2004: Twenty years ago in Welsh Government.
D-Day attendance row, Richard Commission, Bonfire of the Quangos, late for the Queen.
Twenty years ago saw one of the most significant years in the development of the Welsh Government and the road to a Welsh Parliament. The Richard Commission published its report on future constitutional arrangements for Wales in April and Welsh Labour developed its policy response and agreed it in September. The Welsh Government also announced that several of the quangos, or Assembly Sponsired Public Bodies (ASPBs) would be brought into the Government. However, the reputation of the First Minister took a number of hits after he failed to attend the 60th anniversary D-Day celebrations and was late in arriving for the Queen at the Royal Welsh Show. The Cabinet Minutes give only a glimpse of some of these developments, so I have filled in the narrative a little from other sources and my diaries.
The first Cabinet Meeting of the new year took place on 12 January. Cabinet discussed the Structural Funds programme, with a paper from the Minister for Economic Development and Transport:
Ministers noted the positive news on the progress of the Structural Fund Programmes and that all the decommitment targets for 2003 had been met. Ministers congratulated officials in the Wales European Funding Office for achieving this. They also welcomed the possibility of a further £60 million being released as a performance reward by the European Commission in recognition of the quality of administration of Objective One to date; no further match funding would be needed for this sum, and full Public Expenditure Survey cover was already available. Ministers nonetheless raised concerns about the use of match-funding from the Local Regeneration Fund and requested information on progress made by each local authority in committing the funds for which they are responsible.
There was a proposal for a Cabinet Sub-Committee to oversee Structural Funds, which it was suggested had been agreed in principle at Cabinet on 6 October 2003. Cabinet asked for a further paper on this.
EU Strategic Environmental Assessment Directive
The Minister for Environment, Planning and Countryside introduced a paper on the EU Strategic Environmental Assessment Directive was to build on the Environmental Impact Assessment Directive, and it would apply to the public sector and privatised utilities
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Tuition Fees
The Minister for Education and Lifelong Learning informed colleagues of the latest position on the Higher Education Bill, which had been published on 8th January. The policy was devolve responsibility for student support for higher education students domiciled in Wales, wherever they were studying in the United Kingdom, and for setting tuition fee levels in Wales including the question of variable fees.
It was envisaged that the powers would be transferred with effect from the start of the academic year 2006/07. To ensure a smooth transition the Minister proposed that in 2006/07 the Welsh student support system would mirror the Department for Education and Skills system to minimise the risk associated with the transfer of functions. Any modifications to the system in Wales could follow that.
The Secretary of State for Education and Skills had also announced a number of additional measures. There would be an increase in the new Higher Education Grant from £1,000 to £1,500 for new students from 2006/07. There would be an increase in the amount of maintenance loan available to students. There would also be a 25-year cap on the loan repayment period which was potentially beneficial to women on low incomes.
The Minister would make an oral statement to the Assembly on 13th January. The second reading of the Bill was currently scheduled for 27th January and it was envisaged that Don Touhig would address the Education and Lifelong Learning Committee on 28th January. A full debate on the Bill in the Assembly was scheduled for 11th February.
(My personal diaries for 2004 reveal that the decision to devolve tuition fees was not universally liked in the Labour Group, and seen by some as something of a coup d’état without much discussion about it. There were genuine issues given there was a Wales and England HE market, which was not the same situation in practice for Scotland and Northern Ireland. This issue was of course to return regularly to the forefront of devate in Wales. My diaries also note that University Vice-Chancellors in Wales were not really signed up to the HE Reconfiguration agenda, something which was to become a continuing sore when I became Education Minister from 2009-2013).
The next meeting of Cabinet was on 19 January. The First Minister raised the issue of the Civil Contingencies Bill which had been published and received its First Reading in the House of Commons on 7th January. The Bill included proposals for the relevant UK Minister to designate an Emergency Co-ordinator for Wales in the event of an emergency affecting most or all of Wales. The Wales Emergency Co-ordinator would only be appointed by the UK Minister when Emergency Regulations are made and there is an expectation that the Assembly First Minister would be the person appointed. Ministers were content with the proposals because they recognised the realities of what had happened during the Foot and Mouth crisis and previous crisis management situations.
Media
Ministers noted the apology sent by the South Wales Echo to the Minister for Health and Social Services following an inaccurate report on waiting lists.
The Director of Strategy and Communication informed Cabinet of the publication of the Phillis Report on Government communications. A Cabinet paper would be produced on the report in due course. Ministers made a number of suggestions to improve Assembly Government communication. Ministers noted the successful engagement with the specialist and professional press in education and suggested the same approach could work in other areas too. Increased use of live interviews on radio and television was also suggested. Ministers asked for these to be included in the forthcoming Cabinet paper on the Communication Strategy.
Free School Breakfasts.
The Minister for Education and Lifelong Learning introduced a paper. on the pilot programme. Ministers made a number of comments. Ministers noted the existence of a number of breakfast clubs across Wales and recognised the need to build on existing good practice. Ministers raised the need to consider the issue of schools which, whilst not located in Communities First areas, still served pupils in Communities First areas. Cabinet approved the paper.
Structural Funds.
The Minister for Economic Development and Transport introduced a paper on Ministerial Handling of Structural Funds issues, and ministers agreed the Cabinet Sub-Committee should focus on current and future structural funds programmes.
Future Technologies/Brain Drain
The paper was requested by the Cabinet Sub-Committee on Sustainable Development and the Spatial Plan and followed a recent article in the Western Mail regarding an alleged “brain drain”. The article was misleading as it only considered the gross outflow of skilled labour. This was strongly counterbalanced by a strong flow of inward migration resulting in a positive net inward migration. Ministers welcomed the information in the paper and discussed the need to consider ways in which Welsh-born people might be encouraged to stay or return to Wales, perhaps following the example of Ireland. Ministers also acknowledged the skills that asylum seekers and other immigrants into Wales had to offer the Welsh economy. Ministers requested further information on the number of people who lived in Wales and worked in England.
Daugherty Review.
