Smith became known for his opposition to devolution and the formation of the National Assembly of Wales; in May 1997, Welsh Secretary Ron Davies threatened disciplinary action against Welsh Labour MPs who planned to campaign against a Welsh Assembly in the devolution referendum. Smith was a specific focus of this move, having various party meetings about his views and being threatened by Davies and his policy adviser with expulsion if he chose to act on them. A public row ensued in which Davies was pushed to say that those who reasonably opposed devolution, including Smith, would not be removed from the party. After this, Smith stepped back from his complaint to the standards and privileges committee, but did not withdraw it. Following the creation of the Assembly, he continued to vote against giving it further powers and funding, and led a campaign to change its voting from a proportional list system.