The Lords will increase to 710 members after the appointments
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Former MP Ted Rowlands and the head of the European Commission's office in Wales, Jan Royall, have been made working peers by Tony Blair.
In all, the prime minister has appointed 46 new peers to the House of Lords.
Labour members outweigh those of other parties in Saturday's peerages.
But the party has defended what it sees as the evening up of numbers in the upper chamber.
Other new appointments from Wales are Rev Roger Roberts, of the Liberal Democrats,
Delyth Morgan, Chief Executive of Breakthrough Breast Cancer and Reverend Leslie Griffiths, superintendent minister of Wesley's Chapel, in London.
Jan Royall, the head of the European Commission's office in Wales, was appointed in May 2003 and has worked for the European Commission since 1995.
Former aide
Ms Royall, who is also a former aide to ex-Labour Party leader Neil Kinnock, said she was "delighted" to have been offered the peerage.
She will have to stand down from her European Commission role first, and is expected to take up her seat in the Lords in the autumn.
"I have worked hard over the past 12 months with my team in ensuring that the commission's work and policies are explained in Wales, and that the views and needs of Wales are effectively fed back to Brussels.
"I have done this, and will continue to do so, in a non-partisan way," said Ms Royall.
Ted Rowlands held the Merthyr Tydfil and Rhymney Westminster seat for Labour from 1972 to the 2001 election, when he stood down.
Ted Rowland was MP for Merthyr and Rhymney from 1972 to 2001
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In total, Mr Blair has appointed 23 new Labour working peers.
The Tories have nominated five new peers, the Liberal Democrats eight and Ulster Unionists one.
There are seven new crossbenchers on the list, chosen by the peers themselves and two personal, rather than party, nominations from Mr Blair - former Bank of England Governor Sir Edward George and ex-head of the diplomatic service Sir John Kerr.
In total, 46 new peers are added to the upper chamber which increases from 664 to 710 members.
Labour defended moves towards evening up the numbers of peers from different parties in the Lords.
Following the appointments, the Tories have 212 peers, Labour 205 and the Lib Dems 72,
with 189 Crossbenchers.