The Minister for Education and Lifelong Learning updated colleagues on the latest position on the review of assessment arrangements for Key Stages Two and Three by Professor Richard Daugherty. The first phase had been completed and the Minister had been given an interim report.
Smoking in Public Places (Wales) Bill.
Ministers noted that the Smoking in Public Places (Wales) Bill, sponsored by Baroness Finlay of Llandaff, had received its Second Reading in the House of Lords. Baroness Finlay had indicated that she would consider amendments to the Bill suggested by the Assembly Government. Ministers also noted the consultation exercise commenced by the Scottish Executive and the ban on smoking in public places in Ireland which was to take effect from February 1st. Ministers discussed the possibility of carrying out a consultation in Wales and the need for a close watching brief on the acceptance and enforcement of the impending Irish ban.
Police Reform.
The Minister for Social Justice and Regeneration outlined her proposed response to the Policing Green Paper. This would resist the suggestion of directly-elected police authorities and stress the importance of the Assembly Government’s involvement in other reform proposals such as the merger of police authorities.
Cabinet met again on 9 February.
CAP Reform.
The Minister for Environment, Planning and Countryside introduced a paper on reform of the Common Agricultural Policy the CAP subsidy regimes for the livestock and arable sectors would be replaced with a Single Farm Payment. Agriculture Ministers across the United Kingdom had agreed to implement the reforms from 2005. The Minister outlined the options for calculating Single Farm Payments. All options broke the link between subsidies and production and would therefore result in production and stocking levels more closely related to what the market could bear. Of the options outlined, the Minister recommended the option based on historic production. This was also favoured by the Scottish Executive. Ministers supported this option.
Water Prices.
The Minister for Environment, Planning and Countryside introduced a paper on the Ofwat review of price limits for water companies in England and Wales which would culminate in limits being set for the period April 2005 and March 2010. As part of the review, Ministers had to decide on the scope of environmental and drinking water quality enhancements to be funded through water bills. The Minister outlined the issues he proposed to raise in the guidance to Ofwat. In particular there were concerns about the potential price rises especially as prices in Wales were starting from a higher base. Ministers raised concerns about the lack of strategic consideration of the cross-cutting issues. In particular there was a need to consider the issues of affordability and social justice as well as wider health and economic issues. Ministers requested a further paper to examine water pricing in this wider context.
Identity Cards.
The First Minister introduced a paper which provided an update for Cabinet on UK Government proposals to introduce identity cards. The paper also examined the issue of entitlement cards, which could be used to enable older people to obtain discounted or free public services. Ministers noted that the First Minister had not committed the Assembly Government to using the cards as a means of defining entitlement to public services in Wales. Cabinet noted the paper.
Estyn Annual Report
The Minister for Education and Lifelong Learning informed colleagues that the Chief Inspector of Schools’ Annual Report for September 2002-2003 had been published that day. The report contained a number of positive findings including a rise in the standard of teaching in all areas of learning. Schools had also exceeded Assembly Government targets for the number of good lessons.
There was a lengthy Cabinet agenda for the meeting of 23 February. Ministers noted that a paper on UK Civil Service Reform was due to be published the next day by Sir Andrew Turnbull, Cabinet Secretary, setting out the future direction of the civil service. Ministers also noted that the Permanent Secretary would be presenting a paper to Cabinet on the civil service in Wales following the Cabinet request.
Bids for Primary Legislation.
The First Minister introduced the paper. It was hoped that a draft Transport Bill could be published for pre-legislative scrutiny in the current parliamentary session. The Public Services Ombudsman Bill might also be included in the next Queen’s Speech. Ministers discussed the Smoking in Public Places (Wales) Bill and agreed there should be a reference to the Bill in the paper to go to plenary. The reference was to suggest that should the Bill not succeed in its passage through Parliament, the Assembly Government would need to reconsider its request to the UK Government.
Structural Funds post 2006.
The First Minister introduced the paper, which was noted by Ministers.
Transport Review.
The Minister for Economic Development and Transport had decided to carry out a review of Assembly Government transport policies to ensure they were in line with both Wales: A Better Country and the Wales Spatial Plan. The paper also set out the achivements of the Assembly Government to date.
Social Justice Report.
The Minister for Social Justice and Regeneration outlined her approach to the Social Justice Report for 2004. A smaller, more accessible version of the report was also proposed. Ministers requested that consideration should be given to including other examples of policies contributing to the social justice agenda across Assembly Government portfolios.
Food and Fitness.
The Minister for Health and Social Services introduced the paper. The paper highlighted the activity already being funded and taken forward by the Assembly Government.
Water Prices.
The Minister for Environment, Planning and Countryside outlined the follow-up paper. Guidance to Ofwat on the environmental and drinking water quality programme needed to be issued in order to ensure the Assembly Government had an opportunity to influence water companies’ business plans and to register concerns about the scale of likely prioce increases. There was also a need to be involved in the UK Government working group which was to consider the issue of affordability. Work would also be carried out to ensure cross-cutting consideration of affordability concerns by Assembly Government officials with further external consultation. This would feed into the UK Government working group.
Cabinet met again on 8 March. A very understated minute notes ‘The First Minister informed colleagues of the position on the appointment of the Counsel General.’ Underlying this, there was a dispute between the Welsh Government and the Presiding Office about the appointment. (My diaries note that Jeff Cuthbert and I were nearly thrown out of the Chamber for defending Rhodri Morgan against attacks on this from the Deputy Presiding Officer. However, the Assembly Record of Proceedings beyond recent years is so unsearchable that I can’t find and link to it. However, there is a good account of this in the Quarterly Monitoring Report of the National Assembly for the UCL Constitution Unit Devolution Project).
Port of Mostyn/Airbus
Ministers noted the possibility that dredging of the Dee estuary channel to the Port of Mostyn could be refused consent by the Environment Agency and the possible effect this would have on the A380 Superjumbo wing manufacturing set up at the Airbus plant at Broughton. The relevant legislation included a provision for such a decision to be overturned on the grounds of overriding public interest after exhausting all the alternatives. Ministers noted the need to ensure the processes were followed correctly.
