Tag: 2015

Below is the text of the speech made by Stephen Crabb, the Secretary of State for Wales, at the International Politics Building, University Campus, Aberystwyth University on 11 March 2015.

Thank you Professor McMahon.

Diolch yn fawr iawn.

Rydw i’n falch iawn i fod yma heno ym Mhrifysgol Abersystwyth.

It’s great to be back here this evening at Aberystwyth University.

Aberystwyth is, for some, the true capital of Wales, and without any question a unique centre of Welsh learning, culture and the arts.

It provides the setting for one of our successful broadcasting exports of recent years, Y Gwyll / Hinterland, which tapped into the international interest in the Nordic Noir crime genre and has helped to give the Welsh language a new wider profile as the living modern European language it is – as well as showcasing the town here itself.

But I got a glimpse of the shape of things to come for Aberystwyth 14 years ago when Malcolm Pryce published his quirky, off-beat English language crime novel ‘Aberystwyth Mon Amour’ set here in the town but in an alternate reality. My Welsh teacher at the time sent me an early copy, sensing rightly that I needed something different from our recurring grapples with the challenging mutations and sentence structures of Wales’s mother language.

Back in the real word, Aberystwyth University is of course one of Wales’s historic universities and, nearly a century and a half since it was founded, it now has a global reach – with a reputation for academic and research excellence. The International Politics department, where we are this evening, is truly renowned throughout the world.

I have had the pleasure of supporting the department’s Parliamentary Placement Scheme for a number of years, and I can genuinely testify to the quality and drive of the Aber students who have spent a part of their summers working in my House of Commons office. And it’s been a delight seeing them go on to successful careers in the Law, public policy and public relations.

The university’s alumni network is impressive indeed.

I recall on a visit to Rwanda 4 years ago meeting the civil servant, who had responsibility for the entire education service of that country, whose eyes lit up when he heard that I was from Wales and asked me if I knew Aberystwyth. And of course it turned out that he is one of your alumni, having undertaken his postgraduate studies here.

It is fair to say a deep love of Aber and a deep love of Wales have stayed with him ever since – and this is a hallmark of the thousands who pass through the university each year.

Aberystwyth was also the home for many years of the historian and broadcaster Dr John Davies who taught here at the University and who sadly died last month.

His Hanes Cymru, A History of Wales, probably did more than any other book to influence my own thinking about Wales – and Welsh nationhood. It is 8 years now since the English language version was published…

…8 years which have seen some profound changes to the economic and political context in which that nationhood is expressed and given life and meaning.

And that is really the theme of my talk this evening.

Introduction:

I last spoke at Aberystwyth University almost exactly 3 years ago, when I addressed the Centre for European Studies on the case for overseas aid in an age of austerity.

A great deal has changed since then and I now have the enormous privilege of serving as the Secretary of State for Wales in these latter stages in the life of this Coalition Government.

As this remarkable, historic Parliament draws to a close I would like to look back tonight on some of the political and constitutional changes of the last five years and what they have meant for Wales; but also to look forward, to consider what I think are the main challenges for effective governance of this nation of Wales.

Wales as seen from Pembrokeshire: A Personal Reflection

But I would like first to offer some personal reflections on Wales.

Wales as seen from Pembrokeshire: A Personal Reflection
I am a Welshman through and through. Brought up in Pembrokeshire – in the heart of the constituency I now represent – this beautiful historic county located on one of Britain’s western extremities, reaching inwards to the rugged Welsh hinterland but looking outwards too across the wild north Atlantic, had an important influence in my formative years and in framing my outlook on Wales and, indeed, the wider world.

Pembrokeshire has played more than a walk-on part in the unfolding drama of Welsh and British history.

It was of course home to St David, Wales’s 6th century patron saint and national icon. A man of remarkable faith and devotion who founded a prolific number of churches, and who by the 10th century had become associated with the long-running struggle for greater autonomy for the Welsh Church but also – more politically – the struggle of the Welsh people – the Cymry – against the people that some now describe not-quite-correctly as the English.

Pembrokeshire was also the birthplace of Henry Tudor, the future King Henry VII, a son of the upstart Anglo-Welsh family who pulled off that improbable feat of ending the Wars of the Roses and founding a royal dynasty – during the process of which some of the key constitutional, legal and religious ties between Wales and England were forged – ties that shaped profoundly Wales’s place within the Union and which still exist today.

Pembrokeshire was also the 12th Century birthplace of the chronicler Gerald of Wales. Described by some as the most learned man of his age, his works tell us much about Welsh history and geography, and the cultural relationship between the Welsh and the English in the Middle Ages.

Reading Gerald one is never quite sure whose side he is on – the Welsh or the Norman overlord – he had mixed parentage after all – but he too shared that passion for greater autonomy for the Welsh Church – to see the bishopric of St Davids freed from, and elevated to the same status as, Canterbury. In an age that predated the political structures of the unified nation state, this ecclesiastical cause was maybe the closest we have to an ambition for Welsh devolution.

My county is famously divided by the so-called Landsker Line, a boundary of cultural and linguistic division that has existed for nearly a thousand years and marked with a chain of castles. The line that divided places like Crymych and Mynachlog Ddu in the North from the lowland villages like Jeffreyston and Bosherston with their English names and Norman churches.

The imaginary line remains a clear demonstration of how communities a few miles apart in Wales can have different histories, different cultural backgrounds and which may even want different things from the way in which they are governed.

This cultural and linguistic diversity is part of the rich tapestry which makes Wales such a fascinating place.

And it has helped forge my own Welsh identity: a Welsh identity which sits comfortably alongside and within the equally strong identity which comes from membership of a wider family – that is, the family of nations which make up our United Kingdom.

Having a Scottish parent helped, of course.

The Union was in my very DNA.

And for those who want to understand a bit deeper my own journey from being sceptical and hostile to Welsh devolution, as one who saw it as a binary opposite and threat to my proud Unionism, I would point firstly to my own background in Pembrokeshire. This county voted strongly against devolution in the 1997 referendum. At the referendum 14 years later Pembrokeshire – like the rest of Wales except Monmouth – returned a clear majority in favour of full law-making powers for Wales.

It’s quite some journey we have all been on in recent years…

…not so much a road to Damascus moment for me, but a process of reflection and thinking which started with John Davies’s English version of Hanes Cymru in 2008 and culminated in a visit to the Scottish Parliament at Holyrood last year as the Referendum storms raged around us…

…a process of understanding the depths of ancient aspirations among Britain’s constituent nations – that desire for a greater autonomy; but also understanding and appreciating afresh the security and benefits that derive from pooled risk and cooperation which provided the very foundations of our Union in the first place – the most successful political union the world has seen.

And so my conclusion from this was that devolution within the framework of a strong United Kingdom offers perhaps the best and only way to satisfy these potentially competing tectonic forces.

And by happy coincidence I have found myself in a position in recent months to contribute to the debate about what successful devolution should look like for Wales in the years ahead – participating as neither the unrepentant devosceptic nor with the wide-eyed zeal and emotion you might expect of a new convert, but rather as a pragmatic and rational devolutionist – which I believe is the right approach for any Secretary of State for Wales.

The role of Secretary of State for Wales:

In working in the Wales Office since 2012, first as Parliamentary Under-Secretary, then as Secretary of State, I have followed in the footsteps of some illustrious predecessors – most notably for me Lord Crickhowell, who as Nicholas Edwards and MP for Pembrokeshire, was the longest serving Secretary of State for Wales, in post from 1979 to 1987.

Last year marked the 50th anniversary of the creation of the post of Secretary of State for Wales which some had believed could be a difficult milestone to reach following the devolution to the new elected Assembly of much of the Welsh Secretary’s previous executive role.

‘Why not have just one job for all three territories since almost all of the old executive functions have been devolved?’ asked many observers quite reasonably.

