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Manifestos > 2001 General Election

Preface

The election we are facing is a crucial one for Wales.

In the first election since the establishment of the National Assembly it is more important than ever before that we strengthen the presence of the Party of Wales at Westminster.

Wales may have had a measure of devolution but our laws are still made in London, and a strong presence of members of a party that is free to put the interests of Wales first is essential.

An important part of our work will be to scrutinise legislation at Westminster to give the Assembly an apportunity to adapt to the needs of Wales.

Similarly we are also needed to push forward the process of devolution and constitutional reform. One of our priorities will therefore be to introduce a bill that will give the Assembly legislative powers, on the lines of the Scottish Parliament.

The economic and social message of the Party of Wales will be equally important in the election.

With New Labour adopting more and more Tory policies, and the Tories moving ever further to the right, the need for such a party as Plaid Cymru to speak up for social justice is urgent.

It gives me great pleasure to present a manifesto that has been prepared with the specific purpose of meeting the needs of Wales, and I ask for your support in ensuring a strong voice for the interests of Wales during the coming parliamentary term.

Elfyn Llwyd
Plaid Cymru The Party of Wales
Parliamentary Leader

The Main Themes of the election of 2001

Introduction by Ieuan Wyn Jones President Plaid Cymru The Party of Wales

The people of Wales have a clear choice in this coming election.

Since the last Westminster election in 1997 the political landscape has changed radically following the introduction of devolution in Wales, Scotland and Northern Ireland. And there is no doubt that the most significant political change in Wales over this period has been the growth of the Party of Wales, which has had an opportunity to play a more prominent part in the life of our nation than ever in its history. As well as operating as the main opposition in the National Assembly, we control three local councils, have an important presence on councils throughout Wales, and hold two of the five European seats in Wales.

As we strengthen our position in the political mainstream, it has become increasingly evident to the people of Wales that we are the party to stand up for their interests, and for the interests of Wales at several different tiers of government. The clear message in this election is that we, and we alone, are the party to stand up for their interests at the Westminster Parliament too.

There are two principal themes that are central to our election campaign - the need for a fairer economic and social policy on the one hand, and for adequate powers for Wales on the other.

The new millennium has started at a time that is exciting in many ways for Wales.

Obtaining a measure of devolution through the establishment of the National Assembly was an important step forward for us as a nation, realising the aspiration of generations of our compatriots. Hand in hand with this political evolution the general growth in awareness of Welshness has continued, and this vitality is evident in many aspects of our cultural life.

Yet, the growth in our sense of identity and self-confidence as a nation is not reflected in the economic condition of Wales. In fact our country has suffered deeply in the wake of the policies of the last 20 years and more.

The enormous damage done to the economy of Wales during the 18 years of Tory governments that were forced on the people of Wales is evident to all. What is disappointing to many is that New Labour has pursued similar policies since the historic victory of 1997.

Recent blows suffered by manufacturing, steel in particular, demonstrate the savage effects of the Blair-Brown policy agenda on our economy and communities.

The centre-right mindset in favour of low public expenditure which currently dominates politics in Britain has led to the fact that Britain is the most unequal state in Europe.

This inequality is evident geographically as well as socially. Since Wales is a poor region compared with the whole of the United Kingdom, policies that favour the rich have dealt us a particularly heavy blow.

Along with the inequality in wealth, low public spending has led to a serious deterioration in our public services, and the state of our health service is a deplorable for a developed country.

Challenging this centre-right mindset in British politics is central for any party wishing to improve the lives of the people of Wales. In addition to being a core element of our most important values as a nation, fighting for a fairer society is an essential part of protecting our interests.

A key demand in this election campaign will be for reform in the way Wales is funded.

In view of our deteriorating economy, our poor health record and the higher than average proportion of elderly in our population, we need a system which gives more consideration to the needs of Wales instead of the Barnett formula which decides the budget of the National Assembly. We call also for the implementation of economic and monetary policies which will enable Wales to achieve its economic potential.

Our great task as a party will be to take forward the devolution process. Plaid Cymru sees the establishment of the National Assembly as the beginning of a process of taking increasing responsibility for our own fate. But it has become increasingly evident over the last two years that there are fundamental weaknesses in the current constitutional arrangements. The lack of clarity concerning the powers of the Assembly has seriously hampered its operation.

Legislative powers are a must - and as soon as possible - to enable it to function properly. To this end, the Party of Wales will introduce a bill to give Wales a legislative parliament similar to that of Scotland.

We are also determined to see Wales having a greater voice in Europe. Far reaching changes will occur over the coming years, and how the European Union evolves is of the greatest import to Wales.

In a rapidly shrinking world, in which globalisation consistently erodes the nation-state's traditional power, we see the increasing trend towards unity in Europe as an opportunity, not a threat. However, we must continue to press for reforms in the institutions of the European Union which will make it more democratic, and which will permit a greater voice for Wales and small nations and regions throughout Europe.

The Party of Wales has a unique contribution to offer in this election. We are the only party to be able to guarantee complete loyalty to Wales. At the same time, our economic and social message is relevant to the whole of Britain, as is our call for more global co-operation and for a foreign policy that seeks to create a fairer and more peaceful world.

This then is the political agenda we shall be pushing over the next parliamentary term, and Party of Wales Members of Parliament will collaborate with other members of similar intent towards realising different aspects of it.

This manifesto offers an ambitious vision together with practical plans and policies, identifying us as a party which, while aiming high, has its feet firmly on the ground.

We invite all who have the welfare of Wales at heart to join with us in the task of ensuring justice and a confident national future for our country.

IEUAN WYN JONES
President Plaid Cymru The Party of Wales

Part I - Wales today and the need for change

Analysis of the economic and political background to the election

Section A - Economy and society under pressure: the effects of the policies of the past twenty years

Wales today is paying a high price for the economic policies that have guided UK governments over the past twenty years.

Trends of many years are not easily reversed, but pressing the British government to change economic direction so as to release Wales's potential will be one of Plaid Cymru's main priorities in the next parliament.

The election occurs at a time when Britain's big parties have moved to the right. As new Labour has decided that attracting the support of the urban middle class is its priority - in southern England mainly - it has gradually turned its back on the basic principle of redistributing wealth. It has also adopted the values and language of the right, particularly in the case of taxes and public services.

This change in Labour's standpoint has pushed the Tories still further to the right, so that they are now on the periphery of politics, with their agenda of still more tax cuts and their xenophobic attitude towards the growth of European unity.

The fact is that Britain today stands out as one of the most unequal countries in Europe, and this inequality is evident both socially and geographically.

There is a huge gap between regions and social classes, with serious problems of exclusion. This is particularly evident amongst disabled people, ethnic minorities and many women too.

Wales' situation today is a perfect example of this inequity. The gap between Wales and wealthy regions remains, as is the gap between it and the UK average. GDP per head fell from 82.4% to 79.4% of UK average between 1996 and 1998, whilst the latest corresponding figure for London and Southeast England is 116%.

The recent dreadful blows to our steel industry will make the situation even worse.

But Plaid Cymru rejects the idea that Wales is essentially a poor country.

We should remember Wales's key role in the industrial revolution and its huge contribution to the wealth of the British state and its empire.

And yet, after being treated as a mine for material and human resources for nearly two centuries, neglect and lack of investment has been its fate.

In spite of our pioneering contributions in education, the education system has hardly served Wales, concentrating more on providing teachers for England than skills that could have made a difference in Wales.

Although large parts of Wales today are amongst the poorest in Europe, we reject the idea that that is inevitable and immutable.

Think of Ireland, which has succeeded in transforming its economy completely, from being one of the poorest countries in Europe to being now wealthier than the United Kingdom.

The challenge for Wales currently is to take the greatest possible advantage of devolution as an opportunity to start a historic process of planning economic policies and an education system that will put the needs of Wales first.

The Tory Legacy

In order to understand the economic situation in Britain today, we need first to consider the policies pursued by the Conservatives between 1979 and 1997.

One of the most prominent features of Margaret Thatcher's period as Prime Minister was the creation of a climate of suspicion towards public spending, and an obsession with tax cuts.

The Thatcherite revolution involved an attack on some of the essentials of a civilised society, such as people's mutual dependence in their community and the welfare state, insisting that there was no such thing as society.

It was the era of tax cuts for the wealthy, leading to the appalling inequality we find in Britain today. Indeed, by today the poor pay a higher portion of their income in taxes than the rich. Over the past 20 years 20% of homes with the highest income have seen their tax burden diminishing from 37% to 35%, while the bottom 20% have seen their tax burden increase from 31% to 38%.

