1997 devolution referendum and 1998 leadership election In the 1990s, the Liberal Democrats campaigned with the Labour Party and
Plaid Cymru for the establishment of a
devolved assembly for Wales. A supporter of
home rule for Wales, German led the Welsh Liberal Democrats' campaign for a
Yes vote in the
1997 Welsh devolution referendum as its campaign director. When the results came through in September 1997, the majority of the Welsh public narrowly voted in favour of establishing the devolved
National Assembly for Wales, with 50.3% of the vote. After the election result, German and his party called for the assembly to include more women and
ethnic minority politicians than traditionally seen in UK legislatures. German said that this could be done by giving the assembly an exemption from the
Sex Discrimination Act 1975 to enable it to use
all-women shortlists. The
first election to the National Assembly for Wales was scheduled for May 1999. By August 1998, German had become the chief spokesperson of the Welsh Liberal Democrats. In the same month, he was selected by the party to contest the assembly constituency of
Caerphilly against
Ron Davies, the leader of Labour in Wales who represented the same area in Westminster and was also standing for the seat. He was also made the party's top candidate on the
party list for the South Wales East assembly electoral region, whose members would be elected through
party-list proportional representation as in other
electoral regions of the assembly. On the issue of cooperating with Labour in the
1999 Welsh local elections, German as chief spokesperson said his party would discuss certain issues with Labour where the two parties found common-ground, but stated that his party "disagree almost entirely with the way Labour runs local government in Wales". In October 1998, the party agreed to hold a
leadership election to elect the leader of the Welsh Liberal Democrat Group in the National Assembly ahead of its establishment in 1999 after Labour, Plaid Cymru and the Conservatives had held their own leadership elections. The elected leader would also lead the party's election campaigns in Wales. German launched his leadership bid on 12 November and was challenged by fellow assembly candidate
Christine Humphreys. German was considered the favourite in the election, though only by a narrow lead. He served under federal party leaders
Paddy Ashdown,
Charles Kennedy and
Ming Campbell as leader in the National Assembly and Ming Campbell,
Vince Cable and
Nick Clegg as leader of the Welsh Liberal Democrats.
1999 assembly election At the
1999 National Assembly for Wales election, German led the Liberal Democrats on a platform of promoting its official party values of equality, community and
liberty, which it claimed would "direct Wales into the new millennium". German launched its
election manifesto on 11 April, which included commitments to focus on education, health and improved governance as its main priorities. In the manifesto, the party also pledged to
cut primary school
class sizes to a maximum of 30 pupils, with the aim of eventually lowering this to 25 pupils, and to cut NHS waiting times to a maximum of six months for GP referrals and medical treatment. On devolution, the party called for the assembly to gain more powers and for it to establish ties with other legislatures in the
Celtic countries. German also pledged to introduce
performance-related pay for members of the
Welsh Cabinet, which would change depending on their performance on issues like NHS waiting times and their commitment to openness and the truth. Although
opinion polls had forecast the Liberal Democrats as winning only six seats to become the third-largest party in the assembly behind Plaid Cymru and the governing Labour Party, Based on this performance, German said the party's main target was to win 15 out of the 60 seats in the assembly. He said it would focus its efforts on winning constituency seats in
North Wales to meet this target, with its other seats projected to come from proportional representation
regional lists. , . As predicted in opinion polls, He did however win a proportional representation top-up seat in the electoral region of South Wales East, He was re-elected with Graham and Davies at the
2003 assembly election, with Williams losing her seat to Conservative
Laura Anne Jones. German, Davies and Graham were re-elected again at the
2007 assembly election, with Laura Anne Jones losing her seat to Plaid Cymru's
Mohammad Asghar. In the first term of the assembly, German was a member of the Economic Development Committee and chaired the Legislation Committee. Michael and German had already led their parties into a coalition on Cardiff City Council some years earlier and had remained on good terms since then. German, keen to form a coalition with Labour, offered to enter into coalition negotiations with Michael pending the approval of his own party, and said that he would accept a coalition on the condition that Labour agreed to a written
power sharing agreement, cutting primary school class sizes to under 30 pupils and cutting healthcare waiting times to under six months. At first, Michael also seemed keen to discuss a coalition with German and his party. However, the other Labour members in the assembly did not accept a coalition. Michael said he did not form a coalition because it "would have been inclusive of one party and exclusive of the others" when the new assembly had to, in his view, foster trust and cooperation between all the different parties. It is also believed that Michael concluded that the three other parties in the assembly would not be able to find enough common-ground to vote against Labour and form an alternative programme for government. German and the Liberal Democrats disapproved of Michael's decision and argued that a minority administration would not provide the stability required of a devolved government for Wales. The party also signalled that it would abstain during the nomination of the first secretary on 12 May. He announced his
