Senedd Watch - October 2015

• A ban on smoking in cars whilst in the presence of under-18s came into force on October 1^st in Wales. Those who break the law will be liable to a £50 fine. Pro-smoking campaigners said the ban is unenforceable, though police forces said they would take an “educational and non-confrontational approach”.
• A new colour-coded system for 999 medical emergencies was introduced on October 1^st . Ambulance response time targets for all but the most life-threatening (Red) 999 calls will be replaced with outcome-based targets. Opposition parties accused the Welsh Government of manipulating targets to mask poor response times, but the Wales Ambulance Trust argued the changes make it “one of the most progressive in the world”.
• Welsh Secretary, Stephen Crabb MP, said the chances of an agreement on further powers for the National Assembly were “very, very low”. It follows the publication of an academic report which suggests the proposed reserved powers model was “convoluted” and could result in law-making powers being withdrawn from the Assembly.
• The UK Government unveiled the draft Wales Bill on October 20^th, which includes new powers over Assembly electoral arrangements, energy, speed limits and sewerage services, as well as a reserved powers model. A row between the UK and Welsh Governments ensued over possible “veto” powers by English Ministers over Welsh laws.
• An official who regulates bus and heavy goods traffic in Wales, Nick Jones, attacked UK Government policy on traffic commissioners, suggesting Wales was being treated “as a district of the English Midlands” and was subsidising English services. Traffic commissioner functions are non-devolved, though partial devolution has been sought since 2002.
• A TUC report called for money to be directed towards job creation in the south Wales valleys following new EU rules which will allow public funding to be reserved for disadvantaged groups such as the long-term unemployed. Finance Minister, Jane Hutt (Lab, Vale of Glamorgan) said, “We've got new powers and opportunities....to influence who....gets contracts for the public sector and get people into those jobs" promising to set up a task force to look into the proposal further.
• The Stage 4 debate on the Local Government Bill – which outlines the process for voluntary local authority mergers – was postponed on October 6^th, due to a likelihood the Assembly would vote against it. Peter Black AM (Lib Dem, South Wales West) accused the Welsh Government of arrogance for not seeking a consensus beforehand.
• Following a deal between Labour and Plaid Cymru - which will prevent mergers happening before the 2016 Assembly election - the Bill passed by 26 votes to 17 with 9 abstentions on October 20th. Shadow Local Government Minister, Janet Finch-Saunders (Con, Aberconwy) accused Plaid of hypocrisy for criticising Labour (at the SNP annual conference) then doing a deal with them, while the Lib Dems said the agreement achieved nothing.
• An Oxfam Cymru report stated Wales should accommodate 724 Syrian refugees by the end of 2016 to meet its obligations. It comes as Community & Tackling Poverty Minister, Lesley Griffiths (Lab, Wrexham), updated the National Assembly on actions taken in Wales, in which she called for more information and clarity from the UK Government, adding that all 22 local authorities were willing to accept refugees.
• Leader of the Opposition, Andrew Davies (Con, South Wales Central) told the Conservative party conference in Manchester that he led an “anti-establishment party” and that next May's election was a choice between himself and Carwyn Jones for First Minister. He described the election as a “referendum on the Welsh NHS”.
• The Welsh Conservatives would scrap tuition fee subsidies if they won the 2016 Assembly election, claiming it would save £3.6billion over the course of the Fifth Assembly. Currently, tuition fees for Welsh students are capped wherever the study, but the Leader of the Opposition said the money should be redirected to the NHS and further education colleges.
• Plaid Cymru health spokesperson, Elin Jones AM (Plaid, Ceredigion), announced her party would scrap local health boards, replacing them with a single national body to run hospital services – as well as abolish social care charges for the elderly and dementia patients - if they win the 2016 election. They also proposed fully integrating health and social care. Health Minister, Mark Drakeford (Lab, Cardiff West), accused Plaid of wanting to “break up the NHS”.
• A review of Welsh law-making by the Assembly's Constitutional & Legislative Affairs Committee recommended introducing a compulsory Report Stage, greater support for Members Bills, consolidation of Welsh law and more comprehensive public engagement. Committee Chair, David Melding AM (Con, South Wales Central) said, “Clear, consolidated laws based on sound, well-thought-out policy are essential."
• Jenny Rathbone AM (Lab, Cardiff Central) criticised the Welsh Government for spending £19.8million on preparatory work for the M4 Newport bypass, calling for Labour to review the plans in their 2016 manifesto. Business & Economy Minister, Edwina Hart (Lab, Gower), defended the spending saying, “Roads will always be controversial, but 20 years after you've built them.... they're the norm.”
• On 13^th October it was revealed Jenny Rathbone had been sacked as chair of an EU funding committee for her comments. She criticised an “unhealthy culture” within the Welsh Government and Assembly which doesn't allow independent thought.
• Welsh Labour accused Jenny Rathbone of not following the proper channels for raising policy issues, while the First Minister defended his decision in the Senedd chamber, saying the committee chair “should act in the spirit of collective responsibility” as it was a government appointment.
• The Leader of the Opposition questioned Public Account Committee decisions – of which Jenny Rathbone is a member - as members of the Welsh Government are barred from being members of Assembly committees. He wrote to Llywydd, Rosemary Butler (Lab, Newport West), saying, “The comments made by the First Minister in the chamber ….are deeply damaging and bring into question the legitimacy and democratic nature of the Assembly committees.”
• A Welsh Health Survey study revealed only 1% of e-cigarette users were previous non-smokers. The Welsh Liberal Democrats believed the findings undermine the Welsh Government's case for a ban on using e-cigs in public, as set out in the Public Health Bill.
• Eluned Parrott AM (Lib Dem, South Wales Central) warned that key Valley Lines rail routes could miss out on electrification after being left out of the Welsh Government's National Transport Finance Plan. She said, “Whilst the National Transport Plan covers the next five years, these schemes don't even appear in the column identified for '2020 and beyond'”.
• The Assembly approved a cross-party motion condemning the UK Government's Trade Union Bill as an “unnecessary attack on the rights of working people”. Public Services Minister, Leighton Andrews, said the Bill extended its scope into devolved areas and the Welsh Government will consider not laying a legislative consent motion (LCM) in front of the Assembly – effectively attempting to block the law from applying in Wales.
• The National Assembly unanimously agreed regulations to introduce compulsory micro-chipping for newborn puppies. Deputy Minister for Farming & Food, Rebecca Evans (Lab, Mid & West Wales) said, “The ability to trace all dogs back to their owners should encourage more responsible ownership, breeding and help in the control of dangerous and nuisance dogs by creating a link between a dog and its owner.” The regulations will come into force on April 6th 2016.
• LinksAir, operators of the subsidised Anglesey-Cardiff air link, had their safety licence revoked by the Civil Aviation Authority. The Welsh Government announced Danish operator North Flying will take over the contract. Shadow Business Minister, William Graham AM (Con, South Wales East) said, “communities will rightly ask questions and Labour ministers must provide swift assurances.”
• Deputy Health Minister, Vaughan Gething (Lab, Cardiff S. & Penarth), confirmed that the troubled Betsi Cadwaladr Local Health Board will remain in special measures for two years. The board was placed into special measures for 100 days following the Tawel Fan scandal, but the Deputy Minister said an extension was needed, “in order to tackle more fundamental challenges, particularly to improve mental health services in north Wales”.
• At Plaid Cymru's annual conference in Aberystwyth, Leanne Wood asked Labour voters to “take a second look” at her party, saying Plaid will lead on “those issues that matter most”. She said Labour had taken people for granted and “rewarded long-term loyalty with inaction, incompetence and indifference.”
• Andrew Davies AM called for Cardiff's taxi drivers to embrace controversial mobile taxi app, Uber, which was considering starting services in the city. He said, “As Conservatives we have a duty to level the playing field and to encourage competition between suppliers – not thwart it.” Unions representing taxi drivers have expressed concerns over safety and fare parity.
• An independent review of national parks and areas of outstanding natural beauty said these areas needed to do more to foster vibrant communities and provide jobs. Studies estimate they're worth £500million to the Welsh economy and employ 30,000 people. Dafydd Elis-Thomas AM (Plaid, Dwyfor Meirionnydd) was appointed chair of a task force to explore the issues further.

