we’ve achieved the polished model we need not go any further.’ Constitutions are not like that because constitutional arrangements and political institutions have to serve people and the needs of the day not historical events. So I don’t think that there’s much substance in the argument that we should not look at the institution yet because the potential danger of that is that if it isn’t working people will say "oh, it’s not working, why bother to keep it, why not just get rid of it?" But I think that would be a retrograde step. So certainly I don’t take the philosophical view that we shouldn’t look at it.

We can come back if you want to the changed nature of relationships both within Britain and within Europe, but on the question of evidence, one of the difficulties we have is that if you have a Government Minister giving evidence, the Government Minister would not be able to tell you what they were experiencing because of constitutional limits, because of the requirement imposed by the Memorandum of Understanding not to disclose areas of conflict as legislation is being discussed between Cardiff and London. So I think that is a real difficulty. I would ask you to ask yourself the question though: ‘how satisfactory is the arrangement, and what are the principles underlying the argument whereby Westminster has to legislate in detail for the national curriculum in Wales, without the National Assembly being involved. What is the rationale for that, and equally, what is the rationale for the National Assembly having to ask the Westminster Government for primary legislation to allow the National Assembly Government here in Wales to give powers to Community Health Councils in Wales or create a Welsh Centre for Health. What is the rationale? Where is the consistency between the approach?’ I don’t think there is a rationale, I don’t think there’s a consistency.

One of the difficulties that you have as a Commission is that you’re trying to create an evidence-based set of recommendations when at the end of the day these are political judgements. Because if I took the view that the most important thing – this isn’t my view – but if it were the most important function of the National Assembly to create a nation here in Wales with all that involves, including self government and independence of spirit, self confidence and doing things ourselves, no amount of constitutional tinkering or radical, imaginative recommendations from yourselves is going to deflect me from that inherent view that the purpose of the National Assembly is nation building. That is, I think, the difficulty you have as a Commission. So if you ask for evidence, I would say I can’t give you evidence. But look the existing system isn’t very rational, the existing system isn’t producing the sort of results we want, it doesn’t meet the tests of democracy, it isn’t responsive. And I would be critical on this point, the pressure is bearing down on the Government in Wales in such a way that it lacks imagination. If you have a look at the Bills, I’m sure that the evidence will come before you, which have been suggested by the National Assembly to the Westminster Government for putting into the legislative programme. They include creating St David’s Day as a statutory bank holiday, which is fine, creating the right of the National Assembly to have a census tick box, which is fine, getting rid of referendums for Sunday opening, which is fine, creating a Children’s Commissioner, which is fine, but that was actually a decision which we took in the Welsh Office back in 1998. So if you look at those, with the best will in the world, does that represent the most imaginative, constructive leap forward in our democracy that human intelligence can construct? I don’t think it is, and part of the reason for that is that we have an administration which is inward looking, and when it is constructing its bids for legislation, it doesn’t go out to local government and say, "hey, we’ve got these bright ideas", it doesn’t go to the WDA and say "how can we improve your structure?", it doesn’t go to the Tourist Board and say "what can we do to make your task easier?", it doesn’t go to the voluntary sector, it doesn’t go to all of these non government organisations and collect the latest thinking for Wales and say "what can we do - to raise economic activity in Wales?", to meet the needs of society?’ We don’t have that open constructive approach, what we have is a secret conversation which takes place between Ministers.

Peter Price:
Can I pursue that, you’re focusing very much on the style of government and the way that policy making takes place. Can I change it to capacity in terms of things like the numbers of civil servants with policy functions, with executive and administrative branches. If you look back to your period as Secretary of State, did you feel at that time, that across your functions you had sufficient backup in policymaking? And given the much greater responsibilities now, do you think that Ministers have sufficient backup in policymaking terms?
Ron Davies:
Well, we have over 2,000 Civil Servants, and so if they cannot organise 2,000 people to ensure that they have sufficient policy backup, then there’s something lacking in the organisation. I do believe that the capacity for good management exists in the civil service, as I said earlier on I’m a great admirer of the civil service. I have no doubt at all that if the direction given to the Permanent Secretary to restructure the Civil Service to ensure that there was this policy capacity, then that what the Permanent Secretary will do.