cabinet later that day, during the same session. His cabinet notably included the appointment of two education secretaries;
Tom Middlehurst was made the
assembly secretary for education and training with responsibility for post-16 education while
Rosemary Butler was made the
assembly secretary for education and childcare with responsibility for education up to the age of 16. German criticised Michael's decision to split these responsibilities between two different ministerial posts as "ridiculous" and said "we should be looking to [instead] provide education and training from cradle to work to retirement". German formed his
first frontbench team of assembly
party spokespeople the next day, appointing himself as the Welsh Liberal Democrat Group's
spokesperson for economic development and European affairs in addition to his role as group leader. Despite his prior criticism, German also appointed two education spokespeople,
Jenny Randerson for pre-16 education and
Christine Humphreys for post-16 education, to his frontbench. In the first few months of the new institution, he voiced his disapproval for what he described as the "trivia", "personal scandal" and "petty squabbles" which had occurred in its early months. He supported Labour's
Ron Davies after he
came out as
bisexual in June during the continuing controversy surrounding the details of his mugging at
Clapham Common in 1998, and said it was a "matter for himself and nobody else [...] it is not a matter for us or any other party", though he did express his hope that this would mark an end to the controversy. In the same month, German's party was the only one that did not join an opposition party
walkout from the assembly after Labour AM
Lynne Neagle criticised opposition parties' policies on the
European Union (EU) ahead of that month's
election to the
European Parliament. Conservative leader
Rod Richards criticised the Liberal Democrats for failing to join the walkout, to which German said this was the first time a matter of controversy had arisen in the assembly, adding that he did not support walkouts from the assembly to deal with controversial matters. The National Assembly for Wales legally assumed its devolved powers on 1 July 1999. At the plenary session of 13 July, German put forward a motion which proposed the creation of an
enterprise development bank for Wales "to channel
venture capital into particular community enterprises". The business secretary
Andrew Davies backed the motion after an amendment to require consultation from academics, businesses, the voluntary sector and local authorities was agreed. The motion was carried and a devolved development bank called
Finance Wales was established in 2001. Over time, German established himself as an expert on the standing orders of the assembly, as exemplified by his successful motion on 3 November 1999 to make the Economic Development Committee responsible for exploring the establishment of "community investment unit to channel European Structural Funding to community enterprises" which would be part of a development bank for Wales. However, the Liberal Democrats as a whole was set back by its status as the fourth largest party in the assembly, with German becoming its only prominent representative there. This followed a Liberal Democrat consultation on
rail transport in Wales in May, which according to German had returned passenger complaints on safety, train delays, discomfort in trains and expensive train fares; the party then called for the creation of a rail authority for Wales. Michael dismissed German's proposal for a transport authority and said his focus was instead on developing and introducing a
transport policy for Wales.
Political crisis and resignation of Alun Michael From mid-July to mid-September, the National Assembly for Wales went into summer recess. German said the assembly had to take "urgent action [...] to meet the desperate concerns of tens of thousands of families whose very livelihoods are threatened. Later that month, the assembly voted for a proposal by Gwyther to introduce a £750,000
calf processing scheme to address the crisis by awarding farmers with £20 for each calf that they processed. The scheme was dependent on permission from the
European Commission, which initially said it would not block the scheme. A censure motion in Gwyther as the agriculture secretary was backed by all three opposition parties in the assembly and passed on 19 October. Plaid Cymru and the Liberal Democrats did not back the motion and it was voted down on 2 November by Labour because of its lack of support. German said the motion acted as "a warning shot across the bows of this administration" and warned that his party would not abstain in a second confidence motion if Michael failed to meet his expectations and secure funding from the
Treasury to meet the required
match funding needed to receive promised EU
Objective One funding for the deprived parts of Wales. As his party's spokesperson for economic development and European affairs, German developed a particular interest on the issue of Objective One, and the rest of the party in the assembly also treated the issue as a priority. As November progressed, German's Liberal Democrats started to work closer with the two other opposition parties in the assembly, the Conservatives and Plaid Cymru, on the issue of Objective One funding. On 3 November, the three parties published a joint-memorandum on the issue which was co-signed by German and the economic spokespeople from the two other parties, Plaid's
Phil Williams and the Conservatives'
Alun Cairns. This signalled increasing cooperation between the opposition parties on the Objective One issue, by this point the main issue in the assembly. A similar proposal was drawn up by Labour AM
Val Feld which entailed the formation of a
government of national unity between all four parties in the assembly, but this was rejected by Michael's administration. In January, Plaid Cymru made an ultimatum to Michael in which it warned that if he did not secure an additional £85 million in funding for 2000/2001 it would table another no confidence motion at the end of the