Projects announced in October include : A £24million replacement for the flood-prone A487 Dyfi Bridge in Machynlleth; an £11million scheme to fund childcare to enable parents to return to work; £3.8million for workplace IT, construction and accounting skills; a consultation on indicators for a national well-being index; a Chinese-backed investment worth £2billion in two biomass power and food production plants in Holyhead and Port Talbot and the final go ahead for the Newtown bypass.

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The Draft Wales Bill (Number Two)

(Pic : ITV Wales)

Yesterday, the Welsh Secretary, Stephen Crabb MP (Con, Preseli Pembs.) introduced the draft Wales Bill to the UK Parliament on behalf of the UK Government – you can read it here (pdf).

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AMs take swipe at Trade Union Bill

The post-devolution "partnership working" between unions, employers and employees
in Wales looks set to be threatened by the UK Government's draconian Trade Union Bill.
(Pic : Wales Online)

Shwmae. Yesterday, the Assembly held another backbench members debate, this time related to one of the most controversial laws introduced for a long time in the UK Parliament.

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A Comprehensive Review of Welsh Law-Making

We voted to give AMs law-making powers in 2011, so how has the process been handled since?
(Pic : National Assembly of Wales)

Making new laws is the National Assembly's most important function, though it's a role that – apart from a few high-profile cases like the Human Transplantation Act 2013 – draws little in the way of media coverage or scrutiny.

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Minister updates Senedd on refugee response

(Pic : Al-Jazeera)

The Syrian refugee crisis has slipped off the front pages in the last fortnight due to Russian military intervention in the conflict, the latest catastrophic brain fart from the US Air Force and party conference season.

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Armed Forces School Visits Debated

(Pic : Education Business Partnership West Berkshire)

In June, the Assembly's Petitions Committee published a report (pdf) into armed forces recruitment, following a petition from Cymdeithas y Cymod – which garnered more than 1,000 signatures – calling for the military to be banned from visiting schools for recruitment purposes.

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Local Government Bill edges towards statute book

As the law outlining how councils can voluntarily merger reaches its
conclusion, opposition AMs tabled important amendments.
(Pic : Wales Online)

The Local Government Bill outlines how the 22 local authorities can merge voluntarily in light of the new proposed map for local government which has been formed as part of the fallout from the Williams Commission (Back to the Future). On Tuesday (29^th September), the Bill was debated at Stage 3, where amendments can be added by AMs.

Any voluntarily-merged authorities will come into being by May 2018, but a second local government law on compulsory mergers will be introduced after the National Assembly election next year, which makes you question if this Bill is really all that necessary.

Anyway, the content of the Bill isn't particularly exciting in itself, but there were a number of amendments tabled by AMs which could (have) add(ed) significant meat to the Bill.

You can read a full list of amendments here (pdf), but I'm going to focus on some of the more significant ones and what AMs and the Public Services Minister, Leighton Andrews (Lab, Rhondda), had to say.

Local Referendums on Council Mergers

• Amendments 14, 26 and 27 – all introduced by Shadow Local Government Minister, Janet Finch-Saunders (Con, Aberconwy).
• Proposes that voluntary local authority mergers be approved by a majority of voters in each merging authority.
• Proposes the question on ballot papers : "Are you in favour of the proposed merger between [ ] and [ ]?".

Janet argued that any changes need to be driven by local people and communities in a way which strengthens the democratic process. Council mergers would have a "profound effect" on all residents involved and it's right they have a say, with Labour placing "proud counties" under threat without consultation. Referendums would mean mergers will have to be justified accordingly.

Simon Thomas AM (Plaid, Mid & West Wales) said his party accepts the point on extra consultation including in amendment 14, but rejects the case for referendums, as we shouldn't allow local considerations to interfere with process at a national level – saying there was no referendum or much in the way of consultation when the Conservatives reorganised local government in 1994-1996. He said referendums were a way of "hiding lack of vision".

Peter Black AM (Lib Dem, South Wales West) said referendums were the wrong way to approach it, though the Lib Dems would support amendment 14. There was a need to draw a line between national leadership and local determination, and the Assembly was best placed to determine the shape of local services. Peter criticised the Bill as "no longer necessary", adding that the Lib Dems wouldn't support the Bill at all unless their amendments were accepted.

The Minister said the amendments were unnecessary, again raising the point that there were no referendums for previous local government reorganisations in the 1970s and 1990s. Authorities must undertake "full and comprehensive" public consultation as set out in the Bill, so it was already delivering key points of amendment 14. He urged AMs to vote down the referendum amendments as there wasn't enough detail on the campaign periods, spending limits or costings for referendums – which Leighton estimated would cost between £100,000-£400,000 per local authority.

Amendment 14 tied in the vote 27-27, with the Deputy Presiding Officer used his casting vote against the amendment – as is convention. Amendment 26 was rejected by 13 votes to 41 meaning Amendment 27 was rejected too.

The Election Cycle

• Amendment 17 – introduced by Janet Finch-Saunders AM
• Proposes that elections cannot be cancelled/postponed under the Bill if it results in councillors serving terms greater than 5 years in length.

One of the carrots dangled in front of local authorities to encourage them to merge voluntarily is that councillors will have their terms extended until the first elections of the combined local authority – meaning councillors will be able to pick up their allowances and salaries for longer than they otherwise would.

Janet told the Assembly it was crucial that councillors aren't serving more time than they were democratically elected to do. Extending terms without facing re-election was "an affront to democracy, public accountability and transparency".

The Minister said that the amendment would create uncertainty and distraction in the lead up to a voluntary merger. He said cancelling elections was "not something we would do lightly", but it would otherwise mean bringing forward the merged authority to May 2017 – which was unachievable given the timetables involved. He asked who would want to stand for election for an authority that has less than a year left?

There were 18 votes in favour, 27 votes against and 9 (Plaid Cymru) abstentions, so the amendment was rejected.

The Electoral System for Local Authorities

• Amendments 5, 13, 28, 30 and 31 – all introduced by Peter Black AM
• Proposes the electoral system for local government be changed to Single Transferable Vote, where voters rank candidates in order of preference.

These are probably the most important ones, or the amendments I was most interested in.

Peter Black AM said Leighton Andrews understands STV as he fought an election in Gillingham in support of introducing it, adding that it produces a fair outcome for election. Creating larger authorities with fewer councillors should mean ensuring elections reflect how people vote. It would lead to a more transparent, more accountable local authority that's representative of its communities.

Simon Thomas AM offered Plaid Cymru's support to the amendments, saying STV had been introduced with little difficulty in Northern Ireland, the Republic of Ireland and at local elections in Scotland. He said it was a far more effective way of "opening up the electoral process" by ending unopposed elections, adding that one thing that stops people standing against incumbent councillors in rural areas was a "personal element" which is interpreted as a grudge. Simon said STV would challenge all parties, but they have to decide what's best for the whole nation, and ensure every vote counts.

