Tuesday 6 July 2010

Annibyniaeth Ariannol i Gymru? Fiscal Freedom for Wales?

gan Owain Rhys James

Gyda Comissiwn Holtham yn cyflwyno mwy o’i ganlyniadau heddiw fe gafodd cwfnogwyr datganoli mwy o bwerau, a’r rheini sydd yn dadlau yn erbyn y Cynulliad oherwydd ein body n dibynnu ar arian Lloegr, ddigon i gnoi cil drosto. Awgrymodd yr Gerald Holtham y dylai’r cynulliad gael y pwer i newid trethu gan arwain at fwy o bwerau i’r Cynulliad. Yn fy mhran i buasau hyn yn gyfle gwych i’r Cynulliad ddatblygu i fod yn fwy cyfrifol dros yr hyn y meant yn ei wneud gan rhoi’r cyfle iddynt ddatblygu eceonomi’r wlad yn ol anghenion arbennig Cymru. Gan a fydd yr effath ariannol yn newid llawer yn y Cynulliad buasau’r elfen gyhoeddus yn rhoi’r gallu i’r pleidleiswyr fesur llwyddiant y llywodraeth o ongl newydd.

Mae’r pwerau newydd i godi trethu yn agor y posibilrwydd o benderfyniadau anodd ac amhoblogaidd ofnadwy, ond mae hyn yn wir am unrhyw fath o bwer llywodraethu. Ers ymuno a’r lywodraeth glym-bleidiol mae Plaid wedi bod yn llwyddianus wrth lywodraethu fel y mae ei angen, gan gymryd penderfyniadau anodd, ac ar y llaw arall parhau i gadw cefnogaeth etholwyr. Buasau caniatau i’r llywodraeth newid trethu mewn adrannau arbennig yn ei galluogi i ddelio a’r torriadau brawychus i arian cyhoeddus sy’n cael ei drafod yn San Steffan.

Mae canlyniadau defnyddio’r pwer yn ddiddorol. Fe all y Cynulliad godi treth incwm gan 1c ymhob £ gan godi tua £150milliwn o arian treth ychwanegol; ond mewn gwirionedd ni ellir gwneud llawer a swm mor fach o arian ac fe all yr amhoblogrwydd arwain at fusnesau a talwyr treth i groesi Clawdd Ofa i dalu trethu yn Lloegr. Yn groes i hyn fe all disgyniad mewn treth anog pobl i ddod i Gymru gan arwain at gyfanswm uwch o dreth yn cael ei godi. Digon i’r cabinet yng Nghaerdydd ei bendroni.

O rhan Plaid, mae hyn i’w weld fel cyfle gwych i’r Cynulliad ddatblygu a phrofi ei werth yn ystod y cyfnod economaidd anoddaf ers blynyddoedd. Buasau’r annibyniaeth ychwanegol hyn yn ein galluogi i ymateb fel yr angen i sefyllfa Cymru ac yn rhoi’r gallu i’r Cynulliad fod yn atebol i’r etholwyr.


Nodyn bach arall am ddadl sy’n codi yn San Steffan. Mae’r cwestiynnau cyntaf am addasrwydd cael AS o Loegr fel Gweinidog dros Gymru yn cael ei gofyn gan Peter Hain wrth iddo gwyno fod Cheryl Gillan yn gorfod cymryd arian y treth-dalwyr i dalu am ei gwesty pob tro y bydd yn ymweld a Cymru. Er mae ond pwynt arwynebol yw hyn mae’n ein atgofa bod Cymru heb cael ei gynrychioli yn Llundain gan y llywodraeth Ceidwadywr-Ceidwadol; rhywbeth sy’n peri gofid pan bydd angen i lais y Cymry cael ei glywed yn San Steffan.


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It’s been an interesting few days for Welsh economic news with yesterdays unveiling of a new inward investment plan and the second report of the Holtham Comission into public funding for Wales. Today’s suggestions by Gerald Holtham make interesting reading for all with an interest in Welsh political affairs and for those who have opposed Welsh devolution on the basis of the need for financial reliance on the English purse. It is that second group of people who I think will be most grateful for this suggestion.

Giving Wales a power similar to the so-called ‘Tartan Tax’ as it is in Scotland is a huge step for the Assembly. In real economic terms it will not be ground-breaking but in the electorate’s eyes this new financial responsibility will prove to be a key measure of a governments success. As Mr Holtham himself stated it will be the new requirement for the Assembly Government to consider the true cost effectiveness of measures that will be the actual result from this proposed change.

The giving of this additional power will of course bring with it the possibility of tough and unpopular decisions, but that is the downside of power. Plaid has, since joining Labour in coalition in 2007, grown used to such decisions and has been reasonably successful at securing public support in spite of difficult choices made. The ability to raise taxes gives a clear opportunity to cause unhappiness amongst various classes of people and how the Assembly deals with this will be a measure of their ability to govern independently. Allowing the Assembly to soften the cuts to some key areas by distributing their own collected monies to those areas may be one way of avoiding the 40% discussed by Westminster.

Possible results of varying taxes are very interesting. A raise of 1p in the £ would bring in approximately £150million in additional revenue; but may also lead some higher earners to cross the border and pay their taxes in England resulting in an overall reduction in funds. The contrary argument may be that lowering tax rates would persuade people to move to Wales meaning that the total collected by the Welsh Taxman would be greater.

All in all an interesting development for the government in Cardiff and London to consider, and for us in Plaid a fantastic opportunity to embrace new challenges and use these new powers to benefit the people of Wales.


A final few words which may interest some of you; the first result of having an English MP as Secretary of State for Wales has caused a mild political storm at Westminster. Peter Hain has raised the issue that Cheryl Gillan has to claim expenses for her hotel visits every time she visits Wales as she has no home here. Political points scoring this is, but it does highlight the fact that Wales is not truly represented by the Con-Dem coalition.

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