03/03/2012 Welsh Liberal Democrats Conference

The ninth of welcome to the Welsh Liberal Democrat spring conference

here in Cardiff. The party is busy gearing up for those local

elections in May, so over the next two hours, we will be looking at

the party's fortunes, hopes and Welcome to the Holland House Hotel

in Cardiff, where this afternoon, Nick Clegg will be headlining this

two day conference. He is here already, meeting delegates upstairs

and giving that speech in about 40 minutes. This is a party in power

in Westminster and in opposition in Cardiff. How does that plague into

the local elections? Our political editor will be keeping me company

all afternoon. Are they in good mood? They are. It was quite quiet

this morning. More arrived in time for Kirsty Williams' speech. It

will be full for Nick Clegg this afternoon. They are hearing that we

know it is tough, but when you go out in May and not on those doors,

Givet all you have got and tell them the good bits. The over the

next two hours, we will bring you all the debates and that crucial

speech from the hall. James Williams is there for us. Yes, I am

keeping an eye on proceedings in the all. This morning, we had a

speech from the leader of the Welsh Liberal Democrats, Kirsty Williams.

And the headline her this afternoon will be the Deputy Prime Minister

and leader of the Liberal Democrats, Nick Clegg's speech. Just outside

the hall, milling with all the delegates, our reporter. Yes, I

will be mingling with the delegates and hoping to have a word with the

candidates about their hopes for the local election. So, Nick Clegg

arrives. A few protesters outside. Not an easy afternoon? No. He was

told beforehand that there were protesters outside from the local

area. He was offered to go in by the side door, but he said no. He

was happy to face the protesters. He wants to be seen to be

acknowledging that things are tough for his own party, tougher the

activists and tough for everybody. But what do here all the time about

the Liberal Democrats? It is that they have compromised. The job now

is to tell people why, and what they have gained from those

compromises. Kirsty Williams this morning listed the things achieved

because of deals struck with Labour. I am sure we will hear Nick Clegg

listing the things that he will argue we are better off for having

because of the Liberal Democrats. How difficult their messages that

for them to sell on the doorstep? It is difficult. They have struck a

deal with Labour in Cardiff and the Conservatives in Westminster. The

only way to square this circle, even a minute apart the that is a

broad church, is to say that it is about compromise, but to turn that

word around and say it is about influence. You use your influence

to make a difference. But he knows it will be extraordinarily tough.

He was asked this morning by a young schoolchild, do you like

being Deputy Prime Minister? And even he could only muster a "most

of the time". It is going to be tough. But unless you give your

activists something specific to go out and sell, the speech this

morning from Kirsty Williams and again from Nick Clegg will be based

on facts. How much better off are you every month because of changes

to income tax? How many schools have gained her how much because of

the pupil premium being introduced in Wales? It is giving activists

weapons to go out and something to sell so that when they have a hard

time on the doorstep, which they fully expect, they have something

to come back with. To what extent do you think they are putting more

clear yellow water between them and the Conservatives in London? He

knows he needs that gap here in Wales. Yes, and at this point, when

horns are being locked about big policy in Westminster and he is

being seen baps more recently than in the past as standing his ground

and not allowing things to go through, every time there was a

fight within the coalition, it is not bad for Nick Clegg and his body.

It is no bad thing for people to see that. He knows that the party

in Wales and his leader is pleased to see that sort of thing going on.

Any headline-grabbing moments from the speech? Kirsty Williams did

refer to what is going on in Westminster. She did not sweep it

under the carpet. She said, we are succeeding in Cardiff Bay. We are

achieving in local government. We are battling in Westminster.

Interesting choice of words. Nick Clegg will be saying what a

difference the Liberal Democrats are making. What Labour didn't do

and what the Liberal Democrats are trying to achieve. You would think

that with all these security men that Nick Clegg would know which

flew to go to. You would, but apparently he ended up in the

ladies'. Apparently he ended up with an activist from Oxfam, who

said "nice to meet you" and handed him a flyer about child poverty. So

she had a captive audience. Much more over the next two hours. Let's

check what is happening in the hall now, James. Yes, it is a question

and answer session with the Federation of Small Businesses at

the minute. They are poring over some of the issues that small

businesses are finding difficult at this time such as bank lending

rates. It is being chaired left by the Liberal Democrats' shadowed

business minister in the assembly. We can listen to them now. Swansea

has one that is working, but that is the only one in Wales. It does

not seem to be right. A lot of people are saying, I am paying

enough anyway. Shouldn't they be doing this anyway for the money and

paying without me giving them extra? We are going to look at this.

For now, it does not seem right. Yes, I think we can talk about

parking and those kinds of things. They are talked about a lot, the

likes of the large global brands. We need to consider how to

encourage more food for during Monday to Friday into the town

centre -- more ft 4. If you were to take that football, particularly

during the core hours of 11 o'clock to 2 o'clock, out of the town

centre, you lose those potential customers. We need to think about

how to diversify the use of the town centre. We keep thinking about

how to extend the usable time of a town from the morning further into

the evening. But none of these questions are easy to answer. We

need to have politicians both at local government level in the

assembly chamber right up to the House of Lords who are saying,

these are real issues. They are not just abstract issues. They are core

issues about sustainable town centres and business districts. At

the moment, when you hear about town centres, people go yourn,

parking and supermarkets. It is more challenging than that. It

would help if we took a more holistic approach. I have been

keeping an eye on what happens in Newport, partly because I lived

that way. If you don't know, Newport town centre, if you looked

at it, you would say it was dying on its feet. It has been for some

while. It has gone up and down over the years. I happen to have looked

into this and made inquiries about what is happening. I read the News

Letter the Council produces and so on. The things that are actually

happening are very good. They have done something about car-parking

fees and all sorts of things. But it is still not working. The major

stores are threatening to up sticks and go to out-of-town areas and so

on. The more that happens, the more people feel the place is dying and

don't want to go there. I hear people saying, I do not go to the

high street now a new port. There is nothing there. That is not true.

There are plenty of things still there, but not as much as there

were. My concern from the Government will side is, there are

only certain things you can do. It takes time to schedule everything.

You have got planning and all sorts of things going on. In Newport's

case, the developers who were appointed went bust. But the whole

thing takes far too long. My latest exasperation was a month or two

back, when it was declared that the new developers had been appointed

and were ready to go to planning. "and we are hoping work will start

in the middle of 2013". To an observer who does not know what is

going on, you think, for goodness' sake. Let me have it sorted out by

tea time. It is such a delay. I get the impression that stuff is sat on

people's desks. The whole thing is very slow and ponderous. That needs

to be addressed. It is not so much the ideas and the things people are

trying to do in local government and with town centres. All very

good, but it is taking far too long. Please can we do something about

that. My view is that many town centres across the country are

almost identical. From shoppers' perspective, people go shopping for

an experience. They want to enjoy it. We are in competition with the

internet in the retail sector. It is an unstoppable thing. So we need

to look at what the customer experience is like when they go

into town centres. We do not want to replicate and be the same

everywhere. Each town needs to have its own identity. We want to

encourage small, independent businesses with a difference to

make each town have a different identity. You go there because you

know you will have an experience that is different to somewhere else.

This has been achieved in places like Bath and Brighton. They do it

differently. That is what we need in the smaller towns. The larger

cities are doing fine. People will go to Bristol and Cardiff and have

an expectation and they get what they expect. But when we go to

Caerphilly and Merthyr and the other towns, we want to have a

different shopping experience. Maybe our local authorities should

encourage more craft shops, things that are different, and designers

and such like to open up their own different businesses. Let me add

something in support of what was just said. I saw the list of the

richest towns in the UK. You have to question some of the things that

were in there, but anyway, take a look. The richest towns in the UK,

the towns where people want to live, the high streets are all old

fashioned high streets. You have the butcher, the baker and the

candlestick maker. You have the old-fashioned values. Not a popular

thing to say, but observe what is happening. That is where people

want to live. Why? Because of the shopping experience. Ben tune. We

had some interesting views their from the shopping experience to

parking. If you have a cash-cow that is on its last legs, if the

cow is dying, stop milking it. Any questions on the retail sector from

the floor? Yes? Like most people, I work from 9-5. So I find it

frustrating when all the shops are shut when I finish work. Why do you

think so many retail businesses are still wedded to open in from 9-5,

when everyone else is busy? That is a very valid point. We would say to

our members of the retail sector in the FSB that you live and die by

the market. You have to adapt. I do not think anyone in business would

say we want to tilt the balance in favour of businesses carrying on as

usual. Good businesses recognise that they have to adapt. Like

yourself, it is convenient for me to shop from 6:00pm to 8pm at night

in a large retail centre. That goes back to my point about having a

nine-to-five approach as well. If I can go out at lunchtime, I will

spend more in the town centre, but ultimately, the business has to

respond to the customer. I do not think anyone on this panel would

like us to fossilise the business environment. FSB businesses believe

in the market, something we believe has the ability to bring change.