budget debate on 8 February. On 1 February, Michael proposed setting up an all-party committee whose duties would include progressing the budget. Although German welcomed this proposal, the opposition's move toward a change in leadership for the assembly had already become too strong to prevent. A no confidence motion was jointly tabled between Plaid's
Ieuan Wyn Jones, German and the Conservatives' Nick Bourne for debate on 9 February. Ahead of the vote, German's party discussed negotiating a coalition or deal with Michael's administration, but it was ultimately decided that this was too unpopular a move for the party. Labour business secretary Andrew Davies had also met with German ahead of the motion, ostensibly as a representative of the majority of the Labour group, to receive assurance from him that the Liberal Democrats would not back Michael in the vote; Labour's AMs had agreed not to renominate Michael for first secretary if he lost the vote and had agreed to elect Morgan in his place. The motion of no confidence passed with the backing of all three opposition parties and Michael resigned. Labour's
Rhodri Morgan was
elected by the Labour administration to succeed him as first secretary. German called for a
grand coalition between all four parties in the assembly to end the political deadlock between the opposition parties and the Labour minority administration. In March 2000, former Welsh Liberal Democrat leader
Alex Carlile called on German to form a coalition with Labour, in a similar manner to the
coalition between the two parties in Scotland, and said that while he ideally agreed with a four-party coalition he believed it would probably end in failure. During this period, German's party made preparations for a coalition, believing that such a deal may become necessary in the assembly as the year progressed. The party was initially however cautious toward fully committing to a coalition with Labour, which was unpopular in the Liberal Democrats' rural heartlands at the time. The negotiations were held to provide stability to the assembly and to stabilise Labour as the governing party following the unstable nature of the assembly over the last year and a half of its existence. On the Liberal Democrat side, the negotiations were independent from the UK party, which only offered advisers to help German during the negotiation process. Under the terms of the deal, it was agreed that German would become Morgan's
deputy first secretary in the coalition, which was scheduled to last until the
2003 assembly election. Other ministerial portfolios were negotiated by German and Morgan on 15 October. Two Liberal Democrats, German and
Jenny Randerson, were given cabinet posts. In early January 2001, German announced plans for a £20 million rescue package to prevent expected job losses after the steel manufacturer
Corus announced it would lay off a significant number of staff at its plants in Wales. Measures in the planned package included lowered business rates for Corus plants in Wales, the purchase of surplus land from Corus, the provision of environmental incentives, support for training and research and the development of new job markets. Corus was reluctant to discuss the package with the government and a week after its publication announced it would close down its plants in
Ebbw Vale and some of its plants in
Llanwern. Following its announcement, Corus claimed that the government did not offer a rescue package to the organisation, a claim German denied. After Corus' announcement, the government's focus shifted to addressing the resulting job losses. In 2001, tourism in Wales had experienced a downturn as a result of that year's
foot-and-mouth outbreak across Britain. German's ministerial department was tasked with reviving the industry in Wales. In March, £1 million in financial support was granted to the
Wales Tourist Board to fund a
marketing campaign to encourage potential holidaymakers to visit Wales. In the same month, German published a
tourism charter which made recommendations to local authorities,
national parks and other tourism operators on which attractions were still safe enough to open to visitors. German also implemented several other measures to deal with the outbreak, including the creation of a
rural hardship fund, an extension to the
Small Firms Loan Guarantee, £12 million in financial support for tax rates, free support to rural companies hit by the disease and
tax deferrals for
National Insurance,
VAT and
PAYE.
Carwyn Jones, the
minister for agriculture and rural affairs, also established a new rural partnership group co-chaired by himself and German to lead the government's recovery plan for rural companies once the foot-and-mouth outbreak had come to an end. In the days following German's appointment to the cabinet in October 2000, German was accused in the press of
financial misconduct during his tenure at the WJEC; he was accused of having contributed to the European unit's financial deficit by overspending and misusing his
expenses during his tenure there, accusations which he denied. The WJEC initiated an independent
audit into the matter with its results given to the police after its completion in April 2001. and again in 2002–03 (and Minister for Rural Affairs and Wales Abroad). He stepped down from the role of Deputy First Minister between the two dates to answer allegations made about his role at the Welsh examination board, the
WJEC. During this period he was temporarily replaced by
Jenny Randerson as Acting
Deputy First Minister. In November 2007, Mike German became leader of the
Welsh Liberal Democrats, after
Lembit Opik stood down to ensure that the leadership of the party was in the National Assembly and not Westminster. He was succeeded in 2008 by
Kirsty Williams. German's political interests include skills development in
small and large companies in Wales,
constitutional affairs,
local government,
economy and regeneration. == House of Lords ==