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This Written Statement updates Members on the development of regulations relating to the Subsidy Control Act 2022\. On 21 July 2022 the Department for Business, Energy and Industrial Strategy (BEIS) contacted the devolved governments to alert them to their intention to lay regulations to amend the UK Internal Market Act (“UKIMA”) as it applies to the Subsidy Control Act and remove the duty upon the Competition and Markets Authority (CMA) and the Secretary of State BEIS to consult the devolved governments with regards to statements of policy. At the same time, BEIS shared a draft copy of the ‘Subsidy Control (Information\-Gathering Powers) Regulations’.


There had been no mention of these draft regulations or intention to draft such regulations at any level meeting leading up to this date. I had no knowledge these were being worked on by BEIS and therefore no opportunity to input into the drafting or policy behind the regulations.


The draft regulations allow that the UKIMA will remain drafted as it is currently from a textual standpoint, with no changes made to the Act itself, only an implied textual amendment. This amendment will have the effect of removing the statutory requirement to consult with the relevant devolved government, putting this more at the discretion of the Secretary of State in relation to penalties (s43(8\) UKIMA) and the CMA in relation to preparing a statement of policy (s42(9\) UKIMA) in circumstances where these provisions apply to subsidy control.


I have considered the need to lay a statutory instrument consent memorandum and have determined that this draft regulation does not engage either Standing Orders 30A or 30B.


Nevertheless, I consider that the regulations, as drafted, will have the effect of removing the duty to consult the devolved governments with regards to statements of policy in circumstances where these provisions apply to subsidy control. This will negatively impact upon the Welsh Ministers devolved competence in relation to economic development and are in essence a reduction in powers of oversight for the Welsh Ministers in regards the continuing running and practical application of the UK’s subsidy control regime.


The removal of this obligation to consult is another example of the current UK Government’s unacceptable attack on devolution, stripping away necessary safeguards which aim to ensure a whole\-UK approach to the regulation of subsidies which, in turn, risks damage to the economic prosperity of Wales.


Further, section 67 of the UKIM Act (the enabling power for these draft regulations) was one of the provisions subject to the Legislative Consent Motion (LCM) where the Senedd refused consent. I therefore felt it appropriate to bring this matter to the attention of the Senedd.







Translation:


 
Mae’r Datganiad Ysgrifenedig hwn yn rhoi’r wybodaeth ddiweddaraf i’r Aelodau am ddatblygiad rheoliadau yn ymwneud â Deddf Rheoli Cymorthdaliadau 2022\. Ar 21 Gorffennaf 2022 cysylltodd yr Adran Busnes, Ynni a Strategaeth Ddiwydiannol â’r llywodraethau datganoledig i’w hysbysu am ei bwriad i osod rheoliadau i ddiwygio Deddf Marchnad Fewnol y DU fel y mae’n gymwys i’r Ddeddf Rheoli Cymorthdaliadau a dileu dyletswydd yr Awdurdod Cystadleuaeth a Marchnadoedd a'r Ysgrifennydd Gwladol dros Fusnes, Ynni a Strategaeth Ddiwydiannol i ymgynghori â’r llywodraethau datganoledig ynglŷn â datganiadau polisi. Ar yr un pryd, rhannodd yr Adran Busnes, Ynni a Strategaeth Ddiwydiannol gopi drafft o ‘Reoliadau Rheoli Cymorthdaliadau (Pwerau Casglu Gwybodaeth)’.


Ni soniwyd am y rheoliadau drafft hyn na’r bwriad i ddrafftio rheoliadau o’r fath mewn cyfarfodydd ar unrhyw lefel cyn y dyddiad hwn. Nid oeddwn yn gwybod o gwbl bod yr Adran Busnes, Ynni a Strategaeth Ddiwydiannol yn gweithio arnynt ac felly ni chefais gyfle i gyfrannu at y gwaith o ddrafftio’r rheoliadau nac at y polisi sy’n sail iddynt.


Mae’r rheoliadau drafft yn darparu y bydd Deddf Marchnad Fewnol y DU yn aros wedi’i drafftio fel y mae ar hyn o bryd o safbwynt testunol. Nid ydynt yn gwneud unrhyw newidiadau i’r Ddeddf ei hun, ond maent yn gwneud diwygiad testunol ymhlyg. Effaith y diwygiad hwn fydd dileu’r gofyniad statudol i ymgynghori â’r llywodraeth ddatganoledig berthnasol, gan wneud hynny yn rhywbeth mwy dewisol i’w benderfynu gan yr Ysgrifennydd Gwladol mewn perthynas â chosbau (adran 43(8\) o Ddeddf Marchnad Fewnol y DU) a’r Awdurdod Cystadleuaeth a Marchnadoedd mewn perthynas â llunio datganiad polisi (adran 42(9\) o Ddeddf Marchnad Fewnol y DU) o dan amgylchiadau pan fo’r darpariaethau hyn yn berthnasol i reoli cymorthdaliadau.


Rwyf wedi ystyried yr angen i osod memorandwm cydsyniad offeryn statudol ac wedi dod i’r casgliad nad yw’r rheoliad drafft hwn yn ymgysylltu â Rheol Sefydlog 30A na Rheol Sefydlog 30B.


Serch hynny, credaf mai effaith y rheoliadau, fel y maent wedi’u drafftio, fydd dileu’r ddyletswydd i ymgynghori â’r llywodraethau datganoledig ynglŷn â datganiadau polisi o dan amgylchiadau pan fo’r darpariaethau hyn yn berthnasol i reoli cymorthdaliadau. Bydd hyn yn effeithio’n negyddol ar gymhwysedd datganoledig Gweinidogion Cymru mewn perthynas â datblygu economaidd ac maent, yn eu hanfod, yn lleihau pwerau goruchwylio Gweinidogion Cymru o ran gweithrediad parhaus ac ymarferol cyfundrefn rheoli cymorthdaliadau’r DU.


Mae dileu’r rhwymedigaeth hon i ymgynghori yn enghraifft arall o ymosodiad annerbyniol Llywodraeth bresennol y DU ar ddatganoli, gan gael gwared ag amddiffyniadau angenrheidiol sy’n ceisio sicrhau dull ar draws y DU gyfan ar gyfer rheoleiddio cymorthdaliadau. Mae hyn, yn ei dro, yn bygwth niweidio ffyniant economaidd Cymru.


At hynny, roedd adran 67 o Ddeddf Marchnad Fewnol y DU (y pŵer galluogi ar gyfer y rheoliadau drafft hyn) yn un o’r darpariaethau a oedd dan sylw yn y Cynnig Cydsyniad Deddfwriaethol pan wrthododd Senedd Cymru roi cydsyniad. Roeddwn felly’n teimlo ei bod yn briodol tynnu sylw’r Senedd at y mater hwn.