But we are concerned that there is market failure largely because

regulation is wrong and we are going about things in a way that is

unsustainable. Parking is an example of that. I take on board

what you are saying. We do not expect businesses to say, you have

to meet our demands. They have to The problem of trying to get the

regional -- evening economy of working in regional town centres is

difficult. We had been looking to see what we can do to try and do

that. It means getting a mix of businesses to try and include

restaurants and other things. We also have a problem were shutters

get rolled down during the day and they come to life during the

evening. During the day it is an eyesore. It is also to do it using

accommodation above shops so you have people walking around in the

evening. When you have people walking around, you reduce

vandalism. It means decent lighting, it means CCTV, it means a lot of

things to try and get it right. The local authority can instigate

things, but the shops must come on board as well. It has got to be a

partnership and it is difficult and it is taking us longer than I would

like, but we are moving in the right direction. That is quite

right. The shops will open if there is true there and they can afford

to do so. It is a chicken and egg thing because everyone has to do it.

It has been a problem, Swansea market for example trying to open

on Sunday, some stores will open and some will not. You have

shutters over some, and not over others. This is the problem you

have. What is a very good move that has been happening over recent

years is that we're encouraging people to live in city centres

again. That does make it a safer environment for people to work, and

it encourages a longer shopping experience. You have local people

who you can sell to if they are living above shops and on the

street. If you go to places like the Vienna, there are no shutters

on any shops. It feels like a safe environment and people are there

out and about until quite late. We need to look at where it is done

elsewhere and learn from other people's. I agree absolutely with

all of that. You cannot micro manage these things. You cannot say,

you have to have this or that. What you can do is create an environment

for these things do exist. Why does a little corner shop on an estate

stay open until 11pm. Because it is a good idea and he can make money,

and he has observed that. Why do certain things happen in town

centres? It is because people can perceive they can do something with

it, it is of the used to both them and their business. If you

encourage these things, if you set up the right environment for them,

it will happen. I would disagree a little bit. We will have to leave

it there. We have been discussing the difficulties town centres have

been having in the current economic climate. A hot political topic that

has been talked about in the Assembly recently.

No doubt that hall will fill up for Nick Clegg in about 20 minutes

times. He is due to start his speech. I am joined by Assembly

member Peter Black and Jenny Randerson. Welcome to both.

Tremendous fun in the chamber, a hugely challenging and rather

strange. In what way? It is an interesting amalgam of the results

of hundreds of years of tradition. In some ways it is immensely

effective and a very thoughtful way of doing things. On the other hand,

you cannot ever imagine inventing it like that. We now face the issue

of reform coming our way. There is huge potential with that. Did you

do not have to stand for election at the moment, who knows in the

future. Peter Black, you're the party's spokesperson on local

government. How tough will it be for you? Any election is tough,

especially when you're in government. We will have to sell

our message harder than in the past. We have always received protest

votes in the past, and now people are protesting against us.

you're knowledge you have been a party that receive the protest

vote? We have received protest votes, we have always had vision

and policies, but people have come to us in protest. But we have got a

good message to send. We're in government, we have local --

influence in local government. We're making a difference for

people and we are delivering on our manifesto and on our agenda. We are

reducing tax for some people. We have put �450 into schools as part

of the people premium. In local government we have got local

council taxes and we are delivering better services. Peter raises an

interesting point. You won't get to the protest vote, will you? You

could suffer seriously because of that, Jenny Randerson? You need to

look at it this way. Throughout my political experience, I had been

told year after year, we like what you're saying to us. We would vote

for you if we thought you could win. Now we have proved that we can win,

we have proved it at every level. You were the maths that made up the

blocks to going to Government. and we are doing the job well

indeed. Nobody won the last general elections. You did not win, did

you? We won the election in Cardiff. And we have won the election two

times coming in Cardiff. We have been running harder for eight years,

hugely successfully. Similarly in Swansea. We're doing equally well

in Wrexham and in Newport. If you look at those cities, you will see

them transformed under the Liberal Democrats in the last eight years.

If it is all about selling a positive message, Jenny, you had

the chance to form a coalition. You could have pushed Labour and said,

let's do deal. Why didn't you go for a fully-fledged dealer with

Labour? I do not think we were desperately keen to go into

coalition with a very tired Labour Party. I think Kirsty Williams has

been a hugely successful in terms of up the influence that she has

exerted. The people Premium, the �450 per pupil per year for those

poorer pupils eligible for free school meals, that will transform

education here in Wales. There is one school in Cardiff that will get

a quarter of a million pounds additional funding as a result of

this. It is very important to every family throughout Wales, that is

better than a coalition. Peter Black, the problem for the party is

that you have done a deal with Labour in Cardiff. You were very

much in bed with the Tories in London. People will say, where is

your identity as a party? A fully- fledged coalition was never on the

table in Cardiff. We are willing to talk to anybody about how we can

deliver Liberal Democrat policies and that is what we have been doing.

We did a deal with Labour to promote Liberal Democrat parties.

When you vote for the Liberal Democrats, you vote for our

policies and you should expect us to have them put into effect and

that is what we have done. His it comfortable for you, with Labour in

car -- Cardiff Bay? What we are in politics to do is to change things,

I improve people's lives. To deliver the policies we stand for

election on. In Westminster we are in coalition with the Tories and

delivering Liberal Democrat policies. In Cardiff Bay we are

working with Labour to deliver Liberal Democrat policies. Why are

you so low in the polls? One of the important things that we have to do

is a cert for herself our own identity, our own policies. --

assert for ourselves. At a time when the UK government is facing

huge challenges dealing with the mess the Labour Party left behind,

although people understand that Labour left a mess and we have to

cleared up, they still do not enjoy the process of clearing it up. The

interesting thing is that when you look at real elections, local

government by-elections, all through last year when we were

supposed to have been doing so badly in the opinion polls, we were

winning more seats than other parties. In the elections this year

so far we have already gained in Wales are three extra seats. The

opinion polls are not being borne out in actual elections. You know

it was tough in the Assembly elections, Peter, the message was

not going down well that you had teamed up with the Tories in London.

That was the first year of the coalition and people took some time

getting used to it. People are more used to it now and maybe they have

got the protest out of their systems. Since then there have been

more cuts, there has been a series of public sector pay. There are no

cuts to benefits at the moment. There is a welfare reform bill

which will transform the way the benefit system works. It will

encourage people to get back into work. It will mean less money for a

lot of people in Wales. That programme has a lot of support

within the Welsh electorate. We need to give people the opportunity

to go back to work. Yes, there are problems with that agenda and there

are problems with people's perception of the agenda. But it is

our job as politicians to sell the message and explain to people what

we have achieved. We have taken people out of tax, improve tax

credit for people, the pupil premium �450 for every pupil. Free

school meals, it is a good message for people. Jenny Randerson, any

advice for Nick Clegg? I very much hope he will take the opportunity,

at first of all to praise the local council groups that had been doing

such an amazing job year in Wales, he will also take the opportunity

to says some of those things about taking people out of the lowest

band of tax. Given people the biggest increase in pensions that

there has been. It is important people are reminded of the good

things. The media always dwell on the bad things. Bad news is news.

But the good things are happening as well, Nick must emphasise that.

Peter Black and Jenny Randerson. I have got two people who are going

to be very busy over the next nine weeks. John Williams and Nigel

howls. Nigel, we are on your home turf here. What is the reaction on

the doorstep at the moment? Nick Clegg says it will be a difficult

election for you. It is quite positive on the doorstep. Council

elections mean the most to people. It is councils to educate our

children, fix the roads, look after our old people. As Liberal Democrat

we have got a fantastic record, not just in Cardiff, but throughout

Wales looking after our communities. Are the people on the doorstep

listening to those messages, the policies you're achieving? Yes, and

the feedback we are getting is that they are appreciating what we are

doing investing in our communities. Couple that with some of the lowest

council tax rises in Wales. In Cardiff, the average council tax

raised has fallen through the floor. We're one of the councils with the

lowest council tax in Wales. Under Labour, residents had to put up 11%

council tax rises every year. Williams, you are new to this game,

standing for the first time. What are your thoughts on the election?

