Questions Without Notice from Party Spokespeople

Part of 1. Questions to the Cabinet Secretary for Finance – in the Senedd at 1:48 pm on 18 July 2018.

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Photo of Steffan Lewis Steffan Lewis Plaid Cymru 1:48, 18 July 2018

I thank him for that answer, and I'm pleased to hear that we wouldn't have a situation in Wales where—as much as we don't want Wales as a whole to lose out on a single penny of what we could expect in regional aid, we wouldn't want any community to lose a single penny in terms of what it could expect in regional aid as well. 

Another aspect that is touched upon in the latest paper published by the Welsh Government is that of state aid and, of course, this is an area where there will be a requirement for inter-governmental agreement unless, of course, the Westminster Government assumes complete responsibility for the issue and we are forced into a race to the bottom on state aid, which is something that I wouldn't rule out.

The Welsh Government White Paper states that

'Any new arrangements should be drawn up in line with our principles of agreement and consent, working collaboratively with the UK Government and the other devolved nations.'

But I contrast that with the passage in the UK Government White Paper—if it hasn't been changed in the last 24 hours—which relates to state aid, which hails the fact that the UK Government spent just 0.3 per cent of GDP on state aid in 2016, which is less than half the EU average. Had the UK Government spent the EU average on state aid, that would have made an additional £8 billion available for investment and Wales could have expected something in the region of £400 million as a result.

So, it's clear that there's a significant difference of opinion, not just between Welsh Government and the UK Government and not just on the principle of whether state aid is devolved or not, but also on what one would do with it once we leave the European Union. So, can we have an assurance from the Cabinet Secretary that the Welsh Government won't sign up to any future inter-governmental agreement that cedes state aid rules exclusively to the UK Government and that, instead, any future agreement has to be based on shared responsibility and agreement? Because, of course, we will need UK frameworks and rules, and state aid is a good example of where those will be needed, by agreement.