Western Mail

Wales ‘still powerless in crucial policy areas’

- David Williamson Political editor david.williamson@walesonlin­e.co.uk

AKEY architect of devolution for Wales has warned that trust between the UK and Welsh Government­s is at an “all-time low”.

Professor Kevin Morgan, one of the main figures behind the Yes campaign in the 1997 referendum, has also claimed that Wales remains effectivel­y “powerless” to act in important areas of industrial policy, almost two decades after the advent of devolution.

Writing in a new book on the role of nations and regions in the UK’s Industrial Strategy, Prof Morgan argues that “political conflicts over Brexit have soured relations between the devolved administra­tions and Whitehall to such an extent that the level of inter-government­al trust has plummeted to an all-time low.”

WALES is “almost powerless” over key aspects of industrial policy nearly two decades after the birth of devolution, and trust between government­s has plummeted to an “all-time low”, according to the professor who chaired the 1997 referendum Yes campaign.

Kevin Morgan, Professor of Governance and Developmen­t at Cardiff University, warns of the potential for a major “crisis” as the UK leaves the European Union.

He argues that “years of devolution have left Scotland and Wales almost powerless to influence the fundamenta­ls of fiscal policy, trade policy and overseas student recruitmen­t policy”.

A key flashpoint could be conflict over the future of regional developmen­t cash. Wales has received billions of pounds in EU funding but there is wariness in Cardiff and Edinburgh about proposals to introduce a UK Shared Prosperity Fund.

Warning this could “trigger a major inter-government­al crisis”, he notes that the Welsh Government has already stated it “explicitly and vigorously” rejects “any notion of a UK centralisa­tion of regional economic developmen­t policy, including the creation of a Whitehall-managed UK Prosperity Fund”.

Prof Morgan argues that “political conflicts over Brexit have soured relations between the devolved administra­tions and Whitehall to such an extent that the level of inter-government­al trust has plummeted to an alltime low” and warns this will make it harder to secure the partnershi­ps needed to take forward the UK Government’s Industrial Strategy.

Meanwhile, devolved administra­tions are “acutely aware of the constraint­s on their ability to pursue a bolder, more integrated economic developmen­t strategy”.

Noting the cancellati­on of the planned electrific­ation of the Cardiff to Swansea Great Western line and the continuing uncertaint­y about the Swansea Bay Tidal Lagoon, he said the Welsh Government “feels constraine­d by its lack of powers in key priority sectors”.

Prof Morgan’s comments come in a chapter he has contribute­d to a forthcomin­g book which looks at the role of nations and regions in the UK’s Industrial Strategy.

Nothing less than the “territoria­l integrity” of the UK is at stake, he claims, writing: “One of the key issues to be resolved in the Industrial Strategy will be the role of the state and this is likely to expose deep political tensions between the social democratic values of the Scottish and Welsh Government­s and the neoliberal procliviti­es of the (current) UK Government.

“Managing these tensions will be one of the great challenges of the post-Brexit era, not least because the territoria­l integrity of the UK as a multi-national state could stand or fall on its ability to secure unity-in-diversity.”

Prof Morgan says that “Brexit poses both economic threats and political challenges” but he claims these are not acknowledg­ed in the UK Government’s Industrial Strategy White Paper, which is “ideologica­lly fixated on the alleged opportunit­ies of EU withdrawal”.

A key challenge facing the UK Government is securing Welsh and Scottish support for “frameworks” to ensure that different policies across the nations do not impede trade postBrexit.

Prof Morgan sees an “urgent need to fashion new federal-like governance structures to ensure that the common frameworks for the postBrexit period respect their devolution settlement­s”.

He argues that “radically reformed joint governance mechanisms – like a UK Council of Ministers – would seem to be necessary to resolve intergover­nmental disputes within the Industrial Strategy”.

Ministers from across the UK already sit down together at meetings of the Joint Ministeria­l Committee (JMC) but Prof Morgan calls for a new approach.

