Questions now from party leaders, and the leader of the opposition, Andrew R.T. Davies. 

Thank you, Presiding Officer. First Minister, today the Public Accounts Committee have brought forward their report looking at the expenditure around the Circuit of Wales, and just before I ask you the question, I'm sure you'll join me in congratulating the Chair of the Public Accounts Committee, who announced that he and his wife are expecting their first child in a few months' time.

When you look at this report, it really does make for depressing reading, to say the least. It doesn't look at the policy position in fairness, because that's not the Public Accounts Committee's role; it looks at the expenditure of money. It indicates a lack of ministerial oversight on many of the decisions that were taken, and press releases that were put out were contrary to the evidence that the committee then uncovered that showed that the department was aware of what was going on with this money. You are head of the Government. How on earth can a Government department operate in such circumstances as the report identifies today, which basically indicates that the department was being run by the officials rather than the Minister? 

Well, first of all, could I join him in his congratulations to Nick Ramsay? I found out about his good news on Facebook. So, that is something that certainly all of us on these benches would offer him congratulations on, of course—him and his wife. 

In terms of the issue that's raised by the leader of the opposition, there are questions that we will need to address in the response to the committee's report, but, of course, as the committee has reported, it's absolutely right that there should be a full response at the right time. 

And I fully accept that, First Minister, but I note the Government response to date, which didn't seek to refute the allegations that the officials were running this department at the time. And that's a very serious accusation based on the evidence that the committee has put together. It's a cross-party committee, it was a unanimous report and it was indicating as well that some of these oversights were happening into this current administration as well, as recently as 27 April last year, when the current Cabinet Secretary was in place. It refers to the press releases that were put out and the Government's written statement.

It is deeply troubling for many people who look in on this, and you'll be aware of this through your constituency work—and all the other Members—when you go to organisations that say the Welsh Government demand paper A and paper B and due diligence reports, so that they can get a very small grant of maybe a couple of thousand pounds—. Here, we are talking millions of pounds and hundreds of thousands of pounds on specific projects. I put it to you again that what I'm trying to elicit from you, as head of the Government, is how on earth can the officials run the department without the Minister having oversight of these decisions? That's a very serious accusation that needs and answer and surely, today, you, as head of the Government, can give us that answer and that reassurance that the changes in place will not allow this situation to happen again. 

Well, the leader of the opposition will be aware of the Carltona principle and the way that operates, but it wouldn't be right for me to prejudge a full response. This is a serious report that deserves a serious response, and that has to be done at the right time. At that time, of course, it's absolutely right that Members should have the opportunity to scrutinise what the Government has done and the response that Government puts in place. 

It doesn't look as if I'm going to get an answer. I appreciate that, but I'll look forward to the answer when it comes. But will you give us an assurance, then, this afternoon, First Minister, that if the Government acknowledges these accusations, these assertions, based on the evidence that the committee took—the cross-party committee that looked into this—. To date, no-one has, from what I can understand, been disciplined or been sanctioned because of the very serious allegations that have been substantiated in this report. Will you, therefore, commit to a Government response that indicates that sanctions have been taken where they need to be taken, because, as I said, it cannot be right that people can have such leadership in a department and who aren't elected Members—the Ministers or the Cabinet Secretaries—and that the officials are running those departments? This department clearly seems to be out of control, First Minister.  

Well, first of all, there are a number of issues that the committee raises that we have to consider, but we are entitled to put forward a response as a Government and, at that time, Members will want to weigh up, of course, what the committee has said and the important points that the committee has raised, together with the Government response, and that, to my mind, is the proper way of doing things. It's at that time, of course, that there will be scrutiny of Government decisions, but I don't think it's right to prejudge any response that we might put in place. But it is obviously a report that we must look at very, very seriously, because there are issues there that we will need to address as Government, but they will be addressed when the full response is produced.

Leader of Plaid Cymru, Leanne Wood.

Diolch, Llywydd. A third of Welsh children live in poverty. Does the First Minister believe his Government or the Conservatives in Westminster are best placed to tackle this national crisis?

In terms of being 'best placed' to tackle it, there's no doubt the UK Government has a very strong role, through the welfare system, through the way it can look at tax credits, but it has unfortunately walked away from the role that Government should have, which is, firstly, to reduce inequality in society and, secondly, to ensure that money goes where money is needed most around the UK. That is something that they have not taken forward over the last eight years.

First Minister, you are the Government of Wales and you can take responsibility. You can lift people out of poverty, yet you are choosing not to. Your Ministers claim that the devolution of welfare administration would undermine the social union of the UK. Now, putting aside the fact that every other Government in the UK has power to administer welfare, does he think this reckless undermining of the social union is what has driven calls for the devolution of welfare from the Institute for Public Policy Research, Shelter Cymru, the Assembly's cross-party equalities committee, the Bevan Foundation, the Trussell Trust, the Scottish Labour Party, the Scottish Liberal Democrat Party, the UK Labour Party, the Labour mayor of Manchester—and there are many more? Do you think all of these are divisive nationalists, seeking to undermine the social union?