In response, the Minister said Labour were elected on a platform of opposing any change to the local government election system, and the rejection of the Alternative Vote in a 2011 referendum reflects that voters don't want to change the system either.

14 AMs voted in favour of Amendment 5, 40 voted against, so all the amendments were rejected.

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Senedd Watch - September 2015

• UKIP leader, Nigel Farage, backed calls to scrap Severn Bridge tolls in 2018, saying they penalised "those coming in....on one of the most direct routes from England". He suggested it would be paid for by building a cheaper Newport bypass. Peter Black AM (Lib Dem, South Wales West) accused him of being "financially illiterate" for confusing where responsibilities for bridge maintenance and bypass budgets lie.
• Nigel Farage later told BBC Wales that UKIP's Welsh branch will “help pick” candidates at the 2016 National Assembly election, after reports emerged that senior personalities – such as disgraced former MP Neil Hamilton and centrally-appointed Wales election coordinator Mark Reckless – were considering seeking Assembly seats.
• The UK Government accepted a recommendation from the Electoral Commission to change the wording and answer of the future EU membership referendum to "remain" or "leave" instead of "yes" or "no". It follows claims the original question was biased.
• The First Minister called for the UK Government to "show leadership" after a refugee crisis in eastern and central Europe intensified. He said "Wales stands ready to play its part", saying Labour would accept 10,000 refugees in the UK. This follows criticism from Plaid Cymru leader, Leanne Wood (Plaid, South Wales Central), that the Welsh Government hadn't "stepped up to the mark".
• The Prime Minister said the UK would take up to 20,000 Syrian refugees from camps surrounding Syria between now and 2020. The Welsh Refugee Council said Wales could accommodate up to 1,600 refugees – 8% of the proposed UK total.
• An all-Wales summit on the crisis was held on September 17^th. A task force of relevant agencies was established, with Wales "preparing the ground" for a response. In the National Assembly a few day earlier, the First Minister described the UK Government's response as "laggardly".
• The WLGA said local authorities were "willing to play their part", but the cost of housing refugees should not be met from existing council budgets. Wales was home to over 2,300 asylum-seekers at the end of June 2015, or 7.6% of the UK total.
• A review of the 5p single-use carrier bag charge, introduced in 2011, showed use of the bags fell by 71%, with the levy raising between £17-22million for good causes. Natural Resources Minister, Carl Sargeant (Lab, Alyn & Deeside) said, "I am pleased that almost four years on from the introduction of the charge in Wales consumer habits appear to be changing.”
• New Year 10 pupils were the first to start Wales-only GCSEs in English, Maths and Welsh as part of a overhaul of qualifications. Teaching unions expressed worries about overcrowded timetables, while Shadow Education Minister, Angela Burns (Con, Carms. W & S. Pembs.) said, “Our over-riding concern with these new qualifications is that they will lack credibility and may not be recognisable around the world.”
• Plaid Cymru launched a policy consultation - A Road Map for Wales - ahead of the 2016 National Assembly election, saying Labour had “wasted 16 years of devolution”, pointing towards failings in health and education. Labour hit back by saying they were “tired attacks”.
• A Bevan Foundation forecast on the state of Wales in 2020 suggested the unskilled workforce would rise and would result in increased competition for unskilled jobs. Also, people working in the public sector and on benefits will be worse off and there would be rising demand for treatments for long-term health conditions on the NHS.
• A leaked letter revealed the UK Government believe two commercial loans provided to Cardiff Airport by the Welsh Government, worth a combined £23million, could have breached EU state aid rules. The Welsh Government denied the accusation, saying the leak was “politically motivated” adding that the report used to support the state aid accusation was out of date.
• Veteran left-wing MP, Jeremy Corbyn, was elected leader of the UK Labour party and Leader of the Opposition on September 12^th with almost 60% of the vote in the first round. Welsh Labour figures called for the party to unite behind the new leader, while the First Minister described the result as “impressive”. Llanelli MP, Nia Griffith, was appointed Shadow Welsh Secretary, replacing Owen Smith, who was reassigned as Shadow Work & Pensions Secretary.
• Leader of the Opposition in the Assembly, Andrew Davies (Con, South Wales Central), said Carwyn Jones and Jeremy Corbyn were “the two most dangerous men for Wales' future” posing “the greatest risk to economic growth that our country has ever seen”. Labour dismissed it as a “laughable rant”.
• A Welsh Institute of Health and Social Care report into end-of-life care for children criticised standards, saying services needed “strategic attention” and that lessons had not been learned from previous reports. Around 1,000 children require palliative care in Wales each year.
• BBC Wales revealed that 54 insolvent companies awarded grants by the Welsh Government owed £11million. Economist Gerald Holtham said the Welsh Government should issues loans instead of grants, while the Federation of Small Businesses criticised grants as a way to create short-term jobs.
• Chinese vice-premier, Liu Yangdong, visited Wales as part of a UK tour. The Welsh and Chinese governments signed a memorandum of understanding on cultural issues. The First Minister said, “Strengthening links with China, one of the world's most powerful economies, has been a long-standing aim of the Welsh Government”.
• At the Lib Dem annual conference in Bournemouth, key figures in the Welsh branch acknowledged the “huge challenge” facing their party in the 2016 National Assembly election, saying they would "re-establish and re-define the Liberal narrative" to make it clear what their party stands for after humiliating results at the 2015 UK House of Commons election.
• A report published by Save the Children found 67% of youngsters from poorer backgrounds were likely to score below average in vocabulary tests at age 5 compared to 34% amongst those with no experience of poverty. The Welsh Government said, "Raising literacy is a major....priority and we have introduced a range of policies, including our Literacy and Numeracy Framework and annual reading tests to help achieve this”.
• Legal & General announced a £400million investment in property developments within Cardiff's Central Square, which should enable projects to be brought forward. It was described as the largest property deal in Welsh history, with a predicted 10,000 jobs set to be created.
• Friends of the Earth Cymru research discovered that more than £1million of the Assembly Members' pension fund had been invested in tobacco, gambling and fossil fuel companies. FoE Cymru director, Gareth Clubb, said it was “morally indefensible” and “hypocritical” after the Assembly had passed legislation to protect future generations.
• Leading academics warned that plans to create a reserved powers model for Welsh devolution were “not thought through” after the UK Government proposed reserving both civil and criminal law. The Wales Governance Centre described current proposals as “unclear, highly-complex and unstable”.
• The Welsh Conservatives criticised an estimated £100million of redundancy payments to council employees since 2012. Shadow Local Government Minister, Janet Finch-Saunders (Con, Aberconwy) said, “taxpayers will be furious to learn that their bumper council tax bills are being used to fund golden handshakes for council staff.” The WLGA hit back by accusing the Conservatives of victim-blaming.
• The Local Government Bill – which outlines the process for voluntary mergers between local authorities by 2018 – passed Stage 3 on September 29^th. Amendments from opposition parties on ensuring promotion of economic development and the Welsh language, local referendums on mergers and the introduction of single transferable vote were rejected.
• Before the debate, the Welsh Lib Dems criticised the Williams Commission process, describing its £130,000 cost as a “colossal waste of money” after the findings were widely ignored by the Welsh Government.
• There was criticism from opposition politicians and Welsh civil society following a Welsh Government announcement that they would stop publishing ministerial decision reports, which outline evidence used by Welsh Ministers to make decisions. Leading Cardiff Bay lobbyist, Daran Hill, described it as “an information shut down”, while the First Minister was likened to controversial FIFA President Sepp Blatter in the National Assembly.