Public Services
The Minister for Finance, Local Government and Public Services introduced the item, which reflected discussions in the Cabinet Sub-Committee on Local Government and Public Services and established a set of principles which would be taken forward. Ministers agreed that the title of future work in this area should be shortened to ‘Delivering Quality Services’. The Permanent Secretary welcomed the paper which would provide officials with a clear understanding of the Assembly Government’s expectations.
Sustainable Development Action Plan.
The First Minister introduced the paper. Ministers made a number of comments on the paper. There was a need to ensure that Sustainable Development initiatives across Assembly Government portfolios were reflected in the Action Plan.
Smoking in Public Places.
The Minister for Health and Social Services introduced the paper. The Minister highlighted recent developments in Scotland and Ireland and also outlined a number of options for a response to Baroness Finlay’s private members bill on the issue of smoking in public places in Wales. The Minister recommended that the Assembly Government reiterated its support for the principle of the Bill and emphasise the value to be gained from allowing the Bill to continue through the parliamentary process on its own merits.
School Transport Bill
The Minister for Education and Lifelong Learning informed colleagues that the School Transport Bill was due for publication that day. The proposals aimed to encourage a reduction in the use of cars for taking children to school through the promotion of alternative forms of transport.
The Cabinet next met on 29 March. The First Minister reminded colleagues of the imminent publication of the Richard Commission’s report. He would make a statement to the Assembly on Wednesday 31 March. This would come to dominate discussions in the Assembly over the next year. There were extensive differences within Welsh Labour and within and between the other parties. I will return to those.
Jobs
There was conflicting news on the jobs front.General Dynamics appeared to have achieved great success on the Bowman project and that might mean expanding its Oakdale complex, but Ministers noted the disappointing announcement of job losses at DARA St Athan, following the Ministry of Defence’s decision to repatriate Harrier upgrade work to a frontline RAF station.
Spatial Plan
There had been an unexpectedly high level of interest in the consultation document, and the need now was to refine the plan in the light of comments received. The paper proposed approaches to key issues and an outline structure for the revised plan. Cabinet agreed with the proposals in the paper. It would be important to emphasise the dynamic nature of the plan, for instance as regards the emerging question of how far inward migration could counter skill shortages and longer-term demographic trends.
Food and Fitness of children and young people
The Minister for Health and Social Services introduced the paper, which reported on the outcome of a series of conferences around Wales. Cabinet was content with the proposal to establish a Food and Fitness advisory committee for Children and Young People. This would examine suggestions from the conferences in detail and report in due course to the Cabinet Sub-Committee on Children and Young People.
Communications
The Minister for Finance, Local Government and Public Services introduced the paper. Communications skills were essential to the effective delivery of Cabinet’s agenda, and should be embedded across the Assembly Government. Those involved should also be fully aware of Ministers’ priorities and preferences. The paper set out a number of proposed actions to achieve these objectives, which would require a greater level of resourcing both within policy divisions and the Communication Directorate. Cabinet welcomed the paper, and in particular the proposals for closer links between Ministers and communications staff. Ministers suggested that those working in the Press Office should have practical experience of journalism, whether by recruitment from the media or work experience, perhaps with local newspapers.
BBC Royal Charter
The Minister for Culture, Welsh Language and Sport introduced the paper, which included a proposed draft response to the UK Government on the review of the BBC’s Royal Charter. While responsibility for broadcasting was not devolved, many of the issues covered were of close interest to the Assembly Government. Ministers agreed to provide detailed comments on the draft to the Minister for Culture, Welsh Language and Sport, and requested a further discussion at the next Cabinet.
The Richard Commission report was published two days later:
Cabinet next met on 26 April. The First Minister informed colleagues about his meetings with the Minister for Finance, Local Government and Communities regarding consideration of Public Service Efficiency in Wales in the light of the work that had been undertaken for the UK Government by Sir Peter Gershon. The First Minister would report back to Cabinet before the Summer recess.
Richard Commission
Ministers discussed the paper on the Report of the Richard Commission on the powers and electoral arrangements of the National Assembly. Ministers noted the possibly limited impact on the Assembly’s workload of acquiring primary legislative powers. There was a need to communicate what this recommendation would mean in practice. Ministers requested an analysis of the use made by the Scottish Parliament of its powers and an initial assessment of the potential Bills that the Assembly Government might want to consider if the Assembly had primary legislative powers in the future. The papers raised a number of questions which would have to be resolved in any future legislation. An Assembly debate was due to take place two days later.
BBC Charter Review
The Assembly Government had been invited to submit a response to the review of the BBC’s Charter. Ministers made a number of points. There was a need for the BBC to consider the issue of accessibility across Wales particularly in relation to news coverage. Ministers also discussed the issue of the constitution and governance of the BBC, which required further consideration. The draft response, which Ministers would consider in correspondence, should raise the Assembly Government's concerns without necessarily proposing solutions at this stage.
Labour discussions on the Richard Commission
It makes sense to pause here and outline the discussion within the National Assembly Labour Party (NALP). The NALP had appointed three members to a ‘contact group’ to meet with three members of the Parliamentary Party to discuss issues and identify areas of difficulty. I was one of those three, and I had regular discussions with MPs both in and outside the contact group, as well as with Peter Hain as Secretary of State and other interested parties like Eluned Morgan MEP. One of the difficulties was that Richard had raised the question of the number of MPs in Wales, and this inevitably provoked a reaction. The NALP had a special meeting on the Richard Commission Report prior to the Cabinet disussion on 26 April. I was pro more powers, but also in favour of having a referendum in support of that, which I believed we would win. Others, including some who had been prominent in the 1997 referendum, were neither as sure we could win it nor in favour of a referendum at all. Some who had been supportive in 1997 said they would campaign for a no vote on more powers. In terms of the Labour group, the contemporaneous note I took at the time suggested that of those who spoke, the majority were in favour of more powers. but a majority who declared themselves were against a referendum. As any likely response to Richard would require a further Government of Wales Act, it would clearly feature in the next Labour General Election Manifesto, and there was a tight timetable for this. Labour’s position was subsequently resolved at the Special Conference held in September 2004, taken forward in the 2005 General Election manifesto, and thereafter we had the 2006 Government of Wales Act, which gave Wales the dreaded LCO process, eventually dropped after the successful Referendum on legislative powers in 2011. For the 2004 position, the report from the House of Commons Library is useful, as is the following volume of the UCL Assembly Monitoring Report.
