Diolch yn fawr, Fadam Lywydd. Mae hi’n wirioneddol yn bleser cael bod yma. A gaf i, yn y lle cyntaf, eich llongyfarch chi a’r Dirprwy Lywydd ar gael eich ethol fel Llywydd a Dirprwy Lywydd i’r Cynulliad Cenedlaethol? Hefyd, a gaf i longyfarch pob Aelod o’r Cynulliad sydd wedi cael ei ethol, a’i ailethol, ar ôl yr etholiad diweddar?

It’s a privilege to be here in the Senedd Chamber once again. Today, as you rightly said, is a big day for many reasons. I should suggest it’s not because of my presence as Secretary of State for Wales in the Chamber. I genuinely hope this is the last time, not out of disrespect at all to the Assembly, but because I think that the legislation that requires my attendance here once a year simply belongs to a past era because of the maturity of the Assembly.

It’s also an important day for very serious reasons, such as the publication of the Chilcot report, but, as you’ve rightly said, it’s a big day for Wales on a more positive and optimistic note in relation to the fantastic success of the Welsh football team. I spoke to the Portuguese ambassador earlier today and we both agreed that we would be supporting the victor this evening, whoever that might be, in the final. I said I was pretty confident that that would be Wales.

I also say that Wales and the Senedd has come a long way for many, many reasons, but I would say it says something when even ‘The Daily Telegraph’ says, in Welsh, that we are all Welsh, which I take as a positive underlining of Wales’s position and that of the football team as well.

I remember the Chamber fondly from my time, the 11 years that I spent here, and the return has caused me to reflect on how much it has changed since that period. Since 2011, when this Assembly took on full law-making powers, it has passed 28 Acts and numerous pieces of secondary legislation, including innovative legislation about organ donation, about sustainability and about housing.

Madam Llywydd, I want to talk today about the UK’s legislative programme and how it delivers security and increases life chances for people across Wales. But first, Madam Llywydd, I want to touch on the vote to leave the European Union and what that means for us all.

The people of Wales have spoken, and we must act and deliver a managed exit from the European Union. We need to show strong leadership and instil confidence in businesses and investors, universities and colleges, charitable organisations and local authorities, and to families and consumers alike. We will remain full members of the European Union for at least two years. Having spoken to the leadership contenders, it is clear that article 50 will not be invoked immediately on their election. This offers more stability to the economy and to those who benefit from support from the European Union. We need to use this interim period to prepare the nation for withdrawal.

The Cabinet agreed last week to establish a European Union unit in Whitehall, looking at all of the legal, practical, regional, national and financial issues that need to be considered. Of course, I will work closely with the First Minister to inform the unit as the UK negotiates to leave the European Union. I will ensure that Welsh interests are represented as the Cabinet agrees our negotiating position and, having met with Oliver Letwin to discuss some specifics earlier this week and the impact for Wales, I’m able to extend an invitation to the First Minister to meet with Oliver Letwin and myself to discuss the issues in more detail, as and when the First Minister feels appropriate. The same invitation has been extended today to Nicola Sturgeon and to the Deputy First Minister and the First Minister in Northern Ireland.

So, I would say talking negatively at this stage doesn’t help anyone. I’m hugely impressed by the response from the business community in Wales. Phrases such as ‘business as usual’ were used, and another one, ‘the rebirth of businesses’ came out of recent briefing sessions I held last week. I would also say my favourite phrase was ‘entrepreneurs thrive on change’ and that was quoted by one exporter. That demonstrates the opportunity that many people will see from this changing situation, whether it was desired or not.

I want to ensure that the values that British society holds dear, the values of tolerance, of openness and of unity, are not seen as casualties of this referendum, and that we redouble our efforts to support community cohesion, both locally, nationally and across the United Kingdom. This issue is of particular importance to the universities and colleges as we welcome international students from September this year, September next year and well beyond.

