|
CONCORDAT BETWEEN HM TREASURY AND THE CABINET OF THE
NATIONAL ASSEMBLY FOR WALES
Aim
The Government of Wales Act 1998 established the National Assembly
for Wales ("the Assembly"). HM Treasury has retained responsibility
for macro management of the UK economy including setting the totals
of spending funded by the UK taxpayer and by borrowing and some other
functions such as the regulation of financial services. Responsibility
for many other functions (that is, in broad terms, those described
in Schedule 2 of the Government of Wales Act 1998 and set out in the
Transfer of Functions Order made under section 22 of the Government
of Wales Act 1998) have been devolved to the Assembly. Primary legislative
powers rest with the UK Parliament at Westminster.
The purpose of this concordat is to set out clearly the relationship
between HM Treasury and the Assembly to ensure that both are aware
of the requirements of the other and that both are consequently able
to fulfil their responsibilities fully.
This concordat is made in addition to any statutory arrangements
for the provision of information to HM Treasury made under section
123 of the Government of Wales Act 1998 and the Statement of Funding
Policy published by HM Treasury on 31 March 1999.
Parties
This concordat is made between HM Treasury and the Cabinet of the
National Assembly for Wales.
General Principles
This concordat is non-statutory and not legally binding. However,
HM Treasury and the Assembly agree to abide by its provisions. It
should be read in conjunction with the Memorandum of Understanding
between the devolved administrations and the UK Government.
Period
This concordat will be reviewed initially after 12 months and then
at least every three years. It may also be reviewed at any other time
at the request of either party.
Consultation Arrangements
There will be regular consultations between officials from HM Treasury
and those of the Assembly to ensure that there is full co-operation
between the two administrations and that the business of both operates
effectively.
To this end there should be a formal liaison meeting between officials
from HM Treasury and the Assembly at least twice a year.
In addition, the Principal Finance Officer of the Assembly will be
invited to attend HM Treasury's regular meetings of Principal Finance
Officers of Government departments in addition to any attendance from
the Office of the Secretary of State for Wales.
Exchange of Information
Provision for the supply of information required by HM Treasury under
section 123 of the Government of Wales Act 1998 is set out separately.
In addition to that information, the Assembly undertakes to provide
HM Treasury with the following in response to all reasonable requests:
-
sufficient information to allow HM Treasury to issue proper accounts
directions;
-
sufficient information to enable HM Treasury to fulfil its responsibility
of managing the UK's national debt;
-
all the information necessary to allow HM Treasury to maintain
and update its Public Expenditure Database, including that information
needed to classify correctly the activities and transactions of
the Assembly in the national accounts and in the UK Government's
public expenditure control system;
-
information necessary to allow HM Treasury to maintain and update
its General Expenditure Monitoring System;
-
advance notice, wherever practical, of any proposed Welsh secondary
legislation or other policy developments which will have an impact
on HM Treasury's responsibilities, including macroeconomic management,
the management of foreign currency reserves, fiscal policy and
regulation of financial services;
-
sufficient information on National Non-Domestic Rates as they
relate to Wales to allow HM Treasury to produce National Non-Domestic
Rates forecasts;
-
the main procedural advice and guidance issued by the Assembly
Finance Group to Assembly Groups on issues such as accounting,
public procurement, external auditing and finance.
In return, HM Treasury undertakes to provide the Assembly with the
following:
-
advance notice wherever practicable of any UK legislation proposed
by HM Treasury or HM Treasury's policy developments which will
have an impact on devolved areas as they relate to Wales. HM Treasury
undertakes to ensure that any such legislation reflects the legislative
structure in Wales;
-
information relating to or affecting the level of Wales's Departmental
Expenditure Limit, Assigned Budget and Annually Managed Expenditure
allocations as soon as it is known in order to allow the Assembly
to manage its resources properly;
-
HM Treasury guidance to UK Government departments, such as DAO
letters, and advice and guidance on accounting, public procurement,
external audit and finance.
Access to the Reserve
Treasury officials will inform Assembly officials on a confidential
basis about cases of access to the Reserve in respect of comparable
programmes of UK Government departments as soon as practicable. Decisions
on access to the Reserve on the part of the Welsh Assigned Budget
will be made on the basis of the criteria set out in the Statement
of Funding Policy.
Receipts Direction
Under section 84(6) of the Government of Wales Act, the Treasury
may make a direction specifying certain receipts or categories of
receipt which are not required to be paid into the Consolidated Fund.
The Treasury will review, in consultation with the Assembly, any such
direction not more than one year after it is made, and thereafter
annually unless otherwise agreed with the Assembly. The Assembly may
at any time request a fresh review of any such direction, and the
Treasury will endeavour to respond within a reasonable time to such
a request.
Government Accounting Service
Accountants working for the Assembly will continue to be members
of the Government Accounting Service (GAS) and will therefore continue
to take part in all GAS activities.
Audit Policy and Advice Team (APA)
APA will continue to advise their Assembly colleagues. Liaison meetings
on internal audit matters will therefore continue between the APA
Group, HM Treasury and the Internal Audit Team of the Assembly, as
will participation in the benchmarking, quality assurance and HIA
letter process.
Government Procurement Service
Officials working for the Assembly in designated procurement posts
will continue to be members of the Government Procurement Service
(GPS) and will therefore continue to take part in all GPS activities.
Resolution of Disputes
The main intention of this concordat is to provide a framework for
consultation and co-operation which minimises the chances of disputes
occurring. To this end, both HM Treasury and the Assembly undertake
to conduct their relationship on a "no surprises" basis. In addition,
should disputes arise between HM Treasury and the Assembly, both parties
should attempt to solve these through the consultation arrangements
set out above.
If it is not possible to resolve such disputes within the consultation
framework established by this document, the issues shall be decided
by consultation between the Treasury Ministers, the Secretary of State
for Wales and members of the Assembly Cabinet.
Should agreement still not be possible, the matter shall be referred
to the Cabinet Office for the machinery established by the Cabinet
Office to mediate on the disputed matter.
In case of disagreement or dispute over matters relating to the level
of the Assembly's Assigned Budget, the operation of the funding Rules
or other actions of either the Assembly or the Treasury relating to
finance for Wales, the Assembly Secretary or Secretary of State for
Wales can pursue the issue with Treasury Ministers. This is the normal
procedure for resolving disputes on all financial issues and mirrors
the arrangements between the Treasury and departments of the United
Kingdom Government. The Treasury will consider and respond to any
such representation in taking this forward with the relevant party.
Such matters can also be raised at the Joint Ministerial Committee,
which will include the relevant Ministers from the United Kingdom
Government and devolved administrations.
December 1999
|