Little has been written by academics on the political background to the shaping of Labour’s proposals and eventual legislation, aside from some commentaries on the Richard Commission as a process and on the eventual passage of the 2006 Act. There is certainly scope for a historical article on Welsh Labour from the Richard Commission to the 2006 Act, which looks at the party’s internal tensions in this period, including the alternative proposals put forward by amongst others Rhodri as First Minister. It would be a more rounded article when we have the UK Cabinet Papers from 2004-6.
The next meeting of the Cabinet took place on 17 May. The First Minister informed colleagues of a recent discussion with the Secretary of State for Education and Skills about the issues surrounding the Children’s Commissioner.
The First Minister had attended the recent meeting of the European Cohesion Forum in Brussels which had discussed the future of European regional policy and structural funds after 2006. Ministers agreed the Minister for Economic Development and Transport should write to relevant Assembly Sponsored Public Bodies (ASPBs) and other public bodies setting out the current position on the future of European regional policy following enlargement and the implications this would have for Wales.
Standing Order 31
The Business Minister introduced the paper and outlined the revised proposals to amend Standing Order 31. Ministers approved the paper.
European Regional Government Networks
The First Minister introduced the paper, which outlined the current European Regional Government Networks in which the Assembly Government was involved. At present, there was no Minister who was a member of the Committee of the Regions, unlike the situation in Scotland and some of the German Länder. Ministers noted the paper.
Clywch
Ministers noted that the report of the Clywch Inquiry was due to be published in the near future. There would need to be a statement and debate in plenary.
Cabinet on 24 May considered the announcement made by the UK Secretary of State for Health to reform quangos in the area of health and social services, about half of which covered England and Wales. The announcement had been made in the context of a Treasury initiative to encourage efficiency savings across Whitehall.
The Business Minister outlined proposals from the House of Commons Procedure Committee for joint working between Assembly subject committees and the House of Commons Welsh Affairs Select Committee on the scrutiny of draft bills. Ministers requested a paper providing further details of the proposals drawing on the experience of recent examples of joint working in this area.
Balance of Funding Review.
The Minister for Finance, Local Government and Public Services outlined the draft submission of the Assembly Government to the Balance of Funding Steering Group, which had been informed by the results of the consultation in Wales. There were two key issues to consider; the balance between the central and local elements of local authority funding and the means by which the local element was collected. The issues of fairness, efficiency, transparency and accountability would also inform consideration of how to take forward the Assembly Government’s views. The Minister noted that the current level of central funding, at approximately eighty per cent, reflected the low tax base across Wales. The Minister also noted that most respondents felt that the Council Tax was fair in principle although there was a need to consider reform of the Council Tax Benefit to make it simpler and more accessible.
Ministers discussed the proposals. Ministers welcomed proposals to reform the benefit aspects of the Council Tax especially where the value of people’s property did not reflect their disposable income. Ministers noted the possibility of returning the collection of business rates to local control and also the proposals for a tourist tax. Ministers concluded by approving the draft response to the Office of the Deputy Prime Minister.
School Uniforms
The Minister for Education and Lifelong Learning outlined her proposed response to a Standing Order 29 motion requiring her to bring forward a school uniform financial assistance scheme. Following a consultation exercise the Minister proposed to seek funding in the budget planning round for a scheme to provide financial assistance to families whose children were entitled to free school meals. The Minister also proposed to support a low-cost loan scheme to assist parents with the cost of purchasing school uniforms through Wales Credit Unions. Ministers discussed the proposals. There was a need to consider the financial implications of extending the loan scheme if the pilots proved successful. It was particularly important to ensure that the Minister for Social Justice and Regeneration was involved in any wider proposals involving credit unions.
Child Poverty Task Group.
The Minister for Health and Social Services introduce the paper. The Child Poverty Task Group had submitted its report. A consultation on the report would be launched in a plenary debate, and a copy of the report would also be circulated to subject committees for more detailed consideration. An Assembly Government strategy in response to the report would be produced in the Autumn following the consultation.
D-Day
Before the next Cabinet Meeting, a row erupted about the absence of Rhodri Morgan from the 60th anniversary of D-Day. Edwina Hart, whose father and uncles had served in the war, went in his place. Rhodri said ‘I would not dream of offending the Normandy veterans and am deeply sorry if this very special weekend has been overshadowed for them in any way’. I noted in my diary my concern that this might ‘cost him his man-of-the-people title’. Another colleague worried that it could be Rhodri’s ‘donkey jacket’ moment (a reference to the row over Michael Foot’s Remembrance Day apperance). His absence certainly got extensive coverage in and outside Wales.
Cabinet on 7 June discussed new functions for the Assembly Government. Ministers noted the transfer of functions to the Assembly that had taken place since its establishment. There was a need to ensure consideration of the full implications of any future transfers, including the financial aspects. A working group of officials would be monitoring the emergence of new functions and preparing regular reports to Cabinet
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Climbing Higher
The Minister for Culture, Welsh Language and Sport updated colleagues on the progress on Climbing Higher for increasing participation in physical activity. There were three sets of actions; items outlined in the manifesto; items subject to the outcome of the Spending Review; and items requiring joint working between departments to ensure a co-ordinated approach. Ministers noted that funding was already being provided for a number of areas within Climbing Higher. There was a need to collate information on the funding being provided across all portfolios. Ministers noted evidence that participation in physical exercise were lowest in deprived areas. There was a need for the action plan to reflect this priority being given to Communities First areas.
Wanless
The Minister for Health and Social Services outlined progress on the implementation of the Review of Health and Social Care and updated Cabinet on the development of the Wanless Local Action Plans. There was clear evidence of strong partnership working as well as evidence of innovative approaches to prevention and chronic disease management, the development of non-institutional models of care, intermediate care and better integration of health and social care teams.