Projects announced in September include : The launch of (another) public consultation on proposals for a £1billion M4 bypass of Newport; an extra £17million to attract top scientists to Welsh universities; £6.7million to purchase 44 new ambulances; plans for £200million of road improvements on Deeside; a £115million innovation fund over the next seven years and a £16million brain injury rehabilitation unit in Cardiff.

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State of the Nation's Health

(Pic : Wales Online)

As reported from Wales Online towards the end of last week, the latest National Health Survey results, for 2014, were published by the Welsh Government. It comes as the Assembly scrutinises the Public Health Bill (Tattoos, Bans & Bogs).

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Road to Somewhere?

With the latest section of the A465 dualling project set to fully open soon,
it's worth reflecting on the short-term and long-term impact.
(Pic : a465brynmawr2tredegar.co.uk)

The latest section in the long-running project to dual the Heads of the Valleys road (A465) between Abergavenny and Hirwaun is due to fully open imminently (it's been partially open for a few weeks now). Section 3, which runs between Tredegar and Brynmawr, has cost £158million, with £80million of that coming from the EU.

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Network Rail - Taking the Welsh Government for a ride?

The project to redouble a section of track between Wrexham and Chester is an example
of Network Rail over-promising and under-delivering when it comes to Welsh railways.
(Pic : rmweb.co.uk)

Network Rail's relationship with devolved Wales has always been somewhat awkward. They now have a department responsible for rail infrastructure in Wales, but they're not directly answerable to either the Welsh Government or National Assembly.

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Senedd Watch - August 2015

• As part of a BBC Radio Wales programme marking the 90^th anniversary of the founding of Plaid Cymru, former AM and MP, Cynog Dafis, said the party needed to “break the hegemonic role of Labour in Wales”, adding that Welsh self-government wasn't on the radar until Plaid were formed.
• The Welsh Conservatives said they would scrap Visit Wales and replace it with an arms-length body run by the tourism industry itself. Shadow Tourism Minister, Suzy Davies AM (Con, South Wales West), said it was a “huge mistake” to scrap the Wales Tourist Board, which “rendered a world-recognised brand obsolete at the stroke of a pen”.
• A review of selection procedures for UK judges recommended a Welsh judge be appointed to the UK Supreme Court due to the increase in Welsh law. The First Minister said the recommendation was “long overdue” and had the support of the Welsh Government. However, former deputy high court judge, Lord Gresford, said the idea was “premature” as Welsh cases would “not be frequent”.
• Education Minister, Huw Lewis (Lab, Merthyr Tydfil & Rhymney), announced that religious education would be revamped as “religion, philosophy and ethics” to tackle extremism and to allow pupils to consider citizenship alongside faith. Chair of the Assembly's cross-party group on faith, Darren Millar AM (Con, Clwyd West), said he was “alarmed” by the proposal, expressing concerns that the RE curriculum will be “watered-down”.
• A Health & Social Care Committee inquiry into substance abuse recommended more alcohol licensing powers be devolved to Wales, more focus from GPs on treatment and more help for groups at-risk of abuse like the homeless and ex-prisoners. Committee Chair David Rees AM (Lab, Aberavon) said, “Alcohol and substance misuse can have devastating effects on individuals, their families and communities."
• Caerphilly-based financial services company Guardian Wealth Management, which left Wales a year after receiving £700,000 in Welsh Government funding, has been asked to repay half of its grant. It comes as the Welsh Government were criticised for awarding a total of £850,000 in grants to two other financial service companies which went into liquidation soon afterwards.
• The Welsh Conservatives accused the Welsh Government of kicking plans for a stand-alone Welsh Development Bank “into the long grass”. It comes as Business & Economy Minister, Edwina Hart (Lab, Gower), wrote to AMs saying that Finance Wales would continue in the medium-term while a business case is drafted for a bank.
• Plaid Cymru warned that 20,000 NHS computers in Wales could be vulnerable to viruses and hacking through the use of Windows XP, which Microsoft withdrew technical support for in 2014. NHS Wales said Plaid's figures were “outdated” adding they had “a very clear programme” to replace the software.
• Former UK Trade Minister, Digby Jones, said Wales should welcome skilled migrants to fill skills gaps in industry, saying current education policies had “failed Britain” because not enough school-leavers have the pre-requisite skills required for modern workplaces.
• The head of the Farmers Union of Wales (FUW), Eifion Huws, recommended a dairy cattle cull to combat an oversupply of milk, which led to a significant drop in prices and supermarket protests from farmers, who were being paid less than the cost of production. On August 14^th, NFU Cymru held a rally in Cardiff to promote Welsh produce. Deputy Minister for Farming & Food, Rebecca Evans (Lab, Mid & West Wales), said farmers faced a “challenging period” ahead of a UK-wide crisis summit on August 17^th.
• Concerns were raised about cuts in funding support for pupils who speak neither English or Welsh as their first language. Around 24,000 pupils are in this situation, with Polish the most common foreign language spoken at home. Education experts warned it can take pupils 10 years to become proficient enough in English or Welsh to sit external exams. On August 27^th it was revealed 5.8% of the Welsh population (180,000 people) were born outside the UK in 2014 – rising from 3.3% in 2004.
• In 2015's A-Level results, the proportion of students achieving an A* grade increased on 2014 from 6.7% to 7.3% - though this remains behind the England, Northern Ireland and Wales average (8.2%). The overall A*-E pass rate fell slightly to 97.3%, while 92.2% of students achieved an A*-C mark in the Welsh Baccalaureate.
• Plaid Cymru called for increased capacity for heart operations after figures revealed 58 patients died in the past two years whilst on surgery waiting lists. Health spokesperson Elin Jones AM (Plaid, Ceredigion) said, “A report earlier this year....stressed that shorter waiting times influence mortality and morbidity on the waiting list."　
• The Welsh Government announced the NHS budget for mental health – £587million in 2015-16 – will continue to be ring-fenced following an external review by PwC. Health Minister Mark Drakeford (Lab, Cardiff West) said, “In Wales, we spend more on mental health services than on any other part of the NHS; today’s announcement is a further demonstration of our commitment to this vital part of the health service.”
• A report collated by the National Assembly's cross-party group for eating disorders suggested improvements to current services such as early diagnosis, improved public information and significant reductions in waiting times for treatment. In response, the Welsh Government said they had invested an extra £250,000 in eating disorder treatments for children and young people.
• Opposition parties criticised Welsh Government plans for a public ban on e-cigarettes after a Public Health England report said e-cigs were “95% safer” than tobacco, recommending that e-cigs be available on prescription. Shadow Health Minister, Darren Millar, said the Public Health (Wales) Bill proposals were “not backed by evidence”, while Kirsty Williams (Lib Dem, Brecon & Radnor) said, “Labour ministers in Wales need to take heed of the evidence....and scrap these proposals at once.” Plaid Cymru also urged caution before pursuing a ban.
• The A*-C pass rate in 2015's GCSE results remained unchanged on 2014 at 66%. 19.2% were A*-A grades – a slight fall (0.2%) on 2014. There was a 1.1% improvement in science A*-C grades and an improvement in A*-C pass rate in Welsh second language to 79.4%. However, there were falls in the number of modern foreign language and humanities entries.
• The Education Minister hailed results at 40 Schools Challenge Cymru schools, saying, “These are some of our most challenged schools and to see some of them reporting percentage improvement in the double figures really is remarkable.”
• Recycling rates rose to 56% in 2014-15 – up 2% on 2013-14. Natural Resources Minister, Carl Sargeant (Lab, Alyn & Deeside), said Wales “continues to lead the UK”. The Welsh Government set a target of a 100% recycling or reuse rate by 2050, prompting the WLGA to suggest fines be considered for those who don't recycle.
• An independent review into local museums warned many institutions could end up as “zombie museums”, with the report recommending a regional or national museum management. There are 2 million museum visits in Wales, a reported rise of 24% since 2004.

