§ 11. Mr. Elfyn Llwyd (Meirionnydd Nant Conwy)What representations he has received with regard to the Barnett formula in relation to Wales; and if he will make a statement. [88533]
§ The Secretary of State for Wales (Mr. Alun Michael)There have been a number of presentations, mainly during my predecessor's time when the Government of Wales Bill was under consideration in this House.
The principle behind the formula—that Wales gets a population share of changes in the comparable programmes in England—is clear and easy to understand. Most criticism of the formula confuses the absolute size of the block with the formula for changes. They are two different things.
§ Mr. LlwydI wish to refer to the additionality principle in terms of bringing in further moneys to bring forth objective 1 projects. I seek the Secretary of State's assurance that his office will adhere to the additionality principle, and that any moneys coming in will be over and above those already provided for in the Barnett block.
§ Mr. MichaelThe hon. Gentleman goes off at a tangent. I think that he is referring to structural funds. I can reassure him that the principle of additionality is an obligation on the UK Government, which they will seek to fulfil, as they have in the past. As the Prime Minister stated when he was asked a similar question in Cardiff, the Government will not let Wales down.
§ Mr. Gareth Thomas (Clwyd, West)Does the Secretary of State agree that, before we even begin to think of devolution as a process, not a change, the Assembly must be seen to exercise its existing powers effectively? Does he further agree that it can do so only if Wales is sufficiently funded under the Barnett formula, and if sufficient attention is given to matched fnding, particularly in relation to objective 1 funding?
§ Mr. MichaelMy hon. Friend goes off on another tangent. Those are matters that must be dealt with in the process of the comprehensive spending review, when the burdens and the opportunities available will be considered. My hon. Friend refers to the fact that we achieved objective 1 status, which is so important for the valleys of south Wales, for mid-Wales and for north Wales. That achievement was brought about through the success of a Labour Government fighting for Wales. Over the next few years, the Government will continue to pursue the opportunity that it represents, and I am certain that the Assembly will make a massive contribution to ensure that it brings success to the economy of Wales.