Questions for Carwyn

Why has it taken the actions of an anti-wind farm protest group from Powys for you to start publicly asking Westminster for powers over energy projects generating more than 50MW of electricity on land? This unfair restraint on Welsh autonomy – which does not apply in Scotland – has been the case for several years as you know, since you once held the Environment portfolio.

Do you base your demands at the various recent meetings of the four nations on what your counterparts in Scotland and the Six Counties are asking for? Do you have a clear idea as to what powers you want devolved from Westminster to Wales?

Why did your party colleagues rubbish Plaid Cymru’s ambitious plans to make finance available for capital projects, which would provide a buffer against the ConDem cuts and create thousands of jobs with our Build for Wales proposal when your cabinet colleagues are now refusing point blank to rule out seeking funding through the socially destructive Private Finance Initiative? And if the proposal was rubbish, why did Jane Hutt say yesterday that our Build4Wales idea is now being considered by your government as an option?

Why is it that the Welsh Government has yet to outline its position on the public sector services strike planned for next Thursday? I attempted to find out on two separate occasions in plenary this week what will happen but your Finance Minister, Jane Hutt, refused to answer the question both times. Are you afraid of upsetting your party colleagues in Westminster, particularly Ed Balls who shamefully called for the trade unions not to strike in defence of an unparalleled assault on their pensions? As a UNISON member yourself, you really need to make you and your Government’s position clear. This is an issue that is not going to go away anytime soon.

Carwyn, it's ‘time to lead.’

Let's get cracking

It didn't take Scotland's First Minister long to set out a basic list of expectations to the UK government following national elections at the beginning of May. This week he's managed to secure £2.7 billion worth of borrowing powers while continuing to bang the drum for control over other taxes and the Scottish land and marine holdings of the Crown Estates.

Contrast this energy and dynamism with Wales's First Minister. We've had a few weeks of farcical First Minister's questions with no programme to scrutinise. Question Time has been little more than an opportunity for the First Minister to opposition-bash. A good from of entertainment, no doubt, but isn't it all really a bit pointless? No doubt, the best form of defence is attack when nothing is happening. There have been no committees. There have been no list of demands to Cameron, but it'll all be ok because says he's written a letter about the crisis in Welsh broadcasting, although he's against devolving it, indicating his belief the Welsh media is safer in Cameron/Hunt's hands.

We all know the Welsh economy is weak. Job creation through the creation of new, home-based markets as proposed in the Valleys Greenprint is what is urgently needed and is something we could be getting on with now. Some of the ideas would need legislation, others could be helped by the Assembly having borrowing and other powers. Instead, as Eurfyl ap Gwylim pointed out in the Guardian more than a year ago:

"Because the Welsh government has no taxation or borrowing powers, it will have to take the cuts imposed on them and decide where the axe will fall."

Instead of creating jobs, Wales is losing them fast in the public sector. Instead of planning to stimulate the Welsh economy and standing up for Wales in talks with the UK government, Wales's First Minister seems to be on go-slow.

The deflection strategy can work for only a limited amount of time. I hope in next week's Assembly questions we'll get a clearer picture as to how the Welsh government intends to handle the problems facing Wales over the coming five years, that we'll have a programme to scrutinise. I hope that members get some answers to our fair questions about the government programme, the economy and how Wales's case is being pushed forward with the UK government. I'm not holding too much of my breath.

Protective shield?

On the same day that the Scottish First Minister, Alex Salmond was meeting senior members of the UK government to put the case for more financial powers to safeguard jobs, Wales gets confirmation that 150 jobs are to be lost at the Newport Passport Office.

Unemployment in Wales is higher than the UK average. In difficult economic times, Wales fairs worse. Higher than average unemployment levels in the late 1960s led to a "regional policy" which devolved civil service jobs out of London. The Passport Office, the DVLA in Swansea and the Mint in Llantrisant were set up in Wales as part of this regional policy, creating hundreds of jobs. And now, because of the ConDem's public spending cuts, many of those jobs are at risk.

