I’m finding myself, increasingly often, in the uncomfortable position of agreeing with Peter Hain. It never happened while he was Secretary of State for Wales; in those days I almost invariably disagreed with everything Peter said.
However, since Peter has returned to the back benches, I find that a lot of what he says chimes substantially with my own way of thinking.
It happened first during this year’s St David’s Day debate, when Peter told the House that the private sector in Wales is too small:
“If both Welsh living standards and the economic competitiveness that underpins our prosperity are to grow as we all want, the private sector needs to grow significantly and at a relatively much faster rate. To achieve at least equilibrium with the rest of the UK and the OECD countries, Wales must move towards a private sector of around 55 per cent. of Welsh GDP. To achieve that in the next 15 to 20 years, we will need year-on-year growth that is around 1 per cent. faster than the UK average—no mean feat.”
I agreed with every word of that – save that I would like to see an even bigger private sector – and said as much during my wind-up.
Now Peter has done it again. On Thursday this week, he told a conference in Cardiff that the Welsh Assembly Government was attempting, illegitimately, to use the legislative competence order (LCO) procedure as a device to confer more primary powers on the Assembly “by the back door”:
“There was the attempt to insert a ban on smacking children into an LCO.
“It had to be pointed out that was beyond the Assembly’s scope, and that the issue needed to be addressed in children’s legislation at Westminster.
“This LCO system is not a backdoor method of smuggling primary law-making powers in. It’s a streamlined process of achieving extra powers for the Assembly.”
Save that the LCO procedure is not streamlined – it’s actually very clunky and laborious – I’d agree with that, too. And the LCO in question is not the only example. There was also WAG’s attempt in the housing LCO to obtain competence to abolish the right to buy, which was rightly and unanimously rejected by the all-party Welsh select committee, much to the effervescent outrage of the Rt Hon Lord Elis-Thomas.
The fundamental problem is that the LCO process is not truly democratic devolution. That would be gained only through the legitimacy conferred by a referendum of the people of Wales – a referendum which Peter and most other sensible commentators agree could not be won.
No, the LCO procedure is the bastard offspring of an internal Labour party dispute between Members of Parliament and Assembly members, as Peter himself acknowledged in his Cardiff speech:
“Everybody has to realise that the 2006 Act was born out of a negotiation to reconcile those who wanted full law-making powers and those who insisted there would have to be a referendum before those powers could be granted.
“There is no way the legislation could have got through without including the need for a referendum. That was not deliverable, even if it was desirable, which I would have disputed.
“You could not have changed the 1997 settlement unless there was a referendum built in.
“The question was, what did you do in the meantime? Rhodri and I considered this for months. That’s when I came up with the LCO (Legislative Competence Order) route.”
Full marks to Peter for his frankness, but I’m afraid that this is where we part company. What you could have done in the meantime was to allow the Assembly to develop into a body that was recognised and trusted by the people of Wales as a vehicle for delivering better, more efficient public services closer to the point of consumption. That is a process that would undoubtedly have taken time – probably a very long time indeed – but what was the rush?
Any referendum that was held after that “bedding-in” period would, if won, have conferred real legitimacy on the devolution of primary powers. If lost, then the issue would have been put to bed once and for all. Either way, nobody could have complained.
As it is, Wales has been lumbered with a dodgy constitutional lash-up that pleases neither faction within the Labour party, to say nothing of Lord Elis-Thomas.







