The Welsh Liberal Democrat Coalition Experience, 2000–2003
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TGOHE WElshI NLIBERGAL DEMOC INRATT COAOliti LABOUON EXPERIENCE 2000–2003R The Cook-Maclennan Agreement reached Unlike in Scotland, the Labour Party in Wales between Labour and the Liberal Democrats was hostile to a coalition, and initially tried before the 1997 election included a to govern alone – only to enter coalition with commitment to establish directly elected the Welsh Liberal Democrats from 2000 to parliaments in Wales and Scotland. After a 2003. Russell Deacon tells the story, and closely-fight referendum campaign in 1997, reflects on the experience of working with the the Welsh Assembly came into being in 1999. Labour Party. 62 Journal of Liberal History 83 Summer 2014 TGOHE WElshI NLIBERGAL DEMOC INRATT COAOliti LABOUON EXPERIENCE 2000–2003R rior to the Welsh Lab–Lib Labour just three AMs short of a the time being, the Welsh Liberal coalition in 2001, the Welsh majority. To an astute observer Democrats were able to settle into PLiberal Democrats – like the of British politics, it would have opposition without the rigours of Liberal Democrats across the UK seemed obvious that a coalition ministerial office and government – had little experience of govern- would therefore be the inevitable responsibility. ment. Welsh Lords Geraint How- result. This was what had happened ells and Emlyn Hooson had been in the Scottish Parliament, in most closely involved with the 1970s local councils and also at Westmin- The road to forming a Lab–Lib Westminster Lib–Lab pact but that ster in the past and would happen coalition had ended over two decades before again in the future. It was expected For reasons of both geography and both politicians were now of to be the case in 1999 by both and population, the Welsh politi- advancing years in the Lords and national party leaders, Tony Blair cal world is much smaller than that quite distant from the day-to-day and Paddy Ashdown.3 of England. Most people, how- politics of Wales. The reality in Wales was that ever, have no idea quite how small Of the six newly elected Lib- Labour did not want a coali- the Welsh political world can be eral Democrat Assembly Members tion, even though it did not have on occasions. This is an important (AMs), none had parliamentary a majority of Assembly seats. The point when it comes to understand- experience, although five had local concept of a coalition govern- ing Welsh elections and coalitions. council experience1 (Kirsty Wil- ment was quite alien to its nature Prior to the Assembly elections liams being the exception with no because, unlike in Scotland, the both Michael German and Jenny previous elected experience outside Labour Party had held the major- Randerson were linked closely to of the party). Michael German had ity of Welsh parliamentary seats the Cardiff Central constituency, the most experience, being a for- since 1922. In the 1997 general elec- as both had gained their political mer deputy leader of Cardiff City tion they had secured 85 per cent experience within that constitu- Council in a Lab–Lib coalition in of the Welsh representation; the ency as Cardiff City councillors. the 1980s. Welsh Liberal Democrats, in con- They had both been group leaders On 27 May 1999 Queen Eliza- trast, had secured a mere 5 per cent. on the city council and both had beth II officially opened the Welsh Although Labour had only gained worked closely with future Labour Assembly. In the run up to the 47 per cent of the seats at the 1999 members of the Assembly Cabi- Assembly elections, the Welsh Lib- Welsh Assembly elections, this net whilst on the council (Rhodri eral Democrats had talked publicly sense of dominating Welsh politics Morgan, Alun Michael and Sue about gaining ten seats out of sixty; remained strong within the Labour Essex). German, Randerson and privately they believed would get Party. As proof of this, Labour’s Peter Black had also worked closely eight; they ended up with six. The First Secretary at the Assembly, with Andrew Davies (the Assem- electorate did not, in fact, give a Alun Michael, had chosen his bly’s Labour Business Manager) majority to any one party, let alone Assembly Cabinet as soon as the during the ‘Yes for Wales’ refer- the Welsh Liberal Democrats,2 election results were known. So endum campaign. As a result, the leaving the Assembly in a position despite Ashdown’s anger over what senior Liberal Democrat AMs had of no overall control. The numbers he saw as Blair’s squandering of the extensive experience of working were twenty-eight Labour AMs, chance to ‘play out the project on not simply with Labour but also seventeen Plaid Cymru AMs, nine Left: the Welsh another stage’,4 the Welsh