Economic irresponsibility was the hallmark of government policy in the 1980s, with revenue from the privatisation of large swathes of the economy being used to finance tax cuts rather than investment in the infrastructure for the long term benefit of the economy and society. Squandering North Sea oil revenues was another example of such short-termism. The social scars of the 1980s can be seen on all sides.

One of the worst effects is the extreme contrast between private affluence on the one hand and the poor condition of our public services on the other. In the wake of irresponsible neglect in terms of investing in schools, hospitals, railways and so on, key public services are under serious pressure.

Policy on taxation and expenditure has also had an obvious geographical effect. Low taxes for the well off increases the advantage for areas where income is high by increasing spending capacity.

At the same time reducing public spending disadvantages regions where income is low and where there is a need for investment.

The fact is that cuts in benefit payments and pensions are a blow to areas where a large proportion of people receive them, as well as to the recipients themselves. The constant reduction in the level of the old age pension in comparison with average income has struck Wales particularly hard because we have a higher percentage of pensioners than the UK average.

There is an increasing gap between the different levels of society. A large proportion of society has to toil to subsist on low salaries, and an unemployed or unable-to-work sub-class falls further behind the community at large.

This is particularly evident amongst disabled people, with many failing to gain access to the labour market at all, and also amongst minority ethnic communities where many fill posts beneath their skills levels if indeed they manage to get jobs at all. Women's wages and salaries lag way behind those of men despite thirty years of equal-pay legislation.

Another feature of the 1980s period was the undermining of regional policy, which is to be seen very clearly in the hostile attitude of the Thatcher government towards the use of European regional development moneys.

In particular the Fontainebleau Agreement - the much trumpeted rebate - has been damaging to Wales. As the money that comes from different regional funds to Britain reduces the rebate, government after government had a motive not to use the opportunities for regional aid to their full potential.

As European money means redistribution within Britain as well as within the European Union, governments' attitude towards it has been lukewarm at best; they preferred to keep taxes down.

As keeping taxes down has favoured the more prosperous areas, this has created an increasingly unequal society. The effect has been that resources were transferred gradually over a period of time from Wales and other poorer regions to the wealthy areas, particularly Southeast England.

New Labour Policies

After 18 years of Tory governments, governments which never had the support of the majority of the people of Wales, there were great expectations four years ago that a Labour government would reverse these damaging trends. What happened, however, was that New Labour, in trying to free itself of past images, adopted a large part of the Tory agenda.

To begin with, it committed itself before the election of 1997 to keep to Tory spending levels. The result was that the crises and lack of investment in public services went from bad to worse. It is important to consider the increase in spending in the Comprehensive Spending Review (CSR) of last July in this context.

The fact is that the CSR does not involve a fundamental change in direction. The increase seems great because it rises from such a pitifully low level. The fact is that public spending as a proportion of GDP has been lower under Labour than under the Tories.

In 1999-2000 public spending of 38.3% of GDP was at the lowest level since 1964. Even after the CSR the proposed public spending of 40.5% by 2003 will only just reach what it was in 1990. In the same way, New Labour has refused to reverse the big cuts made by the Tories to taxes upon the richest.

New Labour also stands condemned for its spin and continual double-counting, in order to create an impression that additional investment is being made. Since they have come to power announcements about additional spending on the health services and education have flowed thick and fast in order to mislead the public to believe that each announcement refers to new money. This has been completely irresponsible as it has created serious cynicism amongst the population regarding the political process.

Support for the Private Finance Initiative (PFI) is an example of the present government's misgivings about public spending - in spite of evidence that shows the PFI to be bureaucratically costly, and more expensive in the long term. It is also a disadvantage to poorer areas as it tends to suck jobs, profit and power from local economies.

A clear indication of how New Labour has turned its back on its roots is the fact that neither unemployment levels nor the benefit of different regions of the United Kingdom were among the criteria for setting interest rates when the responsibility was transferred to the Bank of England's monetary policy committee soon after the last election. Once again, this has been a big blow for Wales. The obsession with keeping income tax low leads to the need to use interest rates as a means of controlling inflation. As well as the fact that many companies, particularly in Wales, are particularly debt-dependent, it leads to a rise in the level of the pound. This has punished Welsh businesses particularly badly as agriculture and manufacturing are so important to our economy.

The attitude towards European Regional Funds remains lukewarm at best. Britain has argued strongly against increasing the total resources for them, and is continuing to refuse to operate the additionality principle fully. Although the extra £421 million in the CSR for the European programmes is a step ahead and verifies Plaid's arguments, it is much less than what Wales is entitled to. In the same way, the complete lack of match funding is a clear sign of continued lack of commitment by the British government to the principle of regional redistribution.

So the truth is that the current Labour Government has neither re-ordered priorities nor changed policy direction in any significant way. New Labour leaders have acknowledged that redistribution of wealth is not one of their policy aims, and this is confirmed by their actions.

The gap between the richest and the poorest has also increased more in Labour's first two years than in the Tories' last two years. Britain has the worst record on child poverty in the developed world. While setting a minimum wage is a step forward, restricting benefits for disabled people and pensioners has been especially cruel. So also the deplorable delays in paying compensation to coal miners, most of whom have given lifelong loyalty to Labour.

What is unforgivable is that all these things are happening at a time when technological developments have generated major growth in the economy. The Party of Wales' message is that everybody should have a share of the benefit that has come from this.

The Barnett Formula

Over the last years it has become increasingly evident that there are basic weaknesses in the way Wales is funded. This is clearly seen in the Barnett Formula, as a system based totally on population numbers is very unjust towards Wales. This is because it was devised in the late 70s, before the decline of heavy industry and the terrible effects of this on income levels and jobs.

Since then, many factors have been at work which mean that Wales's circumstances, as compared with the rest of the United Kingdom, have deteriorated.

Firstly social problems, dependency on benefits and social services, and ill-health have increased substantially in Wales since 1979. Also, partly because of the emigration of the young and economically active and partly because of people moving here to retire, the average age in Wales is higher, which in turn puts pressure on health and social services.

Another problem is that the Barnett formula has been designed so as to converge with spending levels in England, which means that is impossible for Wales to emulate every policy improvement and innovation that occurs in England. The need for an early review of the Barnett formula is therefore a key demand by Plaid Cymru in this election. This is coupled with a call for the establishment of a regional development policy to spread prosperity within the countries of Britain.

This is not asking for charity, but demanding justice. The fact is that the mechanism offered by a regional policy is necessary to compensate for the effect of a single currency, an open market and a common interest level. And it is absolutely fair to demand compensation for the macroeconomic and investment policies that have favoured the prosperous regions of Britain over the past 20 years and more.

Section B - Wales, Britain and Europe - the constitutional context

Along with the demand for a fairer economic policy, the Party of Wales's other central message in this election is the need for Wales to have the powers to act effectively for its own benefit.

Ever since the Government presented its plans for the current measure of devolution, we have argued that it is woefully inadequate and that Wales should have powers similar to those of Scotland. Yet we strongly supported the measure as it stood, believing that the establishment of the first national governing body since Glyndwr's parliament was a crucial first step ahead.

Compared with the old order, we still believe that the establishment of the Assembly has been a huge improvement in the way Wales is governed. It is fair to recognise that the Assembly has achieved some important things, the most important being unmasking the truth about the way in which the UK government has been dealing with European money. For years money earmarked for Wales has been going to the Treasury's coffers while European projects were funded at the cost of our public services. The way in which a share of Objective 1, 2, and 3 money has been won is down to the fact that we now have a more open system of government. For the first time government in Wales has had to account for its actions.

The Assembly has also made a notable contribution to the development of a separate policy for Wales in transport, Post 16 Education, and the Arts and Culture, and has stimulated new enthusiasm and awareness.

It is also true that it could achieve more if it used its current powers to the utmost, and if it showed more vision than the present administration has done so far.

However, the National Assembly's first two years have brought out the basic deficiencies in the 1998 Government of Wales Act. Apart from the lack of powers to tackle the problems of Wales there is also constant confusion about what those powers are.

Those who try to work within the system have to wrestle constantly with one difficulty after the other, and constitutional experts warn that what we have is a model of government that is essentially flawed.

It is clear that it was the need for compromise between Labour devolutionists and anti-devolutionists that was mainly responsible for the nature of the Act, rather than the needs of Wales.

It needs to be remembered that what the 1998 Government of Wales Act did was transfer the functions of the Secretary of State for Wales to the Assembly.

Historically the purpose of these functions was to implement the will of the government of the day in London rather than the will of the people of Wales.

It is no surprise therefore that the Assembly's powers are seriously inappropriate for drawing up and implementing a specific agenda for Wales.

Another major problem is that the Westminster Government fails to act in the spirit of devolution, with some departments drafting legislation that reduces the powers of the Assembly, or refusing to make any provision for our needs.