We talked briefly about the time of the previous Secretary of State when John Redwood required 300 – 400 jobs to be lost from the then Welsh Office and those 300 – 400 were lost and the Civil Service managed to accommodate that. You do it by changing priorities and that is how. What we have within Cathays Park, is the executive arm of the National Assembly, essentially it’s still a civil service structure, we have the same sort of structure as served the old Welsh Office and their job really is to look at what’s happening in health and education in England and by and large to administer that in Wales. So we have a very large number of very good people who’re carrying out an executive culture in Wales. If the lack is of policy advice, of a new style of research, then it’s because the question hasn’t been asked of the Permanent Secretary "I want to create structures which will achieve that" except for the Policy Unit which I created in 1998 in the hope that it would serve the Assembly as a whole. Unfortunately the Policy Unit is now serving the Government of the National Assembly, and so is looking at the way the Government operates, not in the way that the National Assembly operates. If that Policy Unit were, it consists of very able, very clever people, if it were linking out into Welsh Universities, to Welsh industry, to Welsh local government, into the Welsh intellectual arena and looking for new opportunities for us, it would perform far different tasks from that it is currently doing. What it is currently doing is looking at the role of one Minister as compared to the role of another Minister to ensure that there’s consistency and as far as possible there is the development of a consistent and holistic approach. I don’t believe that that is the best use of the most high powered policy research unit that we have in the National Assembly. So the answer is yes, we’ve got however many thousand, Civil Servants, by and large doing administrative tasks. If we are serious about developing new styles then some of those people will have to change and I think that people will find that there will be lots of volunteers. That’s certainly my experience of the civil service in Wales, people actually want to do that, they want to move away from an administrative function, and they want to get on to creating a new more inclusive, more democratic society.
Peter Price:
Lastly, can I extend that to the Members of the Assembly themselves, the backup that they have to do their work in Committees and elsewhere, those who’re not Ministers being able to question and themselves contribute to policy formation. The backup issue.
Ron Davies:
It’s very difficult, obviously, I’m conscious of the fact that I’m privileged having been in Parliament, having had the experiences that I have, but for new Members coming in it’s very difficult because there’s a very steep learning curve in terms of representive democracy. We basically have a resource which allows you to employ two people and typically we have one person working in the constituency, dealing with constituency issues, the sort of things with which you would be familiar, and then the other person helps within the National Assembly to do all the sort of things which need to be done, which can be as mundane as answering telephone calls and seeing people, visitors and that sort of thing or as effective and high powered as doing a piece of research. But it’s very difficult for one person to do that. We have very committed staff in the National Assembly library, who will help on research but the quality of the research they are able to do is far, far different from the research which is done in the House of Commons library for example where you can put in a very detailed technical question, and you will get in the space of a week or so a very full answer. The National Assembly library does not have the resource or staff to do that sort of work, the best that you’ll get is a series of website references so that you can go away and do it yourself. The capacity isn’t there for members to develop ideas of their own, new policy ideas, on top of all the other things you have to do as a National Assembly Member, and coupled with the fact that if you’re sitting on the Health or Education Committee that the papers you get are reflecting not the best intelligence of the National Assembly but the filtered view of the administration through the eyes of Ministers.
Lord Richard:
I still don’t quite understand the corporate body point. It does seem to me that in the situation where you say you’ve got a ‘ragged edge’, which was the phrase you used, that ragged edge can be cured by increased consultation or by acquiring powers. The object of curing the ragged edge, to make it straight, is that the Assembly should operate more competently and efficiently. I don’t see how you can expect all the political parties to operate as one in a situation in which more power is being given and being devolved. How is the Assembly going to govern? I mean it’s inevitable isn’t it that there’ll be a division between those people who’re taking the initial decisions and are responsible for initiating legislation and the rest of the Assembly which is responsible for discussing and analysing it.