To mark the 50th anniversary I invited all living former Secretaries of State for Wales to a function at Gwydyr House last October – including Peter Hain, William Hague, Lord Crickhowell, Lord Hunt. I was also delighted that Lord Morris of Aberavon came along too. John Morris, born a few miles from here and another one of your distinguished alumni, had been Secretary of State back in 1974-79. His autobiography is important reading for anyone wishing to understand Wales’s stop-start devolution process.

After enjoying the drinks reception John promptly gave a TV interview in my room at Gwydyr House roundly declaring that the Secretary of State post was out of date and should be got rid of.

But also there that night was a former Welsh Secretary from the devolution era – Paul Murphy who will be standing down from Parliament in a fortnight. Paul used his speech last week in the annual House of Commons St David’s Day debate to urge strongly that the position of Secretary of State for Wales should be retained in the next Parliament – and that devolution actually makes the role more important not less.

I don’t believe we should get hung up on the architecture of government or on Cabinet job titles, and I am not someone who believes that because the Secretary of State position has been around 50years that means it should necessarily be here for another 50.

But if the last 5 years – especially the last year – has showed us anything it is that there is still a crucial role to be played by the territorial Secretaries as we seek to achieve lasting and effective devolution arrangements within the United Kingdom. If the positions didn’t exist right now, you would have to invent something very much like them.

But from day one of this Coalition Government, the importance of a full-time Welsh, Scottish and Northern Ireland Secretary at the Cabinet table has been recognised – and in a broader sense than that envisaged immediately for the posts following devolution in 1999.

One can describe the role of Secretary of State in this Government as being to

– Act as a bridge across the devolution divide into Welsh Government

– Be the voice of Wales at the UK Cabinet table

– Be the principal face of UK Government within Wales

– And, in the Prime Minister’s own words, to “be a champion for the economic recovery in Wales”.

When I was appointed the Prime Minister was very clear that he expected his Welsh Secretary to speak up and be heard in the interests of Wales. When it comes to the usefulness of a Welsh Secretary within the Government machine, this PM is a believer.

I was of course extremely fortunate to come into the role at a unique moment for our constitution and at a fascinating time for Wales. A good time to try to make things happen for Wales.

Personally, 3 key highlights stand out from the last 8 months:

First, the NATO Summit in September, the largest gathering of world leaders ever to come to the UK. Wales was centre of the world stage. Our international profile could not have been higher and the Summit was a stunning success. The Prime Minister took a very clear-sighted decision to use the branding of Wales – as a nation – for the Summit rather than just that of a particular city which had been the pattern with previous NATO summits. He saw it rightly as a unique opportunity for Wales to put its best foot forward and it was a great example of partnership working between 10 Downing Street, the Wales Office and Welsh Government.

We followed this two months later with the UK investment summit, where over 150 global investors came to Wales to see first hand why Wales is such a great place to invest – again using the same model of partnership working.

The second highlight was resurrecting and landing the deal with Welsh Government to electrify the mainline to Swansea and the entire Valley Line rail network: part of £2bn of investment this Government is putting into Britain’s railways; the biggest investment in rail infrastructure since Victorian times. Isambard Kingdom Brunel himself would be proud!

But the South Wales electrification issue had become something of a devolution test case – whether two administrations of different party colours could work together to deliver major strategic infrastructure or whether devolution boundaries, compartmentalised budget lines, bureaucratic wrangling… and just old fashioned lack of political trust would determine that this would be a huge missed opportunity for Wales.

It proved to be a moment for the role of the Welsh Secretary and the Wales Office to come into its own.

The third highlight I would point to is the announcement, earlier this month, by the Prime Minister and Deputy Prime Minister of a landmark package of devolution for Wales. A foundation from which we will build a new devolution for Wales which is clearer, stronger and fairer than the current settlement. I shall say more about that St David’s Day package in a few moments.

The Coalition Government: 5 Years of Achievement:

So we are ending this Parliament showing powerfully, I believe, that devolution can work in the strategic interests of Wales. But also having forged a new vision of what devolution should mean for the future.

The current Parliament has certainly been an historic one for our United Kingdom:

…with the first post-war coalition Government, formed to take on a huge economic challenge: the biggest economic crisis in seventy years and the biggest budget deficit since World War II.

… with the structure of the United Kingdom itself in jeopardy like never before with the rise of Scottish nationalism and last September’s referendum on full independence.

…and with a new political reality in the relationship between the UK and Welsh Governments, with administrations of different political colours at either end of the M4 for the very first time.

When we formed the Coalition in 2010 there was no shortage of naysayers who said that “it wouldn’t last”; that coalition Government would be inherently unstable; and that mutual suspicion would override the need for good government.

They could not have been more wrong.

Coalition: a radical reforming Government:

What no-one really foresaw either was just how radical the government would become in terms of the constitution, devolution and decentralisation. This radicalism has come to the fore both as a response to external events – like the Scottish Referendum and the recognition of the need to rebalance our lop-sided economy away from an ever more powerful London and the South East; and because it is inherent in some of the key political philosophies and traditions within both parties of the Coalition.

But back in 2010 the primary focus was the economic crisis. We set out a plan, agreed across the Coalition, to reduce the deficit, restore order to our national finances and set in place the foundations for healthier, more balanced growth.

Five years later that plan is bearing real fruit for Wales.

There is no question the economy has turned a corner. The UK is the fastest growing major economy. And Wales is the fastest growing part of the UK.

This year already real wages are rising and households are benefitting from record low inflation. Our economy is rebalancing, with the decline in manufacturing reversed and a strong business-led recovery. Wales now has the fastest rate of business creation in over a decade.

A rebalanced economy will need 21st century infrastructure in order to thrive. So we are putting right the chronic underfunding in infrastructure by previous governments, investing a greater share of our nation’s wealth in infrastructure than in the whole period of the last Government.

Investment in the electrification of Wales’s railways I mentioned earlier. Investment in broadband so that homes and business in Wales can access some of the fastest broadband speeds in the world. And major energy infrastructure projects that will help provide cleaner and more secure energy for the future.

But for me, economic growth is never an end in itself. I believe growth should be an enabler of social renewal and that this is the real test of economic policy.

So, turning around a culture where worklessness had become the norm in too many communities in Wales has been a key achievement of this Coalition. In 2010 when we came into office there were 200,000 people in Wales who had never worked a day in their lives. There were 92,000 children growing up in homes where no-one was working.

We now have 46,000 fewer workless households in Wales than there were in 2010 and, crucially, 39,000 fewer children where neither mum nor dad goes out to work.

And so Wales is on a pathway of recovery, economically and socially. There is a mountain to climb – let no one pretend we are not still rooted to the bottom of the UK economic league table – but we are determined to keep creating the right conditions for growth in Wales. And I believe the economic plan we have put in place represents Wales’s very best chance of closing the prosperity gap with the rest of the UK.

But we have shown as a Coalition that making the economy the core focus – the overriding mission – in our programme has not prevented progress on a number of other fronts, including fixing the problems in Welsh devolution.

A Strong Track Record on Devolution:

By the latter stages of the last Government, the truth is that Wales was being treated as an afterthought within Whitehall.

Communication between the administrations in London and Cardiff had become informal, and were often conducted through party rather than proper government channels.

The devolution structures were not built to last. And they took no account of different political parties in Government at either end of the M4.

And the Welsh devolution process itself was in deep freeze… still relying on the clunky, laborious Legislative Competence Orders (the infamous LCOs!) to transfer powers piecemeal to Cardiff Bay.

Everything was sort of stuck.

The Coalition Programme for Government changed that. It put us on the front foot. It included three clear commitments on Wales. First, we completed the final LCO – on housing – within the first few months of taking office.