Experience over the last two years has strengthened our conviction that Wales must proceed urgently to gain powers similar to those of Scotland.

A Legislative Parliament - the only answer

The Scotland Act is far more logical than the Government of Wales Act. It is far simpler as it establishes full legislative powers for the areas that are devolved, and also keeps the door open for further devolution in future.

So that the Assembly can operate seriously to create change in Wales, powers similar to those of Scotland are essential. We utterly reject the "walk-before-you-run" argument: the current system prevents the Assembly from even walking properly.

There is also another good reason why the change should happen during the next parliament. The powers must be in place in good time before the next Tory government in London - as is bound to happen sooner or later. Unless we have full legislative powers, Wales will at that time be defenceless against policies that are even more right wing than what we have seen to date.

That then is why Plaid Members of Parliament will introduce a bill in the next parliament to establish a legislative parliament. We go into greater detail about the measure we shall be offering in Section 4 (i), where we set out clearly our constitutional agenda for the next five years. Every vote we get will help to bring pressure to bear on the government to move towards such a legislative parliament.

Wales in Europe

Hand in hand with the need for a legislative parliament is the need to strengthen Wales's status and influence within the European Union. Since its early days, the Party of Wales, and before that some of the forerunners of the national movement such as Emrys ap Iwan, have declared in favour of European unity and for creating closer links between Wales and the countries of mainland Europe.

We still believe that it is important that Wales should develop close links with the other regions, nation-regions and member states of Europe.

This, of course, includes the other countries of Britain, and we are keen that Wales should play a leading role in the Council of the Isles. We certainly have an important contribution to make in helping to promote the peace process in Ireland, and to strengthen economic and cultural links with the Republic.

We regard the evolution and growth of the European Union as an opportunity for Wales.

We see the enlargement of the European Union as essential to promote peace, democracy and stability. However, whilst the Nice Treaty removes the technical barriers to the accession of twelve new member states, it does not improve the EU's capacity to work democratically and efficiently. If the challenges facing the EU are to be tackled, there has to be a wide-ranging debate on the future constitution of Europe with civil society and elected bodies at all levels. This must address all the major questions of democracy, including the partnership and separation of powers between the different tiers of government in the EU, and the openness of the European institutions. We do not accept that European unity must mean over centralisation and the implementation of uniform policies that are inappropriate for a large variety of regions and circumstances. At the same time we have to press ceaselessly for the principle of subsidiarity to become a precise policy and a practical reality.

While we can not accuse the present government of being as negative as the Tories in their attitude to the European Union, there is still evident unease concerning Britain's relationship with Europe.

This partly reflects a failure on the part of the British Establishment to recognise the reality of the nation state's limited role in today's world. Globalisation in itself has weakened the powers of the nation state; the growth of large multinational companies has made necessary the development of multi-national systems to control them.

States must learn to see the notion of shared sovereignty as an opportunity rather than a threat. The creation of a single market of necessity involves greater integration, such as with regional policy and monetary union.

Wales' best opportunity for national development lies within such a framework. Rather than seeing the reduction of the traditional member state's power as a threat, we should take advantage of such a process as an opportunity to increase Wales' status and that of other stateless national regions within Europe.

There are other good reasons for our support for European unity. The EU has led the way on equal opportunities, environmental, consumer and social policy. Its support for the protection of workers' rights is particularly relevant just now. The Welsh workforce have lost out badly as a result of the UK's New Labour government's refusal to implement European legislation in this area.

In addition, European union offers an opportunity to reduce military dependence on the US. As the economic and political power of the EU has increased over time, expectations have risen about Europe's capability to act decisively and quickly in crisis situations. Through its Common Foreign and Security Policy (CFSP) the EU can play an important role in conflict-prevention and crisis-management. It could also be an opportunity to promote conventional and nuclear disarmament and control the flow of arms. Plaid Cymru is totally opposed to the possession and use of weapons of mass destruction. We believe thet the CFSP can be used to pursue the removal of weapons of mass destruction from the EU

Further national growth

The presumption that decisions should be taken in Wales unless there is sufficient reason for them to be taken on a wider level is a central principle in the Party of Wales's vision. This is in accord with our complete support for the European Union's principle of subsidiarity.

We want to see Wales play a full part in the development of the new Europe of the 21st century. As a party which wants to ensure the best for Wales, we want to see continuing growth in the status of our country, realising at the same time that the precise form of full national status in future will depend very much on the way in which Europe develops.

Our vision for the future of Europe includes strengthening democratic control over the future of our continent. We demand that legislative rights be transferred to a bicameral Parliament - one of which will be directly elected and the other indirectly by regions and nation-regions which have their own parliaments or assemblies.

Such reforms are being discussed in the run-up to the next Inter-governmental Conference in 2004. In the meantime the Party of Wales will be pressing for the second chamber to be based on the regions and nation-regions of Europe rather than on the member-states alone - as is favoured by the British government. In discussing the future of Europe, it is crucial that nation-regions like Wales, Scotland, Euskadi and Catalunya be able to play their part side-by-side with small states such as Ireland and the Scandinavian countries.

This is the kind of framework in which we see the best opportunity for Wales to move towards full national status. However we recognise that developments are not currently moving in this direction. We must therefore keep open the option of applying for full member-state status in the European Union. Such a far-reaching step as this would be subject to the agreement of the people of Wales in a referendum. We are completely committed to the principle that it is the people of Wales who should be able to determine the place of their nation in the new Europe. For us, sovereignty belongs to the people, and not to any state.

Over the past months we have been consulting amongst our members about the kind of constitutional aims we should seek in the face of the changes that are occurring in Britain and Europe. It is our intention to broaden the discussion through out Welsh society.

Many important choices will face the people of Wales in future, for instance about issues such as the relationship between the countries of the islands of Britain, what kind of organisational pattern should express it, and the relationship between them and the rest of Europe.

In the meantime, at least over the next parliamentary term, the most important task will be to get the best possible deal for Wales, together with the greatest measure of freedom, within the present framework.

To this end, we are the keen to build a national coalition to include all who want to press for a better deal for Wales over the coming years. There is no doubt that the most effective first step towards realising this is a strong vote for Plaid Cymru, the Party of Wales, in the coming election.

Part II - Making Wales Work

The Party of Wales' programme in the next parliament.

Section 1 - Creating Sustainable Prosperity

As has already been noted, one of the main priorities of the Party of Wales's MPs in the next parliament will be to press the Westminster government to implement policies which will release Wales' potential to become one of the most prosperous countries in Europe.

We therefore call for a fundamental change of direction in monetary and economic policies. In Wales, we must implement a programme that builds on our natural advantages and which is based on the principles of sustainable development.

1 (i) The monetary and economic framework

Taxes and public spending

As we press strongly for a radical change in the monetary and fiscal policies of the United Kingdom, one of our main demands will be that the principle of redistribution - geographical and social - be made a major element in policy. There is no conflict between this and general success of the economy, as over-heating in Southeast England is leading to serious problems for the economy and the environment.

We shall challenge the presumption against public spending that has been such an integral part of governments' policies over the past 20 years.

We call upon the Chancellor to use his budget surplus to invest for the future rather than to clear the national debt. The fact that the economy is improving is to be attributed mainly to new wealth resulting from the technological revolution, and we demand that all strata of society should benefit from it. Effective public services, accessible to all, are one of the essentials of a civilised society, and what we would wish to see is a move closer to the Scandinavian model, where successful and competitive economies go hand in hand with a contented and just society.

We shall call for a Commission on Taxes to redesign the system so as to create a fairer society. We recommend a more progressive tax system with a greater number of income tax bands and raising the higher rate to 50% for earnings over £50,000.

The commission should also investigate the role of indirect, particularly 'green' taxes. The Party of Wales favours moving towards such taxes, as long as they are designed in a way that avoids unfairness.

We emphasise the need to use revenue from such taxes to maximise their effect and to protect sectors hit by them. Tax on road fuel is one example where measures are needed to reduce its effects in particular circumstances such as the crisis in the countryside.

At the same time, we oppose the use of green or any other indirect taxes in order to raise revenue by stealth for the Treasury.

We recommend the use of regional tax incentives, such as a reduction in the level of Corporation Tax, or a reduction in employers' National Insurance contributions to, in order to raise the level of economic activity and prosperity in Wales and other depressed areas. Such measures would be much more effective than uniform reductions throughout the United Kingdom. The UK government must press the Commission of the European Union for the right to operate in this way.

Small businesses are an essential part of the economy of Wales, and so we call for fundamental changes in business taxes, with taxes based on turnover or profit in order to give small businesses a better opportunity, and to ensure that those making large profits such as supermarkets shoulder a fair share of the financial burden.

