3. 3. Statement: The Wales Bill

Part of the debate – in the Senedd at 2:58 pm on 8 June 2016.

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Photo of Mr Neil Hamilton Mr Neil Hamilton UKIP 2:58, 8 June 2016

First Minister, thank you for your statement, and, like you, I give a cautious welcome to the Bill, because my party is a devolutionist party. That’s what our contribution to the debate on the EU is all about: devolution of powers back from Brussels to Westminster or to Cardiff. But, in the context of this particular Bill, as you’ll be aware, clause 16 is about the introduction of tax-varying powers, but removing the requirement that is in the current legislation for a referendum to be held before those powers are activated.

Your statement says that you object to these powers being devolved without the consent of the Assembly or Welsh Ministers and, hence, being imposed by Treasury Ministers. Well, I agree with that to this extent: that if there was to be no referendum then I certainly think that the Welsh Assembly ought to be allowed to make that decision. But I see no reason why the provision, which is in the current law, to consult the Welsh people should not be activated. That was the promise that was given before the last Wales Act was given the Royal Assent. This is now a breach of faith with the Welsh people. It’s a big decision because not only could there be tax-varying powers, but of course there could be tax-raising powers. Nothing would be worse, I think, for the health of the Welsh economy, than to do what many Labour Governments have done in the course of my lifetime—to impose penal rates of taxes, which utterly destroy the wealth-creating potential of the Welsh economy.

The impact assessment that accompanies the Wales Bill blandly says that the debate has now moved on and therefore we don’t need to have this referendum. There’s no justification provided in the impact assessment for this change, and I’m asking the First Minister, supposedly a democrat, to consult the Welsh people before he consents to the activation of tax-varying powers in the hands of this Assembly.