Second, and much more importantly, we delivered the 2011 Assembly referendum. A referendum which saw a resounding yes vote to the Assembly gaining full law-making powers. This was a game-changer for many of us who remained doubtful as to whether the people of Wales had truly warmed to devolution.

Third, following the referendum we established the Commission on Devolution in Wales – known now to us all as the Silk Commission – to look at the financial and constitutional arrangements in Wales.

The Commission produced two reports. The first looked at fiscal devolution, and recommended tax raising powers for the Assembly, and borrowing powers for Welsh Ministers, for the first time. The Wales Act 2014 which I helped take through Parliament implemented almost all of the Silk I recommendations.

It is a small but ground-breaking piece of legislation, devolving power to the Assembly over stamp duty land tax and landfill tax; allowing the Assembly to trigger a referendum on the devolution of some income tax; fully devolving business rates; and allowing the Welsh Ministers to borrow to help fund capital projects.

The Silk Commission published its second report a little over a year ago, with wide-ranging recommendations for modifying Welsh devolution and improving inter-governmental relations. When I came into post that report was in danger of beginning to gather dust on a shelf.

Meanwhile, the devolution settlement was under pressure like never before with the UK and Welsh Governments arguing about competencies at the Supreme Court. These cases, especially the UK Government’s defeat over Agricultural Wages last July, blew wide open the true nature of the Welsh devolution settlement: unclear, vague, silent on many key subject areas, unstable, not built to last – a payday for lawyers.

Finally, add into the mix the seismic shift in Scottish politics and the independence campaign last year which raised the temperature of the debate in Wales and it meant that the question “Where does this leave Welsh devolution?” demanded an answer.

The St David’s Day Announcement:

The morning after the Scottish referendum on 19th September the Prime Minister said that he wanted Wales to be at heart of a new debate about devolution in the United Kingdom.

The truth is that even before the referendum campaign was over, we knew that the devolution debate would not be the same ever again and that we had to act to correct the problems in Welsh devolution.

So I took the decision to use this unique constitutional moment to bundle up all of the long-running devolution controversies in Wales and seek to bring together all political parties in Wales to consider these issues in a pragmatic and positive way.

So began our St David’s Day process which aimed to achieve agreement on a clearer, stronger and fairer devolution settlement for Wales.

We started by examining the Silk II recommendations to identify which recommendations had political consensus, and to agree a set of commitments to announce by St David’s Day on the future of Welsh devolution. But we also looked at the issue of fair funding for Wales and considered how the current changes in Scotland might also impact on Welsh devolution.

The final package, announced by the Prime Minister and Deputy Prime Minister two week ago at the Millennium Stadium in Cardiff, was an important moment for Wales.

At the heart of the package the Prime Minister announced are three key elements, the building blocks to reset the devolution settlement in Wales; to seek to put an end to the ceaseless never-ending debates about powers and who does what; and to deliver clear and stable devolution for Wales for the longer-term:

First, to deliver more clarity, a new model of devolution in Wales.

In Scotland, where there is the so-called Reserved Powers model, the default position is that everything is devolved except those things that are reserved to Westminster.

In Wales, it has been the reverse. Nothing has been devolved except those specific things which Westminster legislates to let go of.

But as we saw at the Supreme Court, the current settlement is vague and incomplete. It results in confusion about where exactly the boundary of devolution is.

The St David’s Day agreement will change this. Introducing a reserved powers model creates a much more stable platform to enable greater clarity about the responsibilities of Parliament and the Assembly, and of both Governments. It will make governing Wales more transparent, and easier for the people who elect us to understand.

Second, along with changing the foundations of Welsh devolution, the St David’s Day agreement also devolves wide-ranging additional powers to the Assembly.

These include decisions that affect the day to day lives of people in Wales – over whether new wind farms should be built; whether licenses should be granted on fracking; what the speed limits should be on Welsh roads; how taxis and buses in Wales should be regulated; whether 16 and 17-year-olds should vote in Assembly and local government elections; and what the Assembly should call itself.

Many of these new powers are based on those recommendations in the second Silk report on which there was political consensus. It is, if you like, a baseline of commitments by all four main political parties in Wales going into May’s General Election.

It says to the people of Wales that whoever forms the next Government, this is a baseline for Welsh devolution to change in the next Parliament.

It is of course not the end of the story. Political parties can, and will, set out their own proposals on devolution in their party manifestos.

But the St David’s Day agreement sets the framework within which each party can make its proposals. And it provides the firm foundation from which we can move forward on a new Wales Bill in the next Parliament.

Third, and crucially so far as wider Welsh politics is concerned, we’re proposing what’s known as a “funding floor” to protect the level for funding provided to Wales relative to equivalent funding for England.

I’m sure that some of you here this evening are familiar with the nuances of the Barnett Formula. But for those whose eyes glaze at its mere mention, let me just say that the introduction of what is known as a Barnett Floor is really significant, because it will ensure that Wales always receives more money than England, to compensate for greater socio-economic needs.

It is true that Wales is not currently underfunded. “Convergence” – the process by which relative Welsh funding levels slide down to those of England, is not happening at present. Indeed the opposite is happening. And Welsh funding is currently over 15% higher than equivalent funding in England; a level Professor Gerry Holtham concluded was fair when his Commission looked at Welsh funding issues some five years ago.

But we have taken this decision now to introduce a funding floor, to guarantee that Wales always receives a fair level of funding. Because I know that this is the one “devolution” issue that resonates with the people of Wales out on the doorsteps.

And so I am hugely proud to be part of a Government which has finally addressed this long-running sore in Welsh politics. A funding settlement that will provide certainty for Wales and enable the Welsh Government to plan for the future and grow the economy.

The St David’s Day announcement will also enable the Welsh Government to issue bonds to borrow for capital expenditure. This comes on top of the package of tax and borrowing powers the Government is devolving to Wales through the Wales Act 2014.

But there is still some unfinished business.

Welsh Government’s Reaction:

The First Minister’s reaction to this historic announcement has been disappointing, especially as he participated in the process so constructively. He has described our commitment to a funding floor as a “vague promise”.

There is nothing vague about the Government’s commitment. Let me be clear. There will be a funding floor. We will agree the precise level of the floor, and the mechanism to deliver it, alongside the next Spending Review. It is only sensible to take these decisions in the context of UK-wide spending decisions.

This is precisely what the Welsh Government asked for in discussions about funding which took place as part of the St David’s Day process.

So why is the First Minister now so lukewarm?

Well, it comes back to the unfinished business I mentioned a moment ago.

In committing to a funding floor we are removing the last roadblock put in place by the Welsh Government to calling a referendum on income tax devolution – part of the package of tax and borrowing powers in the new Wales Act.

The Welsh Government does not want to be responsible for some of the income tax raised in Wales; for raising significantly more of the money it spends; for linking its decisions on spending to the money that it would take from taxpayers’ pockets. For that entails a whole new level of accountability. The kind of accountability which is the hallmark of any mature government answerable to a strong legislature.

Instead it prefers to continue its existence as essentially a large spending department, where the excuse for any element of under-performance or non-delivery is always, always that the funding is never enough.

So my challenge to the Welsh Government is simple: it’s time to step up.

The Assembly has shown it is now a mature, responsible legislature, passing laws on a whole variety of new and innovative subjects, such as organ donation. And the St David’s Day agreement has reflected this by devolving to the Assembly full control over how it conducts its business, what it should call itself, how big it should be, what the electoral system should be for Assembly elections and who should be eligible to vote in those elections.

The Assembly will be responsible for its big decisions.

It is now time for the Welsh Government also to demonstrate it is a mature Government, ready to accept taking tough decisions about raising revenue, not merely spending it.

