Wales ‘power surge’ triggers demand for talks
EXTRA powers are being promised for Wales under the UK Government’s plans for dealing with Brexit.
Measures that were previously regulated by the European Union will return to the UK at the end of the year when the transition period expires.
The plans for an internal market across all nations of the UK were unveiled last night – ahead of the publication of a UK Government white paper today.
They see Wales, from January 1, 2021, getting 70 new responsibilities out of 160 areas currently overseen in Brussels, including those for carbon storage and capture, environmental legislation covering energy companies, bus franchising rules, waste management, air quality and organic
farming. The Welsh Government said it was supportive but only if the framework was agreed by all four governments in the UK.
With the UK leaving the EU at the end of this year, whether with a new trading deal or falling on WTO rules, the proposals, which will go out for a four-week consultation, set out a new “internal market” between Wales, England, Northern Ireland and Scotland to support the flow of trade between them.
The proposals highlight the principle of “mutual recognition”, so regulations from one part of the UK will be recognised across all four nations to ensure the devolved administrations can set their own rules and standards, but “still welcome the trade of businesses based anywhere the UK”.
The plans were compared by UK Government officials to the systems governing trade between the states and territories of Australia and the cantons in Switzerland.
Officials said that without these actions a Welsh lamb producer could, for example, end up unable to sell their meat in Scotland.
An internal market should make it easier for the UK to strike new trade deals, but there are concerns this could be achieved at the expense of the wishes of devolved administrations, with Wales and Scotland looking at closer regulatory alignment with the EU.
A Welsh Government spokesperson said: “We support having rules across the UK to regulate the internal market, but these rules must be agreed between the four governments in the UK, each of which has their own responsibility for economic development. Any new system must have independent oversight and dispute resolution.
“Unfortunately, the UK Government has not managed to share the paper with us, and Welsh ministers have had no recent discussions with the UK Government on these issues. Any attempt to unilaterally impose a system will be deeply damaging.”
The Scottish Government has also signalled that it will resist an internal market which dilutes its devolved powers and voice.
Its First Minister Nicola Sturgeon said: “Make no mistake, this would be a full-scale assault on devolution – a blatant move to erode the powers of the Scottish Parliament in key areas. If the Tories want to further boost support for independence, this is the way to do it.”
Business Secretary Alok Sharma said: “This plan protects jobs and livelihoods.
“Without these necessary reforms, the way we trade goods and services between the home nations could be seriously impacted, harming the way we do business within our own borders
“Ensuring businesses will be able to continue trading freely across all four corners of the UK, without the burden of inconsistent regulation or additional costs, will be essential as we fire up our economic engines as we recover from coronavirus.”
Chancellor of the Duchy of Lancaster Michael Gove promised to work with the Welsh, Northern Irish and Scottish administrations “on a new structure for how we can co-operate better and share ideas”.
He said: “This plan is a power surge to the devolved administrations – giving them powers in dozens more areas.
“As powers flow back from Brussels to the devolved administrations in Edinburgh, Belfast and Cardiff – as well as to the UK Government – we want to build on the good progress we have already made.
“We will develop new ways of working together and learning from each other to help create more opportunities for jobs and investment for businesses and citizens across the United Kingdom.
“So we will work over the coming weeks with the devolved administrations in Cardiff, Belfast and Edinburgh on a new structure for how we can co-operate better and share ideas, and we will be bringing proposals to the table to agree a way forward. We should be learning from one another, combining the expertise of each nation to share ideas, innovation and, where appropriate, put in place processes for voluntary cooperation.
“People right across the UK want their governments and institutions to work together at every level to improve their lives, and the UK Government is committed to working to do this.”
Under the plans Scotland would receive 111 new powers and Northern Ireland 157.
Carolyn Fairbairn, CBI directorgeneral, said: “Preserving the integrity the internal single market – the economic glue binding our four nations – is essential to guard against any additional costs or barriers to doing business between different parts of the UK.
“Increasing prosperity, creating opportunities for all and raising living standards will be the hallmarks of success. Delivery will be the real test, requiring closer collaboration between business, Westminster and devolved administrations.”
IF WE take Cabinet Office Minister Michael Gove’s words at face value, the creation of a post-Brexit single market for the UK will be accompanied by a “power surge” to the devolved nations.
The sheer numbers of transferred powers announced by Mr Gove look impressive, but the situation is more complicated.
Until the end of the year, we are a member of the European Single Market and Customs Union, which has been of huge benefit to our economy for many years. This bigger single market has, of necessity, encompassed the much smaller single market whose merits Mr Gove is now promoting.
Any sensible person will agree that in the post-Brexit world we shall now be inhabiting, it makes sense for there to be agreements on common standards relating to goods and food. Until now, such standards have been set by the EU.
What Mr Gove’s announcement today skirts around is that the whole debate surrounding the UK single market relates to international free trade deals – and most particularly the negotiation of such a deal with the United States. We have all heard what President Trump and his Ambassador to the UK have said on the subject – they expect that as a condition of any such deal, the UK will lower its standards and, in terms of food, allow the import of produce like chlorinated chicken. In Wales and Scotland – and in England too, for that matter – there is considerable opposition to such an outcome. Chlorinated chicken is not, polls show, wanted in Britain.
In his announcement, Mr Gove appears to be conciliatory. He states that he and his colleagues will work “with the devolved administrations in Cardiff, Belfast and Edinburgh on a new structure for how we can co-operate better and share ideas, and we will be bringing proposals to the table to agree a way forward. We should be learning from one another, combining the expertise of each nation to share ideas, innovation and, where appropriate, put in place processes for voluntary co-operation”.
The most significant phrase in the last sentence is “where appropriate”. That leaves open the possibility – some would say the certainty – that the UK Government would override any objections by the devolved nations to a free trade agreement that would entail the lowering of food and other standards. It’s time for less rhetoric and more candour from the UK Government.