Assem- with the very individuals who were Conservative AMs and six Welsh Assembly in bly Executive did not contain now sitting in the Welsh Assembly Liberal Democrat AMs – with session any Liberal Democrats. Thus, for Cabinet. Journal of Liberal History 83 Summer 2014 63 GOING INTO LABOUR: THE WElsh liBERAL DEMOCRAT COAlitiON EXPEriENCE, 2000–2003 After a short while, the Welsh overall control’, he would bring stabilise the situation, the half a bil- Liberal Democrats settled down in everyone on board equally. After lion pounds of ‘matched funding’ the Assembly and began to assert the Assembly election, Michael needed for Objective 1 were now themselves within the Welsh party, was keen to secure Welsh Liberal made available. The Welsh Liberal moving its centre of gravity away Democrat support in the event of Democrats had felt they achieved from the mid-Wales Liberal parlia- a vote of no confidence in him. He their first victory. They then joined mentary dominance of the previous did not, however, wish to concede the Labour Party in further secret half a century, towards other parts a formal coalition, with real influ- talks and shortly afterwards pro- of Wales. This power shift did not ence for the Liberal Democrats duced a draft partnership agree- take place without some resistance within the Assembly government; ment. It was not until a week before from the mid-Wales MPs, and com- and the Lib Dems had little enthu- the announcement of this Partner- munication between the Assembly siasm for a partnership on lesser ship Agreement that German and Members and the Welsh Lib Dem It was here grounds. Alun Michael himself was Morgan eventually sat in the same MPs and Lords was, for a while, that German consequently seen as a major obsta- room to thrash out the finer points quite strained with neither side con- cle to the formation of a Lib–Lab of the deal. The whole process had sulting the other about their plans was able to coalition and to the future of the been so secretive that the two par- or strategies.5 Whilst these internal Assembly itself, not only by Liberal ties felt that they could have walked squabbles were taking place, upon convince Democrats but also by many of his away at any stage without recrimi- the horizon arose the increasingly own Labour Assembly Members. nations.9 Reviewing the coalitions important issue known simply as conference The Welsh Liberal Democrats, in Wales and Scotland in 2004, the ‘Objective 1’, which would come to like the other opposition parties, academic Ben Seyd felt that the dominate Welsh politics and lead to representa- were not prepared to accept Alun Welsh coalition arrangement had an eventual coalition. Michael’s assertion that they could worked out better for both Labour tives that trust the Chancellor to deliver the and Liberal Democrats in Wales extra funding required in the Com- because it had been worked out The background to ‘Objective 1’ the Liberal prehensive Spending Review in over a much longer period than in In 1999 the West Wales and the Val- the summer of 2000. Thus, when Scotland.10 Part of the result of this leys region qualified for Objective Democrats an opportunity came for a vote of was that the coalition agreement 1 European Funding as its GDP was no confidence in Alun Michael, between the parties in Wales was less that 75 per cent of the EU aver- had got such the party joined the other oppo- more than twice the length of that age. Some £1.2 billion was made sition parties in supporting this in Scotland despite the fact that available to be drawn from EU a good deal vote. Michael was able to resign Wales had no primary law making structural funds, however around shortly before the vote was carried powers at this time. a further £860 million needed to in the coali- out against him, therefore avoid- Before the Welsh Liberal Demo- be contributed from British pub- tion arrange- ing having to do so afterwards. crats could officially go into coa- lic finances in order to secure this Prior to this event he had already lition they still needed to have funding. The consequence was that ments, lost the confidence of his own AMs a special conference and vote to the First Minister Alun Michael who declined to renominate him if endorse the coalition. This was was unable to guarantee that Wales getting he resigned, which meant that his duly done in Builth Wells on 14 would get this funding because the old political rival Rhodri Morgan October 2000. It was here that Ger- Chancellor of the Exchequer, Gor- some 114 of now became the new First Min- man was able to convince confer- don Brown, would not commit the ister and the coalition arrange- ence representatives that the Liberal New Labour government to any their poli- ments were back on the table.