Well, I have to say, I find it extraordinary to be accused, as a progressive politician—and all of us are on these benches—that we are choosing not to address child poverty. That is a profoundly— [Interruption.]—a profoundly unfair allegation to make, but that is the allegation that she has made. I have to say, the suggestion that this is entirely within the hands of Welsh Government is simply fallacious. We know the UK Government has substantial levers in terms of welfare, in terms of the benefits system, in terms of employment law, in terms of the setting of the real living wage. Yes, we can do it, in terms of the reach that we have to the public sector and to the third sector, to an extent, but not to the private sector. What she is doing is absolving the UK Government of its responsibility, and that's where responsibility must lie. Now, it's one thing to say, 'Let's administer benefits', but there are two problems with that. First of all, the Scots are spending money on bureaucracy—on bureaucracy. They are actually spending money on administration that could be going to recipients. That is clearly an issue that we have had to consider. Secondly, administering the benefits system is no good if you can't control the flow of money; you just get the blame, in those circumstances. People will then say, 'Well, you're the ones administering the benefits system; why don't you put more money into it, why don't you do this, why don't you do that?' when, actually, you can't. So, I've always been very, very reluctant to take on board the administration of something when I think it's a trap set by the UK Government.

So, these levers exist, yet you don't want to have control over them. You talk of strategies, and you bemoan the Tories' welfare policies, while your only real action is to cut the benefits under the responsibility of your own Government: school uniform grant, cut; independent living grant, cut; the education improvement grant, cut; Communities First, cut. A third of Welsh children are living in poverty, thousands rely on food banks for a decent meal, and this is the best that you can do. First Minister, I've got a simple question: are you willing to take responsibility or are you happy to just carry on blaming the Tories in Westminster?

Let's look at this very carefully. The leader of Plaid Cymru represents a party that wants to see an independent Wales—

I knew that was coming. Surprise, surprise.

Well, I know. Yes, I know it's the case. And the reality is—[Interruption.] The reality is that we are recipients of transfers of money through the benefits system because of our membership of the UK. If she wants to make the case to the people of Wales that we should be independent, and therefore have less money than we do now, less money to pay benefits, less money to support jobs, less money for the health service, less money for education, let her make the case. That's what her party exists for. For me, I am a devolutionist. I believe the people of Wales deserve a strong voice, but we also have to make sure we are part of the social union of the UK that provides so many benefits to so many of our people. And what would make it even better is the election of a Labour Government in Westminster.

Leader of the UKIP group, Caroline Jones.

Diolch, Llywydd. First Minister, last week, the Police and Crime Commissioner for North Wales was appointed to the national criminal justice board and has vowed to fight to have policing devolved to Wales, saying that the time was right and that the policy was supported by all police and crime commissioners in Wales. Do you support this stance taken by your two police and crime commissioners? And what sort of timescale would you envisage to have policing devolved to Wales? Do the actions of Labour's PCCs undermine your Commission on Justice in Wales?

Well, first of all, could I welcome her to her new role as leader of UKIP?

Thank you.

It is true to say that all four police and crime commissioners, both Labour and Plaid Cymru, are in favour of the devolution of policing, and that is something that I have supported for many, many years. Of course, this will form an important part of what the Thomas commission has to look at. I believe it's always been the case that it makes little sense for policing not to be devolved when every other emergency service is. [Interruption.] This comes as news to Plaid Cymru. They should read the news over the past few years, shouldn't they? They will then find out. But it is the case—[Interruption.]

Allow the First Minister to answer the question, please.

It's unbelievable, isn't it? We get accused of shouting and then we've got—[Inaudible.]—in the Chamber. There we are. I don't mind a bit of life in the Chamber; that's something that adds to its character. But the answer is 'yes'. I do support the devolution of policing, and I know all four police and crime commissioners do.

Thank you for your answer, First Minister. Since their creation, the police and crime commissioners' budget has skyrocketed. The Labour PCC for south Wales indeed has a budget of £1.3 million and 28 staff, plus a deputy commissioner. So, this has meant an increase of 40 per cent in the budget and double the amount of staff, yet, in the last three years, there has been a 33 per cent increase in violent crime in South Wales Police force. So, should you get your wish and policing is devolved, will the Welsh Government abolish the role of police and crime commissioners, which divert resources away from front-line policing?

Well, it's right to say that, if policing was devolved, it would be a matter then for this place to decide whether or not to keep police and crime commissioners. That is a judgment that would have to be taken when—rather than if, I trust—policing is devolved.

Thank you. The role of the police and crime commissioner was meant to bring local accountability to the police service, however the majority of the Welsh public appear to be disengaged at the polling booths, and the figures are barely in double figures when people vote for police and crime commissioners. There are elections in less than two years, so what can be done to increase participation and engagement with PCCs in Wales? And do you think that the role should be overhauled to remove party politics and give more of a voice to community leaders rather than politicians?

Well, these are matters for the UK Government, given the fact that PCCs are not devolved—

Yes, they will be, but if it was devolved.

—so, it's a matter for them to examine how best to increase turnout for police and crime commissioners and the elections that are held for those positions. But my position is very clear: I think it should be for this Assembly—Parliament as it soon will be, I trust—to take the decision as to what sort of structure should exist in terms of the oversight of the police.