In introducing a funding floor to protect against the way the Barnett formula operates for Wales, we have made clear that we expect the Welsh Government will call a referendum on income tax powers in the next Parliament. It means that people can go into that referendum knowing there is a funding guarantee for Wales.

That is responsible devolution and that is real devolution.

Moving towards some responsibility over income tax is the next step for Wales.

Future Challenges:

We are living in remarkable times. The nature of politics is changing, both in the UK and internationally.

There are many future challenges in ensuring Wales is governed well and meets the global challenges of the twenty-first century.

For me, three challenges are particularly relevant to Wales.

Local Decision-Making:

First, we are witnessing a decisive shift in the way people view government. They no longer want “big” government, deciding what’s best for them. They want decisions to be taken more locally, and to feel part of the decision-making process.

I believe in stronger devolved government and stronger local government – devolution down as far as possible, to the most appropriate local level.

That is what we’re doing in England. We’re creating a ‘Northern Powerhouse’, an initiative spearheaded by figures such as the Chancellor George Osborne and Lord Heseltine to deliver radical decentralisation from Westminster to the North of England.

It is about rebalancing the UK economy, reviving the economic and civic strength of the Northern cities to provide jobs, investment and prosperity.

Greater Manchester is blazing the trail, with a devolution package including skills, transport and housing, with a combined authority led by a directly elected mayor. It will also be the first English region to gain complete control of its Health budget – a £6 billion budget.

And it’s not just the Northern cities. We are decentralising powers to local councils and city regions right across England, and across the NHS in England. And in areas which are not devolved, we’ve devolved powers in England and Wales – establishing directly elected Police and Crime Commissioners for example.

We are now in a new age of politics. An age where people are demanding more say at the local level over decisions that affect them directly. This, I believe, is a direct consequence of globalisation. An age where people reject the old notions of one size fits all politics, and look for solutions more tailored to local circumstances.

This is 21st century devolution. Devolution in a digital and global age.

But the localism powers that we devolve to the Welsh Government seem to go no further. Powers are gathered and gripped tightly at Cardiff Bay with precious little sign of devolution downwards and outwards to the communities across Wales.

Welsh Government seems to want to collect powers as someone would collect stamps: for display purposes only. They’re not used. And they’re not devolved down further within Wales to the local communities that could put them to good use.

Devolution should be about empowering communities not institutions.

This is an important part of the devolution debate which has barely even started in Wales where the last 15 years have been dominated by discussion around a 20th century model of devolution.

I want to see powers flowing down to the cities and local communities of Wales, just as they are in England, so that local communities can take decisions on matters that directly affect them, and the diversity of Wales can be fully and properly expressed in the way that we are governed.

The New Pragmatism:

The second challenge is to harness for Wales the new pragmatism that is emerging in politics.

A pragmatism where old ideologies are set aside to work together for the common good. And where the old blinkered vision of party politics is replaced by mutual understanding and compromise to get the job done.

This does not mean surrendering long-held principles. But it does mean being open to ideas and views, and working together for common goals.

The Northern Powerhouse work I described earlier is an excellent example of councils in cities like Manchester, Liverpool and Leeds working closely and co-operatively with Westminster for the common good.

I want this pragmatism to become the hallmark of a new politics in Wales too.

We are not living in an ideological age.

I want the traditional tribalism of Welsh politics to become a thing of the past so that we can focus on how the new powers which will be devolved to Wales can be used to best practical effect – and, in so doing, replace the never-ending debate about devolution with the right focus on economic growth and jobs that Wales needs.

I have endeavoured to apply this principle to my own work as Secretary of State for Wales. But the new pragmatism requires a shift in thinking by all politicians in Wales.

Wales has suffered from too much ideology in the past – from the Right and equally from the Left. Those who pride themselves on being steeped in Welsh socialist dogma should take no pride when travelling through some of our Welsh communities.

A Presumption of Power:

There should be more to devolved government than free prescriptions and charges on plastic bags. The new powers being devolved under the St David’s Day package provide a toolkit to be used for the renewal of Wales. They are powers for a purpose. Powers to be seized boldly and used wisely for the good of Wales.

A New Way Forward for Wales:

But the St David’s Day process has demonstrated that political parties can work together for the common good of Wales. Parties with very different philosophies about the future constitutional make-up of the UK have worked together to agree a set of commitments that form the building blocks for a new devolution settlement for Wales.

I want to see a new Wales Bill introduced early in the next Parliament to deliver a stronger, clearer and fairer devolution settlement for Wales as soon as possible.

But I believe this May’s General Election will not be the only decisive moment for Wales’ future. In fact, I believe the next Assembly elections in May 2016 have the potential to be just as transformative for Wales. Because in 2016, there is the opportunity for a new Welsh Government to take the reins, to make the most of the new powers being devolved to it; to use them sensibly to grow the Welsh economy, create jobs and improve Wales’s public services; and, crucially, to accept the need for greater accountability to the people that elect it.

Conclusion:

We are living in an age of dramatic political and constitutional change – and we haven’t even mentioned the European Union yet.

But the priority of most people remains constant. It is about quality of life, the quality and security of their jobs, and the future for their families.

We need to get the political and constitutional fabric of this country right, so that Governments – both at the UK and the devolved level – can get on with the job of delivering economic growth and a secure future.

I would like to see the focus of future political debate in Wales not to be about which powers should rest where, but instead how these powers are used for the people of Wales.

Politicians, and political parties, should not be shy to forge new alliances, new partnerships, if it helps deliver for the people of Wales.

This is devolution with a purpose.

This is the new pragmatism.

A new politics to enliven democracy in Wales.

An enduring settlement which works for Wales today, tomorrow and for generations to come.

Epilogue:

Finally, I will turn back to Gerald of Wales, who tells a story of the old man of Pencader. King Henry II spoke to the old man whilst journeying to Cardigan Castle to receive homage from the local ruler, Lord Rhys. He wanted to know how the locals viewed the political situation and what they thought about the future.

The old man replied that although Wales might be attacked, even defeated, by her neighbours the English, the country would only ever really be destroyed by divine anger. More importantly, it was the Welsh themselves who would answer for their fate.

As the old man said:

“this nation …will never be [totally] destroyed by the wrath of man, unless at the same time it is punished by the wrath of God.”

And he went on to say:

“I do not think that on the Day of Direct Judgement any race other than the Welsh …. will give answer to the Supreme Judge for all this small corner of the earth.”

I could not have put it better myself.

Below is the text of the speech made by Stephen Crabb, the Secretary of State for Wales, to the National Assembly for Wales in Cardiff on 24 June 2015.

Diolch yn fawr, Madam Presiding Officer.

May I begin by saying what a privilege it is to be here in this wonderful Senedd building for this debate on the new UK Government’s first legislative programme – a One Nation programme that seeks to strengthen the whole United Kingdom.

This is my first opportunity to participate in Assembly proceedings and I am pleased to bring with me the very good wishes of my two Parliamentary Under-Secretaries of State at the Wales Office – both formerly of this parish and who will be known well to you all.

It is almost a year since I was appointed Secretary of State for Wales.

At that time members of both the UK Coalition Government and the Welsh Government, not least the First Minister, were engaged in the campaign to encourage Scotland to stay within the United Kingdom.

I appreciate that not every Member of this place who went up to campaign in Scotland was on the same side of the argument. But I will never forget, a few days before the vote on one of my visits up there, standing in the Parliament at Holyrood with Ruth Davidson as school groups were taken on guided tours around the chamber, and reflecting on the remarkable moment we were in.

I was struck with the thought that whatever the outcome of the vote that Thursday, there was absolutely no doubt that the place of that Parliament would become ever more important in the life of the Scottish nation, and that the authority and role of that Parliament as a law-making body and as a forum of national debate and argument and resolution would only grow.

And I believe that is the destiny of this National Assembly too.