Projects announced in August include : An £89million scheme to create up to 25,000 traineeships over the next four years; the launch of a National Software Academy in partnership between the Welsh Government and Cardiff University; an extra £1.24million for fourteen domestic abuse projects; £7million in EU-backed finance to tackle unemployment amongst over-25s and £5.7million towards clinical research.

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Senedd Watch - July 2015

• An independent report into University Hospital Cardiff's accident and emergency department described “endemic bullying behaviour”, an “authoritarian” management regime and chronic staff shortages. Cardiff & Vale University Health Board accepted the findings.
• Leader of the House of Commons, Chris Grayling MP, announced that MPs representing English constituencies – and, in some cases, Welsh-based MPs - would have a veto on legislation affecting England-only (or EnglandandWales). Labour accused the Conservatives of attempting to manufacture a larger majority, while the SNP said it was a “cobbled-together mess”.
• The Welsh Government launched a green paper on reforms to transparency and openness in the Welsh NHS, including proposals such as "strengthening" community health councils and giving local health boards borrowing powers. It's anticipated legislation would be introduced in the Fifth Assembly.
• NUT Cymru warned that an (average) £64-per-pupil funding cut for 2015-16 – the first school spending cut in a decade – will come as “alarming news to teachers, parents and pupils.” The Welsh Government said that despite the cut they had met their pledge to keep school spending at 1% above changes to the block grant.
• Shadow Health Minister, Darren Millar (Con, Clwyd West), called for a Wales Audit Office probe into local health board spending on fruit and vegetables. Some health boards were spending twice the market price for bananas, totalling an excess £390,000 across Wales.
• Health Minister, Mark Drakeford (Lab, Cardiff West), announced a national blood and transplant service would be established in May 2016. Currently, north Wales is served by the English NHS Blood & Transplant Service. It's estimated it would save £600,000 per year and create 16 jobs.
• In the UK Chancellor's emergency budget on July 8^th, George Osborne announced a £9-per-hour national living wage would be introduced by 2020, benefits would be capped at £20,000 per household outside London and working benefits would be frozen for four years. It was also announced that devolution of air passenger duty (APD) to Wales will “be considered”.
• Finance Minister, Jane Hutt (Lab, Vale of Glamorgan), described the budget as “an assault on young people” due to welfare cuts specifically targeting under-25s.
• Leader of the Opposition in the Assembly, Andrew Davies (Con, South Wales Central), said a lower benefit cap outside London was “fair”, saying people should not make more from benefits than they would in work. He hoped private employers would move towards widespread adoption of the “living wage” and promised the Welsh Conservatives would introduce a 6-month council tax exemption for first-time buyers if they won the 2016 Assembly election.
• The Welfare Reform Bill was approved at first reading by 308 votes to 124 in the House of Commons on July 20th. 48 Labour MPs - including 7 from Wales - rebelled against interim Labour Leader Harriet Harman's calls to abstain in order to “listen to voters” on welfare, which would result in £12billion of cuts by 2020.
• Natural Resources Minister, Carl Sargeant (Lab, Alyn & Deeside), hosted a summit on the future of opencast mining on July 9^th. He said, “I am concerned about the significant and lasting impacts of the failure to restore on communities living in close proximity to opencast sites” adding that he was discussing the issue with the UK Government.
• The National Assembly's Petitions Committee report into a petition calling for defibrillators to be made available in public spaces recommended more be done to raise awareness of existing machines. Committee Chair, William Powell AM (Lib Dem, Mid & West Wales) said, “There is little doubt that almost everyone is capable of using them to save lives.”
• The leaders of Welsh Labour, Plaid Cymru and the Welsh Lib Dems signed a letter condemning proposed cuts to BBC and S4C – possibly amounting to £1.5million a year to S4C alone – and the small amount of English-language programming aimed at Welsh audiences, saying the “future of broadcasting in Wales is now in serious jeopardy”.
• Welsh Lib Dem research revealed NHS staff made over 10,000 complaints about staff shortages since 2012. Party leader, Kirsty Williams AM (Lib Dem, Brecon & Radnor) said, “These figures paint a picture of a Labour-run NHS that is under enormous strain and in desperate need of help”. The Welsh Government said overall staffing numbers are up on 10 years ago.
• Plaid Cymru energy spokesperson, Llyr Gruffydd AM (Plaid, North Wales), pledged Wales would produce all of its energy needs from renewable energy within 20 years if Plaid Cymru formed the next Welsh Government, facilitated by energy efficiency drives and community-owned power schemes.
• A review into alleged abuse at care homes in south east Wales (Operation Jasmine) suggested the owners of the care homes in question should have been prosecuted. The reviewer, Dr Margaret Flynn, said the “absence of a judgement or legal resolution compounds the families' grief and sense of grievance”.
• The Finance Minister introduced the Tax Collection & Management Bill to the National Assembly on July 14^th. The Bill establishes a Welsh Revenue Authority to manage devolved taxes from April 2018, which includes landfill tax and stamp duty.
• A Wales Audit Office report into the Regeneration Investment Fund for Wales (RIFW) criticised the lack of Welsh Government oversight, suggesting the taxpayer could have lost £15million as a result of undervalued land sales. The Welsh Government said they would consider taking legal action to recover any losses.
• A public consultation by the Assembly Commission found 53% of 11-25 year olds support lowering the voting age to 16, and 79% believed it was important for young people to learn about politics. Llywydd Rosemary Butler (Lab, Newport West) said, "This is the biggest ever response we've had to an Assembly consultation and therefore offers an authoritative analysis of the views of young people.”
• A draft Minimum Alcohol Price Bill was put out for consultation by Deputy Health Minister Vaughan Gething (Lab, Cardiff S. & Penarth) on July 15^th. The proposals include introducing a minimum per-unit alcohol price of 50p and fines for retailers who don't comply with the law.
• The Business & Enterprise Committee recommended more job opportunities be created for the over-50s, who are less likely to work than those of a similar age in the rest of the UK. Committee Chair, William Graham AM (Con, South Wales East) said, “People are living longer and will have to retire later meaning work is now a necessity not a choice for the majority of this age group.”
• In a letter to Natural Resources Wales (NRW), the Chair of the Environment Committee, Alun Ffred Jones AM (Plaid, Arfon), was concerned NRW was seen as “too close” to the Welsh Government and “doesn't appear to be clear about its purpose”. According to a survey only 14% of NRW staff believe the merger which formed the organisation in 2013 was well managed.
• The Welsh Government proposed paying the tuition fees of medical students who commit to becoming GPs in order to stem a shortage as the workforce ages and retires. £4.5million was committed towards staff training and other proposals include flexible working and a GP recruitment drive. Labour previously criticised similar proposals from Plaid Cymru as “unworkable”.
• Plaid Cymru economy spokesperson, Rhun ap Iorwerth AM (Plaid, Ynys Mon), expressed concern that a recently-announced £600million investment in Phase 2 of the South East Wales Metro was a re-announcement of plans for Valley Lines electrification. He said, "A Plaid Cymru government would take the Metro forward with a real vision....instead of re-badging....public transport schemes as a Metro."
• Deputy Minister for Farming & Food, Rebecca Evans (Lab, Mid & West Wales), said an EU withdrawal would have "catastrophic consequences" for Welsh agriculture through the loss of £240million of annual CAP payments. UKIP leader in Wales, Nathan Gill MEP, said the UK Government could guarantee continuation of payments with money saved by an EU exit.
• A short inquiry by the Constitutional & Legislative Affairs Committee into the future of devolved powers recommended a "clear and durable" devolution settlement based on easy to understand reserved powers. The Committee and witnesses were concerned about the current proposed list of reserved powers, which could limit the National Assembly's ability to legislate.
• The newly-formed Women's Equality Party said they intended to field candidates at the 2016 National Assembly election. UK leader, Sophie Walker, told BBC Wales, "We are going to field candidates and we think we stand a good chance and we think that will form a very good basis going forward to 2020".
• A Public Accounts Committee inquiry into UK welfare reform recommended that tenants affected by the "bedroom tax" should receive financial help from the Welsh Government. A member of the Committee, Jenny Rathbone AM (Lab, Cardiff Central), criticised the "partisan" foreword to the report by Chair, Darran Millar AM, adding that the Welsh Government lacked resources to help tenants due to austerity.
• The Health Minister announced a 12 month trial from October 2015 with regard ambulance response time targets, where targets would be scrapped for all but life-threatening emergencies. The NHS Confederation welcomed the proposal, but opposition parties were concerned about "moving the goalposts" and a long-standing failure to hit current response targets.
• The Welsh Liberal Democrats pledged to create 2,500 "rent-to-buy" homes - which can be purchased without a deposit - if they form the next government after the 2016 National Assembly elections. Peter Black AM (Lib Dem, South Wales West) said, "if you can afford your rent then we will help you buy your own home".

