Government response to HC 962, session 2013-14 (ISBN 9780215069313)

Due to the compressed nature of pre-legislative scrutiny, the Committee was not able to cover all provisions in the draft Bill in detail. Evidence covered a number of areas, but the three main aspects of the draft Bill that were raised, and on which this Report focuses, are: the transition to a reserved powers model; the reservation of criminal and private law and the necessity tests; and the consenting arrangements. The majority of witnesses have suggested improvements to the draft Bill. Some of these, such as replacing the "necessity" test with a test that is clearer and has a lower threshold, and that in relation to Ministerial consent, that the UK Government transfers to the Welsh Ministers all Ministerial functions in areas of devolved legislative competence, the Committee have been able to agree upon. Some of the evidence received raised other important and relevant issues; in particular many witnesses proposed a form of distinct legal jurisdiction. This issue may not have been apparent to all potential witnesses at the outset of the inquiry, so the Committee cannot be confident they received all relevant evidence on this important subject. They now ask the Secretary of State to reflect on the recommendations. There is a growing body of Welsh law that differs from that which applies in England, but the implications of this requires careful scrutiny. The Committee shares the view of the Silk Commission, that the UK and Welsh governments will need to continue to review the issue of a separate or distinct Welsh jurisdiction

The draft Wales Bill was published following the recommendations of the Silk Commission in November 2012. It sets out to devolve tax and borrowing powers to the Welsh Government and National Assembly for Wales, make changes to the electoral arrangements of the National Assembly for Wales, and clarify and update the devolution settlement. The Government hopes that the provisions in the draft Wales Bill will enable devolved governance in Wales to become more accountable. The cross-party Committee believes partial devolution of income tax to the Welsh Government should be put to the people of Wales in a referendum. The cross-party Committee also has sympathy with the argument that the issue of "fair funding" must be resolved before any income tax powers are devolved so that Wales is not unfairly disadvantaged. The issue of fair funding - how the size of the block grant from the UK Government is determined, currently by the Barnett formula which has long been criticised as providing an unfairly low allocation to Wales - needs to be examined and should not wait until after the 2015 General Election. The National Assembly for Wales should have power to decide its own Assembly term length, rather than this being decided at Westminster. The Committee recommends the clause in the draft Bill which permanently extends the length of the Assembly from four to five years should be scrapped and replaced with provisions that give the National Assembly the powers to determine the length of its own electoral term.

The Bill makes changes to the electoral arrangements for the National Assembly for Wales, gives effect to many of the recommendations set out in the first report of the Commission on Devolution in Wales (the Silk Commission) and makes a number of technical changes to the Government of Wales Act 2006 and other legislation in order to update the operation of the devolution settlement in Wales. The Bill was published in draft in 2013 (Cm. 8733, ISBN 9780101877329) and has been the subject of pre-legislative scrutiny by the Welsh Affairs Select Committee (4th report session 2013-14, HC 962, ISBN 9780215069313)

The Bill makes changes to the electoral arrangements for the National Assembly for Wales, gives effect to many of the recommendations set out in the first report of the Commission on Devolution in Wales (the Silk Commission) and makes a number of technical changes to the Government of Wales Act 2006 and other legislation in order to update the operation of the devolution settlement in Wales. The Bill was published in draft in 2013 (Cm. 8733, ISBN 9780101877329) and has been the subject of pre-legislative scrutiny by the Welsh Affairs Select Committee (4th report session 2013-14, HC 962, ISBN 9780215069313)

Shale gas represents an opportunity for Wales but it must not come at the expense of Wales's natural environment. Both the UK and Welsh Governments must consider environmental risks, including the traffic and noise caused by commercial shale gas operations as well as the visual impact and other environmental risks associated with fracking. The issue of treatment, transportation and disposal of wastewater is a growing concern: toxic and radioactive water must not be allowed to contaminate water courses. The Government forecasts that nearly 70% of the UK's gas supply will be imported by 2025. It is vital that the UK identifies new sources of gas if it is to safeguard the UK's security of supply. Shale gas production across the UK is currently at the exploratory stage and there is no good data yet on the amount of shale gas in Wales. Should considerable reserves of shale gas be present-as industry representatives predict-it could be a decade before a viable shale gas industry is created in Wales. The UK Government and the Welsh Government should work with commercial companies and others to provide a reliable range of estimates of shale gas available in Wales and assess the overall impact of shale gas supply on the level and mix of energy produced in Wales and the UK. The Welsh Government should also begin to consider how the employment opportunities presented by shale gas production could be maximised