The next Cabinet meeting was on 21 June.
Spending Review.
The Minister for Finance, Local Government and Public Services introduced the paper. The Minister emphasised that the paper outlined draft proposals for 2005/06 on which Ministers’ initial views were invited. A further paper, taking Ministers’ views into consideration, would be provided at the next meeting.
Emergency Statutory Instruments on Animal Disease.
The Minister for Environment, Planning and Countryside introduced the paper. There was a need to ensure that the Assembly Government was able to respond quickly and effectively to outbreaks of animal diseases. The Department for Environment, Food and Rural Affairs was particularly concerned to ensure that, following the proposed transfer of further animal health functions, emergency control legislation could be put in place as promptly as in England and Scotland.
Cabinet on 5 July had a full agenda. The First Minister reported to colleagues on his lunchtime meeting with the Lord Chief Justice. They had discussed a number of issues including the consultation process on the appointment of judges to the proposed Supreme Court and the possibility of changes to the Welsh boundaries circuit. The Permanent Secretary advised Ministers that he had been asked to co-chair a committee examining issues in which the Assembly Government and the judiciary had a shared interest in Wales.
Spending Review.
The Minister for Finance, Local Government and Public Services introduced the paper. The paper outlined firm proposals for the draft budget based on the discussion of the Assembly Government’s priorities on the previous paper. The paper also set the context within which Ministers would need to develop detailed budgets within their portfolios over the summer.
Waiting Times.
There was a paper from the Minister:
Affordability of water prices
The paper followed a request for advice on concerns about the affordability of water prices arising from the previous Cabinet discussion on the Assembly’s Guidance to Ofwat. The Minister for Environment, Planning and Countryside outlined the work being carried out in the area. A working group had been established by Department for Environment, Food and Rural Affairs (DEFRA) to consider further assistance for vulnerable groups. The Minister had also met Dwr Cymru to encourage full use of the measures available to mitigate price impacts on lower income households.Ministers discussed the need to monitor the situation carefully. There was also a need to consider a publicity campaign to coincide with the announcement of the draft price limits on 5th August to communicate the Assembly Government’s response and its concerns around the social justice agenda. Ministers noted the benefit of having a non-profit making company, which could invest its profits into improving infrastructure and providing water and sewage treatment in almost all of Wales. The difficulty of maintaining the balance between the need to deliver service improvements with affordability remained.
Entitlement Card for Older People.
The Deputy Minister for Older People outlined the proposals to establish a feasibility study to consider options for the introduction of an entitlement card for public services in Wales. The paper set out the key issues and options. Cabinet was invited to approve a feasibility study and give a steer on the options. Ministers agreed to carry out a feasibility study and indicated that given the Assembly Government's e-technology agenda it would be preferable to examine the possibility of a smart card.
Performance of the Assembly Government as an Employer.
The Permanent Secretary introduced the item. The paper followed a request from Cabinet for assurances that the civil service was implementing policies that were consistent with the public policies of Ministers. The paper highlighted key policy areas and the progress that had been made. Ministers requested further information in a number of areas including policies on carers, support for victims and witnesses of crimes, volunteering and mental health. Further information was also requested on the number of people whose employment had been terminated since the establishment of the Assembly. Ministers discussed the issue of sickness absences, which were comparatively high, and the need to analyse the reasons for the sickness levels in the Assembly. There was a need to address the issue of pay equalisation in relation to the wider public sector. There was also a need to address the long hours culture.
Science and Commissioned Research.
The First Minister introduced the paper and the report ‘Science in Support of the National Assembly for Wales: Sound Science for Sound Government’ and invited comments on the report. There was a need for greater use of secondments and other external expertise, particularly from the higher education sector. Ministers agreed that a written statement should be made to Assembly Members amplifying the position of the First Minister as the science champion.
Late for the Queen.
Rhodri was late for the Queen at the Royal Welsh Show. I noted in my diary ‘The opposition parties protested – I did GMW (Good Morning Wales) to defend him. She was early … but he should have been on time. Anyway, it wasn’t like D-Day as more people saw him on telly with the Queen’.
Bonfire of the Quangos
One thing that didn’t make it on to the main Cabinet Agenda was the announvcement in the last week of the Assembly term in July that we were taking the WDA, ELWA and the WTB inside the Assembly. In my diary I noted that ‘it has been a momentous week for devolution….The announcement took the opposition parties by surprise. It meant we really ended the Assembly term on a high note, setting the agenda at last. The announcement took the opposition parties by surprise. It meant we really ended the Assembly term on a high note, setting the agenda at last’.
The response to the Richard Commission
In my diaries I note the growing tensions in Welsh Labour in the period between the Richard Commission Report’s publication and the Labour September Special Conference. Rhodri Morgan, seeking to avoid a further Welsh referendum, suggested a compromise in June in a speech which would involve giving the Assembly framework powers in the areas where it already had responsibility, allowing it to amend existing legislation retrospectively:
Richard envisages all future legislation in devolved areas of responsibility being made in a way which gives the Assembly wide-ranging powers to decide if and how that legislation would be implemented in Wales. The new thinking suggests that the same principle could be applied to previous legislation, thus opening up new scope for the Assembly to legislate for Wales, in a year of its own choosing, rather than relying upon Westminster for legislative time in the Queen’s speech, provided of course it was in a devolved field, such as health and education.
At the basis of this approach is a shift away from the outdated thinking which portrays primary and secondary legislation as the polar opposites of the constitutional law. In modern Parliamentary practice, no such clear dichotomy exists. Different legislative forms exist along a continuum, rather than in a set of separate boxes. The space along the continuum between primary and secondary has been progressively filled in, over more than twenty years, by Order making powers, delegated by Parliament to Ministers. This Order-making approach has gathered pace over this period, being used both more frequently as time has gone on, and being applied over a wider scope of powers and functions.
