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Government of Wales Bill

I believe that the responses I have received to this amendment are entirely predictable, because they fly in the face of the facts. I have heard the noble Lord, Lord Barnett, say in this Chamber that the Barnett formula as it stands is unfair to Wales. As far as sceptical experts are concerned, the Liberal Democrats had a policy before the 1997 election—we still support it—to have a panel of experts to monitor the position and advise the Bank of England. I did not see any sign of the Chancellor not embracing that very rapidly after the 1997 election. All sides of the House have agreed that that has been a great success in keeping inflation down and an equitable solution. I cannot accept these arguments at all. The noble Lord, Lord Crickhowell, said that the north-east always seemed to lose out in relation to Wales. There is now very little difference between GDP in the north-east and GDP in Wales. They are the lowest areas of GDP in the UK. There is only a 1 per cent difference—one is 80 per cent and the other, I think, is 81 per cent. Of course, the Treasury has the allocation of the Barnett formula, but it is now undoubtedly inequitable, and for Wales it is very inequitable. It produces an element of stability, but it also seems to produce an element of complacency. I have a personal interest in this issue. My wife is Scots. But I think that the number of Scots in the Cabinet has something to do with why the Barnett formula is an immovable object. I beg leave to withdraw the amendment. Amendment, by leave, withdrawn. Clause 117 [Grants]: