A hard-fought Assembly election, eventual new coalition Government in Cardiff Bay and the “coming of age” of new law-making powers set to deliver a massive increase in legislation for Wales, have made 2007 a roller-coaster year for Welsh politics.

The Assembly elections in May triggered the start of a new and exciting stage in devolution. Through the Government of Wales Act 2006, more powers are being devolved to the Assembly than ever before. Already we have seen two Orders in Council referred for pre-legislative scrutiny, with four more expected in the New Year, and three Bills for the forthcoming session include Framework Powers for Wales.
 
This means that the Welsh Assembly Government will be granted the authority to pass legislation in nine areas - nine times more than before the 2006 Act, when a single Welsh Bill would have been passed each year.

The momentum of devolution will not slow down in 2008.

Framework powers within the Education and Skills Bill will transfer power to enable the Assembly to regulate the inspection of education and training for those 16 and under and regulate and register the inspection of independent schools in Wales. The Local Transport Bill supports the Government´s strategy to tackle congestion and improve public transport, and the framework powers will allow the Assembly to legislate in relation to road pricing, for example on the M4 relief road.

Meanwhile, the Planning Bill will modernise and improve the planning system, cutting down bureaucratic and lengthy delays in the system. Framework powers will give the Assembly increased control over local development plans and the Wales Spatial Plan.
I’m sure 2008 will prove to be a legislative learning curve for everyone involved.

Wales has certainly already come a long way down the road of devolution - as we were reminded in September, the 10th anniversary of the historic “Yes” vote in the devolution referendum.
While Government in Westminster saw a smooth transfer of leadership from Tony Blair to Gordon Brown in June, negotiations following the Assembly elections eventually saw First Minister Rhodri Morgan keeping the top job at the Welsh Assembly Government, with a new Plaid Deputy First Minister - Ieuan Wyn Jones.

At the Wales Office, meanwhile, I welcomed the appointment of Huw Irranca-Davies as Parliamentary Under Secretary of State for Wales.  

Away from politics it’s also been a busy time with several significant anniversaries.  The National Library of Wales celebrated its100th anniversary while Welsh language channel S4C marked its first 25 years of broadcasting.  And in pubs across Wales, pint glasses were raised to celebrate Brains’125 years in the brewery business!

One of the most thought-provoking anniversaries of the year, however, was the bicentenary of the Abolition of the Slave Trade Act of 1807.  An award-winning exhibition at the Waterfront Museum in Swansea charted Welsh links with the slave trade. I am proud that the Wales Office published a booklet highlighting the slave trade in Wales, 12,000 copies of which were distributed to schools, libraries and museums across Wales.

Turning to the Welsh economy, 2007 has been another bumper year for investment in Wales and a record year for jobs with 1.34million people now in employment. 

In January we celebrated the announcement that St Athan in the Vale of Glamorgan had been selected as the site of the Ministry of Defence’s new tri-service Defence Training Academy.  This multi-billion contract will bring thousands of jobs to Wales in what will be the largest single Government investment Wales has ever received.  Work is expected to start on site in 2009.
This massive boost for the Welsh economy is another example of the strong partnership working between Cardiff and London and shows Wales has a world-beating team that can compete at the highest levels.

As climate change continued to dominate news and political agendas, Wales has started to emerge as a world-leader in reducing emissions and providing sources of renewable energy. 
In October the Sustainable Development Commission gave its backing to a proposed Severn Barrage which can potentially generate five per cent of the UK's electricity from renewable sources by 2020, and save up to three per cent of total UK carbon emissions.  This is an historic and exciting project and I look forward to work starting on the feasibility study early in 2008.
The end of 2007 also saw the announcement that the largest biomass plant in the World would be built in Port Talbot. The £400 million wood-chip electricity plant is set to create 150 new jobs and generate enough clean electricity to power half of the homes in Wales.

Meanwhile, new technologies are heralding a renaissance for the Welsh coal industry with the potential for cleaner, greener fossil fuels. This is very exciting indeed.

The loss of some of Wales’s most-loved and well-known figures has cast a shadow over 2007. In January we lost a man who showed great dedication to improving the lives of all children in Wales with the death of Peter Clarke, the first Children’s Commissioner in the UK. The rugby world mourned the death of former Neath prop Brian Williams, who died suddenly in February, and former Welsh Rugby Union president Sir Tasker Watkins, who died in September aged 88.  Then in October 10,000 people packed into Llanelli’s Stradey Park for the funeral of Ray Gravell, one of the most passionate Welshmen I ever knew. 

Despite disappointment at the Rugby World Cup, there was sporting joy for Wales in 2007 also as another victory for Joe Calzaghe saw him crowned the longest-reigning and most successful current British world champion - as well as being named BBC Sports Personality of the Year.  Wales soccer star Ryan Giggs received an OBE the day after he scored his 100th league goal, while Welsh Rugby World Cup referee Nigel was named Stonewall's Sportsperson of the Year as being an outstanding role model for young sportsmen and women - gay or straight.

And it’s fingers crossed for even more sporting successes in 2008.
 
Finally, there was some early Christmas cheer for around 800 former steel workers of Allied Steel and Wire (ASW) in Cardiff, who were among around 125,000 workers across the UK who will now see 90 per cent of their lost pensions restored by the UK Government.

For 2008, I have already announced we will see a radical shift from passive to active benefits in the welfare system, to achieve full employment and help eradicate child poverty.

A raft of 50 changes to the current system of benefits and job-seeking support will be implemented over the next four years - with the bulk of the measures taking effect from next year and 2009. They will see hundreds of thousands of people on benefit moving from being passive recipients of cash handouts to job seekers actively seeking and preparing for work.
So, as 2007 draws to a close and we in Wales all look forward to 2008, I would like to conclude by wishing you all a Happy and Prosperous New Year. Blwyddyn Newydd Dda.

Rt Hon Peter Hain MP
Secretary of State for Wales