The British economy is strong. Near-record employment and a reduced deficit put us in a good position from which to grow. We are leaving the institution of the European Union, not turning our backs on our friends, neighbours and trading partners across Europe. I’m optimistic about our future and of the one that Wales and Britain must create outside of the European Union. I’ve committed to making UK Trade and Investment resource available to open new markets and to use the Foreign Office to develop relationships further afield. The Wales Office stands ready and waiting to give that access to all of the Whitehall resource and expertise and, of course, I want to work with every Assembly Member and the Welsh Government in exploring those opportunities.

So, turning to our legislative programme, economic security is our priority. Good progress has been made over the last six years, and I am the first to recognise that there is always more to do. The Digital Economy Bill will modernise the climate for entrepreneurship and give everyone a legal right to superfast broadband. The Bill will support Wales, which already plays a leading position in the technology sector. It will support Wales to go to the next level and develop even further.

The modern transport Bill would provide for driverless cars, spaceports and safety around drone operations amongst a range of other policies, some of them, I would say, a little bit more local. The neighbourhood planning and infrastructure Bill will simplify planning and put the National Infrastructure Commission on a statutory footing. Again, Wales has a particular interest in the National Infrastructure Commission. The local growth and jobs Bill will promote home ownership in England and develop significant additional powers to English regions. This creates opportunities for regional economies in Wales to form strong partnerships, but also highlights the greater competition across the UK that we must see as a positive challenge.

We are also determined to go further in tackling the barriers to opportunity. Through the prison and courts reform Bill, we will empower prison governors to take forward innovation that our prisoners need, ensuring that prisons will no longer be warehouses for criminals, but incubators for changing lives instead. I know this is something that Dai Lloyd raised in the debate that you recently held in the Assembly.

The Children and Social Work Bill will make changes to adoption to tip the balance in favour of permanent adoption, if that is the right solution for the child. The Higher Education and Research Bill will cement the UK’s position as a world leader in research, ensuring that we maximise the £6 billion a year investment that we make in research. Welsh universities are receiving more than ever, and I know that the Cabinet Secretary for Education is discussing other matters relating to this Bill with the universities Minister.

Keeping our country safe in these challenging times is, without question, a priority. The counter-extremism and safeguarding Bill will help authorities to disrupt the activities of extremists. The investigatory powers Bill will fill holes in our security apparatus so that we give law enforcement agencies the tool they need to protect the public in this digital age. The Policing and Crime Bill will take forward the next phase in police reform, while the criminal finances Bill will cement the UK’s role in the fight against international corruption and enable a further crackdown on money laundering and those who profit from crime. Alongside this, we will bring forward a British bill of rights to reform the UK human rights framework, consulting absolutely with the Assembly and the Welsh Government throughout the process.

The legislative programme, Madam Llywydd, also makes further changes that will only apply in England, including reform of social work and giving more freedom to teachers in schools, as well as encouraging the establishment of new universities. I hope that Assembly Members will look on the legislation that applies in England and seek opportunities from them—it may be by replicating them, but it may be by doing something very different—and hope that we will recognise that the UK is our biggest market that we are inextricably linked with and associated to. The closer that communities work, co-operate, complement, co-ordinate and even compete, the better the outcomes tend to be, particularly in light of the referendum less than two weeks ago.

So, now, Madam Llywydd, I want to spend a little bit of time talking about the Wales Bill. My key aim is to ensure that it delivers the two underpinning principles of the future devolved governance of Wales—that’s clarity and accountability. The timing of the Bill seemed to be an issue. I know that Rhianon Passmore raised it in the debate, as well as letters from the leaders of the Government and party leaders here. I would say, Second Reading took place last week, and the first day of Committee Stage took place yesterday. I know there were concerns about the time allocated, but, on each occasion, the debates finished early with much time to spare. I hope that gives confidence that we are determined to give it appropriate and proper scrutiny. The second day of committee will take place next Monday and there will be further debate in the autumn as the Bill reaches Report Stage before Third Reading. The whole process will start again when the Bill moves on to the other place where their lordships will undoubtedly show a close interest and scrutiny as appropriate. Of course, I want this Assembly to pass a legislative consent motion, and I’m sure that the First Minister, the Presiding Officer and I will continue in our warm and open discussions.