It will be difficult, but we will work hard to get our messages

across. The people premium is a fantastic thing for children in our

society, these are the messages we need to deliver. It is a hard

message to sell, especially with the coalition with the

Conservatives in Westminster. Are you feeling a backlash from that on

the doorstep? Not really. People understand these cuts have to

happen. It is very important. We're in a difficult situation, the cuts

are necessary, but we need to make sure they fall on those with the

broadest shoulders. That is what we have done in Government. Nigel, you

are an old hand at this. Have you got any tips? John is a very bright

young man and it epitomises what it is to be a Liberal Democrat

councils. To be active in your community and listen to the people.

More importantly, delivered on your promises. We have done that in

You are known free of constant campaigning. Do you hope that will

get you through the election? have been knocking on a few doors

already, and the message we are getting is that people recognise

what we do for Communities. As you say, we do not just do what we do

at election time. We are therefore our communities year in, year out,

in the rain, sleet and hail, and they appreciate that. I hope they

will deliver more Liberal Democrat councillors in Wales, because it is

what the councils in Wales desperately need. Are you looking

forward to the speech from Nick Clegg? Very much so. It should be a

positive message and I look forward to it. What did you think of

Kirsty's speech? Both of them are emphasising the things you are

achieving at all levels of government. Absolutely. We need to

be positive. We are making tough decisions, but we are also making

good decisions. Kirsty's speech was great. I look forward to seeing one

Nick Clegg has to say. Thank you both.

It has gone very quiet here, which can only mean that everybody is

making their way into the hall for Nick Clegg's speech. Is it getting

packed? We are still in the question-and-answer session from

the Federation of Small Businesses. They have now moved on from town

centres to looking at the employability of the workforce,

specifically youth unemployment, which we all know is a hot topic.

Let's listen in. The more restrictions you put in to

safeguard people, you could actually end up marginalising

people more. Hold your nerve on this one. It is important to give

young people real-life experience in the workplace. Thank you. We

have to move things on a bit. We are running out of time. One

important question is the subject of business support. But because we

are short of time, let me ask you to be shorter with your answers.

How difficult have you as business people found it to access business

support, and what could we be doing differently to make a difference?

By business support, I presume you mean through enterprise agencies

and things like that? OK. I have worked for a short while for an

enterprise agency. At the time, we had plenty of European money. We

did what we thought was right. We called it mentoring, and reclaimed

for it. That is no longer the case. If local or national Govan has too

much of a hand in that, it becomes managed in a silly way. I have seen

things like diagnostics that needed to be done just because the

paperwork needed to be filled in. I have seen advisers go out and do

visits just because they were targeted to do so. That is wrong

and not in the spirit of the thing. That is what you get when you have

this sort of system. Business support locally has involved new

contracts being handed out. I think that was extremely badly managed. I

could go on all afternoon about that. I do not wish to mention

names, but there were serious deficiencies in the way that was

handled. Many businesses advisers out there can't do the job. There

are some good ones, but many, I would not give sixpence to, to use

an old expression. That is wrong. They are not equipped to do things

properly. A Unfortunately, there is a lot of money being wasted on

business advice. It is not being delivered by people who know how to

do it. So I share Bob's view. But the mentoring has been good. We are

behind mentoring schemes. There are a lot of successful businesses who

are willing to help other businesses start. Maybe the Welsh

government should do more to encourage people to mentor, maybe

by covering costs to do that. It is purely voluntary and that their own

cost at the moment. That would be better than the sort of advice we

get now. I know there are agencies currently employed to give people a

free audit of what computer problems they may have. Any company

in IT offers a free audit anyway just get the business. It is

unnecessary. Just because I like to start a fight, I believe this might

be your area of expertise, Bob? Have worked as a business adviser

for some time. But I do not do it now because the bureaucracy has got

so much that I was spending little time talking to businesses and most

of my time filling forms in. The art, as best practised at that time,

was that people wanted grants. But what they needed was advice and

mentoring. The grant was a hook to get people involved in business

advice. The delivery was a holistic look at the deficiencies in

management skills and giving a fresh momentum to turn up. I think

the Welsh government lost its way after the Bonfire of the quangos.

We now have more silver surfers. There is a lot more form-filling,

but very little core advice from business people who know what a

successful business needs. I am disappointed in this. Is it easier

to get good business advice? No. It no longer is. A survey recently

from our members says that when we need advice, we go to people we

trust. That means people they know who are in business, accountants,

people in the banking sector. They know what advice they need, and

they get it. That is the informal network of support. I ran my own

business for two and a half years before coming to work for the FSB.

The questions I needed to be answered were questions such as

What do I do in the event of...? The best person to speak to is

somebody who has been there and done it. We would encourage a much

more business-led approach to business advice rather than leaving

it to those with no experience. the subject of turning to people we

can trust, banking. Obviously, there is an issue with provision of

finance to business. It is one of the biggest problems some of the

smaller businesses are facing. What are your views on establishing some

non-traditional forms of lending? If you look at business figures and

Project Merlin, you will see that small businesses have failed to

receive the capital and investment they need. We could start having a

name calling session between small businesses and the banks, but that

will not get us anywhere. We need a new way forward. We believe that

way is to establish new lending models to get capital into private

sector. In parts of the UK, they have good credit unions which serve

particular needs. We need to explore what that would lookalike

for a business credit union. We need to look at the model that

Germany uses, and Scandinavia. They have business banks. We need to

look at what happens in France. It's they have specialist banking

groups which serve the business network. We need to see that

happening in the UK. We hope the UK government will respond. We feel

there is a role for Welsh government in taking the lead. We

need something aligned with small businesses. I apologise for

continue off in your prime, but I believe our time is up. The full

hall would lead me to believe not only that this was a fascinating

discussion, but also that perhaps our next speaker may shortly be

with us. Can I take this opportunity to ask the altar back

the panel members. -- I thank -- I ask the hall to thank the panel

members. Bent you, gentlemen, very much.

We leave the All There as it prepares for Nick Clegg. Betsan

Powys, you have seen the speech. What is he going to say? Much as we

anticipated, it is about the messages he wants activists to get

out there on the doorstep, come May. The good things the party has done

with its influence, as he would argue, the things they are digging

their heels in over. You will hear about changes to income tax. You

will hear about the pupil premium, as they call it here in Wales. It

is the sort of speech that will go down well with the activists who

are here. You just wonder about those who are not here because they

have chosen not to come this year. We have to go back to the all now.

It is time for the Deputy Prime Minister. Thank you.

Friends, this party has a proud history. The generations, our

predecessors have fought for Liberty, Equality and community.

And we all follow in the footsteps of some great men and women. Emlyn

Hughes and was one of the great Welsh Liberals of all. Kirsty

Williams has spoken movingly about him today as both a man and a

politician. All I want to say is that you and I can only fight for

the things we believe in today because people like Emlyn blazed a

trail before us. Emlyn was the father of the Welsh Liberal

Democrats. He will be sorely missed and fondly remembered. The best

tribute any of us can give is to go out there and continue to fight for

the things he believed in. Ince has spoken before about -- Vince has

spoken about the Kirsty Williams welcome, which is a big smile, a

kiss on the cheek and then a right rollicking about all the things we

should be doing in Wales. I have been on the end of one or two of

Kirsty Williams' welcomes myself. But that is what is so great about

Kirsty. She shows real leadership. She fights for what she believes in,

and she gets what she wants. She runs rings around the other party

leaders in Wales, and punches well above her weight. And she is not

alone. We have a fantastic team of AMs. One barely has her feet under

the table, and already, she has won the Member to Watch award. We also

have three brilliant, committed and hard-working MPs in Mark, Roger and

Jenny. I'm especially delighted that Jenny has recently joined the

government whips' team. In them, we have some of the sharpest,

shrewdest and most impressive parliamentarians in British

politics. The future of the Liberal Democrats is bright, and it is

being led by a trio of strong Welsh women. It is no secret that we took

a real hammering across the UK in last May's elections. I know you

have come under fierce attack here in Wales, too. But thanks to all of

you, we held our own in the Welsh election. It gives me great pride

to come here and see our party in such good heart. We have shown in

Westminster that we are prepared to put our differences aside to do the

right thing for the country. One of the things I am most proud that we

are delivering in England is the pupil premium. It is a sign of

Kirsty's leadership and your resilience that you will be able to

deliver a pupil premium for Wales, to. I have always believed the best

way to give children the ferrous start in life and the best chance

to fulfil their own potential is to help them when they are still young

enough for that help to make all the difference. That is what the

pupil premium does. Help for those who need it most, when they need it

most. We are seeing its impact in England already. Catch-up classes,

one-to-one tuition, extra teachers, support staff, outreach workers

giving help to struggling families. The pupil premium is leading a

revolution in schools and making a real difference to children's lives.

