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The move takes the people of Wales a step closer to control of their own affairs. It follows their narrow vote in favour of the assembly in a referendum two months ago.
But it is still not clear where the assembly will be based.
The Government wanted the 60 members to meet at Cardiff City Hall.
![[ image: width=154]](/olmedia/images/_35136_swansea.jpg)
But the county council wanted around three times as much money for the building as the £3.5m Government was prepared to pay. Now the assembly may hold its first meeting in Swansea.
The Labour MP, Rhodri Morgan, said: "I would like it to be in the City Hall from the start because I think that is where the people of Wales want it to be.
![[ image: width=154]](/olmedia/images/_35136_rhodri.jpg)
"It is the nearest thing we have got to Big Ben and the Houses of Parliament."
Russell Goodway, the leader of Cardiff City Council, said: "All the council has asked for is the amount of money it will cost us to replace that accommodation to put our staff in.
"We do not wish to profit out of the transaction but clearly we cannot expect the people of Cardiff alone to fund the establishment of a Welsh Assembly."
![[ image: width=154]](/olmedia/images/_35136_russell.jpg)
An all-party advisory group will be appointed shortly to decide how the assembly should operate.
It is expected to have a cabinet style of government, rather than work through committees as originally envisaged.
The Welsh Assembly will not have tax-raising powers, unlike the Scottish Parliament which received overwhelming support from the Scottish people in a separate referendum.
The people of Wales will elect their first assembly in 1999 by proportional representation.
![[ image: width=154]](/olmedia/images/_35136_mp.jpg)
The Welsh Secretary Ron Davies will then transfer most of his powers to the new assembly and his budget of £7bn.
All parties in Wales will have a say in how the new party is run.
Where to now for the Welsh Assembly?
The Welsh Office Website
Cardiff County Council's Website
BBC Welsh devolution site
The BBC is not responsible for the content of external internet sites.
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