To be a Parliament

This Senedd is, after all, a place that my own children visit on their school and Urdd trips to learn about democracy in Wales;

– it is the place where the First Minister and I stood side by side with Cardiff schoolchildren and watched that remarkable fly-past to mark the close of the NATO summit last September;

– it is the place where members of the French community gathered with Wales’ senior Rabbi and the Secretary General of the Muslim Council of Wales days after the Charlie Hebdo terrorist atrocities in Paris – a place of grief and solidarity;

– and it is to this Senedd where communities from across Wales come to protest over changes to their hospital services.

Because a Parliament without protests is barely a Parliament at all.

Increasingly and unquestionably, this is an important gathering place: a place of deliberation and decision making, a symbol of Welsh national life.

And I stand here this afternoon recognising that this very procedure I am complying with – to come here and speak about Her Majesty’s Gracious Speech – envisaged and legislated for in the days when a strong law-making Assembly for Wales seemed a long way off – is something of an anachronism. An overhang from another era.

Madam Presiding Officer, I know this is something you and I have spoken about on numerous occasions and so you will be pleased to hear that I intend to abolish this procedure as part of the forthcoming Wales Bill which was announced in the Gracious Speech last month.

I am sure you will find a far better use for this seat.

But I will return to the Wales Bill shortly.

Queen’s speech

Madam Presiding Officer, the mission statement of this new UK Government is to help working people, to champion social justice and to unite all the peoples of our nation.

Through the Queen’s speech last month we announced our legislative programme to build on the important work we started five years ago to improve the lives of everyone in our country and I would like to summarise what I believe this means for Wales.

Queen’s speech: Helping working people and social justice

Firstly, I am proud to be part of a Government that has overseen remarkable falls in unemployment across the UK and particularly here in Wales since 2010. It is absolutely central to our programme in this Parliament to see that continue, and so we will bring forward our Full Employment and Welfare Benefits Bill to help more people seize the work and life opportunities that new employment brings.

Nothing is more important to me than seeing Wales share fully in the fruits of the UK economic recovery.

Since 2010, there are 34,000 fewer children in Wales growing up in homes where no parent works. That is absolutely transformative for those lives – for those individuals and families growing up seeing a role model go out to work and bringing home a wage, smashing down the barriers to social mobility.

And so in this Parliament we will continue to reform welfare, encouraging employment by capping benefits, requiring young people to earn or learn and rewarding ambition by helping unemployed people become the next generation of entrepreneurs.

We will continue to reward hard work by helping people keep more of the money that they earn. Through the Finance Bill we will raise the tax free personal allowance to £10,600 next year and to £12,500 by the end of this Parliament. And let’s be clear about what that means…. people on the lowest incomes paying less tax: more money going back to the people who need it most.

We will also legislate to make sure that those people working 30 hours a week on the Minimum Wage do not pay any income tax at all and we will pass law to ensure there are no rises in income tax rates, VAT or National Insurance for the duration of this Parliament.

Key to our plan to help working people are the measures we will bring forward to back businesses in Wales, – who are the real job creators and the true heroes of this economic recovery.

There are around 230,000 SMEs in Wales today, up 26,000 since 2010, and I want to see that number rise well past a quarter of a million by 2020, with each new start up delivering new jobs, opportunities and new wealth for our nation.

And so through the Enterprise Bill we will cut £10 billion from the cost to business of regulation, helping firms to grow and create jobs and making sure that Britain remains one of the most competitive economies in which to do business.

Queen’s speech: One Nation

Aside from measures that will strengthen our support for working people and deliver social justice by breaking down cycles of dependency, our legislative programme will also strengthen the ties that bind the different parts of our United Kingdom together.

There is no question that one of the key strategic political challenges of our times, alongside the need to rebuild our national finances and reduce the deficit, is the constitution and how we hang together as a family of nations.

And so an absolutely core objective of the Government in Westminster is to seek to strengthen the United Kingdom as One Nation.

That means meeting the challenge of nationalism head-on, because we believe passionately in the Union – for all the benefits and the pooling of risk and opportunity it offers us all – and we know that this United Kingdom hasn’t had its day.

Decentralisation and devolution

But it also means delivering on devolution, not because we think we should meet nationalists half-way, but because a core part of our philosophy is recognising, especially in the 21st century, that as the forces of globalisation shape and reshape our world, the key to economic success for developed nations will be to push power downwards and to decentralise.

It means recognising that the old-style model of a highly centralised, Victorian nation state does not provide the dispersal of power and decision-making needed in an age when information, knowledge and capital move at lightning speeds.

Coupled with that is increased recognition, which there has been for decades now, that we simply cannot carry on with the UK economy becoming evermore lopsided, with London and the South East being the primary generator of wealth and growth for the UK – and increasingly looking like a city-state in its own right.

As a Government we will continue to respond to the urgent practical need to rebalance our economy, so that wealth is created and distributed much more evenly and fairly across the United Kingdom

Wales Bill

And so we will honour the commitments we made to Wales, Scotland and Northern Ireland in the last Parliament. In Scotland, we will follow through on our promises to devolve substantial further powers to the Scottish Parliament in line with the recommendations of the Smith Commission. In Northern Ireland, we will take forward the Stormont House Agreement to help create a more prosperous, stable and secure future for people there.

And crucially for this chamber, we will implement the St David’s Day Agreement to set about fundamentally re-writing the devolution settlement for Wales to make it clearer, stronger and fairer. This was an explicit commitment in our manifesto and one which we will deliver on – in full.

Back in October, when I was asked by the Prime Minister in the hours after the Scottish referendum to look again at the Welsh devolution settlement, I know there were some in this chamber who doubted where the St David’s Day process would lead.

But from the moment the ink was dry on the Powers for a Purpose document we published for St Davids Day, I assembled a team of officials at the Wales Office to begin drafting the new legislation. And so I intend to publish the Wales Bill in draft this autumn for pre-legislative scrutiny, before introducing it to Parliament early next year. It will be what we call a ‘carry-over Bill’ which will need to complete its passage during the second year of this Parliament and receive Royal Assent by early 2017.

And to those voices who express concern that the Wales Bill isn’t moving as fast as the Scottish legislation – let’s be absolutely clear about the scale of what we are doing here. This is no mere appendix to the existing arrangements for Wales or some kind of bolt-on extra – what we are embarking upon is a fundamental re-writing of the devolution settlement, the most far reaching and significant package of powers ever devolved to Wales. And I have been clear from day one that I will take the time necessary to get this legislation right.

Because when we talk about a clearer, stronger and fairer model of devolution – which is at the heart of our St David’s Day package – we mean clearer, by clarifying responsibilities through a new reserved powers model; stronger, by providing this place and Ministers with new powers and competencies; and, crucially, fairer, by taking forward our commitment to implement a funding floor in the expectation that the Welsh Government will call an income tax referendum.

Madam Presiding Officer, I am proud to be the first Secretary of State for Wales to go to the Treasury, argue the case for Wales and secure that historic commitment to a funding floor.

But I believe now it is time that the Welsh Government demonstrates its own commitment to the whole package by making progress on the income tax raising powers that are already available to it.

There is no other Parliament in the world that does not have responsibility for raising money as well as spending it.

In 1773 the Sons of Liberty smashed up the tea ships in Boston Harbour with the rallying cry “No taxation without representation”. Well, here in Wales we have something of a reverse situation: representation and full law-making powers but without responsibility for significant taxation. At the root of the emergence of democracy was that conjoined relationship between legislating and the raising of money in support of that legislation – which forms the core of democratic accountability.

Madam Presiding Officer, this is a package of devolution for Wales. And if anybody here thinks that somehow this package can be broken up, or that you can play political cat and mouse with any part of it, then they risk gravely misunderstanding what it is we are trying to achieve here, and what the opportunity is for us in Wales.