Ron Davies:
If we move down that road, yes.
Lord Richard:
Well I don’t see any other road you can move down? That’s the point.
Ron Davies:
Well, I did say that there were two alternatives, but there was a choice of an alternative, and the choice was to go back to the truly inclusive body.
Lord Richard:
But how could you?
Ron Davies:
I think that the question is better suited to me to ask you. I mean how could it be made better?
Lord Richard:
Once you’ve devolved the powers, how can you not have a division between the Executive, if you like, and the Parliamentary.
Ron Davies:
Because I think it’s possible to develop a policy framework within which those executive actions are taken. Take the question of rural communities, I’m confident that if we had the inclusive approach it would have been possible for the Agriculture Committee or the Local Government Committee to develop a policy framework on the basis of discussion. My conversations suggest that it would be relatively easy for the political parties to reach agreement on a strategy for the development of the rural communities in Wales. I might be wrong but I believe there is enough common ground for that. It would then be the Minister’s responsibility for actually taking his administrative decisions, taking the executive action necessary to implement agreed strategy. Now there may well be occasions when the Minister is unable to do it, and on those occasions, the Minister has to go back to the Committee and say, "well, I;m sorry but for these reasons I can’t do it".
Lord Richard:
But that’s actually a civil service role isn’t it. The Ministers cease to be Ministers and become implementers.
Ted Rowlands:
Assembly Secretaries.
Ron Davies:
It is the case that the Civil Service have a major role over the development of policy.
Lord Richard:
Of course they do. But the division is clear to what they are. I mean they’re not elected, they’re administrative people who are employed in order to administer. Ministers are elected and are members of political parties and all the rest of it. I mean you’re expecting them to be super human in a sense that at one level they’re supposed to be acting as politicians, at another level they are the servants and objective administrators of the particular committee. I think that is very difficult.
Ron Davies:
I don’t see any problem. Certainly when I look at the ways that the National Assembly’s operated over the 3 years I think it is possible that the relationship does develop, it is possible to develop a more structured rural strategy for example. Civil servants who are very familiar with the nuances of political differences will understand the policy objectives and would be able to bring forward the range of policy options, the range of detailed executive actions as recommendations to the Minister and then it’s the Minister’s job to take decisions on that basis. When you are running a department, such as the ones that we’re talking about you do rely very, very heavily on the Civil Servants, it isn’t a question of politicians going in first thing in the morning and saying "hey look I’ve got a bright idea, let’s do this", the whole agenda is very much one which is based on the work of the civil service.
Ted Rowlands:
Could you list for us those ragged edges, we haven’t seen this paper that you’ve presented unfortunately, does that paper tell us what the ragged edges are?
Ron Davies:
No, the purpose of the paper wasn’t to do that.
Ted Rowlands:
But could you anyway?
Ron Davies:
Only one side of the ragged edge, has been described. Because the powers which have been devolved have been codified in the various Transfer Orders but the powers which remain haven’t.
Ted Rowlands:
But as a witness, you have a unique insight. You knew from when you drafted the Devolution Bill that there were ragged edges in the devolved powers, we’ve identified one, the Animal Health Act 1981. You mentioned education. I’m talking now about the devolution of competence under existing legislation. Are there any others in that category that you would advise us to look at?
Ron Davies:
Well, the whole system is fearfully complex. It really dates back from 1964, and even then the position is not that clear, because you have to have a look at legislation, you have to look to see what powers have been given under various pieces of legislation to the Secretary of State for Wales, which have then subsequently been given to the National Assembly. But you have to take away from that any powers which have been repealed by subsequent legislation. So all you could do really is to look at the Transfer Order and say, "right, now in the case of education, we know that that power and that power and that power, has been transferred". In the absence of a definite statement of that power, let’s take the case of raising the school leaving age or lowering the school leaving age, just as an example. If the power to vary the school leaving has been transferred, well then you know that you’ve got that power, if you can’t find reference to that power, there’s no indication that you have that power, that power might be retained, it might be exercised jointly with the Secretary of State for Education, it might rest with the Secretary of State for Wales. So the power might have been given, might not have been given, might have been given and taken back.
