David McLean of North Wales have just gone into administration with the loss of 320 jobs (unless a buyer can be found).This follows the 200 job losses at L'Oreal on Friday and smaller closures at Ferrari's and Trax JH Ltd in the last three days.
The question is whether anything could have been done to save these firms? Could the Assembly Government, if it had acted earlier and more decisively, have helped to save these jobs through a positive intervention?
Who knows after the event, but its continuous denial of the economic situation, ignoring the warning signs and parroting what was going on in Westminster without taking a proactive stance, has certainly not helped.
It is clear that some of those in power remain in denial but if the last recession is anything to go by, then inward investors will already be thinking of 'repatriating' the jobs back to their home countries if it gets any worse.
According to at least one Minister, Assembly staff are in continuous dialogue with major firms although given the way that they seem to adopt the 'startled rabbit' look every time a job closure is made, I am not too sure. Certainly, if they are not, then it is time for some people to reconsider their positions.
Of course, there are fantastic companies in Wales, as anyone who attended the Fast Growth 50 dinner on Friday will testify. It is now critical that these types of companies - which have created over 2500 jobs - are fully supported to survive the current downturn and, more importantly, to be prepared to come out of the recession in a few months' time.
The next few months are critical for the Welsh economy and we can only hope that the Assembly acts quickly, keeps its promises from the economic summit and that our businesses get the support they deserve.
If it doesn't, then losing 550 jobs in two working days could be just the beginning.
Update: Calsonic of Llanelli have announced that another sixty jobs will be lost.
Comments
sad mam
If your party wants to support the construction sector, how about starting with the 6500 affordable houses you promised back in July 2007 - that could have been a start but rather than preparing for what has come to pass, Welsh politicians have done nothing to assist the private sector in Wales.
Whilst the 320 jobs at David Maclean are a tragedy, this will be nothing to the tsunami that will hit the hundreds of subcontractors who will now not get paid for their work and will lose valuable contracts.
So rather than being pious about the situation, why don't you ask your party to pull their fingers out and do something positive NOW before more jobs are lost.
Not being a troll but a Civil Engineer, I share all your concerns about the current state of the construction industry. However, I am at a loss to come up with short term answers to the current crisis. The plan for 6500 affordable homes could not have foreseen a situation where even people with relatively safe modest incomes could not get a mortgage. Currently, many mortgages are being renewed and the lenders are insisting that any addition to the mortgage does not push beyond 85% of the property value. In other words, they are anticipating at least another 15% drop in house values, on top of the 15% drop in the last 12 months.
I realise that we are from different political parties but I am willing to accept any workable short term measures that can stave off the impending collapse in construction.
I do lay some blame at the feet of Gordon Brown for allowing the housing and loan market to act unchecked but in reality, we have all bought into the greed of the last 10 years and many (particulary the poorest) will pay dearly.
I always read your articles and believe that mnay may take your opinions more seriously, if you did not tie yourself so tightly to the party line. This is the perception that many have, although I welcome someone with your profile being involved in active Welsh politics. I wish there were more.
I certainly wouldn't describe myself in that way, especially as I am no longer a candidate for either the Assembly or Westminster. Perhaps you haven't read my recent piece on Welsh conservatism and devolution, which hardly refekcts the views of all Conservative members.
Actually, my views on the economy have not changed ever since I have been involved in writing columns six years ago and this was well before I joined the Conservative Party.
They are my opinions, not those of my party, and if both should coincide then that is fine as I am a Welsh Conservative.
Equally, I sometimes do not agree with some of the views of other members of my party, but that does not mean I am not a Conservative.
If I was to judge someone's views by the colour of their skin or their sexuality, then I would be rightly condemned. However, it seems easy to judge someone by their politics in Wales, especially if they are a Conservative. Perhaps it would be better to judge someone by their actions or words instead