The opportunity to establish a devolution settlement, which might not go as far as Plaid Cymru or some others may like, but that is, I believe, reflects the centre of gravity of where Welsh public opinion is at to fulfil the outcome of our own Referendum in 2011 when – by a majority of two to one – the people of Wales said yes to a full law-making Assembly. By recognising too that support for independence and break-up of the Union is at a near record low in Wales.

Because I firmly believe the Welsh public are hungry for us to move forwards a nation and for this place – this National Assembly, this Parliament – to become a true forum of debate, resolution and a sense of purpose and action, the articulator of our national ambition for economic growth, wealth creation, educational achievement, first-class health outcomes for it to provide solutions on all the issues that really matter to the people it serves, not a vehicle for a never-ending conversation about more powers, or the generator of some dull consensus that settles on mediocrity where funding is always deployed as the great national excuse for not achieving our potential.

It may come as something of a surprise to you Madam Presiding Officer that during the recent election campaign, not once on any doorstep across Wales was I asked about more powers or devolution.

Actually we all know what the voters wanted to talk about.

And the disconnect and gulf between their concerns and what the Welsh commentariat focuses on every single day is enormous.

Localism

And because all the while we in Wales spend talking about devolving more powers to the Assembly, we risk missing out on the exciting opportunities that are transforming the economic and social prospects of other parts of the United Kingdom.

We in Wales are in danger of being hung up on an old 20th century model of devolution. While all across the rest of the United Kingdom we are seeing localism and decentralisation, sub-national devolution, flourishing in ways very few people predicted could be delivered from Whitehall. And our new Decentralisation and Localism Bill announced in the Gracious Speech will take that radical approach to a new level.

And, Madam Presiding Officer, when I see strong Labour-run Councils striking deals with the Chancellor of the Exchequer and the Treasury in places like Manchester and Newcastle, or in Glasgow – all these metro areas with populations that are not dissimilar to Wales, unlocking their potential to drive forward new innovation, growth and productivity for their regions, I don’t want to see Wales get left behind.

Because that same spirit of decentralisation, empowerment and pushing powers downwards to communities should be a characteristic of this place too.

And so the Cardiff City Deal will be a litmus test of two things for us politicians from Wales:

It will reveal whether we in Wales understand the decentralisation agenda and the exciting opportunities it presents for economic and civic renewal here in Wales. And crucially, it will also be a test of our political pragmatism.

We are a small nation and I believe we pack a much bigger punch when we work together. I don’t believe the old-school tribal warfare of Welsh politics has served Wales well over the years and I don’t believe it is actually what most Welsh people want from their politicians – that is certainly a message I get loud and clear from the business community who want to see pragmatism and collaboration become a hallmark of Welsh politics. And that approach is certainly one I am trying to deliver during my tenure as Welsh Secretary.

And so after the Wales Bill has been passed, the burden will fall to this place to press ahead with the dynamic localism agenda that is transforming the economic prospects of cities, regions and counties in England.

But I can announce today, that as a first step, we will devolve decision making on applications for all onshore wind farms down to the local level though the Energy Bill and related legislation… including here in Wales.

This change will give local people a greater say on whether wind farms should be built in their areas. And in line with the spirit of the St David’s Day Agreement it will then be for this Assembly and the Welsh Government to determine how these applications should be treated in future and whether they should stay at the local level.

Conclusion

I believe that every single one of us in this Chamber shares a common vision for Wales: a Wales that is confident, outward-looking and punching well above its weight in the global economy.

The UK Government is embarking upon an exciting legislative programme to help make that aspiration a reality, but for Wales to truly succeed this must be a shared enterprise at both ends of the M4.

I don’t want to see Wales fall behind. And so I come here today to say that it is time we put an end to the incessant discussion about further powers that has characterised Welsh politics for the last 16 years.

I reject the notion that devolution is some never-ending journey. The people of Wales have rejected independence and they are tired of the political disconnect that they see between the issues that matter to them and the seemingly never-ending debate about devolution they see us in engaged in.

And what will consolidate the role of this Assembly in Welsh national life will be more than just changing its name to a Parliament (which you will have the power to do in the future); more than any package of new competencies devolved from London to Cardiff; more than enabling 16 and 17 year olds to vote in Wales (which again you will have the power to do in future), and more even than putting an end to the Secretary of State turning up here each year to debate the Queen’s speech it will be when people in all parts of Wales – especially those that feel most distant from Cardiff, in North Wales and in the West, recognise that this Assembly is absolutely crucial to tackling the central issues that matter to their lives – not just a forum for grievance but a cockpit of resolution and action.

Madam Presiding Officer, I believe the new Wales Bill, announced in Her Majesty’s speech last month, supported by fair funding and new tax powers, will provide the opportunity for Wales to move on from the debate about powers and to look outwards and upwards.

Thank you for this opportunity to speak today.

Below is the text of the speech made by Stephen Crabb, the Secretary of State for Wales, at the Cardiff University Business School on 29 October 2015.

It’s a huge pleasure to be back at Cardiff University and for my first visit to the University’s flagship Business School.

I would like to begin by thanking the Vice-Chancellor for his kind welcome and for hosting this event – and also by saluting the Business School’s recent success.

The school was ranked 6th out of 101 by the 2014 Research Excellence Framework– testament to the hard work and dedication of the staff, students and researchers associated with the School. Not only has the School cemented its international reputation in recent years, it is estimated the School contributes £85m annually to the Welsh economy.

And I applaud too the Vice Chancellor’s strategic goal of seeing a Welsh university in the world’s top 100. That’s exactly the kind of ambition I love – Cardiff University aiming to be not just a success story within the UK – which it is – but a success globally.

The international dimension of Cardiff Business School is an important one. A diverse, international student body makes for a dynamic business school environment and actually reflects the global nature of the economic realities that business in the UK and in Wales contends with each day.

There is no corner of the economy in Wales which isn’t being shaped profoundly by global forces right now – whether that is through shifts in commodity prices, through the incredible international marketplace which the internet has created, or through the investment decisions being made by international firms which can impact on communities thousands of miles from the board rooms where those decisions are taken.

There is nowhere to hide any more – and that is really the theme of my talk this morning: the challenges and opportunities that globalization presents to the Welsh economy; why the UK Government’s radical approach to devolution and decentralisation is both a consequence of globalization and a deliberate policy response (at a national and city level too); and where I think this direction can take us in Wales.

It was while I was at business school myself twelve years ago that I came across a book by Thomas Friedman, The Lexus and the Olive Tree, which set out some thinking about globalisation which made a deep impression on me.

I had been in New York for a week to observe the leadership and management style of Mayor Michael Bloomberg’s City Hall as part of a study I was doing on Organisational Behaviour. And what a lesson on city leadership and the accountability demanded of the city’s agencies in terms of delivery on transport, housing and policing that was – and I will return to that theme later.

But it was when I was travelling back home I picked up a copy of Friedman’s book at the airport.

Friedman used two metaphors, the manufacturing and popularity of Lexus cars and the olive tree which has enormous roots in deserts where ancient peoples still engage in conflict over the ground where it grows, to illustrate two key characteristics of globalisation as he saw it – namely the quest for growth and wealth creation in all corners of the world and, at the same time, the struggle to preserve or rediscover identity and roots that give meaning to our lives at a community, tribe or nation level – even as the world changes at a breath-taking pace around us…

…and with capital and investment, trade, information, and people now moving around the globe at speeds, and in volumes, the likes of which were never thought possible.

There are lots that Friedman has to say about all this, and in his later book The World is Flat, but one of the key things for me was the questions it raised about how well equipped was our own nation state – with high levels of government spending and rigid and highly centralised structures of government – to ride these trends and to prosper in the kind of global system he was talking about.