Every single job in Wales is worth fighting for, especially jobs which pay more than the minimum wage. Every job lost means less money circulating in our already weak economy, leading to job losses in the private sector too. As the PCS Union have argued, it makes no sense during a recession to enforce more people to take benefits from the public purse instead of paying in to the taxation pot.

Dependence on a Westminster government to either give or take away jobs is unsustainable for Scotland and for Wales. With his demands for more fiscal autonomy, the Scottish First Minister aims to ensure a long term income stream. Cuts to the Scottish budget from Westminster will continue to be savage. More fiscal autonomy will provide an element of resilience, a buffer to Westminster's cuts. Income from excise duties, energy revenues and more borrowing powers will come in handy over the next few years.

Meanwhile, Wales's First Minister was yesterday reported to be open minded about the Assembly gaining financial powers, having been decidedly lukewarm before the election. The cuts in Wales are savage too, and Labour have just won an election on the back of a promise to protect people in Wales from the Tories cuts, to act as a shield against them. Without powers over finance, they can't.

Sacking them on the cheap

Last week it transpired that the UK government intends to cut the redundancy package currently available to civil servants. Cynics think it may have something to do with plans to sell off government assets like the Royal Mint, Llantrisant. The Mint is will be more attractive to potential buyers if they can lay off people 'on-the-cheap'. This is from last weeks Record of Proceedings:

Leanne Wood: The UK Government seeks to make changes to the civil service compensation scheme that governs redundancy and early retirement payments to employees of all devolved and non-devolved Government departments as well as those of many other public bodies. Those changes will rob thousands of hard-working employees of a third of the value of the redundancy payment that they thought that they could expect as a right. Even though Tessa Jowell agreed with the unions in September that talks with officials should be reopened to secure a mutually acceptable outcome, that has not happened. A slightly improved set of proposals were circulated to all civil servants by permanent secretaries as a fait accompli on Friday 4 December, with no prior consultation with the trade unions. Given the implications for the staff of the Welsh Assembly Government, the National Assembly for Wales and Assembly Government sponsored bodies, will the Assembly Government make representations to the Cabinet Office for the resumption of negotiations in good faith as a matter of urgency? Furthermore, will the Leader of the House make time available for this issue to be discussed in Plenary as soon as possible in the new year?

Carwyn Jones: On the civil service compensation scheme, it is important that all channels are kept open to make sure that there is a satisfactory solution, particularly for those who may be affected by the scheme. I will ensure that I investigate the situation, and if there is a need to offer a view on behalf of the Government, that will be done. At the moment, it is a matter for negotiation between the unions and the UK Government. I hope that it is something that will be resolved satisfactorily in the future.

From the Record

Leanne Wood: You have already been asked about proposed funding cuts at Cardiff University’s centre for lifelong learning, but I wish to raise a different aspect of those cuts. Over the past five years, Cardiff University has made a profit of £45.4 million. However, it claims that the lifelong learning department will lose between £200,000 and £300,000 a year after the equal pay assimilations have been made. This point was confirmed by the First Minister earlier.

In my view, this is a discriminatory proposal. Staff at the centre are largely paid by the hour, and so they are not entitled to the same terms and conditions as full-time lecturers. They are not entitled to sick pay, leave, equal pay or the university superannuation scheme pension benefits. Some 70 per cent of the hours taught in the centre are taught by women, and 30 per cent are taught by men, and, in the main, these are part-time jobs. Therefore, it is clear that these cuts will disproportionately affect part-time women workers—those same workers who have campaigned with their trade unions for equal pay are about to lose out because of this proposal. I am sure that you will agree that that is a perverse situation.

