Speech to Senedd on Barnett Formula July 2015

Speech to Senedd Barnett Debate 14 July 2015

Thank you Presiding Officer

The motion is a simple one

And one I hope all members can support

Believes that as long as the Barnett formula continues then expenditure on developments that only benefit England, such as HS2, should produce the full Barnett consequential for Wales; and

 

 Further believes that, when the UK Government and Welsh Government are in dispute over whether expenditure should produce a Barnett consequential for Wales, there is a need for an independent body to arbitrate.

 

I am not trying to make any party political points here

 

Just get Wales its fair share of resources under the current system

The Barnett formula has been used since the late 70s

A formula for allocating funds between the Countries of the union goes back to the Goschen formula introduced in the 1880s

The Barnett formulas great strength as far as the treasury is concerned it is simple to calculate and the treasury decides if expenditure is inside or outside the formula

The Barnett formula generates a change by multiplying the increase or decrease of Spending by Government Department*% devolved* relative population

The treasury decides what % is devolved

There is also a problem of relative population change but that is beyond the scope of this debate

More important the Treasury decides what is excluded or included

Crossrail was included so I am told

High Speed rail is not

Purely a treasury decision

London Olympics was excluded then partly included on appeal

There is no independent appeal method

There is no independent arbitration

Firstly I am going to examine the London Olympics

The Olympics are given to a city not a country

Expenditure on the Olympics was almost all spent in London

Some team sports like Football were played all over Britain and shooting for historical reasons was held at Bisley

The big stadium development and the regeneration took place in London

One of the selling points of the London Olympics was that it would regenerate a part of East London

Both regeneration and sport are substantially devolved

Under our current devolution settlement I am afraid to describe anything as wholly devolved

Whilst on the face of it this should be a simple process that should have taken up very little time

This was a prolonged & lengthy matter, starting under one Government of one colour in 2007/8, passing through a number of discussions and finishing in a dispute brought by the three devolved Nations against the Treasury ruling, with a Government of another colour.

Essentially, at the outset the Treasury had some 4 or 5 different budget lines for the Olympics

Some were recognised as UK orientated and some as falling into the Barnett remit, ie those related to infrastructure & regeneration spending & on which there should be a consequential generated.

However, before anything happened, the Treasury collapsed the spending into a couple of lines & ruled that they were both UK orientated & hence no consequential would be provided.

Wales and the other devolved Governments challenged this ruling, initially at officials, then at Ministerial level. However the Treasury were judge and jury on these matters and would not budge, but the Ministers argued strongly, persevered & then entered into the JMC dispute mechanism.

After several rounds, the matter was eventually referred to a meeting chaired by the UK Cabinet Office Minister

He determined that there should be a settlement ; which after considerable deliberation, was accepted.

The process took over 4 years and as far as I know it is the only matter which has gone through to the end and the first time Treasury were instructed to make payments.

What Wales received was £8.8m in 2011-12 as a one-off settlement. It was allocated to reserves and supported the allocations that year.

 

It was received as £8.622m revenue, £0.241m capital.

The Olympics cost has been declared at £9 Billion

5.4% of £9billion

Is about £480Million

£8.62 Million is less than Swansea East should have had

Decision made and no appeal

We have budget decisions made and then the negative or positive Barnett consequential is announced.

If the system worked correctly the positive or negative amounts could be calculated and more importantly checked

In today’s budget there will inevitably be positive and negative Barnett consequential

It is not possible to sit down and calculate it and be certain of being accurate even within the 5% you would expect.

The Treasury still seems to treat the devolved administrations in Wales, Scotland and Northern Ireland as if they were Government Departments.

I would like to see the calculations that indicate how much more or less that the Welsh Government gets following each spending review.

If it is possible for the Welsh Government to publish the local government formula then it should be possible, if there is the political will, to produce the same for funding of Wales, Northern Ireland  and Scotland

It is the big schemes that cause me the most concern

I have discussed the London Olympics now I want to turn to Crossrail and HS2.

Wales is alleged to have had the full Barnett consequential of the Crossrail 1 development in London

Crossrail is classified as a "local transport project", hence generates a Barnettt consequential.

We'll need to watch carefully of course that future Crossrail projects are similarly classified because a change in classification could mean no consequential

Currently there is a Barnett consequential for Scotland and Northern Ireland from spending on Network Rail and Capital Rail Projects, but not for Wales.

 However, there is a consequential for Wales from spending on Crossrail in England, and Wales will hope to benefit from up to £1bn extra from a proposed Crossrail 2 scheme.

There are two ways that Wales can be excluded from any Barnett consequential of HS2

Firstly HS2 is an investment that will benefit all of the UK, the current plans will benefit England more than other countries but if an investment is deemed to benefit all of Britain then it does not provide a Barnett consequential for Wales.

Also rail is not devolved but transport is partly  devolved. So if a rail scheme is defined as a rail scheme there is no consequential but under the local Transport heading there is.