Suspension of PFI

It is estimated that using PFI as a means of raising money has caused a £5 billion underspend in public investment. As it is a serious obstacle to effective public investment, we call for it to be suspended.

Minimum wage

We support the raising of the minimum wage to £5 an hour and ending the differential for younger employees.

Review of the Barnett formula

As part of our commitment to a regional policy aimed at redistributing wealth, we shall call for an early review of the Barnett formula. We have already noted our reason for this at the end of Section A in Part I.

Rather than a system wholly based on population, as is currently the case, we recommend using income per head and need as criteria. This would increase substantially the National Assembly's resources.

European Money

We call for a general audit on additionality and the European Structural Funds. We must insist that complete additionality operate in every area of European money, and that the UK Treasury provide the necessary public match funding. In addition to the structural funds the same principle must be ensured for the relevant agricultural programmes. Because it operates as an obstacle to the redistribution of wealth within Britain we shall support demands for the abolition of the Fontainebleau agreement.

1 (ii) Developing a sustainable Wales

As the foundation of our existence and all our prosperity nothing is more important than the protection of our environment. It is an issue which must permeate all areas of policy rather than being treated as a separate subject.

That is why the Plaid Cymru has based its Economic Development Strategy for Wales on the principles of Sustainable Development, social justice and equality of opportunity.

If we have sufficient resources, Wales has the potential to be a pioneer in this area. We believe that GDP on its own is a crude and misleading indicator of the condition of the economy. We therefore call for a more comprehensive indicator, such as the Index of Sustainable Economic Welfare, to be used.

The need to protect the environment implies a radical change of direction, particularly in our attitude towards economic development, with a need for every effort to increase wealth and improve the quality of life to be compatible with maintaining the environment.

Inevitably, as pollution and environmental damage respect no boundaries, the protection of the environment requires action at a global level. This is considered in greater detail in section 4 (v) One World.

Similarly, the European Union has a part to play in this, through the coordination of environmental taxes for instance.

At the same time, there is a need for more local action.

The National Assembly's commitment to promoting sustainable development must be regarded as a positive opportunity for development.

It must be remembered that sustainability means social and cultural regeneration as well as the protection of the environment, and economic prosperity is essential to that.

Our aim therefore is to seek out and facilitate developments that are compatible with sustainability. Amongst those things for which we shall be arguing at the Assembly and Westminster will be a shift in emphasis and resources towards indigenous industries, and a more selective approach to key inward investments.

Renewable energy

The development of renewable energy is one area in which Wales has an important contribution to make, and a favourable planning policy is needed that will enable local communities to benefit from such developments. Not only is renewable energy a key sector in its own right, it is also essential as an energy-source for the future.

As our dependence on fossil fuels must be reduced and since nuclear energy is not an acceptable option, we shall press for very substantial growth in renewable energy. The United Kingdom is dragging its feet in comparison with Denmark and Germany, and the Department of Trade and Industry's attitude needs to be radically changed in order to release the potential.

We call for the promotion of the whole range of technologies, although wind (on and off shore) and energy crops are currently the most promising economically. Adequate resources for research into and the development of alternative transport fuels, and to harness the power of wave and tide, are essential, as is a much more ambitious programme for energy efficiency in the home and in businesses.

Other opportunities

We also call for the targeting of emerging sectors, particularly technologies such as optronics, biotechnology and the treatment of contaminated land and decayed industrial sites, ensuring the harnessing of Welsh research expertise and resources.

The aim is to promote new technologies that have the potential to reduce environmental damage as well as improving economic efficiency. Substantial investment in higher education and research will be crucial.

To ensure this, we must have an employment strategy that brings together education, training, vocational advice and opportunities in Wales, which will include high investment in education and training in order to move the economy towards higher value products, with priority to providing ICT networks and training. Targets to close the gap between the earnings of men and women and to deal with economic underactivity and under-employment are essential.

Spreading prosperity and employment throughout Wales will be a key component in the Plaid Cymru strategy for the economy of Wales.

We believe that there is a need for greater emphasis also on the social economy - the Third Sector. Care must be taken to ensure that the advantages of economic development reach the least privileged, thus reducing deprivation and giving everyone the chance of a job.

Waste

The first lesson is to learn not to see waste as waste but rather as a valuable raw material, and to this end requirements for a percentage of recycled materials should be set as an incentive for the market for businesses in the public, voluntary as well as private sectors. There is here a very important opportunity to create new and sustainable jobs and to raise the level of skills in the potential workforce.

Business support should be available for this purpose. We are in favour of implementing the European directive on landfill, and deplore the fact that the Governments of Wales and the UK are seeking to postpone implementation from 2006 to 2010. As for incineration , its use should be allowed only if it can be shown that it causes no damage to health.

Water

This is one of the most important natural resources in Wales and must be used economically in order to protect the natural environments from which it is drawn. The danger that there will be a demand for more water to be transferred to England is a real one. First we must ensure that our own needs are met, and then require favourable terms for any further transfers.
We wish to see the continuation of the very highest standards in sewage treatment, as in Welsh Water's Green Seas initiative

1 (iii) Creating a future for the countryside

The current crisis in agriculture is the worst ever, and it has struck the countryside as a whole.

While UK governments have been unwilling to support agriculture through the crisis of the past years, the Party of Wales considers it to be an industry of the greatest importance, with a substantial proportion of the population of Wales still dependent on it.

Agricultural policy must be based on quality and not just on price competitiveness and the precautionary principle should apply to issues of food safety

A combination of different factors has led to a drastic reduction in farmers' incomes, and thousands leave the industry every year - there was a decrease of 4,000 in the number of those employed in agriculture during the last year, with the greatest reduction in the number under 35 years of age. Most Welsh farmers are approaching retirement age.

We consider therefore that early retirement schemes and aid for new entrants are essential for a viable industry, and we shall push for such measures as a matter of urgency.
The role of women in agriculture and the rural economy should be more strongly respected and supported.

Diversification and added value

The future of farming must be considered within an integrated rural development framework, in which the emphasis will be on promoting a wide range of businesses and appropriate industries that will enable higher value products to be created.

We need a planning framework that respects the environment but that facilitates appropriate development. Farmers must be enabled to diversify, and to take full advantage of the opportunities offered by cultural/heritage tourism, sustainable forestry and renewable energy, to mention just three examples.

Similarly all encouragement must be given to the development of local processing, including small abbatoirs, in order to add value. As part of diversification, more should be done to promote alternative crops, particularly energy crops, and to provide sufficient aid to do so.

With the increasing popularity of organic produce, farmers need every opportunity, help and encouragement to convert to organic, and to join agri-environmental schemes.

We believe that Wales should pursue the opportunity to market itself as a source of high quality food, produced in an environmentally sustainable way with high standards of animal welfare. Plaid supports the de facto moratorium on genetically- modified organisms in the European Union and will continue to work, on the basis of the precautionary principle, for Wales to be a GMO-free zone.

We shall also press for measures to reduce supermarkets' domination in the market and to promote farmers' cooperatives in order to strengthen their ability to compete.

A voice in Europe

Since MAFF has failed to advance Welsh interests over the years, eg. the way in which milk quotas were introduced in 1984, and the failure to get support for energy crops in 1998, we shall press for the Assembly to have the right to speak up for the farmers of Wales in Europe. In particular, it is the Assembly Secretary for Agriculture who should lead the UK team in the discussions on reform of the sheep meat regime, in view of the fact that the sheep premium contributes £90 million to the economy of Wales, and a large proportion of British lamb is produced in Wales.

We support the need for further reform of the Common Agricultural Policy, as long as the changes are introduced gradually and take into consideration the social and economic consequences. CAP is costly, is poorly targeted, and places huge bureaucratic burdens on farmers. Neither does it do enough to reduce the environmental damage caused by conventional farming.

We support the principle of decoupling payments from production and linking them with environmental gain, but care must be taken to ensure that Wales does not lose out badly in this respect.

We believe strongly that financial support to farmers should continue, in order to guarantee a secure food supply in an uncertain world, to support communities in rural areas, and to protect the natural environment.

We shall call for agri-environmental measures, such as Tir Gofal, to be strengthened and for European funds to be additional to government contribution rather than disappear into Treasury coffers as currently occurs.

Town and country compact

We must reject the idea that there is a conflict between the interests of urban dwellers on the one hand and those of country people on the other. The present government has failed to show that they understand the great concern of country people about their future, and this in turn has led to suspicion of town dwellers.

Better understanding is needed on both sides, between urban and rural society,as well as between environmentalists and farmers.

The Countryside Act was introduced without sufficient attention to the views of country people, and we believe that the Hunting Bill has had far more attention than it deserves.

Forestry

The contribution of sustainable forestry to the rural economy is very substantial. There will probably still be a role for coniferous forestry, but the emphasis must shift to broad-leaved woodland which has great potential in terms of added value, high quality produce, and increasing biodiversity.