What those who have suggested a strengthened form of 13.2 powers for the Assembly seem to me to be proposing is an approach which is thus well-precedented, but now applied in a uniquely crafted way to meet the particular set of circumstances in which we find ourselves in Wales.
In this evolutionary way it proposes a natural extension of the Government of Wales Act, while remaining within its essential parameters.
There is no rubicon to be crossed, in terms of primary powers and all that goes with it. What could be secured would be a set of workable and reliable powers for the Assembly, allowing it to work more effectively and with greater legal clarity, within the basic scaffolding of the present structure.
The main problem that Richard identified in the legislative powers of the National Assembly lies not in the fact that the legislative powers are subordinate but in the fact that they are not clear, secure and stable. What a ’13.2 plus’ model appears to offer is not to convert subordinate powers into primary powers but to define with clarity, security and stability the fields within which the Assembly may legislate. If it works, it could well provide the transparency and accountability which Richard identifies as a gap in current practice.
Let me be clear that my purpose in outlining this idea is not because I want to suggest that it has any of the qualities of the Holy Grail. Like any possible compromise, it ends up giving nobody with a partisan position everything which she or he might have wished for.
The full speech in which Rhodri set out this proposal is here:
Peter Hain explained Rhodri’s idea in brief in the House of Commons:
Under the proposal, it is not just prospective or current legislation that would be dealt with; the Assembly would also have powers over retrospective legislation. We are looking at that idea and discussing it in detail.
My diaries note conversations with MPs and AMs, as well as Peter Hain as Secretary of State, suggesting that Rhodri’s compromise suggestion of framework powers seemed to satisfy no-one, and aroused considerable anxiety that he was allowing the case for primary powers to fall by the wayside. I have also found some of the documents from the Contact Group meetinghs between MPs and AMs. Again, the internal discussions within Welsh Labour have not had sustained academic study, and the best public record remains in the UCL Assembly Monitoring reports and more recent autobiographies.
It was, as the quote from Peter Hain suggests, not entirely clear how Rhodri’s proposal would work in practice, and it was widely seen as an example of ‘Henry VIII’ powers, which gives someone power to amend acts of Parliament by delegated legislation.
In August, Welsh Labour’s response to Richard was published. This happened on the eve of the Eisteddfod, and my diary records that I was on the Welsh Labour stand where a Plaid Cymru demonstration unfolded against Labour’s refusal to endorse immediately primary law-making powers, with Dafydd Iwan denouncing “Leighton Andrews a’i griw’. The document is here:
The August 2004 UCL Devolution Monitoring report records how this was approved unanimously by Welsh Labour at a Special Conference in Cardiff on September. Following publication of a consultative White Paper after the next election, and assuming it wins, Labour would amend the Government of Wales Act to:
Develop enhanced legislative powers for the Assembly, with the White Paper setting out options.
Change the voting system by preventing candidates from standing for election in both a constituency and on a regional list.
End the corporate body status of the Assembly.
The document ruled out tax varying powers, any reduction in the number of Welsh MPs at Westminster, and the STV proportional representation system. Options for enhancing the legislative powers of the Assembly were:
Primary law making powers following a post-legislative referendum.
Allowing the Assembly to amend or repeal existing legislation in those
areas of policy for which it already has responsibility.
The document was a compromise, not least over a referendum, which Rhodri Morgan had hoped to avoid. Rhodri’s ciompromise option was described as follows in the document:
“One option would be to grant the Assembly enhanced Order-making powers to make new legal provision for Wales in defined fields within the responsibilities currently devolved to it, including a power to amend or repeal relevant earlier legislation in these fields. This would in effect apply the principle of framework legislatively retrospectively. Parliament would continue to be the appropriate body to pass Wales-only primary legislation outside the areas covered by these Order-making powers (for example, the proposed Bill to create an older People’s Commissioner for Wales) and Sewel- type measures on an England and Wales basis. As with the ending of corporate body status, this option would require a Government of Wales (Amendment) Act. This sort of Order making powers could be extended gradually over the devolved fields, or related to specific pieces of legislation.”
I will come back to these internal Labour debates on other occasions, as the Government of Wales Bill proceeds in 2005 and 2006.
After the Special Conferencve excitement, the Cabinet met again on 13 September. There is a brief minute that the First Minister outlined arrangements for taking forward the proposals for increasing the Assembly’s powers following the Wales Labour Party Conference.
ASPBs
Cabinet recognised the momentum gained from the end of the previous session on the creation of a Welsh public service, which needed to be maintained. Work was being carried out on the negotiations both at Ministerial and Chair level and at official level.
Local Government
The First Minister and the Minister for Finance, Local Government and Public Services had met the leaders from 21 out of the 22 local authorities at a recent informal lunch. An opportunity had been taken to meet the large number of new leaders now in place following the June elections and such a high turnover of leaders in local government clearly implied a new relationship with Welsh local government.
China
The First Minister gave a report on his recent visit to China. Ministers noted the rapid expansion of the Chinese economy particularly in the car and construction industries and the benefits this had for Welsh exports. There was also a market for Wales in the field of education in China and links between both countries needed to be developed further.
Communications
Ministers discussed and agreed a proposal that members of the Cabinet should give a presentation to London based journalists on the achievements of the Assembly Government. Ministers raised concerns regarding the inaccurate communication of information on announcements of Westminster government policy by the media where that policy only applied in England and agreed that such inaccuracies should be rebutted promptly. There was a need for proactive rather than reactive communication of the Assembly Government’s messages and Ministers requested a list of ten key messages to be communicated. There was also a need for greater co-ordination and prioritisation of press releases issued by Ministers.
Cabinet Business
The First Minister introduced the paper. Ministers approved the paper subject to a request to include an item on independent television broadcasting.
Bids for Primary Legislation
The First Minister introduced the paper and outlined the proposed bills for inclusion in the 2005-06 Parliamentary session. The proposal for a Government of Wales Act (Amendment) Bill was the main priority. Ministers requested the inclusion of the Bill for Additional Powers to Suspend the Right to Buy in the list of proposed bills. Ministers approved the paper.
