| 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.}
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