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A proper Senedd could help the Welsh economy?

A fascinating article on tax varying powers for regions of the EU by Professor Gavin Don of the University of Edinburgh.

As some of you may know, the EU have ruled that different rates of corporation tax within regions of a sovereign state is illegal - Portugal trying to use lower corporation tax to attract firms to the Azores being the test case.

However, as Professor Don suggests, this is not the end of the matter as the court ruled that the reason for Portugal 's defeat was that only "genuinely autonomous regions could vary tax rates". He suggests that in Scotland, the present devolution settlement would qualify but clearly, the half-baked Welsh one wouldn't, even with new powers in May.

If, like me, you believe that further devolution should be used to create a more prosperous Welsh economy, then it is clear that the path to greater powers must be followed by all parties, especially if it gives us the opportunity to lower rates of corporation tax in our poorest areas.

I am sure that having an enterprise zone in North Anglesey with a reduced rate of corporation tax will do far more than any task force established by the Assembly to come up with the usual solutions to the economic problems on the Island.

The same is true of areas such as Heads of the Valleys and South Gwynedd. Money talks and businesses will consider such relocation if there is a benefit to them, especiallyt as we can already supply the skilled and educated workforce needed by modern firms.

I supported such a move in a speech last year to the Cardiff Chambers of Commerce and it is about time we had a mature debate on what further powers could do for the Welsh economy, rather than continuing to depend on the 'grant mentality' that has done little to support the development of this nation.

More importantly, the people of Wales need to be given the opportunity to have a say in such a development and to make the choice, once and for all, whether an Assembly with full powers is the way forward for Wales.

Comments

Anonymous said…
How about having a national debate on this soon then, so we can see the Tories true colours - green white and red or just deep blue?
February 27, 2007 8:24 pm
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