Y Pwyllgor Menter a Busnes
Enterprise
and Business Committee
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Carl Sargeant AM Minister for Local Government and Communities Welsh Government
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17 October 2012 |
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Dear Carl
Welsh Government Draft Budget Proposals 2013-14
On behalf of the Enterprise and Business Committee I should like to thank you and your officials for attending the Enterprise and Business Committee meeting on 11 October as part of our scrutiny of the Welsh Government Draft Budget Proposals 2013-14.
Our scrutiny this year has been supported by an engagement event we held on 27 September where we spoke to a range of organisations about the priorities they would like to see reflected in the Government’s Draft Budget.
The Committee would like to make a number of recommendations for your considered response. We are also sending this letter to the Assembly’s Finance Committee to inform its overarching strategic scrutiny of the Draft Budget. Both our letter and your reply will be published on our website.
Transparency in the budget
The Committee notes the improvements made in the presentation of the Welsh Government’s budget documents which mean that the information provided to us is much clearer than last year. We welcome the fact that your paper includes details of allocations at budget expenditure line (BEL) level, which provides further clarity on your budget proposals.
We also welcome the work that has been done to re-structure budgets within your transport portfolio to align better with the priorities of the National Transport Plan. This was a concern that we raised in our budget scrutiny last year, so we note the progress achieved.
We further welcome the comment you made about being more joined up now with other Ministerial departments to maximise investment in transport projects where they impact on other policy areas.
Affordability
We note that your draft budget narrative explains that uncertainties about the financial settlement following the next Spending Review have prevented the presentation of indicative allocations beyond 2014-15.
The Welsh Government is increasingly using Regional Transport Consortia Annual Delivery Plans to implement a range of initiatives, such as the Safe Routes in Communities and Road Safety Programmes. The Active Travel (Wales) Bill white paper also envisages a central role for the Consortia in delivering the necessary walking and cycling infrastructure by creating a statutory link between the infrastructure maps proposed and Regional Transport Plan.
Given the enhanced responsibilities of Regional Transport Consortia to deliver programmes we therefore questioned the reduction in revenue for Regional Transport Plans.
Prioritisation
We note that your budget preparations have focused on ensuring spending plans are aligned to deliver Programme for Government priorities.
You state in your paper that the Active Travel (Wales) Bill will be introduced at the beginning of 2013. It is proposed that local authorities will have a duty to identify and map existing walking and cycling routes and to create a fully integrated network of routes “subject to budget availability”. You also state that you are reviewing current grants for walking and cycling to align them with the delivery of the Bill and that the costs of the Bill will be met through re-prioritising and consolidating existing active travel/walking and cycling budgets.
Value for Money
In February 2012 we asked you which key indicators you would be using to measure the success of the new bus funding scheme once it was introduced. Your response then was it was too early to comment but that you would consider key performance indicators once discussions had advanced. We note your comments on 11 October that you have not made any firm decision yet on monitoring the impact of the new funding arrangements, and we are grateful that you shared your initial thoughts on using information from ticketing machines to generate information on services. It is, however, difficult for us to carry out effective scrutiny on this issue given that discussions are still on-going with other partners.
Many elderly and disabled people are not able to use conventional public transport.
Budgetary processes
The Welsh Government’s Strategic Equality Plan contains a commitment to “tackling barriers that prevent disabled people’s access to transport and thus enabling greater participation in employment, leisure and community activities.”
The Minister for Environment and Sustainability has stated that he is looking at how the budget setting process is “truly driven” by sustainable development.
Finally, in the conversations we held with stakeholders at our “speed networking” event on 3 October it was suggested that there needed to be more open and frank discussion and better and earlier communication of budget decisions with the voluntary sector. There was also concern expressed that despite the Government’s three-year funding settlement, some voluntary organisations are still being financed on an annual basis, which causes uncertainty and instability for the most vulnerable of groups.
Thank you for assisting the Committee in its work, and we look forward to receiving your response.
Yours sincerely
Nick Ramsay AM, Chair, Enterprise and Business Committee
c.c. Jocelyn Davies AM
Chair, Finance Committee