What I hope I have argued successfully, although I expect I will discover whether that is true later this afternoon, is the need for transparency and an independent appeal mechanism.

If we are going to continue with the Barnett formula then we should have openness and fairness in its distribution

For that reason I urge members to support this motion today

Press release on increase in GP numbers in Wales

Mike Hedges welcomes the news that  number of GPs working in Wales has increased by 10%.

 

The number of GPs, excluding registrars, retainers and locums, stood at 2,006 at the end of September 2014, working in 462 practices across Wales. This is an increase of 10.5% since 2004.

 

Mike said ‘this is good news for people in Swansea. The Welsh Government is committed to ensuring that people in Wales have access to good primary health facilities and these figures show that this is being achieved. These figures, in addition to new facilities, such as the expansion of the practice in Llansamlet show that how that commitment is being delivered in Swansea.

 

 

The figures show that between 2013 and 2014, 137 new GPs (6.8% of the 2014 workforce) joined the profession in Wales. Since 2004, the number of registered patients per GP has fallen by 5.5% to 1,582.

Since 2003, the Welsh Government’s investment in general practice has increased by £147m, rising from £322m to £469m in 2012-13. 

 

 

Press release RE superfast broad band in Swansea

MIKE HEDGES WELCOMES NEWS THAT Superfast Cymru expanded to reach more premises

42,000 more premises are set to receive superfast broadband in Wales as the successful Superfast Cymru Programme is expanded, Welsh Labour’s Deputy Minister for Skills and Technology Julie James has announced.

 

Mike said ‘I welcome this news that further premises are to receive superfast broadband in the coming days. I am aware of frustrations within the business community in Llansamlet and Swansea as a whole and it is positive news that there is to be a further role out of Superfast Broadband in Wales. I would urge anyone waiting for their line to be upgraded to contact their broadband suppliers for news of when it will be in their areas.’

 

Superfast Cymru has already made great progress with around 480,000 premises now able to access faster broadband speeds.  This stage of the programme has been backed by funding from the Welsh Labour Government, European Regional Development Fund and UK Government. When combined with the commercial roll-out 79 per cent of premises in Wales have access to faster fibre broadband, putting Wales ahead of the EU average and of countries such as France and Italy.  

 

Superfast Cymru will now run until June 2017 in order to cover the additional premises which have been identified since the project began. These premises are either new build or were due for roll-out under telecommunications companies’ own plans and have been subsequently deemed to be economically unviable.   In addition, a contract has been let with high speed wireless specialists Airband to bring superfast broadband to 2,000 more premises in business parks and industrial estates across Wales by Summer 2016.  

 

Further measures include:

• Through negotiations with BT, “Fibre on Demand” will be available across the majority of Wales.  This is a business-focussed Ultrafast broadband technology, which will be available by the end of summer 2015 to the majority of premises in Wales.
• A take up target for superfast broadband of fifty percent by 2024. Current take up is 22 per cent in areas which have had the service for over one year, one of the highest in the UK.  
• Work is continuing on a new scheme to make superfast speeds available to all homes and businesses across Wales.  It will build on the success of the Access Broadband Cymru scheme and will use a range of technologies including satellite, wireless and 4G to deliver superfast speeds.

 

Press release on figures showing progress in Welsh Economy

MIKE HEDGES WELCOMES FIGURES WHICH SHOW PROGRESS BEING MADE IN THE Welsh Economy

 

A new web-site sets out how the Welsh economy is performing reasonably well over the medium term compared to many other parts of the UK and is materially improving the well-being of citizens in Wales.

 

Mike Hedges said…  ‘It is good news that progress is being made with the Welsh Economy compared to other parts of the UK. Deprivation is high in many parts of Swansea East and news of this sort is particularly welcome for those areas. I look forward to future improvements in the Welsh Economy’

 

The ‘Welsh Economy: in numbers’ web-site provides a high level, easily accessible, broad picture of the Welsh economy and economic outcomes in Wales.  It brings together for the first time a rounded picture of economic performance for eight key indicators – over time and in comparison with other parts of the UK. The statistics confirm that Wales has kept pace with changes in the UK economy over the medium term across a range of indicators.  They show that:

 

• Since devolution, incomes and output in Wales have increased at a faster rate than most other UK countries and regions, with average earnings increasing by half.  
• The gap in employment and inactivity rates between 1999 and the year ending March 2015 have narrowed considerably.
• Gross Disposable Household Income is growing at a faster rate than the UK.
• Average household wealth in Wales is greater than in five English regions and Scotland, and only below the regions of East, South East, South West and London.  
• Since 2006/08 wealth increased in Wales by 4.2%.

 

 

Press release on Armed forces card

MIKE HEDGES WELCOMES NEWS THAT CAMPAIGN to promote Armed Forces benefits a big success

A campaign to promote discounts for the Armed Forces Community in Wales has been hailed as a big success.

