8. Following the enactment of the Wales Act 2017, what further powers should be devolved to Wales? OAQ(5)0590(FM)

Those powers are to be found in our draft government and laws in Wales Bill, which we published.

Okay. Thank you for your answer. I note that earlier you pledged not to increase income tax during the term of this Assembly, but will you also pledge to use your devolved powers to reduce costs to businesses, so that employers can start being attracted to Wales and providing much-needed jobs?

I’m not sure what powers she’s referring to. Many of the issues she refers to are not devolved. Business rates are—that’s true—but in terms of issues such as national insurance or corporation tax, they are not devolved. We know we will see some devolution of income tax in the course of the coming year, but from our perspective, we have a very good record: we have unemployment that’s lower than England, Scotland and Northern Ireland, and of course we’ve just recently had the best figures for foreign direct investment for 30 years.

First Minister, as Michelle Brown has just said, the Wales Act—the current legislation—will of course deliver a range of new fiscal powers for the Welsh Government, ranging from borrowing to income tax powers and stamp duty. Whatever you want to do with those taxes in the future—whether you want to leave them where they are, raise them, or lower them—will be dependent on a strong Welsh Revenue Authority, and that’s currently in the process of being set up, and the Finance Committee has been looking at that. Are you happy with the progress being made with the development of that authority? And what mechanisms do you have in place to make sure that that progress keeps on track, because it’s, clearly, vitally important?

We have no concerns about the progress of the Welsh Revenue Authority. We know that it will be in place in good time for next year. Of course we need to ensure that when taxes are devolved, there’s an authority in place to make sure that those taxes can be collected. We’ve understood that there is a pressure on Government, and that pressure we have met. We’re confident that when the time comes next year, the Welsh Revenue Authority will be in place and ready to start its work.

Prif Weinidog, will you distance yourself from comments made by Diane Abbot MP, Labour’s shadow Home Secretary, who told BBC Radio Wales last week that the Labour Party did not think it was, quote, ‘right at this time’ to devolve policing to Wales? Have you asked Diane Abbott why she feels that the Welsh Government, uniquely, is less capable than the Scottish and Northern Ireland Executives in terms of delivering police services? The Welsh Government, packed full of Labour elected representatives, as I’m sure you’re aware—whereas in fact the Scottish and Northern Ireland Executives have no such lumbar encumbrances.

I’m fully aware of the fact that the people of Wales decided that there should be a Labour-led Government in Wales last year. I thank him for reminding me of that. I do not agree that policing shouldn’t be devolved. Policing should be devolved. There is a debate in this Chamber tomorrow afternoon when the issue will become clear in terms of the way that votes occur. There’s no reason at all—not at all—why policing should be devolved to Scotland and Northern Ireland, should be devolved to Manchester, to London, but not to Wales. There is no rational reason for that to be the case. We know that there will need to be co-operation in terms of counter-terrorism; there are some issues that need to be dealt with at UK level. When it comes to community policing, why is it that Wales is seen as a second-class nation by the Tories?

Thank you, First Minister.