But it does not just help the poorest. It helps all

schoolchildren. Fewer children falling behind means less

disruption in a class and a better education for every child. And

nowhere is that more important than in Wales, where results still lag

behind the rest of the country. That is Labour's legacy to the

children of Wales, and I am proud Labour has led the spending gap

between pupils in England and Wales grow every year since the Assembly

was established. Worst GCSE results than English pupils, worse A-level

results than English pupils, leading Welsh young people with

worse prospects than those in England. Education used to be

something that Wales could be proud of. But under Labour, standards

have slipped back, and back, and back. Labour should be ashamed, it

does not need to be this way. Giving our children the best start

in life is the most liberal, most liberating thing that we can do.

That is the difference we are making. Whether we are working with

Conservatives at Westminster, or negotiating with Labour in Wales,

we are showing we're putting our differences aside to get the right

thing for our country. It is not just education that has suffered at

Labour's hands. There has been a lot of debate over the last few

years and not least of all the last few weeks, about the future of the

NHS. Look at what happened in Wales when the nation's help was left in

Labour's hands? Longer waiting times than in England. Worst

outcomes than in England. Labour has spent more money per head on

health in Wales yet has a worse results in almost every single

indicator. On that Newsnight recently, Labour's shadow health

minister could not defend their record in Wales, so why will take

no lectures from Labour on the NHS. People in Wales are living with

Labour's legacy in health and education. Just as you, and

everyone else in the United Kingdom, are living with the legacy of

Labour's economic incompetence. Labour gave us the biggest bust for

generations. They bet to their house on a gamble may have no right

to make, and no chance of winning. There are villages, towns and

cities across Wales that still bear the scars of Thatcherism. Labour's

answer was to throw cash at them until the money ran out. The took

the taxes from the banks and the financial gamblers in the City of

London, and recycle did in Wales and elsewhere in public spending.

They kept communities afloat by replacing a industrial jobs with

public sector jobs. This would have been fine if it was not so short-

sighted. When the banks collapsed, they left us defenceless. The money

dried up overnight and Labour's lie was exposed. Now those villages,

towns and cities have been hit with a double whammy. First by

Thatcherism, and then by Labour. Now it falls to ask, acting in the

national interest, to start to rebuild. That is why we have taken

the difficult decisions that we have. It is why we must show the

courage to see them through. As we do so, we are laying the

foundations of a Ferrar, a greener, more liberal Wales. Here in a more

fair, Moorgreen liberal United Kingdom's. With new green jobs in

advanced manufacturing and technology. Investing in our young

people to give them skills for the jobs of tomorrow. I know it can

fill difficult to be optimistic when times are so tough, but we are

doing the right things. For Wales and the whole of the United Kingdom.

I believe we have every reason to look forward with our heads held

high. Not least of course because of the great work of our councils.

In Swansea, Liberal Democrats have frozen council tax and pumped an

extra �1.2 million into schools. Money is focus specifically on

helping children learn to read. In Wrexham, Liberal Democrat inherited

a council with the second-worst recycling results in Wales and

lifted it into the top five. Here in Cardiff, Liberal Democrats under

-- introduced weekly doorstep recycling and opened new world

class libraries. They were to doubt waste it to keep council tax low.

Liberal Democrats in local government, putting our children's

education first. Giving people help in tough times and going green,

just like we are in national government. I am so proud of the

work of our excellent councils. Across Wales, Liberal Democrat

counsellors are fighting for the things that matter most to their

communities. Our councils are quite simply the life blood of our party.

Without your good work, we would not be able to make the difference

we are making in Wales and Westminster and I would like to

So, Wills is stronger for having Liberal Democrat in national

government. -- Wales. But we want to make it a stronger still. The

only time I want to be weaker Wales was when I was with my oldest son

in Twickenham last week. I will put that behind me are! Liberal

Democrat are not afraid to talk about further devolution. Devolving

power is in our DNA and we are delivering that in Government. I

want more power in Wales, that is why I was delighted with a yes vote

in last year's referendum. It is why the coalition government has

set up the sulk Commission and why we give more of power to the people

of Wales. I cannot say what the commission will ultimately

recommend, and it is right it is independent of government. But

where there is a sensible case for giving more power to Wales, I will

support it. That is exactly what Welsh Liberal Democrats have set

out in their reports up to the commission. More powers for the

Assembly to invest in Welsh infrastructure. More control hide

money is raised and spent in Wales. After a time when debate over

constitutional settlement is being had so strongly in Scotland, it is

only right to look at giving more power to Wales. The yes vote in

last year's referendum has not closed the case for more power in

Wales. They no vote of for Scotland will not end devolution north of

the border. Liberal Democrats believe in localism, in giving

power back to people, and we will never stop campaigning for the

further devolution of power. But we must not get sidetracked from what

is really important right now. Constitutional issues can feel

abstract at a time when so many people are feeling squeezed. I know

many of you are worried, if you have not had a pay rise for two

years or more, if you cannot plan for the future because you look

around and worry about what might happen if you lose your job or if

your partner does. All the while, things just keep getting more

expensive. One day you come back from the supermarket and wonder why

your weekly shop costs more than it did. Next, gas and I just do bills

arrive and they have gone up again. You fill up at the petrol station

and the price has gone up again. If you were young and you do not even

own a home, you wonder if you ever will. -- if you are young. You

never ask for anything, but everything seems to be getting

harder. We are coming out of a crisis. Like an economic heart

attack. There is no magic wand that will make everything better

overnight. But as we build a new economy from the rubble of the old,

Liberal Democrat will give you real, practical help in tough times. That

is why we have cut your income taxes, even though we have had to

make tough decisions to raise money elsewhere. We have put �200 a year

back into your pockets last year, and another 130 from next month. We

want to go further and faster lifting millions of the poorest

workers out of paying tax altogether by raising it to �10,000

the amount you can earn tax-free. Putting �60 back in your pockets

every month. That means 200,000 a Welsh workers would pay no tax

whatsoever. And 800,000 Welsh workers will see �60 more in the

wages every month. That is a million Welsh people better off

because of Liberal Democrat. The vast majority of all the working

people in the whole country. Liberal Democrat tax cuts for the

many, not the few. This coalition government is standing up for the

culture of work that is such a proud part of Wales's history. By

making sure that worker always pays. By making sure people can keep more

of the money that they earn and by making sure our young people have

the support they need to enter into the world of work. For those of you

whose working life is over, Liberal Democrats are on your side. Thanks

to our pensions triple lock, more than 600,000 Welsh pensioners will

receive the most generous cash rise in the state pension in a

generation. From next month you will receive an extra �5.30 per

week. No more of Labour's insulting 75p pension rises. Liberal

Democrats are giving you a real help. So, when you go out there at

a knock on people's doors over the next few weeks, tell them the

difference Liberal Democrat are making. Tell them how our

councillors are standing up for our communities and our local people.

Tell them higher Assembly members are putting their children's

education first. Tell them how it Liberal Democrat in government are

giving them real help whether they are young or old. Giving their

children a fighting chance. Fixing the decades of damage done to Wales

by previous governments. We have a great story to tell. We have a

great team of people to tell it. So let's go out there again, with our

heads held high, and show them the difference we are making. We are

building a Ferrar, greener and more That is the Deputy Prime Minister

Nick Clegg, leader of the Liberal Democrats, finishing his speech. He

talked about how the party was working for the benefit of all.

Putting the party's differences aside with other parties and doing

what they could to help people in difficult times.

Let's SS that speech with a political editor. What did you make

of that? It was quite short. I am not sure he had time to work up

steam. There were a few examples of applause, but I was inside

listening for most of it and it is always going to go down well in

your own party conference, but it felt slightly flat to me. The line

of attack was clear, on a Labour's legacy. It is always around health

and education. That is where the attack was once again. Labour's

legacy on the health service in Wales. The same for education.