And then came the crash in 2008… and we were found out.

Our lop-sided economy, built on an over-reliance on a booming banking sector geographically weighted more than ever before to London and the South East, and with the empty edifice of debt-driven government and consumer spending, was found out.

The deficit stood at more than ten per cent of our national income – one of the highest of any major advanced economy and the largest in our peacetime history. The British economy had suffered a collapse greater than almost any country in the Western world – a dramatic slump in GDP of around 8%, translating into an enormous destruction of wealth – with all of the decline in real wage levels and standard of living that went with it.

This is the backdrop against which we as a Government have been executing a plan since 2010 to restore stability to our national finances and return the country to a balanced budget – and ultimately to a position where in normal times we generate a surplus and pay down debt.

All of the big policy challenges that we have been grappling with as a government link back to this.

But while reducing the deficit remains a core and critical element of this plan, there is a much wider vision being driven forward to reshape and rebalance the UK economy – so that growth in the future will be more evenly generated across all economic sectors – and where innovation plays a much bigger role – where investment in world class skills and world class infrastructure is absolutely vital for future success – and where we make more and sell more of what we make in new and dynamic markets overseas.

Fundamentally, it’s about putting in place a framework for future economic growth and success in the challenging and unforgiving global economy of the 21st century.

And the vision is also about a more balanced economy geographically – where the nations and regions of the United Kingdom close the gap with London and the South East and all parts of our country share in the fruits of economic renewal.

And I believe this vision represents a compelling and exciting opportunity for us here in Wales where the gap with the rest of the UK – in terms of productivity, GVA, wages – still remains far too wide.

And where the competition is getting ever more intense.

Nobody else is slowing down to allow us to catch up.

So we must seize this opportunity because the world won’t wait for Wales.

And so this is where our radical approach to devolution and decentralisation is so important.

Devolution isn’t simply some bolt-on extra to our economic vision. Decentralisation is a key part of rebalancing the economy.

Pushing power downwards can lead to better, more nimble decision-making, more tailored to local circumstances and local markets, and a better chance of capitalising on fast-moving dispersed knowledge.

The logic of globalisation – and the correct response to the challenges that globalisation presents – is not ever more centralisation; it is the exact opposite.

It is to push power downwards and outwards.

There’s a deep connection between where decisions are made and what works……. political and economic solutions more tailored to local circumstances.

As a government we have committed ourselves to delivering a fundamental shift of power from Westminster to the people and communities of this country; promoting unprecedented decentralisation and ending the era of top-down government, by empowering local councils, communities and businesses.

And this has shaped our own approach to devolution for Wales too. We absolutely do recognise the importance of devolution in the context of Welsh nationhood and identity within the United Kingdom – what Thomas Friedman would perhaps describe as the Olive Tree dimension: our ancient roots and identity.

But we also want to see the Lexus dimension too – an economic dividend for Wales from devolution, with powers being used for much greater effect than what we have seen in the last 16 years – and especially in terms of wealth creation and growth.

I believe Wales is already punching above its weight on the global stage in some respects – and in recent weeks Cardiff has reminded the world once again why it is such a vibrant and exciting capital city for visitors from all over the world.

But let’s be clear, being positive about the Welsh recovery does not blind us to the serious challenges and weaknesses that remain.

Successful Economies need long-term investment in effective transport links.

Excellent connectivity will bring cities and markets closer together to help create the critical mass to compete globally.

Better connections between economic centres allow clusters to develop even where companies are located apart, supporting more trade, more interactions between businesses and the generation of more products and ideas.

As a Government we are putting right the chronic underfunding in infrastructure by previous governments, investing a greater share of our nation’s wealth in infrastructure than in the whole period of the last Government.

That’s why this Government’s programme of investment in rail infrastructure in Wales and across the UK is the largest and most ambitious since the development of the rail network in the 19th Century.

Electrification of the Great Western Mainline to Swansea will put South Wales on a much more even footing to compete with the South East as the Government works to rebalance the economy.

Crossrail will enhance the shorter journey times offered by electrification of the main line – bringing the burgeoning financial services sector in Cardiff to within two hours journey time to Canary Wharf, now one of Europe’s most important financial centres.

North Wales transport infrastructure also needs to improve to capture the benefits that HS2 will bring and all of the exciting opportunities being created by our Northern Powerhouse vision which aims to rebuild the economic and civic strength of England’s great northern cities.

But let’s take an honesty check here when it comes to infrastructure.

In recent weeks we have seen some fabulous World Cup matches hosted so brilliantly at the Millennium Stadium, producing a pay-off for the Welsh economy of tens of millions of pounds – only for fans to get caught up in traffic gridlock on the M4 resulting in journey times from Cardiff to London in excess of five hours.

That is not acceptable.

Twenty years ago my predecessors in the Wales Office were looking at the need for an upgrade of the M4 motorway between Cardiff and Newport. Devolution was supposed to help make this happen. But the truth is that sixteen years of Welsh devolution has not delivered that strategic project which would overcome a key barrier to growth.

Two years ago the UK Government struck a deal with Welsh Government to jump-start that project by providing Welsh Government with new financial borrowing powers – linked to the devolution of minor taxes.

But still business is waiting for any substantial progress on delivery from Welsh Government.

Meanwhile, many of the cities that Cardiff aims to compete with are seeing upgrades in their own transport infrastructure.

The world won’t wait for Wales.

On Valleys Line Electrification too – that crucial project to better connect deprived Valleys communities with centres of job creation in Cardiff, Swansea and Newport –one year on from the co-financing deal the Treasury struck with Welsh Government we have yet to see any concrete proposals for Welsh Ministers for the project. Human capital If devolution is to deliver, we also need the right support to build human capital and generate innovation.

The gap in labour productivity between Wales and the UK is larger than for almost any other region or nation of the UK. Reform of the skills system is necessary to provide cities with the skilled labour businesses need and innovation policy needs to support the development and diffusion of ideas.

Apprenticeships are at the heart of our mission to rebuild and rebalance the economy, with a step-change in the quality and status of vocational education. The UK Government has set a target of 3 million new apprenticeships over the next five years. This is a huge ambition and will take significant effort to achieve. We are offering support for businesses in England to help meet this and I want to ensure Wales is not left behind. We need a shared ambition right across the UK to deliver this.

I also want to see greater investment in innovation. We have some world class innovators here in Wales – take for example Airbus in Newport and their innovation into Cyber Security, GE Aviation at Nantgarw who are fuelling innovation and its application across the aerospace industry, and General Dynamics with their EDGE innovation network, which brings together industry leaders, academia and innovators with end users and customers in an open, collaborative environment.

And this week, Cardiff University’s expertise in researching and developing innovative technologies was recognised by Innovate UK, the UK Government’s innovation agency, as the location, along with five other regional centres, for the UK’s centres of excellence for Precision Medicines – a global market estimated to be worth £14bn and expected to grow to £50bn in 2020. The Precision Medicine Catapult has the potential to develop into a global industry generating both economic and healthcare benefits.

These are the challenges that should grip us and be our priority.

But there’s a real danger in Wales that our full economic potential is being hamstrung by a never-ending constitutional debate focused on a theoretical discussion about ‘powers’ which is entirely divorced from the practical importance of what these powers can actually achieve…

…where we spend years, decades even, locked in a prolonged constitutional argument about the finer points of devolution which does nothing to address the productivity challenge or our skills gap.

I long for the day when a Prime Minister or Chancellor of the Exchequer can visit Wales and the first question they’re asked is not about devolution and ‘powers’ but is actually about how we create a world-beating dynamic economy here in Wales.

And there’s a decision for all political leaders in Wales to make here – are we willing to reach agreement and settlement on these questions and move on to the issues that will determine whether we succeed or fail in the 21st century?

…Because the world won’t wait for Wales.