Projects announced in July include : The launch of an upgraded TrawsCymru bus service in west Wales; a series of events in Cardiff in 2016 to mark the centenary of Roald Dahl's birth; a £19million extension to the Superfast Cymru scheme to reach an additional 45,000 premises by June 2017; a new 5-year plan to address high levels of suicide; £30million for four schemes to boost the rural economy and approval for a £200million gas-fired power station at Hirwaun.

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Assembly Requests "Clear & Durable" Devolution Settlement

When the Prime Minister and that-other-bloke-who-used-to-be-important
announced their response to Silk II, it looked like we were due constitutional clarity.
So far it's still a bit cloudy.
(Pic : The Guardian)

The Assembly's Constitutional and Legislative Affairs Committee recently reported back on a short inquiry they undertook into the future of devolved powers. This was done in light of Silk Commission Part II, the fallout from 2014's Scottish independence referendum, St David's Day Agreement and the forthcoming Wales Bill – expected to be introduced in the autumn.

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Dirty Deeds Done Dirt Cheap IV : Endgame?

After a wait of years, the Wales Audit Office has finally
delivered its verdict on the RIFW land sale scandal.
(Pic : BBC Wales)

It's been three years in the making, but at long last the Wales Audit Office have delivered their verdict on the Regeneration Investment Fund for Wales (RIFW) and the sale of land parcels to an offshore company, South Wales Land Developments (pdf).

It doesn't make good reading for the Welsh Government. At all.

It's so serious it warranted a special episode of Week In, Week Out : The Big Welsh Land Scandal? which will be broadcast tonight at 10:35 (iPlayer link).

A Brief Recap

The core issue is how or why RIFW sold widely-known lucrative development
land (like Lisvane, above) for significantly less than its proper value.
(Pic : Wales Online)

• Dirty deeds done dirt cheap (18.9.12)
• Digging deep into dirty deals done dirt cheap (11.2.13)
• Dirty deeds done dirt cheap – Round III (17.7.13)

RIFW was established as an arms-length public body by former Deputy First Minister, Ieuan Wyn Jones. Its primary goal was to sell Welsh Government-owned land to raise match funds for regeneration projects in the EU Objective One area (West Wales & The Valleys).

In 2012, RIFW sold a parcel of 15 pieces of land to South Wales Land Developments (SWLD), which was based in the tax haven of Guernsey. This includes land in Bridgend (Pyle and Brackla Industrial Estate), Lisvane in Cardiff (now being developed as Churchlands), Wrexham and Llandudno Junction.

Former police officer and Conservative AM for South Wales West - now MP for Gower - Byron Davies, referred the sale to the Wales Audit Office (WAO). It was understood the land was sold for a total of just £20.6million.

There's nothing controversial about that in itself; however, because the land was certain to be developed for housing – particularly the Cardiff plot – the actual value of the land would've risen considerably, meaning RIFW (effectively the Welsh Government) sold lucrative land for significantly less than it was worth. From the Cardiff land alone, at the time it was estimated the Welsh Government will have missed out on a potential ~£120million.

There were "claw back clauses" inserted into the deal to ensure that if the value of the land rose, the Welsh Government would get some extra money back, but the exact details were unclear. The implication was that the land was deliberately or accidentally undervalued, the sale was rushed unnecessarily or that someone passed insider information to SWLD.

The Welsh Government suspended RIFW projects in February 2013 (except one in Neath town centre) and ordered two internal investigations. The Wales Audit Office also referred the deal to the Serious Fraud Office (SFO).

The WAO Report Key Findings

1. The RIFW Concept

• The RIFW concept was "innovative", but the requirement to sell property distracted RIFW from its core purpose. There's no criticism of the concept, and WAO actually praise it – particularly providing regeneration funding in a period when accessing finance was difficult. Because there were (supposed) deadlines on the EU component of funding, the need to generate funding from land sales should've been acknowledged as a risk and perhaps distracted officials from the task of working on regeneration projects themselves.
• Progress was slower than expected. The Welsh Government underestimated how long it would take to establish the fund, many projects were not deemed "investment ready", and there were delays as officials worked with interested developers to develop more robust plans – compounded by the economic conditions at the time.

2. Welsh Government Oversight

• The Welsh Government failed to set out the oversight mechanisms for RIFW as an "arms-length body". RIFW was established as a limited liability partnership (LLP), wholly owned by the Welsh Government, with Welsh Ministers and officials as board members – having obtained legal advice to ensure it complied with EU law.
• Amber Infrastructure Limited and Lambert Smith Hampton acted as independent fund and investment managers respectively. But because RIFW didn't have a chief executive, it was unclear who was accountable as all executive functions were carried out by Amber. This is described as a "complicated contractual arrangement" which hampered oversight.
• RIFW would've appeared in the Welsh Government accounts and should've subsequently been subject to scrutiny from the Welsh Government's Corporate Governance Committees – but it never featured at committee meetings.
• It was unclear where legal responsibility stopped because RIFW crossed a boundary between the Welsh Government and an entirely private company – this should've been cleared up in unambiguous guidance which was never issued.
• The Welsh Government were represented at board meetings by an "observer", who expressed no concerns over the land sales. This involvement in itself would've compromised the "arms-length" nature of RIFW and could be interpreted as tacit Welsh Government approval of the sales.
• Further oversight was hindered by departmental reorganisations between 2011-2012 following the 2011 Assembly elections, where responsibility for regeneration shifted and officials who were familiar with RIFW's work were moved. Vital information wasn't transferred with them.
• RIFW's board was too small, meaning absences impacted performance and the large amount of work the board needed to get through placed burdens on all board members, many of whom were unpaid. An independent board member rarely participated due to a conflict of interest.
• These weaknesses aren't contained to RIFW, as the Welsh Government internal investigation findings (Lloyd report) are relevant to other "arms-length" bodies.
• Actions undertaken by the Welsh Government since the issue was raised (i.e. internal investigations and taking direct control of the fund) are described as "appropriate".