Ted Rowlands:
Okay, but over the period since the Assembly was established - what other examples? We’ve got one, the Animal Welfare Act of 1981, but have you got any other examples where existing legislative competence remains with Whitehall and should be transferred to enable integrated policymaking to occur?
Ron Davies:
It is a question of giving the whole field of activity. In the case of education, I don’t think the arrangement whereby Parliament legislates and passes 30 separate clauses and then gives those individual clauses to the National Assembly and says "some of them are duties some of them are powers you can implement some of them but as you don’t have to implement others" is sensible I think it would be far better, for example, in education for the Westminster Parliament to say "these are the provisions for England", and then have a one clause provision to say "in the following matters competence shall pass to the National Assembly for Wales". Then, allow the National Assembly for Wales to implement those powers, if it wishes by Order. The alternative is for Westminster to pass a new Act that says that education is a devolved function and then the National Assembly could pass its own legislation in all matters relating to education.
Lord Richard:
Yes, but on the first of those two alternatives you don’t need to look at the structure of the National Assembly – it’s a matter of Parliamentary drafting in Westminster.
Ron Davies:
I think it’s more than a matter of Parliamentary drafting. I think there are principles at stake. I’m sorry that we’ve got to get into the details, but I sense that the Westminster Government is happy to allow some areas to be devolved to the National Assembly. It was happy, for example, to pass legislation for the Children’s Commissioner, which is the only Act that we’ve actually got so far.
Ted Rowlands:
Well, a huge chunk of the Learning and Skills Act is entirely a Welsh provision, perfectly good, clearly defined.
Ron Davies:
In terms of a discrete Act the Children’s Commissioner is the only one. Certainly there is other legislation that has large Welsh sections but, interestingly, what they have in common is that most of them relate to organisational structures rather than policy. So I suspect that the Westminster Government and the Whitehall machine, is happy to say " they want a Children’s Commissioner for Wales, fine", they want a re-organisation of the national health service in Wales, fine, they want to re-organise ELWA in Wales, fine, because those are dealing with structures. We haven’t yet had an issue where the National Assembly wishes to impinge on policy and I suspect that if we had a big issue on policy, that’s when we would get a conflict. This is complex, there are some areas where capacity to vary policy has already been devolved, obviously prescription charges for example. I am sure that the Department of Health was absolutely furious when the National Assembly administration decided that it was going to have a different regime for prescription charges, and I’m sure that had we been in the position now where we had to go to Whitehall and say "can we have these powers to vary prescription charges?" the answer would be a very dusty "No", but because those were the powers that were devolved back in 1997 they had to accept that we could do it. My suspicion, it is no more than that, but evidence suggests that when it comes to dealing with structures which don’t challenge what you’re doing in Whitehall, Whitehall will say "Yes". If we were to get into the position of saying "hang on, we want to do something differently in terms of policy", then I think that the National Assembly would be disappointed at the response from Whitehall.
Ted Rowlands:
Transfer of police is more than a ragged edge, it is a major decision because it’s tied to a justice system. You’re saying move the police because you want a cross cutting, integrated policy making structure, but alongside the police is a whole justice system, which at the moment is an England and Wales justice system, Home Office based. How much more than the police would come across under your proposal?
Ron Davies:
Well, I’d rather suspected that at the end of my evidence I could be asked by you if there were other areas that you felt that you should look at, and this is one of them. I believe that it is possible, I’m no constitutional lawyer, but I believe that the existing system of justice in England and Wales could cope without any changes in its structure, because something which would be law in Wales could be enforced in any courts within England and Wales. The transfer of police functions would not, per se, require any further changes to the system of justice. It may well be however again this is and area that I think you would have to look at with constitutional lawyers, it may well be that the transfer of substantial new powers of primary legislation as for Scotland, would involve a restructuring of the justice system in England and Wales, because unlike Scotland we don’t have our own separate justice system, although we do have our own defined justice system in Wales.
Ted Rowlands:
What would be the impact upon the role of the Secretary of State of this package of changes that you propose, plus primary legislative powers? We’ve already broadly agreed that if primary legislation went to the Assembly, there would have to be a reduction in Welsh representation in Westminster. There’s the question then of the function of the Secretary of State for Wales, his role really becomes of even less full. Legislation is one of his major roles, as it is for Welsh Members at Westminster, so what impact do you think that would have on the Secretary of State’s job, would he become redundant?
Ron Davies:
Well, if I may say so, you said that these changes that you propose. I’m not proposing these changes, I’m saying these are the options.
Ted Rowlands:
Ok but assuming that was the package, you’re in a unique position as an ex-Secretary of State and Assembly Member to tell us whether you think that the Secretary of State’s job would be one worth having.
Ron Davies:
I’m proposing it as an option which is as equally as valid as the other option which is reverting to what was originally designed. In terms of the Secretary of State, there was of course a discussion on this at the time of the devolution proposals. It was certainly a strong runner, prior to the last election that the office of the Secretary of State for Wales would disappear. I think that the view probably prevailed that it was too early to do away with the office. The best example is the Secretary of State for Scotland, I’m not saying that post is redundant but if anyone were to be redundant it would be the Secretary of State for Scotland, because unlike Northern Ireland and Wales, there have not been residual powers. It’s a difficult one to call but it was my view, that as long as we had the existing arrangements with the Secretary of State acting as an intermediary, particularly on legislation, that there remained a powerful case for a Secretary of State for Wales. I suspect however that the further down the road of devolution we went, particularly if it were to develop in England, then we would see the development of a Secretary of State for the Territories.

I think it has to be the case that if the existing set-up were to change in a way which diminished the role of the Secretary of State as the outpost of the Assembly in London, accessing the legislative machinery in Whitehall, if that were to be the case, then the case for maintaining the Office of the Secretary of State obviously would diminish. If you then had something compable between Scotland, Northern Ireland and Wales, then the idea Minister for the Territories, or some other name, would come to the force.

Lord Richard:
Yes, well I’m happy to say that this Commission isn’t here to enquire into the Secretary of State.
Ted Rowlands:
But if we come to recommend a series of changes to the responsibilities and powers of the Assembly would the role of the Secretary of State not then fall into our terms of reference?
Lord Richard:
It’s within our terms of reference but I don’t think the crystal ball is capable of being looked into with that degree of accuracy.
Ron Davies:
That is precisely the answer that I had to give some time ago when you asked me "well didn’t you consider in May or June of 1997 what was going to happen", and my answer was "no, you have to deal with the issue in hand". You may well decide that you can’t resolve the issue of the Secretary of State, that would be for somebody else to deal with in two or three years’ time.
Ted Rowlands:
One final question if I may. If in fact this combination of changes (you say you’re not advocating them but you’ve certainly been presenting them forcefully in one way or another), if legislative change is proposed has there got to be a referendum to endorse it?
Ron Davies:
The answer is yes. It is my view that there would have to be a referendum. But the answer’s not as clear cut as that, there are arguments either way. You can say that the big decision in 1997 was the creation of an all Wales institution, it was the creation of home rule. Whatever happens after that is merely building on that. That’s a perfectly valid argument. My personal view however, is that what is now being proposed is such a move away from what was created in 1997, that it would be better, it would avoid a lot of argument apart from anything else, as well as probably being constitutionally proper, to have a referendum and to acknowledge that at the outset. The referendum would then be on those proposals. It wouldn’t be a question of saying "well, we could go forward with this or we could go back to that, or we could have another thing." I think it’s got to be a yes/no on the proposals and I would view the prospect of that referendum with absolute equanimity. I think that if the people of Wales were given the choice of the Assembly that we have or a new Parliament with substantial new functions and powers then the answer would be a resounding "yes" provided that the concomitants are also dealt with, principally of course the Barnett formula, a fair distribution of resources. I think that if we go down the road that we’re talking about that is absolutely essential to the issue.
