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The Institute of Chartered Accountants
in England & Wales
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Wales Business Centre
Submission to the Richard Commission
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| Does the Government of Wales
Act provide the Assembly with the powers it needs to operate
effectively and meet the expectations of the people of
Wales ? |
| In general terms the answer as
regards provision is probably yes. There must be an issue
as to whether the Assembly uses them properly. |
| There is also a view that it
creates another level of government, slowing down the
decision making process to the detriment of all in Wales.
|
| The proliferation of committees
often leads to decision-making units which are often too
small in size and too many in number leading to questions
concerning the quality of the decision making process
itself. We must move away from a committee culture in
Wales. This manifests itself at pan Wales levels (e.g.
the number of unitary authorities, the structure of the
health service in Wales etc). |
| Furthermore the now generally
accepted three way split of public sector/ voluntary sector
(often funded by the public sector)/ private sector effectively
stifles the private sector element to the detriment of
the profit motive, so necessary for a thriving economy. |
| Whether, and if so how, the
powers should be extended, strengthened or changed and
whether they should include tax-varying powers? |
| We must not create uncertainty
within the business community over tax raising powers.
The slightest suggestion that there may be a financial
penalty of this nature could result in businesses going
elsewhere. In a competitive global market businesses are
concerned to limit risk and financial exposure. |
| If the NAW were able to offer
rebates to all businesses in Wales then this might
encourage growth. Just to offer incentives to future businesses
could be seen as creating an unfair advantage against
those already established in Wales. |
| How should we evaluate
the costs and benefits of moving to a different form of
devolution in Wales? |
| What are the benefits which
should be included in this evaluation - and what values
should be attached to them? |
| These probably run together.
The answer must be to do with reduction in layers of the
decision making process. Transparency of that process
and a telescoping of the time scale. The level of uncertainty
must be reduced for businesses. " Do I hang on here in
the hope of getting the answer I want as opposed to going
somewhere else where the burden of regulation is less
and I know I will get an answer in a given timescale?" |
| In some policy areas there
is uncertainty about funding streams in relation to areas
where responsibilities that are devolved overlap with
responsibilities that remain within the control of the
UK Government. Is this an issue for you or your organisation
- if so what have been the practical problems and how
might they be resolved? |
| Although our members have had
no actual experience of this we would wish to make the
following general points; |
| 1) |
Consider the effect of a political
party of a different hue in Wales forming the government
to that in power in Westminster blocking EU funds because
treasury will not match fund. |
| 2) |
Different funding of Enterprise.
There is a system of Business Links in England yet the
WDA are now running business support in Wales. The man
in the street cannot understand why the systems are different. |
| 3) |
We are concerned at the effects
of non-harmonization of changes in regulation between
England and Wales. |
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