Public Services Policy
The paper was introduced by officials, and Ministers were asked to comment on the draft white paper. Ministers made a number of comments on the draft. In particular the title of the draft should be changed, for example to ‘Delivering Better Services’. There was a need for further work on the contribution of the private sector in assisting the public sector in the delivery of services. Consideration of the issue of delivery at the regional and local levels also needed to be addressed. A reference to how the Assembly Government was targeting resources to tackle inequalities was also requested.
Sustainable Development Action Plan
The Minister for Environment, Planning and Countryside introduced the paper. The draft action plan set out how the Assembly Government planned to take the Sustainable Development Scheme forward. The draft included a list of additional actions detailing what the Assembly Government was doing.
Cabinet met again on 4 October.
Communications
Ministers noted the coverage of the recent announcement on prescription charges. Generally, coverage outside Wales had been factual and positive although parts of the Welsh media had reported the announcement in a negative way. The First Minister informed colleagues of his recent meeting with Menna Richards, controller of BBC Wales.
Draft Budget
The Minister for Finance, Local Government and Public Services introduced the paper and outlined the draft budget. The paper provided a detailed indication of the budgets for each Main Expenditure Group following the broad outline of allocations at the Cabinet meeting on 5th July.
Public Services Policy
The First Minister introduced the paper. The draft document set out a method of taking forward public services tailored to the needs of Wales and promoted a model of co-operation and collaboration rather than competition. Ministers made a number of drafting comments on the document and approved the paper subject to their comments.
Social Justice Annual Report
The Minister for Social Justice, Housing and Regeneration introduced the paper. The Minister proposed a framework for the report which would provide a comprehensive picture of Assembly Government activity on social justice, structured around the four key areas outlined in ‘Wales: A Better Country’. The report itself would be considered by Cabinet in due course. Ministers were content with the proposals.
ASPB Mergers - Broad Principles
The First Minister introduced the paper and outlined the principles of the ASPB mergers process. The main purpose underpinning the merger of the ASPBs with the Assembly Government was the creation of the core of a Welsh public service which would increase the capacity of Ministers to deliver for the people of Wales. Ministers made a number of drafting comments on the principles.
ASPB Reform - Next Steps
The First Minister introduced the paper which provided an interim report on the review of ASPBs that had not already been identified for merger and invited initial thoughts from colleagues on the conclusions contained in the report. The final conclusions of the review would be brought to Cabinet for consideration in November. The First Minister invited Ministers to provide further comments in writing.
That week there was also an Assembly Chamber debate on the Richard Commission Report and the way forward.
Cabinet next met on 18 October. The First Minister congratulated the Minister for Finance, Local Government and Public Services and her officials for the work carried out on the draft budget and its subsequent positive media coverage.
Public Services
The First Minister was due to make a statement on Tuesday introducing the White Paper on public services in Wales. The White Paper proposed a collaborative rather than competitive model for public services. This did not imply that competition was necessarily wrong per se but that collaboration was better suited to a country like Wales.
Transport Review
The Minister for Economic Development and Transport introduced the paper. The Assembly Government had made substantial progress in the area of public transport, particularly in increasing capacity. However there were increased challenges especially as a result of the growth in traffic, which was exceeding growth across the United Kingdom generally. The review of existing transport programmes had been developed in the context of the Wales Spatial Plan and the Transport (Wales) Bill, which would provide the Assembly Government with increased powers in relation to the integration of transport provision, transport planning and implementation. Ministers also noted the likely introduction of further road pricing across the United Kingdom within the next ten to fifteen years. The Minister raised the particular issue of the M4 corridor in South East Wales. Congestion in South East Wales could limit inward investment, into South and West Wales generally if it was not managed effectively. There was a need to consider ways of increasing capacity on the M4 in the Newport area within the context of road pricing. Ministers discussed the issues raised in the paper. In particular Ministers supported the proposal to increase capacity on the M4 in the South East on the basis of user charges without resort to public finance and noted that further work was being undertaken to consider the wider issues. Proposals to further develop an integrated transport system and increase rail services were also welcomed. Ministers raised reservations about the viability and environmental impact of the proposed North-South air link whilst noting ways in which this could be limited
Strategic Indicators
The Minister for Finance, Local Government and Public Services introduced the paper which proposed top level indicators for measuring Assembly Government progress against the major themes in ‘Wales: A Better Country’. It was important to note that they were indicators and not targets. Ministers were invited to comment on the proposals. Consideration needed to be given to the comparison of figures collated on the basis of differing criteria between England and Wales.
Energy Strategy
The Minister for Economic Development and Transport introduced the paper. There was increasing evidence that global warming was taking place. It was also likely that increases in temperature were linked to human activity and energy consumption. There was a need for a strategy which aimed to reduce carbon dioxide emissions. Ministers welcomed the proposals on marine renewables, requested stronger references to the use of solar energy and recognised there was a need to link energy production with conservation. Ministers also noted the opportunity for Wales to lead the way in promoting renewable energy, energy conservation and tackling energy consumption in respect of new building developments in both the domestic and business sectors. However it was noted that responsibility for building regulations was not devolved to the Assembly Government. Ministers asked the Permanent Secretary to consider ways in which the Assembly Government civil service could contribute to reducing energy consumption such as ensuring that computer equipment was switched off over night.
Rural Affairs
The Minister for Environment, Planning and Countryside introduced the paper. The current Rural Statement was in need of review and revision and would also need to feed into the process of developing the new Rural Development Plan.
It does not appear that any documents were published with this set of Minutes.
Cabinet next met on 1 November.
Local Government Settlement
The Minister for Finance, Local Government and Public Services informed colleagues about the announcement on the local government settlement due to be made the next day. There would be an average increase of 5% with a floor of 3.5%. An additional £13 million would also be made available through the Local Authority Business Growth Incentive Scheme to be included in local authority budgets for 2005-06. Ministers noted that consideration was being given to promoting the uptake of Council Tax Benefit. Ministers requested a briefing note on the settlement.