1 (iv) Sustainable transport

Transport is an area that has suffered particularly badly under governments' niggardly approach towards public spending, and towards meaningful planning for the future. The consequences are congested roads and a public transport system that is amongst the worst in Europe.

This in turn has caused major environmental damage locally and nationally, and significant ill effects to health. Lack of public transport also causes social exclusion particularly for women and disabled people.

Inconsistent policies have been another problem, with the Tories doing a U-turn on road building and a lack of strategy for the needs of Wales.

Persuading the Government of Wales and the SRA to establish a Wales and the Marches franchise for train services was an important step forward. The Party of Wales has pressed for the reorganisation of train services on these lines for a decade. Yet this is only the beginning.

We welcome the Government's intention to increase expenditure substantially, but we are concerned that there is neither a detailed timescale for implementation nor certainty about the level of investment after 2003. We also believe that there is over-dependence on private finance, as with the London tube.

The essence of our transport policy is the provision of investment for integrated transport, with priority being given to safety and environmental considerations, and an emphasis on social inclusion, by making reasonable public transport available to all.

Good communication must be developed with the rest of Britain and Europe, and within Wales, with interchange between the different modes - car, bus, train, bike or walking.

Restoring Railtrack to Public Control

The Conservative Government's arrangements for privatising railway tracks were fundamentally flawed. This has led to serious problems of accountability and concerns for passenger safety which have not been resolved by the Labour Government. Returning control of the tracks to public hands would cost far less to the taxpayer than the present approach which is aimed purely at maximum profits for shareholders.

The next few years will see direct and indirect government payments to Railtrack increase from BR's subsidy in 1994 (£800m) to nearly £2.5b. There is every justification for converting these payments into state-owned shares giving the taxpayer over 51% of the rolling-stock, and so controlling policy and expenditure by Railtrack.

Establishing a National Passenger Transport Authority for Wales.

This would franchise all the train services in Wales, in collaboration with the Strategic Rail Authority in the case of cross boundary services. It would also include local Passenger Transport Boards in order to integrate bus services. We also call for the transfer of the budget for railways to the Assembly.

1 (v) Homes

The right to a good home being one of the essentials of life, adequate investment in suitable homes brings benefits in terms of economic development, health, education, the environment and quality of community life.

Although much of the responsibility for housing has been devolved to the National Assembly, the UK policy framework has a major effect on what it can do.

In the first place, of course, adequate resources have to be provided to implement a public policy so that there is affordable housing for people on low incomes.

It is a cause for concern that that the increase in expenditure under the Comprehensive Spending Review (CSR) is so trivial in Wales as compared to Scotland and England.

We shall also call for the policy restrictions on local authorities that prevent them from investing in housing to be removed.

In particular we call upon the government to reform the method of calculating the Public Sector Borrowing Requirement (PSBR), so that borrowing for housing purchase and renovation and the provision of new social housing does not count against it.

Local authorities should have the same freedom as housing associations and private landlords to borrow money for purchase and renovation. We call for the same level of VAT to be placed on house renovation as on newbuild and that this should also apply to self-build.

Housing stock should only be transferred to Registered Social Landlords where it will lead to better provision and service, and where tenants vote in support of it.

Efforts to raise the standard of housing in disadvantaged areas should occur in the context of comprehensive and integrated programmes for the regeneration of communities in their entirety.

Community Regeneration Trusts, in which there are tenant board-members, have a great deal to offer in this area.

Fair rents for councils

We shall call for changes in social security regulations, particularly housing benefit. In particular the unfairness whereby local authorities, as opposed to private landlords, may not receive all the benefit paid on behalf of a tenant, must be removed.

The current situation leads to a lack of money for authorities in areas where a large number of tenants get housing benefit.

As a result rents in general have to be raised for everybody else which creates an unacceptable situation in which the poor have to subsidise the poorer.

Helping local people

We shall call for measures to help local people buy houses in areas where prices have risen beyond their reach.

Planning permission should also be necessary to convert a dwelling into a holiday home.

Key Recommendations

A substantial increase in public spending to improve services and redistribute wealth

Replace the Barnett formula with a system which will pay fairer attention to the needs of Wales

A full audit of European money and full additionality ensured

Higher taxes on earners over £50,000

Promotion of sustainable industries such as renewable energy

Scheme to help young farmers and early retirement

Railtrack brought under public control and responsibility for railways transferred to Assembly

Strengthen the ability of local councils to provide housing

Help for local people to buy houses when prices are too high

Section 2 - Cultivating the Mind

Mankind's ability to think is our most important characteristic, and nurturing the mind is essential for improving our understanding of ourselves and our appreciation of society and the world around us. In this section we shall be looking at education, culture, broadcasting and the Welsh language.

2 (i) Education and training

In addition to promoting economic initiative, ensuring first class education and training is crucial for a lively and thoughtful democracy, for promoting justice and equality in society, creativity, and appreciation of the fine and beautiful and the wonder of the natural world.

The school curriculum in Wales should reflect these needs, contributing to our national regeneration, while giving young people an opportunity to succeed wherever they choose to live and encourage a well-informed understanding of world citizenship. We support lifelong learning which promotes personal development, helps to integrate people into society and working life and encourages participation in the democratic decision-making process.

Many decisions on education have of course been devolved to the Assembly, but Westminster's influence is heavy in terms of policy framework and the resources available.

This is particularly relevant now since expenditure per head on education in Wales will be lower than in England over the coming years.

One of the effects of this is the Assembly's inability to emulate some of the initiatives that are available to teachers in England.

Although the failure to develop a truly Welsh agenda is largely the fault of the Labour administration in Cardiff , Tony Blair and David Blunkett have also undermined the spirit of devolution by imposing decisions on the Assembly, as in the case of performance related pay for teachers.

It is clear that the London New Labour approach to educational provision is completely alien to Welsh values; it is a mindset that regards the competitive market as an appropriate driver for schools. The present government has promoted the 'reforms' introduced by Thatcher and Kenneth Baker, although Labour opposed them at the time.
The method of funding schools rewards competition, and misleading league tables promote this further. This results in the decline of schools in poor areas, leading to social exclusion and selection on the basis of ability by the back door. In England selection according to ability is on the increase with the growing the number of 'specialist schools'.

For Plaid Cymru the school should be a resource for the community, not a commercial entity in a competitive market.

While Labour is determined to maintain the changes introduced by the Tories, the Tories themselves evidently want to move further, with independent schools deciding on their own entry policy and large scale privatisation. That is why it is essential that we have full legislative powers for the Assembly so that this can be prevented before it is imposed on Wales in the future.

Crisis in the teaching profession

The heavy workload on teachers resulting from tests, inspection and bureaucracy has led to a crisis of morale and recruitment.

The Plaid Cymru MPs will press for a general increase in teachers' salaries rather than performance related pay.

There has been a serious deterioration in teachers' working conditions in the further education sector. This must be tackled, if only to facilitate close collaboration between schools' 6th forms and further education colleges.

We also call for regular assessment of the children's needs and a move away from the target setting culture. Publication of league tables should be abolished, but schools and parents must have regular analysis of the relative performance of pupils including consideration of social factors and special needs. Similarly, we call for an end to the naming and shaming of schools, and for concentrating on support for the school within the community.

Clear guidelines are needed which would enable teachers to discipline children in such a way as to protect children from ill-treatment.

Pre-school educare

We shall press for substantial investment in this key sector, particularly for high-quality training for teachers and early years' childminders. We also emphasise the need for provision that is appropriate to the age of the child, opposing the DfEE's emphasis on formal teaching in this period.

Higher Education

Higher education's contribution to the life and economy of Wales has been enormous. In addition to jobs that depend directly and indirectly on it, the sector also has tremendous potential to contribute to an economic renaissance by providing a flexible workforce and promoting new industries based on research.

In order to establish a national strategy, we shall press for the Assembly to have full powers for higher education.

We shall also press for the level of funding generally to be raised, as Britain is way behind in comparison with the rest of Europe and America. Wales is lagging behind in comparison with England, and this must be remedied in order to enable our establishments to compete, and to attract a higher share of research moneys.

The Bett report has underlined the need for better salaries in Higher Education in order to attract and retain high quality staff. These recommendations should be implemented.

Financial support for students

New Labour's decision to charge students tuition fees and to abolish the maintenance grant completely has caused serious hardship, and has been an obstacle to access to Higher Education for people on low incomes. In addition, it creates problems for Higher Education Institutions in Wales because of the tendency for students to study near their homes.

The Party of Wales believes that Higher Education should be seen as a key investment in the future, and should therefore be available free of charge. In addition, means-tested maintenance grants should be reintroduced in order to facilitate access to Higher Education for everybody who so wishes.