I know that Ministers have received representations about the general issue of course losses and so on, but I would be grateful if you could ask the Minister for Social Justice and Local Government, who also has responsibility for equal opportunities, to look at the situation in Cardiff University’s lifelong learning centre to see whether the university’s proposals amount to gender discrimination. If he finds that they do, will you ask him whether he is able to intervene and then report back to the Assembly with his findings? I am able to provide further information to you and the Minister for social justice if that is required.

Carwyn Jones: With regard to Cardiff University, the issues you referred to are important, but they are staffing issues. Therefore, they are a matter for Cardiff University rather than for us as a Government. Nevertheless, I would encourage people to work through their unions to see what can be done, to discover whether there is a discrimination case and, if so, whether it can be taken forward. We must not forget that one of the many advantages of trade union membership is that unions have the ability to represent members in employment tribunals and look at cases such as this. There is no question that you have raised an important issue. We know that discrimination does not have to be overt, as it was in the 1960s and 1970s, but that it can be hidden for many years. We are seeing what is happening now with the equal pay claims, which go back over a number of years in many public authorities in Wales. Nevertheless, I will pass your concerns on to John Griffiths.

From the Record

Leanne Wood: You will be aware of the widespread concern about the actions and tactics of the police during recent demonstrations in London around the G20 summit. There remain many unanswered questions about the death of Ian Tomlinson and other aspects of the policing operation, which are being looked at by the Independent Police Complaints Commission.

However, I am sure that you will agree that we would all want to ensure that a similar situation does not arise in Wales, and although I accept that policing is not a devolved matter, peaceful protests and demonstrations are, thankfully, common in Wales. Since the Assembly has been created, thousands of people have taken part in political demonstrations outside this very building. By pursuing tactics such as kettling, there is a risk that the police will lose the trust of a significant number of our population. Do you share my concerns about the heavy-handed police action at the recent protests in London and will you make time available in the Assembly so that Members can have the opportunity to express our support for the right to protest peacefully?

Will you ask the Minister for Social Justice and Local Government to provide a statement to the Assembly, so that Members can be updated on the latest situation with regard to the 'One Wales’ commitment to the devolution of the police in particular and also the wider criminal justice services?

If policing matters were devolved to the Assembly, as Members, we would be able to have an input and a say as to how demonstrations in Wales in the future were policed.

Carwyn Jones: I will ask the Minister to update Members on the latest situation regarding the commitment, but we must understand that that is an event that occurred in London, and, even if policing was devolved in Wales, that would not affect what happened in London. I do not think that I can comment on the situation that happened during the protest, nor do I think that it would be wise for anyone in Government to do so, because an investigation is taking place at the moment, which must be allowed to run its course.

From the Record - PFI

Yesterdays news led me to ask this in the Assembly:

Leanne Wood: We are all acutely aware of the current economic conditions and that the situation is likely to get worse before it gets better. The Westminster Government has committed billions of pounds of public money to bailing out the banks, and that money will have to come from somewhere. It seems likely that the bailouts will be paid for, in the long term, by cuts to front-line public services.
We heard in the news today that the Westminster Government intends to provide further billions of pounds to bail out failed and failing private finance initiative schemes. Is it not ironic that public funds are now needed to save private finance initiative schemes? The Welsh Assembly Government is to be commended on its cautious approach to PFI. As times get more difficult, the wisdom of the decision not to embrace the idea of the private sector running public services will become more apparent. However, this Government’s past prudence could work against us in terms of the PFI bailout unless we get our share of any money that becomes available. Will we get our Barnett share of this bailout so that we, too, can build new schools and hospitals?
We also need to be aware that all of this will have an impact on what was meant to be the biggest PFI scheme in the whole of Europe, namely the proposed military training academy at St Athan. The estimated cost of that scheme has already crept up from £11 billion to £12 billion. The project has already lost its lead partner and has since acquired a new partner in the form of a French catering company—

The Presiding Officer: Order. This is not a debate about defence or anything else. This is about the business statement. I would like a question.