3. Value for Money

• 23 plots were drawn up to be transferred to RIFW in 2009, it was estimated their total value was between £29.8-£35.6million (the higher figure being optimistic/"hope value").
• The plots were transferred in 2010, however many of them were said to be unready for marketing and sale, plus information was inaccurate with "unresolved issues" at some sites.
• It's acknowledged that many of the sites had "long-term development potential" if included in Local Development Plans, so a quick sale would minimise returns. RIFW weren't advised to keep hold of high-value land (like Lisvane) and were pressured to sell quickly because of various deadlines (explained later).
• The Welsh Government published information that became known within the Welsh property industry (i.e. land values, cash requirements) and subsequently weakened their negotiating hand. This information was circulated to six unnamed property companies with interests in Wales, or clients with interests in Wales.
• There was no December 2015 deadline to sell the land to meet EU match-funding requirements. Some high-value assets could've been held back for the second phase of RIFW beyond 2015. RIFW only had to raise ~£6million to meet the requirement because it was established with £9.4million in cash and had to meet a match-funding target of £15.4million. They were also wrong to assume they needed to invest £55million in the first phase by 2015.
• The plan for a phased sales was abandoned when they received a written £23million offer from Guernsey-based GST Investments for all of the land. GST were operated by Barclays on behalf of Peter's Foods Sir Stanley Thomas, and were represented in negotiations by Langley Davies. Rightacres also submitted a bid of £17.7million.
• After torturous negotiations, the sale was agreed for £20.65million, which didn't reflect the market value. Only two voting board members were present at the meeting which accepted the deal. In 2012, the purchaser changed from GST Investments to newly-registered South Wales Land Developments, also in Guernsey - the sale value increasing to £21.75million. These changes weren't properly reported to the RIFW board.
• There was no independent valuation or open marketing as well as weak professional advice. Phased disposals (instead of selling the sites in one swoop) could've yielded at least an extra £9.2million (£30.9million in total based on District Valuer estimates).
• The sales agreement didn't allow RIFW to benefit from increases in value. Only sites in Lisvane and Monmouth had "claw back" clauses which entitled the Welsh Government to a share of future profits – potentially worth £20.7million at 2013 prices. It's unclear how much they could've clawed back from other sites which are now being developed, like Pyle and Brackla.
• The sale of public assets at significantly below market value could be interpreted as unlawful "state aid". The Welsh Government should discuss whether the EU Commission should be informed by the UK Government.

4. Conflicts of Interest

• Lambert Smith Hampton (Investment Manager) – After the sale in March 2012, LSH were appointed as managing agents for SWLD at some sites, including Brackla Industrial Estate (though that sale was conducted after they were appointed). There's no evidence of improper conduct, but there was a clear conflict of interest which breached their investment manager agreement.
• Jonathan Geen (Independent Board Member) – As a solicitor he had undertaken work for one of the potential purchasers. He immediately notified the board and left the meeting, though later got permission from the board to act for the purchaser. Again, there was no improper conduct and he took no part in any sales decisions. However, the WAO say it would've been more appropriate to turn down Mr Geen's request to act for a purchaser due to the board's small size.

What does this mean?

If any crime's been committed here it's criminal incompetence.
(Pic : Wales Online)

There were two main scenarios as to what this constitutes : fraud, or incompetence. According to the report, the SFO have decided it's not something which "falls within their remit for investigation" unless further information is brought to South Wales Police or the SFO themselves.

That leaves one other scenario, doesn't it?

I suspect it boils down to the misinterpretation of the December 2015 EU match-funding deadline – the deadline that never really existed in the WAO's verdict. That's presumably why quick sales were pushed so hard and why a sale of all of the sites in one package looked tempting.

RIFW was clearly a good idea which was rendered dysfunctional by its own governance arrangements. SWLD saw an open goal to make money and took it – you can't blame them either. From their end, apart from moral questions that surround being based in a tax haven, everything they've done sounds above board.

The WAO say the value of the Lisvane land, originally estimated by King Sturge, may not be as high as the often-quoted £120million figure because not all of the land can be developed – only about 58-63% can (a proportional £69.6-£75.6million).

The only hard figure of how much the Welsh Government "lost" is in the region of £9-15million (the difference between the sale price and the most optimistic actual values); but when you factor in all the parcels of land without "claw back" agreements, plus the potential value of the workable land in Lisvane alone, you're looking at something approaching £90-100million.

The National Assembly's Public Accounts Committee have also announced today they'll hold an inquiry into RIFW, so it's not quite over yet. The current Natural Resources Minister, Carl Sargeant (Lab, Alyn & Deeside), will be in the firing line as the last minister in charge of RIFW, but due to reshuffles he can argue this is something he inherited from others.

Politicians and civil servants are human and will err from time to time - sometimes at great cost. The price we pay for democracy is that the right person for the job won't necessarily be the one elected or appointed.

Is this the worst blunder involving public funds in the devolution era? It's got to be up there.

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Kickstarting Welsh Hearts

Petitioners have asked the Welsh Government to consider widening
access to, and awareness of, public defibrillators.
(Pic : zoll.com)

(Owen : Some work is being undertaken on the house over the coming week which may/will result in my internet connection being disrupted - possibly for several days, maybe longer. So if I don't post on my usual schedule that'll be the reason why.)

Following hot on the heels from their previous report, last week the National Assembly's Petitions Committee published a report (pdf) into a petition submitted by nurse Phil Hill which secured 78 signatures. He submitted the petition whilst working on master's degree research into attitudes towards public defibrillators.

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AMs Mock UK's Dodgy Barnett

The Barnett formula - a simple concept, but difficult to negotiate in
practice, especially when it comes to so-called "consequentials".

Earlier this week (8^th July), AMs held another member's debate on an issue raised time and time again in Welsh politics – the Barnett formula : the formula used to set budget allocations of the UK's nations, the principle being that it ensures each part of the UK receives a "fair share" of public spending.

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Downloading (22% - 2 years left)....

With the Wales Audit Office recently giving Superfast Cymru a thumbs up,
the minister in charge provided an update to AMs on progress to date.
(Pic : recombu.com)

The Superfast Cymru scheme is a £425million partnership between BT and the Welsh Government which aims to provide high-speed broadband (generally defined as somewhere between 20-50 Megabits/second) to every home and business in Wales – particularly those in hard to reach areas.

Good internet connections have become an everyday necessity regardless of where you live, while for rural businesses in particular – who often endure poor mobile and internet connections - it's essential, especially as farming payments have increasingly moved to online-only management (see also : The Green, Green Glas of Home).

In general terms, the scheme focuses on upgrading, or installing new, green BT roadside cabinets with fibre optics connections to telephone exchanges. Fibre optic cables enable much faster download speeds and can carry more information as signals are sent as pulses of light. They're also less susceptible to environmental damage.

Yesterday, Deputy Minster for Skills & Technology, Julie James (Lab, Swansea West) updated the National Assembly on progress being made by the programme.

The Deputy Minister started by saying the scheme meant Wales was moving into a position where every business and home has access to superfast broadband, as outlined in the Programme for Government (clip) - the aim of the scheme being to bring high-speed broadband to areas where the market wouldn't go. With it crucial to becoming a "truly digital nation", a big push is needed to reach the last 3-4% of premises. This includes using mobile technology like 4G, and a new scheme based on this will be launched later this year.

