The Richard Commission: The Powers of the National Assembly for Wales

Consultation response by the Royal Institution of Chartered Surveyors Wales

The Royal Institution of Chartered Surveyors Wales is the professional body that represents nearly 3,500 fully qualified members located throughout Wales. They practise in all aspects of land & property development and construction, and are increasingly involved in environmental issues. They also work in a wide variety of organisations both in the public and private sectors, including private practice, local and central government, government agencies, charities, academic institutions, non-governmental organisations and private sector businesses.

Chartered Surveyors operate within six main markets: These comprise commercial, construction, infrastructure planning, minerals, residential and rural property. In addition, they make a valuable input in such areas as planning, environmental impact assessments, sustainable development and regeneration.

The formal training of a Chartered Surveyor lasts at least five years and combines both theoretical knowledge and its practical application. Members are also bound by a rigorous code of conduct and, as part of their membership, must undertake a continual process of professional development. Membership of the RICS requires high academic and professional standards, which must be attained and maintained by all of the membership.

As a professional institution, RICS Wales contributes knowledge and advice to the government of the day, and to any other interested parties, in respect of land, property, construction and environment issues. Nationally and internationally, the RICS has a long history of offering professional advice on these issues and informing public debate in order to ensure that any legislation or guidance is fair and workable.

Under the terms of the RICS’s Royal Charter, it has to act in the public interest. Within this context, and since the devolution of power from Westminster and the establishment of the National Assembly for Wales, the RICS Wales has commented on over fifty policy based consultation papers. It has also been actively involved in the national debate to establish a sustainable, vibrant and modern economy that addresses the concerns of all the people in Wales.

In May 2002, RICS Wales commenced a review of its Policy Panels. These provide a sounding board for the membership in relation to policy issues. Six Panels have been established and are proactive in developing policy positions specific to circumstances in Wales, as well as generating responses to policy consultations. The overwhelming majority of policy consultations relate to the activities of the National Assembly for Wales, and there has been an increasing dialogue on policy issues between the Assembly (both Assembly Members and civil servants) with RICS Wales over the past twelve months.

In the circumstances outlined above, RICS Wales welcome the opportunity to engage positively in the consultation process associated with the review of the powers of the National Assembly for Wales. The process of devolution in Wales has been, and will continue to be, historic. Following the first term of the Welsh Assembly Government, it is appropriate to take stock of both functions and performance of devolved government in Wales, and consider ways in which improvements can be secured in the interests of the all the people of Wales.

RICS Wales resolved to respond to the Richard Commission consultation by conducting a survey of its leading representative members. These comprise the members of the Regional Board for Wales, and the Chairs of four of the Local Associations in Wales (South East; Swansea Bay; West; and North). Therefore the Section 2 of the RICS Wales response will focus on an analysis of the survey results.

Section 3 of the response will relate to specific questions posed in the Commission’s Consultation document, particularly upon those issues relevant to the interests of the practicing Chartered Surveyors.

Section 4 refers to additional issues that RICS Wales request the Richard Commission to consider.

2. RICS Wales Survey: The Powers of the National Assembly for Wales

The format of this part of the response comprises a listing of the individual questions included on the questionnaire, and a summary of the member’s responses.

1. Do you think there should be:

1. A return to the pre Assembly situation, by its abolition
2. A reduction in the Assembly’s current powers
3. The Assembly’s powers & responsibilities should remain unchanged
4. A move towards the type of powers held by the Scottish Parliament, such as primary legislation and tax varying powers
5. An increase in the Assembly’s powers beyond those in Scotland.

Half of the respondents feel that there should be a move towards the type of powers currently held by the Scottish Parliament, but with a third opting for the Assembly’s powers to remain unchanged.

2. How do you rate the overall performance of the National Assembly in relation to the interests of Chartered Surveyors during its first term?

1. Very good
2. Fairly good
3. As well as could be expected
4. Fairly poor
5. Very poor

Half of the respondents consider that the Assembly has performed "as well as could be expected" during its first term of office. The remaining responses are balanced between fairly poor and fairly good performance, with no responses in the very good / very poor categories.

3. The relationship between the Assembly and the Westminster Parliament

a.  Has the Assembly been sufficiently effective in influencing the UK Government policy making in relation to Wales? Yes / No

b.  Has sufficient effort been given by the Assembly to ensure that secondary legislation in Wales has taken account of the needs of Wales? Yes / No

There is a strong feeling (over 80%) that the Assembly has insufficient influence on the decisions taken by Westminster government in relation to policy issues affecting Wales. However, there is a greater degree of satisfaction (50%) with the Assembly’s efforts in relation to secondary legislative action.