Leanne Wood: Thank you, Presiding Officer. Do you agree that PFI is fiscally dangerous, that the Government is under contract to pay for services under PFI—

The Presiding Officer: Order. This is not a debate about PFI. However, if you would like to ask the Leader of the House whether he will organise a debate in which you can raise these issues, that would be quite in order.

Leanne Wood: I am coming to that, Presiding Officer.

The Presiding Officer: Well, it is taking some time. [Laughter.]

Leanne Wood: I would be grateful, Leader of the House, if you could find time for this Assembly to discuss the implications of this latest Westminster bailout. We need to know whether there will be a Barnett consequential for Wales and whether the precarious nature of PFI projects in this economic climate raises questions about the planned development at St Athan.

Carwyn Jones: The Government supports the defence training academy. That project will bring many jobs to the Vale of Glamorgan and surrounding areas. It is the Government’s hope that that project continues to move forward.
The banks are a matter for the UK Government and, indeed, Governments around the world. Despite the imprudence and incompetence of so many banks, it nevertheless remains the case that the banking system must be kept afloat. The hope is that all the shares in the banks that the Government has bought over the past year or so will eventually be sold at little or no cost to the taxpayer. However, I suspect that that time is not at hand, if I may put it in that way.
On the need to debate these issues, the First Minister is able to answer Assembly questions as they come. I know that he will have made his points clearly this week in the meeting of the various First Ministers of the UK’s devolved institutions and the Prime Minster that we wish to ensure that the Welsh budget is protected.

Brown helped cause the crisis

Carywn Jones today defends the British union by saying:

"Labour is a unionist party...The economic crisis spells out very clearly that any talk of independence is in tatters. The global economic crisis shows how we are better off in a strong Britain rather than independent like Iceland. Iceland has virtually gone bankrupt while Britain, under the leadership of Labour Prime Minister Gordon Brown, has been leading the world in developing progressive policies to address the financial crisis."

Yet Will Hutton in yesterday's Observer says:

"German criticisms about the structure of the British economy are telling. Between 2001 and 2008 New Labour allowed British banking assets to rise from twice GDP to more than four times GDP, a similar trajectory to Iceland, as the by-product of a wild credit and asset-price bubble. Meanwhile Gordon Brown lectured Germany for not following the British example, not embracing financial deregulation and the American business model."

Who was in charge of the British economy between 2001 and 2008? For the most part, Gordon Brown. Progressive? I can't decide which is more regressive; the development of the de-regulatory American model which got us into this crisis, or the way that he has failed working people by allowing unemployment to spiral whilst bailing out the bankers and bosses.

Action on the Credit Crunch

Leanne Wood: The biggest issue facing all of us is the potential fall-out from the credit crunch. It has been predicted that unemployment will reach 2 million UK-wide by Christmas. As well as losing jobs, people are likely to lose their homes, pensions and public services. Private finance initiative and housing stock transfer schemes will cost much more than we first thought, and £500 billion was allocated to rescue the banks last week. In addition to that local authorities have lost money in Icelandic banks. All of that will put pressure on public services.

Carwyn Jones: It is difficult to have a debate along those lines without crystallising it around some proposals. To suggest a way forward, an all-Wales economic summit has been arranged for Thursday to discuss the current financial crisis. It will be chaired by the First Minister and attended by the Deputy First Minister and the Secretary of State. It will bring together the leaders of some of Wales’s top companies, trade unionists and others from key economic sectors in Wales such as construction, retail and financial services. The purpose of the summit is to listen at first hand to the difficulties that already exist or that are anticipated in the months and years to come and then for the Government to formulate a way forward.
Action has already been taken in the draft budget announced last week. More than £290million has been allocated to fund the Flexible Support for Business programme. We have also, recently, introduced a £7 million package of rate relief to help smaller businesses. It is important that we try to gain, at first hand, the views and experiences of businesses before considering what we might do to assist them and before we see what might be done to give Members an opportunity to engage in the issues.