I have made no secret that my number one passion, my number one ambition, is not constitutional reform – but to see economic transformation for my nation of Wales.

The draft Wales Bill which I published last week recognises there is a strong appetite in Wales for a greater say over Welsh affairs within a stronger United Kingdom.

It provides an opportunity to draw a line under the constant debates about devolution which have characterised Welsh politics for too long. I am totally open to ideas on how we improve the draft Bill but the rhetoric coming from Cardiff Bay in recent days that the Bill should become their new cause celebre to prolong and deepen the debate about powers is, I believe, deeply misplaced.

We have a mature, respected legislature in the National Assembly, which will soon assume through the Wales Bill even more powers. And the Welsh Government itself will also get important new powers. I believe that these should be supplemented by new tax raising powers so that there is, for the first time, a true bond of financial accountability between Welsh Government and Welsh taxpayers – and with it new levers that can make a practical difference economically.

We have already spent far too long on this discussion in Wales. And we need to make progress. Because the risk is that we fall behind while the world moves on.

Last week the Chinese president visited Manchester to see how one of the UK’s major cities is re-inventing itself as the hub of the Northern Powerhouse. The leader of one of the world’s largest economies saw a city where its civic leaders, from across the political divide, have seized the opportunity of more powers to shape their destiny.

Greater Manchester is blazing a trail, with a devolution package which delivers decision making over important local priorities, including economic development, local transport, housing, skills and vital public services like health and social care- with a combined authority led by a directly elected mayor. It will also be the first English region to gain greater control of its Health budget – a £6 billion budget.

Wales suddenly has one more competitor.

One of the most radical aspects of the UK Government since 2010 is our determination to decentralise and push powers downwards and outwards –and backing it up with real economic and financial powers to harness innovation.

We are determined to unlock the civic and economic potential of our great cities. For as long as we can remember, cities have played an integral role in the political, economic and civic life of great nations.

Yet during the twentieth century, we witnessed a decisive shift of power and influence in favour of London and the south-east of England, often at the expense of our major cities.

For too long, governments have acted as though taking powers away from our great cities is the best way to create growth, rather than trusting the people living there to find their own specific solutions to meet their own local needs.

That is why as a government, we want powerful, innovative cities that are able to shape both their political and economic destinies, and get our local and national economies growing.

Like Manchester, Cardiff came into its own during the nineteenth century and has seen some remarkable transformations in the last twenty five years. But the world is not standing still.

As Manchester, Glasgow, Sheffield and others now power ahead – spurred on by bespoke city and regional deals – there is a risk that Cardiff is now left in the slow lane.

That cannot be allowed to happen.

To unlock the full potential of our cities, we are shifting even more powers and levers so that local leaders and businesses can continue to drive political and economic renewal.

A quiet revolution is taking place in the way Britain is governed. Rather than Whitehall setting the template, we are inviting cities and the business community to ‘do things their way.’ Giving local areas powers and freedoms to help support economic growth, create jobs and drive investment. Entrusting local areas with responsibility for decisions that affect their area.

The government has already concluded deals with Greater Birmingham and Solihull, Bristol and the West of England, Greater Manchester, Leeds City Region, Liverpool City Region, Nottingham, Newcastle, and the Sheffield City Region.

The core cities have estimated that the first wave of deals will create 175,000 jobs over the next 20 years and 37,000 new apprenticeships.

Crucially, this is a vision which is not confined to England.

In Scotland we have delivered the Glasgow and Clyde Valley City Deal, one of the largest ever agreed. This exciting project is estimated to create 29,000 jobs, and supporting over 5,500 unemployed people back into sustained employment. Early indications suggest that an estimated £3.3billion of private sector investment will be leveraged into the proposed infrastructure investment programme.

This deal provides an example of what can be achieved when all levels of government, businesses, universities and the voluntary and community sector work together to promote economic growth. A shared endeavour – and in a devolved national context too.

And we want to extend this offer to other major cities and local authorities right across the United Kingdom – including Wales.

Here in Wales we have one of Europe’s youngest capital cities – a city that is quickly achieving a reputation for being upbeat, vibrant, innovative and entrepreneurial.

It sits at the heart of a city-region that is home to almost half the entire population of Wales and is projected to grow by 26 per cent over the next 20 years.

I genuinely believe Cardiff is on the cusp of something great. Our capital city can use its position as an insurgent challenger to some of Britain and Europe’s great cities to shape its economic future and become one of the best places in the world to live, to visit, to study and to do business.

The UK Government has set this agenda in motion and I want Welsh Government, Cardiff City and the other neighbouring local authorities, alongside the business community and Higher Education, to seize this opportunity…

… to work with the UK Government, to make Cardiff an engine of innovation and wealth creation for the benefit of the whole of Wales.

But also, crucially, a City Deal in Cardiff presents the opportunity the make some fundamental changes to governance in Wales.

For if we are to rebalance the economy, cities need effective leadership and governance.

One of the main reasons for the decline of many cities over the last fifty years is a lack of strong leadership. OECD research has indicated that cities around the world with fragmented governance structures have up to 6% lower levels of productivity than those that do not – a result of incoherent decision making and blurred accountability.

This is of course a matter for the local partners, and for Welsh Government, but no-one should underestimate the importance of addressing questions of governance and leadership when talking about Cardiff’s future.

We have a brilliant opportunity with the emerging Cardiff City Deal but the message to the local partners and Welsh Government is to keep it moving forward. Other cities in the UK are trying to skip past us in the queue and are looking to strike growth deals with the Treasury. The world won’t wait for Wales.

And why should decentralisation stop at Cardiff?

There is enormous potential in Swansea too. Or the North Wales region where there isn’t a central city but nevertheless a distinct identity and economic structure which can be a platform for growth and renewal given the right tools and leadership.

But here lies a challenge for Welsh Government – to be a vehicle of decentralisation and devolution within Wales.

A reputation for centralisation and top-down control is at odds with the move to push powers downwards and outwards which we believe is key to capturing the economic opportunities that the 21st century offers.

This is an important part of the devolution debate which has barely featured in Wales over the past 15 years.

Why shouldn’t we see our very own devolution package for all corners of Wales?

We live in an age of radical change – an age of turbulent, global challenges. But the priority of most Welsh people remains the same. It is about their jobs, their quality of life, the standard of public services, and the financial security of their families and loved ones.

With the economic indicators all moving in the right direction, I believe Wales now has a golden opportunity to move forwards and achieve its potential as an outward-looking nation that punches well above its weight in the global economy.

It is high time we focused political debate in Wales on how powers can be used for the people of Wales.

This is what underpins my devolution vision.

Not devolution for devolutions sake, but devolution with a purpose…

…Devolution which unlocks investment, innovation and human capital so that Wales can succeed in the global race.

Because the world won’t wait for Wales.

My dream is that within twenty years Wales will be a beacon of economic success – where world class transport connections bring people from all over the world to visit and do business, and to learn the lessons from our world beating innovation, where our hubs in sectors like life sciences, compound semiconductors, advanced materials, aerospace, financial services underpin our productivity growth and standards of living that are least as good as the UK average, where the primary school children of today who are once again learning software coding have become a new generation of Welsh innovators and entrepreneurs, and where the apprentices on the factory floors today have become managers and business leaders creating jobs and new opportunities that are the envy of the rest of the UK.

Our destiny is not to be a nation of plucky losers but to have the ambition to take on the very best – and to win.

But I do sometimes have a nightmare that twenty years from now actually our national life will still be characterised by an ongoing inward-looking debate about Welsh powers and the constitution, where we still prop up the bottom of the economic league tables within the United Kingdom… and where we are still discussing the need for that damn M4 upgrade.

It doesn’t need to be like this. But we need to crack on.

Because the world is not waiting for Wales.