Tom Jones:
Cyn drafod y Barnett formula, oes na bwerau cyllidol eraill sydd ddim gan y cynulliad, y gallu i fenthyg arian er enghraifft, fel dwi’n deall sy’n perthyn i’r cynulliad yng Ngogledd Iwerddon? Ynglyn â pherthynas y cynulliad ag Ewrop – oes na siomedigaethau, oes na gyfleoedd sy ddim yn cael eu cymeryd oes na ddiffyg i ddylanwadu ar bolisiau Ewropeaidd ar hyn o bryd? [Before discussing the Barnett formula, are there any other financial powers that the Assembly lacks – to borrow money for example, as I understand the Northern Ireland Assembly has the power to do? In respect of the relationship with Europe – are there disappointments, opportunities that are not being taken, is there a failure to influence European policies at the moment?]
Ron Davies:
One of the interesting relationships is the relationship between the National Assembly and the Treasury, because the Treasury will always use its power over what a government department does, and the more that we’re seen as a government department the easier it is. So the Treasury, for example, will take the view, if I can use the jargon: "this money is for modernising the National Health Service", there will be a lot of pressure then on the National Assembly when those additional resources become available through Barnett, to use those monies in pursuit of the Treasury’s objectives, ie for modernisation. So it’s not a question of other sources of finance, it is rather the case that a lot of the resources that are currently made available have come with strings attached. There are opportunities of course for the National Assembly to try to seek other money, the question of match funding, or rather the approval to spend European money for Objective One was an important part of that, and there will be other occasions when separate projects will be announced by the Treasury, which will allow the National Assembly to make bids. I think the best example I can think of might be the investment which went in to the WOAD offices from the Modernisation Fund. That was outwith the Barnett formula, a separate bid had been made for programmes of that sort. The issue is very, very difficult for us in the National Assembly. I was talking earlier to Ted about the operation of the Barnett formula and the problems that we have and since the existence of the National Assembly we’ve actually spent £70m more on the National Health Service than we’ve received from the Treasury for the National Health Service. That’s quite a lot of money, and of course, if you’re spending more on a service it means you have to spend less somewhere else, and you could quite legitimately ask "where are you spending less?". There are a limited number of areas, environment, transport, education, economic development, where perhaps the money isn’t being spent. There are no other pots that we could look at and unfortunately the pot that we’ve got is pretty complex as the nature of legislation is as well.

Europe I think has been one of the success stories of the National Assembly. I was surprised at the willingness of Government, when I was responsible, to allow Ministers from the National Assembly to be incorporated in delegations. I think that has been successful and I think that generally the relationship which exists through the National Assembly office in Brussels, setting aside the controversy about WEC, and representation through the British Government civil service in Brussels, has worked well. There is, I guess, an interest which the British Government, the Foreign Office, has as well, in the unfolding post-Nice agenda, the development of a regional dimension in Europe. So they will want to involve Scotland, Wales and Northern Ireland in their discussions. I think Europe is one of the success stories.

Laura McAllister:
I just wanted to probe a little bit more on what you said, Ron, about referenda because going back to the period before the General Election of 1997, I think I’m right in saying that you weren’t in favour of the referendum on the White Paper. Surely there’s a case as well to say that the major referendum was on whether there should be any form of devolved institutional framework within Wales and that we’ve had that. Why do we now need to consider a referendum on a change – albeit a potentially significant one. One could set that in the context of some very major changes that have come about through the European Union on which we haven’t had referenda. I’m talking about Nice there but you could say the same about the Amsterdam Treaty or the Maastricht Treaty. Our political system doesn’t lend itself to referenda necessarily but it seems on the issue of devolution and constitutional change we’re all very caught up in the idea of referenda. Can you explain why you think that is so?