Labour's hands in the Wales, you're left with worse results than in

England. There is something you have to say, this is a consistent

message now from the UK Government on those subjects. Perhaps health

even more than education. There is a view, in London at least, there

is a view the NHS is regarded in England as a bit of a basket case

in Wales. Labour needs to engage with that argument and to start

putting things right. That is what we got from Nick Clegg, Labour's

legacy, worse off. He told the BBC earlier that devolution cannot come

fast enough for him. He clearly wants powers transferred, doesn't

he? It depends how you look at it. Do the coalition government really

want that? Would the concern be from Carwyn Jones that they want to

get to a point worth the whole Commission has positive about the

transfer of tax powers to Wills, simply to use that as a stick to

beat the Labour government within Wales. They are far more cautious

about whether that would leave Wales better off or not. They would

argue do not just devolve for a day revolution's sake. It is a

different -- difficult dynamic for Labour. The Secretary of State is

talking positively about devolving accountability to Wales. You have

got to back that off quite carefully. You have to accept that

accountability is good, but you still have to chip away and say, we

must make sure it leaves us better off. I think they are hoping to

catch Labour there. They need to make sure they get it right and not

In terms of devolution, this is the party of federalism. Do we know

what they want? I do not think they are clear. The argument has come

from Cardiff Bay that the First Minister has asked for a commission

in order to spell out what sort of UK they might want in future. He

wants it made clear to everybody what they might be voting for at

some point. But there was no clarity in that fairly short

passage from Nick Clegg. His speech had another job to do today, if you

like. His job today was to talk about people being �200 better off,

schools in Cardiff, Wrexham, Swansea. That is where this speech

was aimed. I did not think it was perhaps as rousing as those in the

hall might have expected. Yes, and from those you have spoken to, are

there some in the party still cross that he did this deal with David

Cameron, and Gardai over that yet? Absolute key there are, and they

are not here. This is be point, that those who are here are here

because they are still in the battle, and they want to be

galvanised. The problem for the party is how many are not prepared

to go out to the doorsteps. Those who are here are clear on the

numbers in their area. They are prepared to fight. The interesting

thing is whether Labour activists are still angry enough to come out

and fight in a local election for Labour, or have things bottomed out

as far as galvanising in both parties is concerned? That is what

we might learn by May. The kettles are back on here. People are coming

out for coffee and tea. Elliw, you have some delegates with you?

I am joined by two delegates who were listening to the speech.

Dominic, let me start with your reaction? It was very good. It was

a good round up of what the Lib Dems are achieving in Westminster,

taking thousands of Welsh people out of tax, helping thousands of

Welsh pensioners after the insultingly low increases we saw

under Labour. Nick Clegg showed a real understanding of how

councillors are doing in Welsh communities, keeping council tax

down, opening libraries and Devon - - delivering great public services.

You will have then lot of hard work ahead of you. Are those declines of

messages you can take back to people on the doorsteps in your

area? I think Nick was francs. He was not frightened to shy away from

talking about the NHS, the economy and education. Those are the things

people on the doorstep are telling me they are concerned about. I am

grateful to have been the pupil premium come to Wales, �450 for the

education system. That is something my residents are delighted about. I

know the residents are happy. Clegg was talking about the things

you are achieving as a party. But aren't you a little concerned about

what people might be thinking about the cuts that they are really

feeling in their pockets because of the coalition with the

Conservatives? It is a real cost to us as a party. We had to go through

a painful process. The pain is mirrored by the general population.

I am personally not happy to be in the coalition, but I am happy with

the things we are achieving in Wales and I am proud of the things

we have managed to get through the coalition. The rise in income tax,

better pensions and the money for pupils. These are difficult times

and difficult decisions need to be made. I am bad there are Lib Dems

in the coalition doing things the Tories would not otherwise have

done. Will that speech resonate well with people at home, do you

think? I think it will. Real people out there on the doorsteps who we

are talking to in these elections recognise that it is a difficult

time. But they also recognise that Labour left millions of pounds of

debt, money we did not have. In these elections, it is of course

about local issues. People remember what a lot of the councils like

Swansea and Wrexham and Cardiff were like under Labour. They

remember the waste of council taxes. They know that you get a better

deal with a Lib Dem councillor and a Lib Dem council. We are not

shying away from the difficult decisions to clean up Labour's mess.

You did well in 2008, mainly because of that surge against the

Labour Party. Is it inevitable that you may lose seats as some Labour

supporters come back to the party? I think we did well in 2004 because

of a phenomenal campaign on the ground by our councillors.

Whichever party people support, people will support their local Lib

Dem team. People will not want to go back to the years of what under

Labour. I am confident that we will do well in this election, because

we have a record which can be proud of. No council tax rises, investing

in services. There was talk about my breeze closing across the

country. Here in Cardiff, the Lib Dem council is opening libraries

and delivering cleaner streets. That is a strong record to campaign

on. After that speech, we look forward to get in out there and

continuing to sell that message, as we do all year round. I agree. I

cannot add anything to that. Nick was really energetic in his speech,

which is refreshing to see, as he is doing a hard job. Kirsty's

speech this afternoon, I thought would be hard to top. So you got a

boost from that speech to go out there, continuing with the

leafleting and hard work. Thank you very much.

Joining me now, Jenny Willetts, the MP who stood down to Chris Huhne

over tuition fees. You have had your issues with the party. In

terms of Nick Clegg's speech, not at his most motivational, maybe?

What he was saying was bang on the money. He is right. We have an

awful lot to say at the local elections over what we have

delivered in Wales that is really positive. People often forget at

the moment that there is a huge amount that the Liberal Democrats

are delivering. We need to remember to tell people so that they know we

do keep our word. But are you delivering the right things? You

clearly did not think so when it came to tuition fees. A lot of your

supporters did not think so. Now you have welfare reform and lots of

unpopular cuts being put forward by your coalition government. Do you

feel 100% behind what Nick Clegg is doing these days? I absolutely

support Mick. We are in a coalition government. We have to compromise

on all sorts of things. For me, tuition fees was a step too far.

But on everything we have done since then, I am fully behind Nick.

We are in a difficult situation as a result of Labour's growing up the

economy when they were in power. Whoever was going to come in after

the last election was going to have a tough time. We are doing the

right thing. You know Nick Clegg well. When you resigned, you must

have told him, this is a step too far? What does he tell you

privately? "I have to do this"? I know you will not tell me exactly

what goes on behind those closed doors. But how did he sell it to

somebody like you? Need is a realist. There are some issues

where I have put my views on the record, such as tuition fees. He

knew he could not persuade me on that. But with all the things the

Government does, there is a good reason. Not everyone will agree

with each reason, but it is important to set out the reasons

why we are doing something. Not everyone will agree, but at least

we can explain why. Everybody in the party as a whole understands

why we are taking the decisions we are, even if they are difficult and

particularly when they are sometimes unpopular. We need to put

our case so that people understand why we are doing what we are doing.

As a party, you are back in what Labour is up to in the Budget in

Wales. For many of your supporters in Wales, that is a more

comfortable match than the one in Westminster? I would be the first

to say that as well. After the last election, I can honestly say...

Thank you very much! After the last election, it never occurred to me

that we would be doing a deal with the Tories. But the electoral maths

did not add up. It was impossible to do a deal with the Labour Party.

And the fact that we can work with the Conservatives in London and

Labour in Wales shows that we are happy to work with whoever to get

the right deal. But people worry that you compromise your principles,

your identity. But it is on issue by issue. In Labour, we did a deal

on the basis that we got the two key priorities we had in the

assembly election, pupil premium for children from deprived

backgrounds and more investment in unemployment and job creation.

Those were things we stood on in the last assembly elections. It was

a chance to deliver those commitments. People in the public

do not want parties to squabble among themselves and just stick to

narrow party interests. They want people who are prepared to work

with others, to look at the bigger picture and identify their

priorities. If people want that, then you are perfect as a party,

because you are doing exactly that, and yet from the language of the

polls, you are getting from eight to 13%. The message is not striking

a chord with the public. We need to do better at telling people what we

are doing and showing our achievements. It is always

difficult in a coalition government. The way British politics and the

British media are set up is oppositional. So it is the media's

fault? I am not saying that, but it is oppositional. People say one

thing, and someone else disagrees. It is taking time the people to get

used to the coalition. I think it is positive that people have seen

that Labour can work in Wales with the Liberal Democrats and with

Plaid Cymru. It is a much more grown-up approach to politics. In

Westminster, it has been such a long time since we have had a

coalition that people are not used to that. We need to be better at

selling our achievements so that people know what we have achieved.