The Bill will devolve significant powers, provide clarity and accountability, and it underpins my commitment to devolution. Constitutional Bills are not what comes up on the doorstep, but they will allow the Welsh Government and the Assembly to focus on the things that matter to the people who live and work in Wales: tax levels, the economy, health policy, education policy, energy projects, regeneration and so many others.

Madam Llywydd, the debate on the draft Wales Bill was dominated by the necessity test and the inclusion of the test led to calls for a separate jurisdiction. This test was believed to be set at too high a bar and calls were made for a lower threshold. But, Madam Llywydd, I have gone further and removed the test entirely when the Assembly modifies civil and criminal law in devolved areas. As a consequence, many of the arguments for a separate legal jurisdiction should have fallen away. However, I also recognise the validity of some of the points that were made in that pre-legislative scrutiny phase. Therefore, I’ve included a clause on the face of the Bill that recognises, for the first time, that Welsh law is made by the Assembly and Welsh Ministers within the single legal jurisdiction.

Distinct administrative arrangements also need to be recognised to accommodate Welsh law, and I’ve established a working group involving the Welsh Government, the Lord Chief Justice and UK officials. This will run in parallel with the scrutiny of the Bill.

Now, the single jurisdiction itself caused a lot of discussion from Mick Antoniw, as one, from Jeremy Miles and a number of other Members during the debate that the Assembly had on the Bill here, but I’ve never heard of a policy that cannot be delivered because of the single jurisdiction. It offers businesses simplicity and allows Wales and Welsh legal firms to capitalise on opportunities in London and elsewhere. The legal profession is one of Wales’s fastest-growing sectors, and I’m not sure what additional regulatory burden, bureaucracy and risks to investors and law schools a separate jurisdiction would achieve. This was accepted, I’m pleased to say, by opposition Members of Parliament yesterday. The advent of metro mayors and devolution across England has put us in greater competition for investment and for capital. I suggest that we don’t underestimate how risks would be portrayed by some of our competitors. We need to be alive to that.

So, at the heart of the Bill is the reserved-powers model, and we’ve cut a swathe through the reservations since the draft Bill was published in October. The list in the Wales Bill has been streamlined, with clearer and more accurate descriptions of reservations. I believe that, broadly, we have struck the right balance, but I’m happy to continue a dialogue. This reserved-powers model will deliver a settlement that will make it clear to people in Wales who they should hold to account, the UK Government or the Welsh Government, for the decisions that affect their daily lives.

The Bill also devolves further powers over ports, energy projects, speed limits, traffic signs, transport services in Wales, powers over fracking, coal mining—it’s hard to believe that, until this Bill passes, this place couldn’t sanction a new coal mine, in Wales of all places—as well as marine licensing and conservation.

So, a key feature of a mature legislature, of a parliament, of a ‘senedd’, is that it raises through taxation much of the money that it spends. The devolution of stamp duty land tax and landfill tax, and the full devolution of business rates last year, are the first steps towards this, and it’s only right that a portion of income tax is devolved, too. The Wales Bill removes the need for a referendum to introduce a Welsh rate of income tax. There are practical issues to agree with the Welsh Government, particularly on how the Welsh block grant is to be adjusted in order to take account of tax devolution, and I will continue to build on our warm relationship and hope that having delivered the much-needed funding floor will give confidence to Members in this respect.

Lywydd, fel y nodais yn gynharach, mae’r rhaglen ddeddfwriaethol gymaint yn fwy, wrth gwrs, na dim ond datganoli yma yng Nghymru. Mae’n ymwneud â mwy na’r cyfansoddiad, sydd mor aml wedi’i ymgolli cymaint ym Mae Caerdydd. Mae’r rhaglen ddeddfwriaethol yn ymwneud â darparu diogelwch ar gyfer pobl sy’n gweithio ledled Cymru; mae’n ymwneud â chynyddu cyfleoedd bywyd pobl ledled Cymru; ac mae’n ymwneud â chryfhau ein diogelwch cenedlaethol. Rhaid i ni nawr gydweithio gyda’n gilydd—y ddwy Lywodraeth—i ddarparu dyfodol llewyrchus ac unedig i Gymru. Diolch yn fawr.