This extra expenditure should not occur at the expense of any other sectors, but in the context of a significant increase in public investment in Education and Training. Adequate financial support must also be ensured for access to Further Education and Training as part of the general expansion in Lifelong Learning opportunities. Post-statutory education is no longer a privilege for the minority, but a right for all

2 (ii) Culture

We need recognition at all levels of government that culture is an essential part of everybody's life. It involves our way of life, our heritage and the way we communicate with each other. Promoting creativity at all levels and raising standards and nurturing the ability to appreciate the best is a responsibility of public policy. The fact that cultural activity contributes increasingly to the economy generally has to be acknowledged.

In the Assembly, a new foundation for policy has been laid by the Culture in Common report. In order to build on this foundation adequate resources are needed. This is another example of how the financial settlement for the Assembly restricts our national aspirations.

2 (iii) Broadcasting

This is an area in which a far-reaching revolution is currently taking place, for instance in the interface between television and computer, digitalisation, satellite and multi-channel television.

As a result individual countries' control of broadcasting is weakening, and there is a need to consider responsibilities for broadcasting at the level of Wales, Britain and Europe. New legislation will provide an opportunity to discuss such matters.

In the meantime, the Party of Wales will press for the protection of regional broadcasting, particularly in the nation-regions, within the BBC and by commercial channels. We shall support its retention of the BBC as an adequately funded public service.

We call specifically for the development of an English television channel for Wales taking advantage of the opportunities that will come in the wake of the most recent technologies.

In view of S4C's enormous contribution to the life of the nation and the Welsh language, an increase in its budget must be ensured to reflect the challenge of the digital age it is facing.

Plaid Cymru supports the transfer of responsibility for broadcasting, over time, to the Welsh level. In the meantime the proposed new legislation will be an opportunity to establish an element of accountability by the Broadcasters to the National Assembly.

2 (iv) The Welsh language

For the Party of Wales, the revitalisation of the Welsh language is a major strategic objective, and this means making it an important consideration in all policy areas. To a large extent this is the responsibility of the National Assembly, and we welcome the fact that the Culture Committee will soon be conducting a review of the Welsh language.

We very much hope that we will never again see the language issue degenerate into a political party football. At the same time, legislative power remains in Westminster.

We call upon the Culture Committee of the Assembly to consider a new legislative framework as part of its Welsh Language review, and the Party of Wales MPs will call for parliamentary time to implement a new Language Act. We believe that the new act should cover the private as well as the public sector.

Key Recommendations

Schools serving communities not competing in a commercial market

Increase in teachers' basic pay

Better conditions for lecturers in Further Education

No performance related pay

Strengthening the power of the Assembly for Higher Education

Abolition of tuition fees

A new Language Act based on the recommendations of the Assembly's Culture Committee.

Section 3 - A Civilised Society

Although economic prosperity is essential, a civilised and successful society needs something more. Everyone will benefit if it also has a foundation of humanitarian values that will take responsibility for the welfare, health and security of all the members of that society.

3 (i) Health and social services

The first and most important thing to remember is that promotion of good health is an issue that belongs to all areas of policy.

In particular we need greater awareness of the link between poverty and social disadvantage and illness. We need to realise that tackling poverty pays a hundredfold in terms of the welfare of the society as well as cost-effectiveness.

Similarly, environmental health and public health need a higher profile, and better co-ordination between health and social services is also needed.

The Party of Wales is totally committed to the principle that sickness treatment services should be available free at the point of delivery. We oppose the trend towards private provision and we shall call for the abolition of any tax incentives towards it.

Although the National Assembly is responsible for most of the work of running the health service in Wales, the most important decisions concerning health expenditure will still be taken at Westminster.

The National Health Service is today in a parlous condition because of the lack of investment that goes back many years. As has already been mentioned, health is a policy area in which New Labour has been particularly guilty of creating the impression that they are providing more resources than is in fact the case. There has been a cynical tendency for any additional money to be double-counted and repeated in a way that creates the impression that every sum is new money. There are also too many superficial measures, such as health tzars, walk-in centres and guaranteed waiting times that do not get to the root of the real problems.

It is also important to note that Wales has suffered particularly badly from the lack of investment.

The level of sickness is higher here as a result of poverty, the effects of heavy industries such as lung diseases in former coal miners, and also a higher than average proportion of elderly people.

Wales's record on cancer and heart disease is among the worst, and we must have adequate resources to tackle this.

Central to our demands in the election will be a call for an increase in the UK's spending on health to bring it to levels which correspond to the other countries of Europe.

We also demand that funding for Wales correspond to our needs, in accordance with the reforms we recommend for the Barnett formula.

We call for the abolition of Trusts, the last remnant of the internal market. The number of doctors, nurses and other health professionals in NHS wales needs to be substantially increased. However the Westminster parliament retains control over pay and conditions and the number of training place available.

As part of our belief in the democratisation of the health service, we call for the functions of the community health councils to be retained and strengthened.

Social care

We shall call upon the government to follow the Government of Scotland's praiseworthy example and implement the Royal Commission's recommendations on long-term care for the elderly.

We condemn the UK Government's refusal to act in the same way. Their recommendations will create an artificial boundary between personal care in hospital and in residential homes, and between health care and personal care. This is bound to lead to inconsistency and unfairness: more post code lottery.

It is crucial that we move towards greater integration between social care and health.

Children and families

The Party of Wales was the first to argue for additional powers for the Children's Commissioner in Wales and we will continue to press for further powers, especially over non-devolved asnd cross-border issues. Improving the quality and availability of foster-care must be a high priority for children's services, as must the training of childcare staff and foster parents. We shall continue to press for the development of comprehensive advocacy services.

3 (ii) Pensions and Social Security

The present government's record on poverty has been appalling. In spite of the promises to create change, it is a fact that there has been an increase in the number of people living in poverty during the first two years of the government, and the number of pensioners living in poverty has increased substantially. The inherent gender discrimination in the present system must be abolished.

Social Security

The eradication of poverty and social exclusion entails the transformation of the social security system and attitudes towards it.

In order to raise the poor out of poverty benefit levels should be raised, while at the same time increasing all incentives to return to work to break the social exclusion cycle and to avoid a culture of dependency.

We welcome some initiatives therefore such as the Working Families Tax Credit, and the increase in child benefits, but we deplore New Labour's right wing attitude since it came into power. Linking benefit with inflation rather than average income has widened the gap increasingly, and the emphasis on means testing and targeting has caused stigma amongst many.

We recognise the need to combat fraud, but this government's heavy-handed attitude has created anxiety and suffering to the truly needy. Even more serious, in the effort to keep cost down, there is firm evidence that claimants are kept in ignorance of the benefits due to them.

Party of Wales MPs will therefore call for measures to help claimants get their due benefits, including restoring the helplines for claimants which were cut by the Tories, and ensuring that an impartial adequately funded advisory service is available for everybody.

Benefits for the disabled should acknowledge the additional costs of living for the disabled people. The right to the mobility element of the Living Allowance for the Disabled should continue after retirement age. The Winter Fuel Scheme should be extended to include disabled people under 60.

In order to facilitate the move from benefit to work, the rate of Working Families' Tax Credit clawback must be reduced. It is utterly unreasonable for the credit to be reduced by 55p for every £1 earned, while the well off only have to pay 40% income tax. Similarly the taper for Housing Benefit and Council Tax should be reduced.

Raising the maximum part time earnings for people on Income Support would achieve the same objective.

There is also scope for simplifying the application process for Working Families' Tax Credit in order to reduce the bureaucratic burden on applicants and small employers.

The compulsory payments on Social Fund loans drive those who are already very poor below the poverty line. Social Fund payments should be made as grants which have been carefully assessed on the basis of need.

Compensation for former coal miners

This government's treatment of former coal miners has been shameful. During the three years since winning the right to compensation thousands of former coal miners have died before getting their due.

We shall press the government to take steps without delay to expedite the process of paying well deserved compensation to a group of people who have given so much during their lives.

Specifically, we shall press for the deployment of more medical staff to deal effectively with the applications, and also for the Department of Trade and Industry to accept their responsibility fully in accordance with the High Court's decision instead of trying to avoid paying in full.

The clawback system, whereby the Department of Health and Social Security claim back a proportion of the compensation, causing more misery to former coal miners as they have to keep fighting in the courts, must also be abolished.

A similar compensation scheme should be established for former slate quarrymen who have suffered from emphysema, chronic bronchitis and asthma arising from their employment, and their widows.

Pensions

After the fierce opposition to the insulting increase of 75p a week for pensioners last year, the government has been forced to award a more substantial increase on the threshold of an election.

