Part of the debate – in the Senedd at 4:20 pm on 5 December 2017.
Whilst supporting the Welsh Government budget, I acknowledge the budget is inadequate for the needs of Wales. This is not a criticism of either the finance Secretary or the Welsh Government; this is due to the inadequate block grant from the Tories in Westminster. As the year progresses—and we've heard some of it already—I expect Tory calls for, 'More money for health', 'More money for education' and then to oppose any cut backs that are being forced upon local authorities by the reduction in their block grants whilst facing increasing need for social care and children services.
Austerity is failing as an economic policy. That should surprise nobody because it's always failed; it's been tried many times and it's failed every single time. But for the Conservatives at Westminster, it's not an economic policy, it's an ideology: shrink the state; reduce public expenditure; reduce public services; make people who can financially afford it use the private sector.
The failure to distinguish between capital and revenue expenditure is another major problem. To put in terms that the Conservatives will understand: revenue is the equivalent of borrowing for food and energy, and would be a problem for any family. Capital is borrowing to buy a car and a house: as long as it's affordable, it's something many of us have done and currently do. Releasing money for capital is wonderful in terms of your economy: it reflates the economy; it gets people back into full-time work. Everyone benefits, and it's just releasing borrowing for things like building houses and other revenue-raising construction projects. Building things and getting the money in from building them: it works, it's always worked. Unfortunately, instead of building things for use, we've been building war machines in the past in order to reflate our economy at the end of a recession. Fortunately, we're not in that sort of world now so let's learn from the past and reflate the economy.
On the detail of the Welsh budget: additional money for the health service, reductions for everyone else. Health continues to increase its share of the Welsh budget. When giving evidence to the Finance Committee, Michael Trickey of the Public Policy Institute for Wales identified when it would get to 60 per cent of the total expenditure in Wales. He was not prepared—despite me asking him—to extrapolate as to when it would reach 100 per cent of the Welsh budget.
Of course, 'For health, see hospitals', seems to be common belief, and that more people treated in hospital is a sign of success. I disagree with that belief. We need to reduce hospital demand—that's something that was said by the future generations commissioner—by promoting positive lifestyle choices: no smoking; increased exercise; reduce obesity levels and drug taking. Also, improved housing quality, improved diet and increased social care. People are ending up in hospital just because their social needs have not been met, and as such, they become ill. What we want to do is ensure that we have fewer people going into hospital.
Finally, I would like to highlight some key issues identified by the Climate Change, Environment and Rural Affairs Committee. In order to demonstrate how the Wellbeing of Future Generations (Wales) Act 2015 informs the budget process, the Welsh Government should incorporate in its impact assessment process an assessment against its well-being objectives. The Welsh Government must, in discussion with Natural Resources Wales, keep under review the capacity of NRW to fulfil its duties. I think this is one of the things—you can't keep on taking money out of organisations like NRW and keep on expecting them to do the same and more. If they're going to have less money, then they have to have less things to do. Expecting them to do more with less is only going to end up with lots of things not being done very well and things being missed out.
Scrutiny of the Welsh Government draft budget responsibilities and statutory functions is something that has been carried out by the climate change committee, and the Welsh Government should work with national parks to explore how they can raise revenue. This should include support to develop plans to realise their potential for income generation. Far too often, parts of the public sector seem to think that income generation is something that shouldn't happen, that everything should be met by Government grants. We're not in that sort of world any more. People need to look at how they can raise money from what they do. What can they do to raise more money? What can they charge for? What charges can they increase? Increased charges are never popular, but I think if you want to keep a service going, then if the amount of money coming in from grant is going down, the only thing you can do is increase charges. When times are hard, difficult decisions need to be made.
As I've only got 28 seconds left, can I make a plea? Many children in Wales get free breakfasts and free school meals during school term time. Unfortunately, when it comes to the summer holidays, they get six weeks of no free breakfasts and no free lunches. This causes huge strain upon many families in my constituency, and I'm sure in many others. I would like to see an attempt made to extend these free meals for pupils outside term time, especially during the long summer holidays, which cause so much upset to so many parents.