You are, of course, correct. My use of the word devolved was to refer to the day to day responsibility vested in the Welsh Government. The process of designing and awarding franchises is, at present, very definitely in the hands of the UK government. The Welsh government have no say at all in the matter. They may suggest or advise but no one in London is obliged to listen.
Not correct. The UK cabinet has a Secretary of State for Wales (at the time Peter Hain, currently David Jones).
The franchise arrangements would have been reviewed with him and I am sure there would have been WAG input.
There certainly was when the franchise was devolved to the WAG to manage on a day-to-day basis.
That doesn't mean it turned out as anybody wanted.
The SRA which awarded these franchises was not directly accountable to the DfT, and they were facing vast cost pressures with the WCRM programme and others.
The one really bad problem with the W&G franchise was its length at 15 years.
But the belief was that it was not attractive at any shorter length.
It also gave "stability", and was considered a good deal at the time, given the subsidy level involved.
I think Arriva has done a fairly good job, given the constraints.
Recent policy seems to involve the WG at every turn, in the IEP and electrification programmes, rolling stock plans and infrastructure management.
I expect the next franchise will be much more completely devolved (but the area covered might be different).