Talking about that responsibility, as a member of a party in

Westminster which is in power, taking the flak for a lot of the

cuts that you have to put through at the moment, you would argue, if

you look back on the M4 at Cardiff Bay where they are given the money

and they spend it, and there if -- if there is not enough to go round,

they can blame you in Westminster. Should more of that responsibility

come down here These and get more accountability for decision-making

in Cardiff? Absolutely. The assembly now has a lot more power

to be able to do more in Wales. But they need the responsibility that

goes with that. They need to know that what they do for economic

development will make a difference to their budget. It will encourage

them to make the right decisions. On taxation, we have heard from

Carwyn Jones, who is not keen on income tax. He wants smaller taxes,

for example stamp duty. They have been referred to as peanut taxes.

Nick Clegg suggested this week that he would like the whole shebang

coming down the M4, but he is waiting for the commission. Why

shouldn't the UK Government say, have these big taxation is, and

sought your own finances out? up to the people of Wales to decide

what we think we should have. The commission is involving lots of

people in the public and then coming to a considered conclusion.

That is the right way forward. We have made it clear that we think

there should be taxation powers moved down to the assembly and

borrowing powers so that they can have responsibility for raising

taxes. So and then we can see the benefits of that in Wales. But I do

not think it is up to the Westminster government to tell the

Welsh Assembly what powers it should have. Do you think Nick

Clegg is enjoying this? It is tough, isn't it? Remember Cleggmania, when

he was like a pop star? What happened to those days? It is hard

work being in government. But it is incredibly satisfying. I remember

one of the Labour ministers in the last Parliament saying that the

worst day in government is still better than the best days in

opposition. I am sure Nick would So, we have heard from Nick Clegg,

but earlier today it was the turn of Kirsty Williams, the leader of

the Welsh Liberal Democrats, to address the conference. Friends,

this morning tribute was led to Lord Emlyn Hooson. M and was

respected in his own community and in the wider political arena for

his passionate liberalism, his love of Wales, and his razor-sharp

intellect. Not only will he be remembered for his high-profile

leadership -- legal work, but keeping the flame of liberalism

alive in Wales through the 1960s. Wales has lost one of its true

gentleman, and the Welsh Liberal Democrats have lost a step fast

champion. Among his many, many achievements, he was the person who

founded the Welsh Liberal Party in 1966. The first of the UK parties

to recognise Wales's unique political needs, and to understand

that Welsh people need Welsh politicians are free from London of

whips to speak up for our nation. Of course, the creation of the

Welsh Liberal Party did not come out of the blue. Before Emlyn

Hooson, Lloyd George lead and fought for a Welsh home rule. As

long ago as 1897 founded the Welsh Liberal council. When I hear Plaid

Cymru call themselves the party of Wales, and when I hear Carwyn Jones

tell the Labour Party conference they are the true party of Wales, I

say that the Welsh Liberal Democrats are the original party of

Wales. Welsh democracy, the great Welsh

project started by Lord George, sustained by Emlyn Hooson, Richard

Lindsey and many more in our party, but, yes, in other parties too. No

Welsh party has the monopoly over Wales. The people of Wales will

want political leaders grown-up enough to accept that we are, all

of us of whatever party, elected in Wales, accountable to the people of

Wales and with Welsh interests at are hard. For us, insisting that

the coalition government establish the Silk commission was a natural

next step in our battle for strength and devolution. The BBC

poll released this week showed that we are the party most in tune with

the people of Wales. Plaid Cymru's call for independence attract

support from do 7% of the people. The Labour and Conservative

hostility to financial autonomy is overwhelmingly rejected by the

Welsh people. Two-thirds of people agree with our opinion that it is

time to bring more accountability and responsibility to the Welsh

Government. Not just for its own sake, but because it progressive

Government could use these powers to drive forward Wales's economic

development, creating jobs and prosperity for our people. It is

not for the first time that the people and the Welsh Liberal

Democrats are leading the way. So, Carwyn Jones, Labour, what are you

afraid of? As a representative on the commission, Rob Humphreys is

working hard to insure our commitment to strengthening

devolution is at the heart of everything the commission does. I

know he will not be able to get his own weight all the time, he and

other members will have to work hard to balance competing and

sometimes conflicting views that the committee will hear from

different parties and organisations. But still, Robb has any easier job

than Nick Bourne. As the Conservative representative on the

commission, he will have to work hard to balance the three

conflicting and contradictory submissions that have been it made

by, well, the Conservative Party. One from the Assembly group, one

from the Conservative Party, and one from the former director of

policy. Perhaps I am being unfair. All political parties are a broader

church and it is sometimes difficult to develop a coherent

position. You know how we resolve those issues? We hold a conference,

and we debate policy openly and democratically. Yes, a party

conference in Wales. The Tories it should really give it a try. To be

fair, having cancelled their conference they have belatedly

realised that they need to organise something different instead. They

have come up with the idea of a rally. No political discussion, no

debate, no democratic decisions, just set peaches -- set piece

speech after set piece speech. I am not sure why they did not just call

it a Conservative Party conference. Perhaps that is why they have

rescheduled it to take place on Internationale awful day. -- wore

full day. Today is the one year anniversary of that historic

referendum that gave Wales greater powers. When the people of Wales

took that palled step and gave the National Assembly increased

responsibility to better their lives. I remember as those yes

votes were coming in last year, there was a feeling of hope and

optimism. People turn to the Assembly to deliver. Wales could

come out of the slow lane, and overtake into the fast lane. Then,

a few months later another Labour government was formed in the

Assembly. He a Labour government that said this time it was all

about delivery. No more excuses, they said. Exactly one year ago

today, the people of Wales were promised a new beginning. Since

that referendum, the Welsh Labour government have published just one

piece of legislation. What is this Bill that we have been waiting over

600 years for, I hear you ask? Well, it is the local government byways

laws and Wales Bill. Don't get me wrong, both as a Liberal Democrat

and was fascinated by the Minya shy of local government by-laws as

everybody else here in this hall. But it is hardly a great leap

forward, is it? Some say legislation is not everything, and

to some extent I do agree. But this speaks volumes about the lack of

ambition, sense of urgency that characterises Labour leadership.

Carwyn Jones, standing up for Wales, that is what he repeats. But it is

difficult to taken seriously when he is slouched over his podium

every week. His Government is sluggish, and Wales has left

suffering. Months after the Westminster government announced

the creation of enterprise zones to attract business to England, the

Welsh Labour government is still floundering. Delaying decisions

while English enterprise zones is still at the March. It is only

because of our colleagues harrowing that the big decision has been

forced at all. We have all heard of read Ed. In Wales Edwina Hart is so

unreconstructed. She even said she regretted the capitalist system.

Well, why you regret the nasty capitalist system, I regret that

Jaguar Land Rover were pumping investment into Wolverhampton

siting your lack of a decision with enterprise zones as one of the

reasons that Wales was left behind. 750 jobs gone to the West Midlands

that could have been brought here. Under Labour, a Welsh businesses,

Welsh workers are being left behind. What about education? One in five

children leaving primary school cannot read and write properly.

Functional illiteracy. That is what the Government's own inspectors

tell us. What hope do those pupils have of succeeding in secondary

school if they cannot read and write well enough to understand and

participate in lessons? When our schools fail, the Labour First

Minister tries to blame it on local of Thirties, the schools, head

teachers, everybody but his own government. Under Labour, a Welsh

pupils are being left behind. In Carwyn Jones's speech to Labour

conferences two weeks ago, he said the NHS was made in Wales and was

safe in Wales. So safe that earlier this week, at 800 people felt

compelled to come up down to the Senedd to protest about the

downgrading of their local hospital. So safe that the minor injuries

unit across Wales have been closed under Labour. So save that you wait

six months and Wales for an operation when you wait 16 weeks in

England. Again, everybody is to blame but themselves. Under Labour,

what patients are being left behind. Harold Wilson once said that the

Labour Party was a moral crusade or it was nothing. Labour, a moral

crusade, with that record? I do not think so. But whilst Labour had

been sitting back, the Welsh Liberal Democrats have been rolling

up our sleeves. Before the election last year, Labour predicted a

comfortable majority, but they ended up with no majority at all.

