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The Welsh Devolution Debate
18 August 1997

Quango Cuts Will Pay For Assembly, Says Welsh Secretary

The Welsh Secretary Ron Davies has pledged that cutting the number of quangos in Wales would more than pay for the cost of running a Welsh Assembly.

The running costs of an Assembly in Cardiff have been estimated at between £15 million and £20 million a year, and opponents have claimed this would mean less money for public spending in Wales.

But Mr Davies said that the costs would be met by reducing the bureaucracy of the non-elected bodies and he promised that public services would not suffer cuts as a result of the cost of devolution.

A spokesman for the Just Say No campaign dismissed the Welsh Secretary's arguments, saying that the Government would simply be replacing one layer of bureaucracy with another. Professor Nick Bourne said the savings made from quangos would be better spent on essential services rather than the Assembly.

Business Warned of "Compromise"

The Forum of Private Business says Welsh businesses should give careful consideration to the impact of devolution on their firms, saying that the proposals might be an "unhappy compromise for Wales."

A spokesman said on the one hand Welsh affairs might have reduced clout at Westminster, while law-making powers staying at Westminster will severely restrict the power of Assembly. The Forum is to ballot members before making its mind up on its policy.

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