Early Years Provision
The Ministers for Education and Lifelong Learning and Health and Social Services introduced the paper which outlined proposals for allocating the funding identified for Early Years in the draft budget. The paper identified a range of activities for development and also considered how the funding might be targeted. Ministers were invited to comment on the proposals. Cabinet agreed that resources needed to be targeted at those children most in need. Ministers suggested the details of how the funding should be targeted, and the wider issues, should be taken forward by the Cabinet Sub-Committee on Children and Young People. Ministers were generally content with the broad direction of the paper.
Spatial Plan
The Minister for Finance, Local Government and Public Services introduced the paper and thanked all those who had been involved in the production of the first Spatial Plan. Ministers welcomed the paper as a very significant document and agreed that the Spatial Plan should be used in the context of both planning and resource allocation.
Skills and Employment Action Plan
The Minister for Education and Lifelong Learning introduced the paper. The second Skills and Employment Action Plan was due to be published by the New Year. The Minister highlighted the need for a more joined up approach in improving basic skills. The Minister also encouraged colleagues to engage with the relevant Sector Skills Councils in order to assist employers in improving vocational skills. Ministers welcomed the proposals to tackle the basic skills deficit. However Ministers felt that the recommendation relating to a Cabinet Sub-Committee on Skills should be considered in the wider context of the other Cabinet Sub-Committees. The Minister offered to bring a further paper to Cabinet on the Skills and Employment Action Plan following the bilateral meetings with Cabinet colleagues outlined in the paper.
The Agenda for the next meeting of the Cabinet on 15 November follows, but there is no link to the Minutes and Papers. Also the link is labelled as 18 October. This is one of the irritations of trying to work through the Archive.
There is also a wrongly labelled link to the Minutes on 6 December, but at least the papers and minutes are available.
ASPB Reform
The First Minister and the Minister for Culture, Welsh Language and Sport had met the Chair and chief officers of the Arts Council for Wales. (The proposal to abolish the Arts Council was one of the most controversial in the bonfire of the quangos programme. Personally I was opposed to this, and made my views clear publicly over a period of months).
Cabinet Sub-Committee on Jobs and Skills
The First Minister introduced the proposal to establish a Cabinet Sub-Committee on Jobs and Skills which would also incorporate the work of the current Sub-Committee on Structural Funds. Ministers agreed that the Sub-Committee should consider the issue of jobs and health in respect of economic inactivity as part of its terms of reference and look specifically at the difficulties of recruitment, retention and training in the health and social care sectors.
Devolution of Student Support
The Minister for Education and Lifelong Learning introduced the paper and outlined the financial transfer for the devolution of student support which had been negotiated with the Department for Education and Skills. The settlement was based on actuals rather than a Barnett Formula share and should not disadvantage either the Assembly Government or the Department for Education and Skills. The Minister for Finance, Local Government and Public Services confirmed it was the best possible agreement. The Minister also indicated she was content for the Assembly Learning Grant savings to be used to offset the impact on the Education and Lifelong Learning SEG of the manifesto commitment on ‘top-up fees’. The Minister raised the need to consider the future transfer of functions carefully to ensure any financial risks associated with such a transfer were minimised. Ministers noted the interim report of the Rees Review of tuition fees and student support arrangements in Wales was due to be published in February. and agreed there was a need for early consideration of the handling arrangements.
Health Challenge Wales
The Minister for Health and Social Services introduced the paper. Given the cross-cutting nature of Health Challenge Wales, every Minister had a part to play in ensuring its success. In particular this could be achieved by promoting Health Challenge Wales at every opportunity. There was also a need to engage with the opposition to ensure the Assembly Government could lead a cross-party consensus. The Minister noted the publication of the English White Paper on public health which seemed to be adopting policies already being pursued by the Assembly Government. The Secretary of State for Health had indicated that functions would be conferred on the Assembly in respect of smoking in public places. Ministers agreed it was important to ensure that such functions should not be constrained within the framework of the policy for England but should give Wales the maximum flexibility to pursue its own policy. Ministers noted the proposals for a smoke-free policy for Assembly Government offices and asked about consultation with Trade Union Side. The Permanent Secretary indicated discussions were taking place with the unions.
Freedom of Information
The First Minister introduced the paper and asked for comments. Ministers raised concerns about the capacity of officials to handle any potentially significant increase in requests for information. Concerns were also raised regarding the naming of officials where information was being released. It was felt that this was unfair as civil servants were unable to defend themselves in public. Ministers requested sight of any policies or guidance on the naming of officials. Ministers also raised the issue about confidentiality between Ministers and individuals and asked for advice to be placed on the Assembly Government web site on the need to mark correspondence ‘Private and Confidential’ when appropriate.
Draft Child Poverty Strategy
The Minister for Health and Social Services introduced the paper. The Cabinet Sub-Committee on Children and Young people had considered the draft strategy and it was scheduled for debate in plenary in January. A young people’s version of the Executive Summary was being developed. Ministers requested a detailed analysis of Assembly Government policies and funding in the area of child poverty for inclusion in the strategy.
School Uniform Funding
The Minister for Education and Lifelong Learning introduced the paper which set out proposals for a school uniform financial assistance scheme to start in 2005-06. Pupils of low-income families moving from primary to secondary education would become eligible for a grant of around £100 per child as this transition was likely to present the biggest single cost. Eligibility would be based on the current entitlement to free school meals. Ministers agreed details of the scheme should feed into the draft Child Poverty Strategy.
New Assembly Government Functions
The Minister for Finance, Local Government and Public Services introduced the paper which was noted by Ministers.
Overview
This was a significant year in the development of devolution, and in the life of the Second Assembly. The Richard Commission provoked a debate which was to lead to the 2006 Government of Wales Act, which took effect from the Third Assembly in 2007. That Act also of course paved the way for the 2011 Referendum. Similarly, the decision to take a number of ASPBs into the Welsh Government was a major step. Where academic debates often refer to the ‘hollowing out’ of governments under New Public Management reforms, here was an example of a government consciously building its own capacity - ‘filling in’ - by bringing sponsored bodies back into the heart of government. Next week, I will look at the work of Cabinet Sub-Committees in 2004, and this may give additional background to some of these decisions.