Last year, I told you that following the election results at

the Welsh Liberal Democrats may have the opportunity to influence

the direction of our country. And that when that opportunity came,

this party would not let the people of Wales down. We were clear that

the Welsh Liberal Democrats would not back any budget that did not

make progress towards closing the funding gap with England, starting

with our poorest children who need the extra help the most. Nor would

we vote for a Budget that neglected the need to boost the Welsh economy.

Those were our priorities during the election and they were our

priorities during this budget round. And so, from this April as a result

of Welsh Liberal Democrat influence, and Welsh Liberal Democrat votes,

every child in a Wales on free school meals will receive an extra

�450 towards their education Our priority as Welsh Liberal

Democrats has always been to make sure that the most disadvantaged

children get the help of that they need, they help that they deserve,

and they help that will get them out of the vicious cycle of poverty.

�118,000 for his school and Swansea. A quarter of a million pounds for

another school in Cardiff. �111,000 for his school and Wrexham. Funding

going direct to schools who will spend this money how they see best.

All children starting life on the same footing, the equal and fair.

That is Welsh Liberal Democrats. Using our influence and making a

difference. On top of that we also managed to agree an economic

stimulus package worth nearly �39 million. Funding for an additional

2000 apprenticeships to help young people tick the first step on the

career ladder. Capital investment in our school buildings, assistance

in helping people keep their homes a warm and their energy bills low.

New affordable homes and enterprise zones to create jobs. It would have

been easy for the group to walk away from the Budget talks. It is

always easier to sit on the sidelines and throw pot shots. But

Wales needed a budget, and it is a better budget because of our

influence. Welsh Liberal Democrats using our influence and making the

difference. In less than nine weeks, the people of Wales will go to the

polls to elect the people in their communities who will stand up for

them in County Hall. In 2004, the Welsh Liberal Democrats won a

record number of seats. We took over the leadership of Wrexham,

Swansea and Cardiff. It was the first time the Welsh Liberal

Democrats have ever lead these councils. In 2008 we increase the

number of our councillors and managed to continue providing good,

value-for-money services for people across our nation. This year, we

owe it to Wales to succeed once again. Local Government and local

democracy means so much more to us was Liberal Democrat than any other

party. For Labour, local DUP -- local government is a delivery of

control. Micro government from Cardiff, eight people around a

cabinet table dictating to people. But that is not local democracy.

Welsh Liberal Democrats want decisions taken and services

delivered at the most local level possible. That is what makes us

Liberal Democrat. Her liberalism is about power, who wields it, for

whom and to what purpose. We want to see local people using it on

behalf of their community to help Here, in Cardiff, a record �180

million invested in school buildings across the city. St

David's two, bringing jobs and prosperity. Recycling rates have

shot up. Libraries have been saved and new ones have been built. Gone

are the days of Labour's huge council tax hikes. That is Cardiff

Liberal Democrats. Compare that with the Vale of Glamorgan council.

Home turf of the Tory assembly group leader. He has vocally

committed his party to a 0% council tax rise. Guess what? His own Tory

council are proposing - yes, you have got it - just that, a council

tax rise. In Swansea, we have built a stunning public transport hub in

the city centre, a leisure centre to be proud of, a football stadium,

home to the and the Welsh team in the Premier League. For now. Come

on, you Bluebirds. And additional funding to help boost literacy and

numeracy. And all of that while freezing council taxes for the

people of Swansea. That is Swansea Liberal Democrats. Compare that to

record with the neighbouring Labour-controlled council, where

council tax is �250 a year higher than in Swansea, and the second

highest in all of Wales. In Newport, a �21 million investment to fix the

city's crumbling roads. A major employer, Admiral, attract to the

city centre, with the potential for 1200 jobs. They have started a

major redevelopment of the city centre. That is Newport Liberal

Democrats. Compare that with Plaid Cymru's Caerphilly council, which

spends less per pupil than any other council in Wales. And in

Wrexham, an additional PCSOss on the streets, keeping people safe.

Investment in school buildings. GCSE pass rates doubled. That is

Wrexham Liberal Democrats. Compare that with the Labour run council

nearby. They failed to tackle the 3000 empty homes in their area, and

they slashed the salaries of the lowest-paid staff at the council,

but have protected the salaries of those earning more than �40,000. In

Ceredigion, in Powys, in Conwy, all across the country, we are

delivering services to half the population of Wales with great

success. That is the Welsh Liberal Democrats. And wherever there are

live Welsh Liberal Democrat council has, we use our influence and make

a difference. St David said: do the little things. Going one step

further up and down the country. Welsh Liberal Democrats are doing

the little things for people in their community. BAFTAs, like

Councillor John Bell, out in his ward, in his waders, pulling up

manhole covers to stop holes from being flooded. Local heroes like

Councillor John Roberts, shovelling snow and gritting hills to allow

safe access to over 100 homes. Dedicated representatives like

Alice Robinson in Colwyn Bay, who has served her community for over

three decades. Now in her eighties, she is at the centre of the charge

to refurbish the local theatre for her local community. Community

leaders like Maureen McKenzie in Paris, who threw her tireless work

fund-raising with local people has brought in hundreds of thousands of

Pounds worth of funding for the arts, community halls and gardens

and playgrounds in her area. And councillors like Amy in Merthyr,

who went out of her way to help former servicemen suffering from

post-traumatic stress disorder. He was left in a small flat, with just

a sofa. No heating, no hot water, no fridge, no cooker. His life, he

said, was held. But the compassion and a rallying calls of a local

councillor turned his life around. If it was not for Amy, he said "if

I was not a strong person, I could be dead by now". This hall is full

of such councillors. You work so hard for our party. But you work

even harder for your communities. I want to thank you all. For the

Welsh Liberal Democrats, being a councillor, serving their community,

it is not just something you put on a CV. It is what we do and it is

who we are. Conference, we know how difficult it is to make budgets

stretched into a financial times. That is why the Welsh Liberal

Democrats are using our influence at whatever level of government to

make a difference and help struggling Welsh families. On a

local level, Welsh Liberal Democrat-led councils have

consistently kept council tax rises low. In the assembly, we have

ensured that children from the poorest backgrounds get the help

they deserve. In Westminster, we are lifting millions of people at

out of the paying income tax and putting more money in their pockets.

�200 last year and a further �130 this year on top of that. Nick

Clegg is fighting for even more tax cuts for the lowest paid, funded by

closing tax loopholes for the wealthiest. For us, April is a

month of pounding the streets, delivering the leaflets and

promoting our achievements. It is a month of worn-out shoe leather,

dangerous dogs and lethal letter boxes. But it is also a month of

listening and engaging with people who are only too ready to put their

faith in people who put their community first. This year, April

will be so much more. April, when families and Welsh Liberal Democrat

councils are protected from harsh council tax rises. Our achievement

in local councils. April, when the poorest children will receive an

additional �450 going towards their education. That is our success in

the assembly. April, when hard- working families across Wales will

take home more of their own wages because of our fair tax policies,

when pensioners across Wales will receive the largest increase in

their pension ever, thanks to the triple lock guarantee won by the

Liberal Democrats, our battle in Westminster. In difficult times,

Welsh Liberal Democrats are putting people first, using our influence

and making a difference. And that is really standing up for Wales.