Yet pensioners are still a long way from enjoying their share of the increased wealth of the country, and surveys suggest that three out of every five pensioners in Wales live either at poverty level or beneath it.

One of the main reasons for this poverty is that thousands of pensioners do not claim the means tested addition to the pension, and therefore lose £18.80 each a week on average.

We shall call for an adequate retirement pension which will be available to everybody without a means test, and which will increase in line with earnings.

We welcome the new stakeholder pension, but call for tighter rules in order to prevent its use as a means of tax-avoidance.

3 (iii) Law and order

In spite of their empty words about fighting crime and the causes of crime, the present government's efforts to tackle poverty and social exclusion seriously, which are recognised as among the main causes of crime, have been few and far between.

In addition, because of their over-eagerness to appear 'hard' on criminals, important aspects of civil rights have been consistently eroded.

We shall strongly oppose any restriction on the right to receive legal aid, and we shall continue to oppose the abolition of the right to trial by jury.

The police, the courts and crime

We shall press for the Assembly to be given responsibility for the police and emergency services in Wales, in order to place more emphasis on community policing, and in order to link emergency services with policies in the field of social development.

We are also committed to protecting lay magistrates as a system that is accountable to the local community, to protecting courts that are in danger of closing, and to increasing the use of Welsh as well as training to enable this.

We challenge the damaging consensus between New Labour and the Tories on prison policy. The UK imprisons a higher percentage of the population than any other country in Europe, and is becoming increasingly similar to the American pattern.

While we accept the use of imprisonment in order to protect society from dangerous criminals, we have to acknowledge also that too many people are currently being sent to prison.

There is sound evidence that at least a third of the prison population are people who should not be there at all. For example, prison is a totally inappropriate punishment for the high percentage of criminals who have mental health problems, and many women are imprisoned for trivial offences like non-payment of fines.

Overcrowding also leads to all kinds of serious problems from frequent use of drugs to a high level of suicide.

It also undermines the work of restoring prisoners to a condition of positive citizenship.

Drawing attention to the failures of prisons does not mean being soft towards criminals. However sooner or later society will have to acknowledge the truth that it is a totally ineffective way of dealing with most crimes.

It is an undoubted fact that offenders are more likely to reoffend after being in prison, and the high cost of £25,000 a year for keeping a person in prison is extremely inefficient. Reducing the prison population to what it was in the mid-1990s would save £500 million a year.

We shall

Ensure more effective policing in the community by employing more police officers on the beat

Call for more extensive use of community non-custodial sentences, taking full advantage of the opportunities for surveillance that are offered by new technological developments, such as tagging offenders.

Call for a women's prison to be established in Wales.

Victim Support

There must be better support for the victims of crime, including placing a duty on local authorities to provide shelters for the victims of domestic violence and adequate funding for counselling services for the victims of rape and sexual abuse.

Education about domestic violence should also be increased, and protection from rape should be strengthened in relation to claims of consent.

Similarly, there is a need to increase provision for those who are addicted to drugs and alcohol and to ensure adequate resources for education.

We also recommend that a Royal Commission be established to investigate the whole issue of drug abuse and the law, while recognising the great damage caused by alcohol misuse.

On cannabis for medicinal purposes, a decision should await the completion of the current inquiry.

Human rights and Equality

We call for a credible Freedom of Information Bill; we welcome the Human Rights Act and call for the European Union's Charter of Fundamental Rights to be incorporated into the European Treaty.

We demand a comprehensive review of all equality legislation to ensure consistency, changes of sex discrimination law to make positive action easier, stronger enforcement of equal pay legislation, and the early extension of equality legislation to meet the requirements of the Amsterdam Treaty.

We also support the right for unmarried partners to register their partnership and have property, pension and inheritance rights.

Immigration and Refugees

It is time for society to start seeing immigrants as a resource with extremely important potential rather than just as a problem. The ethnic minority communities in Wales have made an important contribution to our development as a nation, and notwithstanding the genuine concern about cases of racist attacks, many of our communities are praiseworthy examples of people from very different backgrounds living together happily.

While migration is a wholly natural feature of life in the modern world, we have to remember too that much of it is forced on the countries of the world through poverty. The only way to keep it under control in the long term is by tackling the problem of the dreadful inequality between the developed world and the rest.

In the meantime we shall press for a civilised attitude towards refugees. We should remember that every refugee seeking asylum is a human being and deserves to be treated fairly and honestly and with respect. It is imperative that support should be offered to refugees who have suffered torture or who have reason to fear persecution.

We call for the voucher system to be abolished, for adequate resources to expedite the processing of applications for asylum, and for the present system of keeping asylum seekers in prison to be brought to an end.

We believe that Wales should play its part in welcoming a fair share of refugees to our midst, and we shall press for adequate resources from central government to meet their needs.

Key Recommendations

A substantial increase in expenditure on health to levels nearer to other European countries.

A higher proportion of funding for Wales to meet our greater need, and to enable cancer and heart disease to be targeted

Non-means-tested long term personal care for the elderly

Measures to help benefit claimants to get information about their rights

Expediting the process of paying compensation to coal miners and an end to benefit clawback from those payments

Increasing pensions in keeping with earnings

More non-custodial penalties, taking advantage of the possibilities offered by modern technology for surveillance of offenders

More community police

Section 4 - Shared Power

Willingness to share power is essential to ensure good governance in the modern world. A rational distribution of powers between different tiers of government, from the local community to a global level, will be needed.

As we have already noted, the principle of subsidiarity, taking decisions as closely to the people as possible, is central to the Party of Wales's principles.

We shall therefore press the devolution process ahead in order to ensure increasing power over their own future for the people of Wales. The regeneration of local government, absolutely necessary for a healthy democracy, will be part of the same process.

At the same time, we see the need for more international collaboration in fields such as the environment, defence and financial control. In addition to more unity in Europe, this means increasing global action.

4 (i) Full legislative powers for Wales

The Party of Wales's main demand in terms of constitutional reform during the next parliament will be for full legislative powers for the National Assembly on a pattern similar to the Scottish parliament.

As explained in chapter 2, the current constitutional order is totally unsatisfactory.

The Party of Wales will introduce a bill to provide full legislative powers for the National Assembly in all of its areas of responsibility, together with additional areas such as the police and railways.

The Assembly should also have tax raising powers and a clear distinction between the executive and the legislature. As with the Scotland Act, the new Wales Act should leave the door open for further devolution within the UK framework. This would mean an increase in the number of Members and the resources to serve them. Resources should be transferred from Westminster to meet the cost of this increase.

A civil service for Wales

We shall also press for progress towards the development of an integrated public service for local government, the Assembly and other public bodies in Wales. This would enable a national career structure to be created along with wider mutual understanding and a spirit of partnership between government levels. We would want to keep close links with the other civil services of the islands of Britain and the European Commission and regular secondments could be used as one way of ensuring this.

4 (ii) Restoring local democracy

We do not think that the principle of subsidiarity should end with a Welsh parliament; since dynamic and lively local government is crucial to democracy.

Local government is in crisis because governments since the 1970s have assumed powers for areas such as further education, health, fire and housing, and have restricted councils' freedom to operate in the remaining areas. Financial autonomy has been undermined. It is no surprise therefore that voting levels in local elections have deteriorated, and the number of candidates has diminished.

We believe in a truly local government, and that as much autonomy as possible should be permitted to local authorities with as little central direction as possible on expenditure priorities and hypethecation.

The opportunity should also be given for councils to provide services if they give best value should be increased.

We support the introduction of a local income tax to provide funding for local government and call for a timetable to be set for the implementation of this.

Giving the Assembly full legislative powers would enable us to design a pattern of local government that is appropriate to the circumstances of Wales.

The proposed Local Government Act causes great concern as it takes powers from the Assembly and gives them to the Secretary of State. We shall do everything to oppose this disgraceful effort to undermine devolution. It is a clear example of the need for full legislative powers.

We are in favour of increasing the voice of local authorities in the selection of members of bodies such as Police, ambulance and fire authorities. It is important to introduce measures to increase public influence on councils' policies, together with adequate training for backbenchers to do their work effectively.

Unelected public bodies

The accountability of quangos has improved since the establishment of the Assembly, but the promised bonfire has hardly taken place. The justification for their existence, and democratic methods of fulfilling their functions, need to be thoroughly examined,.

4 (iii) Unity in Europe

The Plaid Cymru will seek every possible opportunity to strengthen Wales's status and influence within the European Union.

As we have already noted in section 1 (iii), this includes ensuring that Wales can play a part in the negotiations on further reform of the Common Agricultural Policy, for instance.

Strong Welsh representation within the current structures is also essential. This includes strengthening the Wales European Centre to act as an embassy for Wales in the European Union, a strong presence in UKRep and the appropriate Assembly Secretary to speak directly for Wales at the Council of Ministers. Similarly, it is important to increase the Assembly's capacity to scrutinise European legislation.

