Can I thank the Conservative Party for bringing this debate forward, as I feel it covers matters that are fundamental to the governance of Wales? If we are to discuss the funding available to Wales, we cannot do so without consideration of the Barnett formula, which—I am sure there would be agreement across the Chamber—is fundamentally flawed. In this respect, I think it is pertinent to point out that, for the first 12 years of the Assembly, we had a Labour Government both here and at Westminster, and yet the Barnett formula remained unchanged.

Discrepancies between the funding Northern Ireland, Scotland and Wales receive persist under the Barnett formula, with Wales being the lowest recipient per head of population. But rather than criticising incoming funding, a constant complaint here in the Assembly, perhaps it would be more appropriate to take a more robust approach as to how those funds are used. After all, whether taxes are raised in Westminster or in Wales, it is taxpayers' money and they have a right to see due diligence used in the way it is spent.

There are many instances where it could be said that very large amounts of money have been wasted on projects that are not delivered as promised. This is borne out by the concerns of the Auditor General for Wales, who said:

'The Welsh Government has not yet implemented an approach to balancing potential risks and benefits'.

If the amount of money received for our public services is reduced, then it becomes even more imperative that we use those funds that are available more productively.

We have to accept—and I do acknowledge—that decisions on funding companies and/or organisations are not without inherent risks. I've pointed out before that the Government is often lending at the higher-risk end of funding, particularly in areas where commercial banks are failing to provide such funds due to them being completely risk averse. But, in reality, it is not in the support of the private sector that we find the greatest Government ineptitude, it is in the support they give to institutions that are Government led but implemented on an arm's-length basis.

It is universally accepted that Wales is far too reliant on its public sector, but there is a growing dependence on third sector institutions. We now have one third sector organisation for every 89 people in Wales. One has to ask the question, 'Are they all giving value for money?', when there is such a plethora of such bodies. I urge the Government to stop complaining about lack of funding, but to concentrate on spending, not income.