4. The relationship between the Assembly and local government in Wales

1. Has the Assembly exerted too much / sufficient / too little control over local government in Wales?
2. Are you satisfied with the performance of local government since the establishment of the National Assembly? Yes / No

Overall, the predominant view (over 50%) is that the Assembly has not exerted sufficient control over local government following devolution. In this context, there is major dissatisfaction (75%) with the performance of local government over the past four years.

5. Is there sufficient contact between

1. Assembly officials and RICS Wales? Yes / No
2. Assembly Members and RICS Wales? Yes / No

The majority response expresses satisfaction with the contact between Assembly officials (80%) and Members (over 50%) with RICS Wales.

6. Would you be prepared to accept the following probable consequences of increasing the powers & responsibilities of the National Assembly:

1. An increase in costs? Yes / No
2. An increase in the number of Assembly Members? Yes / No
3. A reduction in the number of Welsh M.P.s? Yes / No
4. A reduction in the powers of the Secretary of State for Wales in the UK Government? Yes / No

Whilst the majority response is in favour of increasing the power and responsibilities of the Assembly, there is significant resistance to any consequent increase in costs or increase in the number of Assembly Members. In one response, the point was raised that it is the quality and not the quantity of Assembly Members that is important. There is a unanimous view that the number of Welsh M.P.s at Westminster should not be reduced as a consequence of greater devolution. However, there was a more marginal majority for the maintenance in the current powers of the Secretary of State for Wales.

3. Issues and questions within the consultation document

The Commission’s approach

Q.1. In what practical ways do the powers of the Assembly, or the limits on its powers, impinge on you, your organisation or the people whom you serve and what are the best examples of this from your point of view?
There is concern that the lack of primary legislative powers restricts the Welsh Assembly Government in developing an integrated and comprehensive policy agenda specific to the needs of Wales. Whilst the facility exists to engage with government in Westminster on these issues, RICS Wales is not convinced that the Assembly has been able to sufficiently influence the U.K. government to take account of the specific circumstances in, and needs of, Wales. However, there are policy areas where the Welsh Assembly Government have been able to establish a policy agenda distinct from that in the rest of the U.K. Areas of particular relevance to RICS Wales include Waste Management, Spatial Planning and Sustainable Construction.

Q.2. 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?
The majority view of RICS Wales is that the National Assembly should move towards the level of powers and responsibilities currently enjoyed by the Scottish Parliament. However, any movement in this direction should be taken with caution, and a gradualist approach is advised

Q.3. Whether, and if so how, the powers should be extended, strengthened or changed and whether they should include tax varying powers?
In terms of the interests of RICS Wales, the overwhelming priority is an extension of powers in relation to policy areas relevant to the particular economic, social and environmental needs of Wales. There does not appear to be any groundswell of opinion within the profession for prioritising the introduction of tax varying powers to the National Assembly.

Structure and working arrangements of the National Assembly

Q.4. If the Assembly were to acquire greater law making powers – is it inevitable that it would need to be reconstituted on the Parliamentary model?

Q.5. If so what organisational changes would be needed to support this model and what would be the gains and losses from making this change?

RICS Wales has no observations to make on these issues

Q.6. How effective has the Assembly been in influencing UK Government policy making in relation to Wales – what are the practical examples which illustrate the strengths and weaknesses of the process?
RICS Wales consider that the Assembly has not been sufficiently effective in influencing the U.K. Government policy making in relation to Wales. In terms of the professional interests of RICS Wales, the policy areas of transport, agriculture / rural development and minerals have given cause for concern over the past four years.

Q.7. What are the advantages and disadvantages in principle of having a law making process which is shared between Cardiff and Westminster and what are the respective contribution of AMs, MPs and Peers?
Clearly there are certain aspects of law making that are always likely to remain with the UK Government. The greatest problems are encountered where there is a lack of clarity between the responsibilities of the UK government and the National Assembly. Areas of perceived "shared" responsibility in policy development and implementation seem to create the most problems. As an example, the existence of Planning Policy Guidance (PPGs) in England and Technical Advice Notes (TANs) in Wales has created some confusion within the property development industry, in that there is uncertainty as to the application of the English guidance in Wales, particularly where no comparable policy advice exists within the Welsh policy documentation.

