The agreement states: „The UK government will establish a relative level of funding that it makes available to the Welsh Government.“ 9 The St. David`s Day Agreement also required the government to consider whether there was a strong case for the implementation of one of the Smith Commission`s other recommendations for Wales. As a result of this work, the bill contains: – The St. David`s Day Agreement we have secured today is one of the largest transfers of power in the history of Welsh decentralisation. It is about finding sustainable colonies across the country to make our UK stronger and fairer. Today`s agreement therefore paves the way for a referendum that could lead to an assembly that is not only a spending body, but is in fact also responsible for obtaining more of its revenue. The agreement stipulates that the National Assembly should be able to reduce the age of parliamentary elections to 16 years, set its own speed limits and have control over hydraulic fracturing, sewers, ports, as well as the regulation of taxis and buses. Britain`s coalition government has described the St David`s Day agreement announced on Friday by David Cameron and Nick Clegg, which provides guaranteed minimum funding for Wales, as a strong plan for the country`s future. 8 As part of the St. David`s Day proceeding, some of the powers that will be conferred on Scotland under the Smith Commission agreement have also been considered. The bill makes two important commitments arising from this exercise, which has been the subject of strong political consensus. The aim was to transfer all powers in relation to the Assembly elections, including the electoral system, implementation, franchising and registration and transfer of the authorization for the extraction of oil and land gas (including shale gas licences). The term „St David`s Day Agreement“ caused controversy in Wales because it gave the impression that it was an agreement between governments or negotiating parties similar to the Good Friday Agreement, when in reality it was simply a political announcement by the Government of London, in which the Cardiff government had not participated.
Secondly, when the decentralisation model is changed, today`s agreement gives the Welsh Assembly new, broad powers. Today, three politicians line up in the tunnel to announce a historic agreement. It may not be up there when Sam Warburton led the Welshman to a Grand Slam, injured his shoulder and lifted the trophy with one hand. But the St David`s Day agreement we have reached today is one of the biggest transfers of power in the history of Welsh decentralisation. It`s great to be at the Millennium Stadium today. From the Six Nations and the Rugby World Cup to Paul McCartney and Rihanna, this stadium is one of the largest arenas in the world. It is a source of great pride here in Wales and a source of great pride for the whole of our United Kingdom. And this makes it a great place to talk about the future of Wales as part of the UK.
. Thirdly, we are proposing what is called a `funding floor` – to protect the relative level of funding for Wales, and this will allow the Welsh government to plan for the future and develop the economy. One of the proposals that is hotly debated is the introduction of a „funding floor“ to give Wales a fairer share of the funds allocated to de decentralised nations.