Roger Williams argued for more devolved powers

Parliamentary leader and Brecon and Radnorshire MP Roger Williams said his party were "devo-deliverers, not devo-realists or devo-delusionists."

"We will press on the government to do away with the halfway house they have created," he said.

He attacked the assembly's inability to make decisions in areas like the environment and sustainability.

Not only are the current arrangements insulting to the assembly, they are also mind-bogglingly complicated Roger Williams MP

"Not only are the current arrangements insulting to the assembly, they are also mind-bogglingly complicated.

"In Westminster and in Cardiff we will be making the case for an early referendum, and before the 2011 assembly election" he said.

A week earlier, Secretary of State for Wales Paul Murphy had said that he was a "devo-realist".

In an interview with the Wales on Sunday newspaper, Mr Murphy said it was unlikely that a referendum will be held in Wales before 2011.

Finance

Mr Williams also paid particular attention to the way Wales is currently funded by the UK Government.

"Wales has greater needs, and these needs will continue to be ignored and neglected as long as the government keeps using the Barnett formula.

"We must draw a line under this old and backward funding system, and look forward to a progressive and fair one that takes into account the needs of Wales," Mr Williams told delegates.

He also paid tribute to Lembit Opik, his predecessor as leader of the parliamentary group, who is now responsible for the UK party's economic and housing policies.

Mike German has said he will step down as Welsh leader after May

Changes to the constitution of the party were also discussed on Sunday morning as delegates debated the procedure for electing their leadership in Wales.

However, it was decided to postpone making a decision on the motions until a later date.

The motions tabled would have led to the leader of the Welsh Lib Dems coming from within its assembly members.

In Scotland, the Lib Dems have already changed their constitution to ensure that their Scottish Leader comes from their members of the Scottish Parliament.

Currently, Mike German is the Welsh party leader and the assembly group leader.

The motion would have ensured that every future Welsh leader was also the leader of their assembly group.

A motion was also tabled to ensure that all deputy leaders of the Welsh party in future come from amongst its members of Parliament.

The issues surrounding the leadership of the party are now going to be discussed at a dedicated meeting during the summer.

'Great opportunity'

Christine Humphreys, the Welsh party's president, said: "We're moving in the Liberal way.

"This is a time of great opportunity for the Liberal Democrats," she said.

Ms Humphreys also referred to the discussions to form a coalition following the assembly elections in 2007.