Ron Davies:
The question could be about the case of having more referenda on our relations with Europe rather than having fewer on constitutional issues, but I’ll let that pass for the moment. I took a very pragmatic view about the initial referendum. I felt that it wasn’t necessary. I thought we could have justified going ahead with devolution if it was in our manifesto. However, in Scotland the decision was taken by the then leader of the Labour Party and George Robertson that they would have to have a referendum and the key to that lay in politics as these things do. There was going to be the question of taxation powers in Scotland. There was the English question and I think that the view that the party leadership took was "look if we are going to propose something which is going potentially to destabilise the constitutional arrangements in the United Kingdom, we need to reassure people in England that this is going to be done in a way that is fair and above board". The issue was very much about winning seats in middle England as well as constitutional legitimacy in the case of Scotland. So the decision was taken in respect of Scotland to hold a referendum. The question then arose whether we should have a referendum in Wales. I frankly felt that once the decision had been taken to have a referendum in Scotland, it was not politically practicable to argue that we should not have one in Wales. It would have blighted the whole process.
Laura McAllister:
But that wouldn’t apply next time.
Ron Davies:
No, that was what happened in 1997. I think it’s important to understand what happened then. Why next time? I did say in the reply to the earlier question that, and this is the point that you make, the big question in 1997 was whether we were to have our own form of democratic government for Wales. I think that the problems however is that in 1997 we put a very specific proposition to the people of Wales in the White Paper. So it wasn’t a broad concept that we were putting forward, in fact it was a very detailed construct with all the things that we’ve talked about so far - inclusivity, regional committees, partnership arrangements and so on, and we asked people to endorse that as a package by means of a referendum. So having done that, I personally would feel somewhat uneasy, and this is a personal view, if we were now to say "that didn’t work and what we’re going to pick out of that 1997 package is the principle of creating an all-Wales tier and now we’ll discard everything else and put on that principle a full-scale legislative parliament. It is just my instinctive view that looking at it like that, you would have to concede that it would be right to have a referendum. But there is also the tactical point of view that if you tried to do it the other way you would engage yourself in a whole series of arguments as we argued endlessly in 1997. The argument then is not about the merits of why we’re having this change, it is about whether there should be a referendum or not. Therefore in terms of practical politics I personally would be in favour of having a referendum. But that is a case that is capable of being argued both ways.
Peter Price:
Going back to the architecture of the Government of Wales Act as compared with the Scotland Act where in the Government of Wales Act the powers were devolved in the specific areas scheduled, whereas in Scotland the boot is on the other foot completely. If there were to be primary legislative powers given to the Welsh Assembly, would you see a very strong argument for the Act to be designed to parallel the Scottish situation? Secondly, suppose that there were a stopping point, short of broad primary legislative powers, would a change of that sort make any sense?
Ron Davies:
I’ll answer the first question first. The Scotland Act was based largely on the Government of Ireland Act in 1921. The idea was that you would define broad areas of activity health, education and soon and they are responsible for that. If we were to re-cast the Government of Wales Act, clearly we would have to repeal large sections of the 1998 Act. I would have thought it would be eminently sensible now, just as the Scotland Act was based on the Government of Ireland Act, that the Wales Act would be based on the Scotland Act. You would create an Executive, create a Parliament, you would give it those broad areas of activity and in so doing you would then repeal all but fifteen clauses of the 1998 Government of Wales Act. I would envisage that that is how it would be done.

Turning to your second question, it’s thrown be a bit because it invites me to imagine a stepping stone somewhere between where we are now and somewhere else. The problem that we’ve got now is that we have created a stepping stone and I think everybody realises that it is only a stepping stone. The next logical step is to a Parliament, not to start compromising again and create another stepping stone before we get to the final stepping stone. I mean we’ve had difficulty with ragged edges, and constitutional lawyers and all these intricate constructions, in creating the first stepping stone. I’m just wondering what sort of camel it is that the Committee would be designing which would give us this second stepping stone. So I’m afraid Peter, that vivid though my imagination is capable of being at times, I actually can’t imagine how it would be possible to construct such a stepping stone even if it were to be sensible or desirable. That is why I think the choice is either we make what we’ve got work or we go for a different model.

Lord Richard:
You have been very generous with your time and in the way that you’ve answered questions, the Commission is very grateful to you, thank you very much.