And a standing ovation for Kirsty Williams, who addressed the

conference this morning. We will chat with Kirsty shortly. First,

let's cross to Elliw. Yes, I am back in the exhibition hall and

joined by Veronica and Maria. You were listening to the speech this

morning. What were your thoughts? It was a really good speech. I

thought, here we have, in Wales, other parties talk about delivering,

and the Welsh Liberal Democrats are delivering that pupil premium,

making things better for poorer children in our country, giving

them an opportunity for the future. And we have delivery at Westminster

with the pensions and taking people out of tax. Kirsty hammered that

home. It makes you think yet, the tide is turning. We are looking up

now. Do you think that message is getting through? I agree. We have

to fight hard to get the message through. With Kirsty, we can do

that. Some see Wales as Labour country, but actually, Kirsty

reminded us all to sell just how well we are running councils where

we are in charge. And I think her soundbites, where Plaid Cymru says

we are the Wales, Labour says, we are the party of Wales, but we are

the original party of Wales. That sums it up. No one is better than

Kirsty at something that up for. I hope the message comes across and

we are now fired up to sell it on the doorstep. Are you raring to go

now after the conference? Has it given you that boost to take to the

doorstep? Absolutely. We have a really good story to tell, and

people should be proud of that. I get the impression that everybody

is fired up. There is no reticence. Perhaps in the past, we felt a bit

cagey. But everybody is saying, Welsh Liberal Democrats have a good

story to tell. We are delivering the people and we need to make sure

everybody knows what we are doing. Kirsty Williams joins me now. Nick

Clegg mentioned because D Williams welcome, which is a smile, a kiss

and then a rollicking. Has he had a rollicking today? No. But it is my

job to ensure that I keep telling the Westminster government about

what the priorities are for people here in Wales, and to ensure that

Wales' voice is being listened to at Westminster level and delivery

things for Wales. So yes, in the past, I have given him a rollicking

about the need for electrification of the railway line to Cardiff,

about it in a Silk Commission that can give the assembly greater

powers. And there will continue to be voicing what Wales needs to

Westminster at every opportunity. So the rollicking applies to what

you have power over. You do not talk about welfare reform or the

spending cuts and pay freezes, the things that are timing everywhere

in Wales? I think there is an understanding that what our

colleagues are having to do in Westminster is make tough decisions

because of the economic mess we were left by the previous

government. The public recognise that. And I am saying, move faster

with the policy of lifting people out of tax altogether. That policy

will help people in Wales more than in any other part of the country.

So I continue to argue the policy for Westminster that I feel will be

beneficial to people in Wales. in your speech, you had a big clap.

That was your natural territory, kicking the Conservatives. A no. My

familiar territory where I feel comfortable is standing up for

people in Wales and a decent public services wherever they have gone

wrong. But you have done a deal with Labour, and that suits you

better. What suits me is being able to deliver an additional �450 for

every child on free school meals. That is a huge thing for schools

across Wales, and it begins to address the issue of the gap in

funding which has arisen, and it addresses one of the weaknesses of

the Welsh economy, which is that we are a low-skill economy. Getting

education right will hopefully bring an end to that in the future.

Would you have done that deal, had there been a Conservative

government in the Welsh Assembly? I know that his crystal ball gazing

and hypothetical, but in terms of a natural fit for Kirsty Williams,

you are more at ease with the Labour Party than with the

Conservatives. What I am at ease with is you -- using Liberal

Democrat influence to achieve good things for the people of Wales and

to make a difference. That has been the hallmark of this conference.

Wherever you find the Welsh Liberal Democrats, in the assembly or at

Westminster, we want to use the influence we have to make a

difference for people. We are doing it in cities and towns across the

nation. What will be the message for these elections in May? You

have always represented yourselves as the party of local government.

We will campaign hard, reminding people that when they alleged a

Liberal Democrat councillor they're electing someone to represent them.

Where we run and councils we have seen improvements in public

services. Recycling rates in Cardiff had shot up. We do it by

delivering good services, value for money. In Swansea this year, a 0%

council tax rise. We offer individuals who will champion in a

community. I am told Nick Clegg is waiting for you outside, so you'd

better go. That it is it.

With me now is Gareth Hughes. What kind of conference has it been?

They have talked about all kinds of things that none of the rest of the

population would consider. For instance, would you like another

election for the national parks? Surprise, surprise, they decided we

needed another elections. We have elections for a police

commissioners, councils and national parks if they get their

way. And we will be doing about - that we will be doing that on an

STV. It has been quite quiet, hasn't it? They are all out on the

doorsteps with leaflets. There are local elections coming, those

magazines have to be delivered. That is what being a Liberal

Democrat is about. What are your thoughts on Nick Clegg's speech, it

was not the rousing speech one would expect? It was a bit of a cut

and paste the speech. It was very similar to one you didn't Scotland

yesterday. The same themes, things like, our counsellors are doing a

good job. We're doing a good job. We're holding those nasty Tories

back in the coalition and Westminster. It is a part they are

playing to deliver the moderate message that comes out of

Westminster. That is the theme, and he delivered it reasonably well.

you think that message is resonating with the people at home,

that they are delivering, for our people are just feeling of those

cuts? I do not think the polls are saying the message are getting

through. They have flat lined in the polls for a long, long time.

Maybe in local elections they might get a bit of a boost because their

record locally it have been reasonably good. Unfortunately,

most people do not vote on local election results, they vote on what

is happening nationally. They still have real difficulties, standards

of living is dropping and people are having a tough time. That

translated to the way people vote in a local election, I would think

they will probably not do as well this time as they did four years

ago. Four years ago was a very good result for the Liberal Democrats.

They are starting from quite a high point for them. If they do lose,

would it be so bad? Swings in local government a quite dramatic when

they do happen. I would think that because Labour in Wales tend to do

well when there is a Conservative government in Westminster. We have

got a coalition and Westminster now, but Labour tend to do very well in

local elections. It is a barometer as to how you feel about the

National Government. I am not sure that the Liberal Democrats will be

able to overcome that tremendous burden that they have for being in

government in Westminster. Liberal Democrat councillors are the

bedrock of the party. What happens if they lose quite a lot of them

the local elections? It could have a dramatic effect on the parties.

This is what happens in every party. All parties now organise themselves

either by not going out on the doorsteps at all and by doing

telephone canvassing, but if you really want to make an effort and

get to the people you have got a knock on doors. If you lose your

councillors, then that party machine locally is not there. So in

subsequent elections it is much more difficult for that party to

have an impact. If they do lose their local government's seeds,

then the next election and that they stand for, they will have

greater difficulties. What is your prediction for those local

elections? I would think that they will do badly. I think Labour will

gain some control, certainly Swansea and Newport, Cardiff is

more difficult to read. The Liberal Democrats have got a very big,

while we do not have an overall majority, but they are the largest

party. Whether they can succeed in holding all those seats, I do not

know. They are holding power here, and they have been coalition on a

number of other councils. They have quite a lot of power at the moment.

This may continue because often councils are hung councils. It is

the parties that are the most flexible to do a deal. One thing

that we know about the Liberal Democrats is that they will do

deals. Small parties have to. I would envisage a they will do deals

were there is no overall majority, they will go into bed with one

party or another. In Cardiff that they are in bed with Plaid Cymru.

It varies according to the local authority. Do not rule them out,

they will probably be in power, but perhaps not on their own. We are

joined now it buying a representative from the

representatives of small businesses. You're doing the rounds of all

conferences. What do you make of this lot? It is a very interesting

conference. As Gareth has said, this party often holds the balance

of power. We know the internal challenges they face. Plaid Cymru

has a conference coming up just after its leadership. Each of the

parties are different. The agendas are mainly the same. In terms of

what they're offering in terms of business, have they got a plan that

will sell well on the doorstep? think so. There are very localised

party and get a lot of the issues that affect local people. Things

about the town centre, the business conditions that his local people

day-in and day-out. It is easy to talk about the economy, price of

oil and diesel, but the things that really matter to people are, will I

be able to get a service, will I be forced to pay for my parking, and

we had a lot of conversations this morning about Merthyr Tydfil. These

are real life questions. In the past they have done quite well and

the bigger scheme of things. They are obviously facing a big

challenge now because of the coalition. You were in touch with

many small businesses across the country, when it comes to local

elections they are more keen on voting for someone in Cardiff and

London. Is it down to what happens locally? We in the media say it

events in London are really going to colour this, but you don't think

so? People will vote in local elections because they are

interested in those elections. The question for the Lib Dems is how

they can connect with the people who vote on what really matters. We

need to understand the context of what is happening in Westminster,

but we also need to understand what is happening on the ground and how

engaged local councillors are. Maybe these elections will be all

about what happens locally, the size of the pot holes and so forth,

and ignore what is going on in London? Partly, but it is

impossible to escape from the overall picture. When there are

headlines in the paper Daily and news bulletins talking about

difficulties, the difficult decisions that the coalition

government is making. When you see protest and hear the word

compromise all the time it is quite a big ship to have to turn around

for these local elections. This is what Nick Clegg and Kirsty Williams

have tried to do today. Where you heard the word compromise, we are

saying the word influence. When you hear difficult decisions, we say

make a difference. There will be specific instances of what has

happened to improve people's lives, this is what they will say to

people on the doorsteps. These conferences are meant to put a

spring in the step while at -- before it these people go out on to