Q.8. What would be gained or lost if powers to make fundamental policy changes through primary legislation were passed from Westminster to Cardiff?

The control of public finance is the critical issue in relation to building capacity to implement policy in Wales. Therefore the power of the Treasury at a U.K. level is always likely to provide a control mechanism on the National Assembly.

Whatever the division of powers and responsibilities between Westminster and the National Assembly, there will always be a need for effective consultation and exchange of information between the two levels of government. In terms of the current balance, RICS Wales consider that more emphasis should be given to the "bottom up" rather than the "top down" approach.

Q.9. How would Welsh interests be affected if the role of Welsh MPs were to be reduced as a consequence of the acquisition of primary law making powers by the National Assembly?
Any transfer of primary legislative powers from Westminster to the National Assembly will still leave the Westminster Government with the majority of primary legislative powers for the foreseeable future. These areas of responsibility will continue to require a Welsh perspective in the context of UK policy making

The role of the UK Government and the Secretary of State for Wales

Q.10. How would Welsh interests be affected if the Secretary of State’s role was reduced as a consequence of the acquisition of primary law making powers by the Assembly?
RICS Wales does not have a clear view on this issue. There is a marginal majority view that the current powers of the Secretary of State for Wales should be maintained, if only to ensure that Wales has a "place" at the UK Government Cabinet table when issues relevant to Wales are discussed and decided upon.

Q.11. What would be gained or lost if there was a clearer separation between England and Wales in policy development and implementation?
RICS Wales consider that the critical issues are the need for:

• Greater clarity of the respective policy development and implementation responsibilities of the two levels of government, irrespective of the level of division between the two.
• Better real, and not token, consultation between the two levels of government.
• Improved integration and coordination between policy initiatives in the UK and Wales, respecting the particular special circumstances and needs of Wales.

Q.12. How should we evaluate the costs and benefits of moving to a different form of devolution in Wales?
RICS Wales is clearly concerned at the cost and organisational implications of an increase in the powers and responsibilities of the National Assembly for Wales. A strong view has been expressed that there should not be an overall increase in costs as a result of any changes. In addition there is only limited and minority support for an increase in the number of Assembly Members, the critical issue considered to be the quality, rather than the quantity, of AMs.

Q.13. What are the benefits which should be included in this evaluation – and what values should be attached to them?
RICS Wales consider that a full cost benefit analysis should be undertaken of any proposals for change, in order that the public and all interest groups can have a clear indication of cost, organisational and any other implications.

Q.14. 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?
This is an issue that relates to the need for greater clarity and coordination. The confidence in effective and efficient government at the UK, National Assembly and local levels diminishes in those situations where transparency and integrated action are absent.

Although there is no reference to this issue within the Consultation document, RICS Wales feel that some consideration should be given to this matter, as it is pertinent to the overall establishment of integrated and comprehensive policy making and delivery in Wales. In this context, the second of the Commission’s detailed terms of reference could apply:

"Whether the breadth (ie range of issues over which it has control) and the depth (ie the capacity to effect change within those issues) of the Assembly’s powers, are adequate to permit integrated and consistent policy-making on issues where there is a clear and separate Welsh agenda."

Within the RICS Wales survey, over 50% of the respondents felt that the Assembly has not exerted sufficient control over Welsh local government, particularly in policy implementation, since devolution. In addition 75% of the respondents were dissatisfied with the performance of Welsh local government since devolution. In consideration of these the views, RICS Wales urge the Richard Commission to address this issue within the overall context of the current exercise. This is not a plea for local government reform or reorganization in Wales, but a request for the establishment of more integrated and "joined-up" policy making and policy implementation within Wales. Failure to achieve this objective will severely diminish the confidence of the people of Wales in its political institutions, in particular the National Assembly.

RICS Wales is committed to supporting the process of positive economic, social and environmental change within Wales relevant to the competences of the profession. Basic to the current strengths of the Welsh economy has been the successful transition from a heavy industrial base, including coal and steel, to a lighter industrial / service sector base. This has not been achieved without some pain, but effective public and private sector partnerships have been a major mechanism in effecting positive change.

Another contributor to this process is the establishment of a "user friendly" regulatory climate for property and business development. In supporting the concept of enhanced powers for the National Assembly, RICS Wales would urge the political institutions in Wales to adopt more flexible and innovative ways of working with the private sector, the professional institutions and social partners, particularly through partnership arrangements. Failure to maintain and enhance methods of joint working will have severe implications for the property and construction markets and the membership of RICS Wales.