He said: “Whitehall would need to change its attitude to joint governance mechanisms like the JMC because, in the eyes of the Scottish and Welsh Government­s, it has shown little interest in them to date because it has no respect for them.”

He also notes the difference­s between Wales and Scotland in how economic developmen­t is pursued. Controvers­ially, the Welsh Developmen­t Agency (WDA) was brought into the civil service in what became known as then First Minister Rhodri Morgan’s “bonfire of the quangos”.

Prof Morgan writes: “Whereas Scotland retained Scottish Enterprise to spearhead its place-based economic developmen­t strategy, the Welsh Government abolished the WDA more than a decade ago and has struggled ever since with the lack of place-based institutio­ns.

“To fill the vacuum left by the WDA, the Welsh Government recently launched a new ‘regionally focused model of economic developmen­t’ based on regions in north Wales, mid and south-west Wales, and southeast Wales...

“As things stand, Wales has neither a national enterprise agency, as in Scotland, nor a locally-based [Local Enterprise Partnershi­p] structure, as in England.”

PROFESSOR Kevin Morgan chaired the Yes campaign which secured a victory in favour of the creation of the Assembly in 1997 by just 6,721 votes.

Having helped launch the devolution age in Wales, he has closely followed key developmen­ts in the nearly two decades since AMs first arrived in Cardiff Bay – and he does nothing to play down what is at stake as the UK confronts Brexit.

He now warns that “inter-government­al trust has plummeted to an all-time low”.

At the start of the devolution era there were Labour-led government­s in Westminste­r, Cardiff and Edinburgh. Pundits wondered what would happen when people from different political tribes were in power in the UK and Welsh government­s, and since 2010 we have repeatedly seen rows erupt into the open.

The cycle of regular council, Assembly, European and Westminste­r elections gave politician­s plenty of moments when it seemed politicall­y advantageo­us to take potshots at one another’s record on the NHS, education and the economy.

But the current concerns over Brexit are doubly charged. Devolution was born at a time when there was no expectatio­n that the UK would leave the EU, and the ties to Brussels have arguably been a source of stability in the early chapters of the institutio­ns.

The livelihood­s of farmers in all parts of the UK have been directly tied to the workings of the Common Agricultur­al Policy. European Union funding has supported investment across Wales, and the necessity of keeping within Single Market rules has limited the scope for divergence between the different UK nations.

But now the UK is faced with the question of how it will operate outside the EU. How will Britain’s own internal market be governed – and will this ultimately be decided by Westminste­r or negotiated between the government­s?

Theoretica­lly, the UK Parliament remains sovereign – it has “devolved” powers to the new legislatur­es rather than formally given up the ability to make law on any subject in any part of the UK – but a constituti­onal crisis would erupt if it attempted to override the will of elected AMs and MSPs.

Theresa May’s administra­tion faces the challenge of negotiatin­g a Brexit deal while also keeping increasing­ly vocal backbenche­rs in line; yet it must also engage the devolved administra­tions with respect and take seriously deep and valid concerns. Occasional meetings of the Joint Ministeria­l Committee or sit-downs with senior figures won’t cut it – unhappines­s in Cardiff and Edinburgh will only intensify pressure to move to a formal federal arrangemen­t postBrexit.

Prof Morgan notes that nearly “20 years of devolution have left Scotland and Wales almost powerless to influence the fundamenta­ls of fiscal policy, trade policy and overseas student recruitmen­t policy, all of which are highly pertinent to the UK Industrial Strategy”. Present uncertaint­y will only strengthen the desire of devolution­ists to control levers of real power.

 ?? Western Mail Archive ?? > Pro-devolution supporters celebrate the result of the referendum in 1997 – but progress since then has been slow, says Prof Kevin Morgan
Western Mail Archive > Pro-devolution supporters celebrate the result of the referendum in 1997 – but progress since then has been slow, says Prof Kevin Morgan
 ??  ?? > Prof Kevin Morgan
> Prof Kevin Morgan

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