Without intervention, it's said 480,000 premises wouldn't have access to superfast broadband. With 79% of Welsh homes and businesses having access so far, Wales is ahead of the EU average. The scheme has created 250 jobs and provided a number of apprenticeships and work experience placements, while the Wales Audit Office (WAO) have said Superfast Cymru is making "reasonable progress".

The Superfast Cymru website will be revamped to give residents more certainty on when they would be connected. Plus, the contract has been extended to June 2017, with additional public funding of of £19million, in order to target an extra ~45,000 premises (and specifically 2,500 businesses). Swansea is also being used by BT as a testbed for 500Mbits/second ultra-fast broadband (G. fast).

There was a need to ensure people take up superfast broadband. So far, 22% of customers have taken it up within a year of it being available - the highest take-up rate in the UK. The target is for 50% take-up by 2024. Claw back agreements mean that once the scheme breaks even, the Welsh Government get some extra money back.

Shadow Economy Minister, William Graham (Con, South Wales East), said significant problems remain – mentioning issues on Deeside enterprise zone specifically (clip) - though the project demonstrates effective public-private cooperation. He hoped there was no complacency as Wales is likely to be ahead of other countries for only a short period of time, with a number of "not spots" remaining, including in around Cardiff, citing an example of a business leasing a line for broadband at a cost of £20,000.

The Deputy Minister said Wales was second only to Cornwall in take-up though roll-out has been faster than the rest of the UK. She acknowledged difficulties, suggesting alternative technologies could address problems on Deeside. Superfast Cymru only covers areas which are commercially unviable, and it won't be until the end of the programme that those involved will be able to see if something can be done for "not spots" in commercially viable areas like Cardiff.

Plaid Cymru economy spokesperson, Rhun ap Iorwerth (Plaid, Ynys Môn), said it was right to aim for universal roll-out to ease the transition into a digital economy (clip). He suggests his constituents would be surprised by the WAO's positive assessment as they, and other rural areas, wait for upgrades. He asked : Could 4G services be brought into Superfast Cymru instead of relying on mobile companies? Whether the extension to 2017 includes the whole scheme or just the 45,000 additional premises? We should aim for greater take-up than 50%, but is there a danger Wales could lag behind once faster broadband speed benchmarks are set?

The Deputy Minister said the additional premises wouldn't disrupt other parts of the programme. 4G is being looked at, as well as other technologies, to produce superfast speeds. She accepted the point on take-up, but Wales was doing well compared to other countries.

David Rees AM (Lab, Aberavon) stressed the importance of delivering broadband to businesses, with particular concerns over business parks in his area (clip), especially those which are surrounded by residential areas eligible for Superfast Cymru but are themselves being left out. He asked what speeds people can expect and whether the new infrastructure can deliver 500Mbit/s in the future? Also, which ISPs provide superfast broadband to ensure businesses have a choice?

The Deputy Minister explained the business park situation by saying that because EU funds are being used, a "market failure" has to be proven to justify state intervention, so that's why business parks are last in the queue not first. On speeds, there's a floor of 28Mbit/s but businesses can pay extra for faster speeds. Superfast Cymru is being delivered as wholesale with individual ISPs providing services (in the same way as energy companies).

It's not just rural areas suffering from poor broadband speeds. Some parts of Cardiff just a
stone's throw from the Assembly are "not spots" but are ineligible for Superfast Cymru.
(Pic : The Guardian)

Eluned Parrott AM (Lib Dem, South Wales Central) said the programme was a lot like "trying to hit a moving target" as things change quickly and it needs to be future-proofed (clip). Eluned suggested that mobile technology might not be suitable due to poor mobile coverage in parts of Wales, as well as planning issues surrounding mobile phone masts. She added that parts of Cardiff, including her own regional office in Roath, have connection issues meaning her staff are "devastated" that they can't watch her on Senedd TV. One other issue raised was the fact many new-build estates aren't covered by Superfast Cymru because despite the lines being installed, BT's broadband department haven't been told and don't realise the new homes exist.

Julie said future-proofing was one of the reasons for the claw back agreement so BT and the Welsh Government can keep re-investing. Following meetings with mobile operators, she expects widespread 4G coverage "within the next couple of years", though planning issues are very complicated and need discussions with the UK Government. She finished by saying that BT aren't the only company rolling out infrastructure improvements as there are other commercial operators – like Virgin Media - doing so too.

Russell George AM (Con, Montgomery) asked two questions (clip) : why information on specific premises falling outside the scope of Superfast Cymru wasn't available? And what the budget was to market superfast broadband? Julie explained that information was based on postcodes, not individual addresses, and £1.5million was available for marketing.

Elin Jones AM (Plaid, Ceredigion) said "no other issue causes as much frustration in Ceredigion" than poor broadband (clip). She was pleased the website was being updated, but wanted to know if premises in her constituency would be updated by 2016, or whether they would be part of the additional 45,000 premises set to be upgraded by 2017?

The Deputy Minister said 41.35% of premises have been completed in Ceredigion, so BT weren't even halfway yet. The website would be updated to include accurate information based on distance from cabinets.

As a former Deputy Minister for Skills & Technology, Jeff Cuthbert AM (Lab, Caerphilly) said he was familiar with the problems (clip), such as trying to locate cabinets in urban areas. He asked for confirmation that "disadvantaged communities aren't overlooked" by the scheme?

Julie said a successor to the Communities 2.0 programme is up and running, and the Welsh Government were working to ensure no communities are left out.

Kirsty Williams AM (Lib Dem, Brecon & Radnor), wanted to ensure the information (clip) on the website is "useful" as she's struggled to get answers on from BT on behalf of constituents, but in particular Dan yr Ogof Showcaves, who developed an app on the presumption that broadband would be available this year, but will be delayed until 2016. She also said cabinet upgrades had led to poorer internet speeds in some areas.

The Deputy Minister pledged to look into problems as a worse performance was certainly not intended. She agreed on the need for useful information, and as the scheme progresses it's becoming easier to provide information based on distance from a cabinet. Julie added that BT sometimes had to deal with situations beyond their control and can't always give accurate timescales for broadband upgrades. However, she's asked BT to be more specific when telling the public about difficulties they're having (i.e planning delays).

Janet Finch-Saunders AM (Con, Aberconwy) asked what steps were being taken to consult with the community, citing an example where residents in Dolwyddelan (clip) were quoted £2,000 by BT to move a new cabinet to another location as it was close to community planters and chapel gates. The Deputy Minister said she couldn't comment on individual cases.

Finally, Mark Isherwood AM (Con, North Wales) asked (clip) about superfast broadband for rural schools and whether rural schools are a priority, to which the Deputy Minister said primary schools aren't part of Superfast Cymru but a separate programme.

Will widespread instrastructure upgrades lead to better offers for consumers?
(Pic : recombu.com)

Superfast Cymru isn't without critics – in particular the Pirate Party (Pirate Party : Hoising the Jolly Roger above Wales), who've criticised the technology and high prices of superfast services.

Broadly-speaking I'd say it's a good idea, though I'd share concerns over whether this will be outdated 10-15 years down the line when, presumably, G.fast becomes the norm. The clawback agreement is, therefore, a sensible part of the scheme.

The issue is take-up. 22% doesn't sound that impressive on the face of it (though I was actually surprised it's that high). Households and businesses have to actually sign up to the superfast (often advertised as "fibre") services which come at a premium, sometimes being three times more expensive than cable broadband, the latter of which might come free with a subscription media package.

Hopefully once the infrastructure is in place the ISP subscription costs will come down, and I'm going to presume cost and usage limits are currently the biggest barrier to take-up.

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