| Chamber Wales supports the devolution of
powers to the Welsh Assembly. It takes the stance that
the onus should be upon the Westminster government to
justify retention of powers at Westminster and that where
there is no such justification power should rest with
the Assembly.
We take note of recent poll findings showing an increase
in public support for the Assembly and for increasing
its powers.
The Assembly has demonstrated in the fields of (inter
alia) Education and Health a willingness to recognise
changed priorities that reflect the needs of Wales in
devolved areas.
The Chamber movement is concerned primarily with the
interests of business. It is therefore principally concerned
with matters that directly affect members. We recognise
however that policy emanating from the Assembly (or
Westminster) which affects residents and consumers impinges
directly upon the prosperity of Wales and therefore
upon the business sector.
It is accepted that, if additional powers were to be
devolved to the Assembly, there is a risk that the influence
of Welsh MPs at Westminster, and indeed that of the
Secretary of State, may diminish. It is however clear
that the present position does not create confidence
in the ability of Westminster to recognise specific
Welsh needs in providing time for Primary legislation
within the Parliamentary timetable.
Of concern is the issue of funding. At present the
Barnett formula provides at least arguably a benefit
for the Welsh economy. Were the devolution of further
powers to provide an excuse for a fundamental review
of the provision of funding there would be considerable
concern within the business community. On the other
hand if one consequence of further devolution was greater
clarity as to both funding and responsibilities there
would follow greater accountability. This is not a benefit
however if the overall result was a reduced grant from
the Treasury.
The Assembly should also consider in the context of
its own increased powers whether or not there is an
argument for further devolution of powers to sub-Assembly
organisations. There is concern as to whether the current
organisation of County Councils is entirely appropriate.
There are a number of Councils which are too small to
meet effectively the obligations imposed upon them.
Regional strategic planning where it exists is not subject
to democratic accountability.
In the above context there is a strong argument for
the granting of tax raising powers to the Assembly on
the Scottish model.{ There may be a need to restrict
the Assembly’s powers in regard to Corporation
Tax and other business taxes so as to ensure that there
is no reduction in the relative competitive position
of the Principality.}
We have no particular views as to the manner in which
the Assembly would amend its working practices should
there be further devolution subject only to it retaining
an open forum for debate and retaining close consultation
in regard to policy matters. We recognise that there
may be a need to consider a decrease in representation
at Westminster but would need to be persuaded that there
should be an increase in the number of Assembly Members
as a consequence.
On balance the Chamber would support an increase in
powers similar to those exercised by the Scottish Parliament.
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