In addition to advancing the interests of our country from day to day, we also want Wales to have a voice in the political development of our continent. We have already noted our support for the process of European unity, but more needs to be done to underpin the principle of subsidiarity.

We shall support with enthusiasm every call for reform of the institutions of the European Union, including a written constitution for the Union and the inclusion of a Charter of Fundamental Rights in the European Treaty.

As has already been noted, the reforms we are seeking include strengthening democratic accountability by transferring legislative powers to a bicameral parliament - with one chamber elected directly and the other indirectly by regions and nation-regions who have their own parliaments and assemblies.

The 2004 Inter-governmental will take place during the Conference in the next parliamentary term, and we shall give priority to pressing for Wales to have a place in such a chamber.

Economic and Monetary Union

Undoubtedly, this will be one of the most important issues the next parliament will have to tackle. The Party of Wales regards the achievement of economic and monetary union in Europe as one of the cornerstones of our economic policy. In a world where global economic forces undermine the ability of national governments to intervene effectively in the macro-economy, economic collaboration across Europe is essential in order to regain democratic control over social and economic policy.

We do not see Economic and Monetary Union as a step in a relentless drive towards globalisation, but rather as a barrier against the unfettered power of international capital, and in favour of progressive social and economic values. Without the greater capacity to examine public objectives that a truly democratic Economic and Monetary Union has to offer, our people's demand for satisfying work and a fair wage, acceptable services and a clean environment remain at the mercy of financial speculators and international de-investment.

We support joining the Euro when the exchange rate with the pound is appropriate. Wales has suffered from Britain's decision to stay out of the single currency. The fact is that the structure of the economy of Wales is more like that of the European mainland than is that of southern England.

At the same time we cannot ignore the dangers of operating uniform monetary policies across a whole continent. Wales has suffered greatly from such an approach in the United Kingdom. The success of EMU in our opinion therefore depends on the following:

The Central European Bank's accountability to parliament;

Addition of full employment and the prevention of regional inequality to its remit:

Adequate resources earmarked for inter-regional transfers.

4 (iv) External security

Military expenditure has cost Britain's economy dear, and the economic gain from the investment has benefited only the prosperous areas of Southern England. We shall press for a reduction in military expenditure to a level similar to the European average (from 3.2% to 2.3% in 1998) as part of the global process of reducing military expenditure.

The £24 billion on military expenditure should be compared with the mere £2.7 billion spent on international development programmes in the current year.

We regard the UK's high expenditure on military defence as a sign of its failure to shake itself free of its imperialist mindset. We believe that the UK must come to terms with its limitations as a power on the world stage, and indeed the ability of any nation-state to deal with the challenges facing them in the 21st century.

We therefore welcome moves towards more collaboration between the countries of the European Union on external security policies. Such a policy should give priority to conflict-prevention and peace-keeping and should be based on democratic and non-nuclear cooperation as set out in the St Petersburg tasks.

To this end we support the principle of creating an European armed force, but we shall press for assurances that where the force operates outside Europe it will do so in order to keep the peace and not to protect the interests of the countries of Europe.

We also believe that it is the European Union that should be represented on the UN's Security Council rather than Britain and France.

The USA's threat to proceed with the development of a Missile Defence System ('son of star wars') causes considerable concern. It is a dangerous step towards restarting the arms race, and contravenes the Global Test-ban Treaty. We shall oppose strongly any move by the government towards Britain's participation in the scheme.

4 (v) One world

The Party of Wales is totally committed to the principle of world citizenship, and we support moves towards global governance in order to deal with some of the huge problems facing mankind.

Amongst the problems we have to tackle at a global level are issues such as the environmental crisis, epidemics, control of the arms market, gender equality, financial and economic stability in an age of globalisation, and the inequality of wealth that leaves so many of our fellow citizens in famine and poverty. The eradication of poverty must be at the heart of all international policy.

As a step towards creating a fairer world we shall press for an ethical foreign policy, which was promised by New Labour but not delivered.

International security

The United Nations must be strengthened so that it can operate much more effectively to prevent wars. It is too dependent on the contributions of large corporations, and the attempt by powerful countries such as USA to keep it deliberately weak must be resisted.

We also call for an international agreement to abolish the production, testing and use of nuclear arms.

Similarly, we press for much tighter regulation of the international arms market, with effective monitoring at a global level.

Britain should take lead in this, with arms brokering regulated by making it necessary to register and license every deal, and making increased parliamentary scrutiny of arms export licenses a requirement.

A substantial tax should be placed on arms producers with the revenue hypothecated to pay for clearing explosives left by wars.

The environment

As pollution and environmental damage have no respect for political boundaries, stronger control at an international level to enforce compliance is an imperative.

Protecting the climate of the planet is one of the most important challenges of our age. With new evidence of climate change, there is an increasing realisation that human activities endanger the health of the environment to such a degree that the quality of our lives, and even our survival as a species, is put in jeopardy.

CO2 levels in the atmosphere have increased 30% since the Industrial Revolution and the level of emissions is still rising. If present trends continue scientists estimate that atmospheric temperature will rise 6 degrees Celsius during this century - the greatest increase during the past 10,000 years.

International institutions are currently totally inadequate for the task of implementing the resolutions of the Kyoto Earth Summit, for instance, and there are none that are powerful enough to counterbalance the power of international companies. The fossil fuel industry has quite deliberately set about undermining the Kyoto process.

We shall call upon the government of Britain to be progressive in its attitude towards international discussions on the Rio process, and to ensure that next year's Earth Summit (Rio+10) is a success.

In addition to protecting the climate, we also have to work to protect the diversity of species and to protect the environment from pollutants that are harmful to natural life and health.

Similarly, the planet's resources have to be protected so that they may be handed on in good condition to future generations.

Creating a fairer world

Environmental protection is an integral part of ensuring social justice. In a world of limited resources, the need for equality is the same between individuals, communities, countries and also generations.

The present generation is consuming natural resources and undermining the planet's ability to absorb the harmful effects of our activities at the expense of the wealth and quality of life of future generations.

A quarter of the people living in the developed world consume three quarters of natural resources, and are also responsible for most environmental damage, while it is the poor and deprived who suffer by far the most from the ill effects. According to one estimate 100,000 have been killed during the last two years from the effects of climate change, the vast majority in poorer countries. A more responsible attitude from western countries is therefore essential.

The biggest threat to our security today is the increasingly globalised economy, which can bring the economies of small countries to their knees and cause environmental catastrophes brought about by climate change.

Action at the global level is necessary to protect workers' rights , and we support the standards developed by the International Labour Organisation in pursuit of this.

The poverty gap is growing ever wider and HIV/AIDS kills the same number of people in the developing world as world wars have killed in the past.

Combating poverty

We support an annual increase in overseas aid to reach the UN target of 0.7% of GDP and call fro aid to targeted on the poorest countries. A commitment to the 2015 International Development Targets must be central to international politics. We shall call a transfer of resources from military expenditure to international development.

Similarly a consistent method of transferring technology and finance to poor countries is needed, including special taxes for the purpose. We support the introduction of a Tobin tax, an air-travel tax, with the revenue earmarked for sustainable development in poor countries.

We recognise the link between poverty and debt reduction and call for further and more effective debt-cancellation measures in more of the poorest countries.

Sufficient resources must be provided to write off the debts of poor countries and for adequate resources for the Global Education Programme, to ensure a basic education for every child by 2015.

HIV/AIDS is a global emergency. Drugs and vaccines must be made available to all on the basis of need.

We therefore support the reform of the Trade-related Intellectual Property Rights (TRIPS) agreement which allows companies to price drugs beyond the reach of many of the poorest countries.

We also support the strengthening of the Biosafety Protocol which allows the poorer countries to regulate the import of GMOs.

Sustainable development, protection of workers' rights and the creation of a more equal world should be core responsibilities for the WTO, the World Bank and the IMF and all these should be part of a reformed United Nations system. They should be democratised in order to increase the influence of poor countries, and so that they have the power to oblige international corporations to operate in a way that is compatible with the needs of the environment.

Key Recommendations

Full legislative powers for the National Assembly following the pattern of the Scottish parliament with provision for further devolution

More rights and freedom for local councils

A stronger voice for Wales in Europe, and pressure for developments which will enable this to occur

Support for economic and monetary union in principle, with Britain joining the Euro at the appropriate exchange rate

Reduced expenditure on arms, and more on international development

Move towards a common foreign and external security policy for Europe

Opposition to USA's 'son of star wars' missile scheme

Move towards more governance at a global level, particularly in order to act on the environment, international security and combating poverty

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