 

Mike Hedges said …. ‘ I welcome news that this scheme to give something back to people serving in the armed services is such a success. Men and women who give so much for their country deserve a small recognition from their home communities. If any retailer has not yet signed up to be a part of the scheme I urge them to do so.

 

The six month Defence Discount Service campaign was launched in November 2014 by Welsh Labour’s Public Services Minister, Leighton Andrews.

 

At the start of the campaign 9,734 members had signed up to the card in Wales. Figures reported at the campaign’s end show 14,284 people have signed up, an increase of 47% in Wales, compared to 16% in the rest of the UK over the same period.

 

The campaign had reached its targets by February.  It aimed to:  

·         Raise awareness amongst Wales’ Armed Forces Community of the benefits of the Ministry of Defence’s (MoD) Defence Discount Service and its discount card, the Defence Privilege Card.

·         Increase membership in Wales to 25% of those eligible.

·         Increase the number of independent retailers accepting the Defence Privilege Card within Wales to over 50 stores. The campaign has seen 82 local independent retailers and 75 national retailers in Wales sign up to the card to support the Armed Forces and Veterans communities in Wales by accepting the Defence Privilege Card in their stores

 

The Defence Privilege Card is available to current and ex service personnel and gives card holders discounts on a range of goods and services at over a thousand high street businesses and companies across the UK.

 

 

 

 

Press release on Replacement for ILF

MIKE HEDGES WELCOMES WALES gOVERNMENTS ANNOUNCMENT TO REPLACE axed UK Independent Living Fund

A new £20 million fund from the Welsh Labour Government to support more than 1,600 disabled people in Wales with their care needs has come into operation, following the closure of the Independent Living Fund (ILF) by the Tory UK Government.

 

Mike said ‘this is good news for disabled people and their carers as the Independent Living Fund makes life easier for disabled people and those who care for them. Losing this money would have meant great hardship for these people; I commend the Welsh Government for their actions in replacing this fund following the callous decision of the Government in Westminster to withdraw the scheme.’

 

The Tory UK Government’s decision to close the ILF has caused anxiety among those who receive support and their carers. Thanks to action by the Welsh Labour, disabled people with significant care needs will now receive direct cash payments from local authorities to help meet the cost of the care and support they need.

 

Until Tuesday June 30, when the ILF closed, people received weekly ILF payments to pay for a range of care and support, including help with eating and drinking, cooking, dressing, cleaning and other domestic duties. 1,648 people received ILF payments in Wales.

 

The new grant scheme will be delivered by local authorities and will run until the end of March 2017. It was set up following a public consultation by the Welsh Government last year.

 

Funding of £20.4m has been ring-fenced for the scheme for July 2015 to the end of March 2016, which is based on the number of people receiving ILF when the current scheme closed on June 30.

 

Press release on key Poverty Stats

Mike Hedges AM welcomes REPORTS WHICH SHOW progress towards key tackling poverty targets

Welsh Labour’s Tackling Poverty Minister, Lesley Griffiths and Education Minister, Huw Lewis, have jointly welcomed the publication of two new reports which show that the Welsh Labour Government is making good progress towards key targets aimed at tackling poverty.

 

Mike Hedges said … ‘I welcome these reports which confirm that progress is being made on addressing poverty in our most deprived communities. I visit the Communities First Clusters in Swansea East on a regular basis and see for myself the progress made.

 

I am also aware of the huge progress made with young children through the Flying Start program and welcome work that aims to assist children at the youngest ages.

 

I also welcome the news that progress is being made on providing additional affordable homes; we have over 5000 people on the housing waiting list and any action that provides extra houses or brings back in to use derelict ones is welcome.’

 

 

 

The ‘Tackling Poverty Action Plan’ and ‘Rewriting the Future’ annual reports show that the Welsh Labour Government has:

·         Reached its target of reducing the attainment gap at the end of the Foundation Phase between pupils eligible for free school meals and those who are not by 10%, three years ahead of schedule.

·         Made good progress in reducing the number of young people who are not in employment, education or training (NEET) in Wales. The proportion of young people aged 16 to 18 who were considered NEET at end 2013 was 10%, just one percentage point off the target for 2017.

·         Maintained an employment rate well above the historical average. The percentage of workless households in Wales fell from 23% in 2009 to 19.3% in 2013. While the same period also saw the percentage of children living in workless households fall from 20% to 16.5%. The Welsh Labour Government’s Lift Programme is also progressing well. As at the end of May 2015, Lift had provided 1,821 training and employment opportunities to people from workless households, with 314 people helped to secure employment.

·         Made good progress towards meeting its ambitious housing targets of creating 10,000 additional affordable homes and bringing 5,000 empty houses back into use by 2016. Between April 2011 and March 2014, 6,890 new affordable homes had been delivered across Wales, while 4,471 empty buildings were brought back into use, only 529 short of the target, with two years still to go.