PROFESSOR DYLAN JONES-EVANS

This week, we celebrated ten years of the Fast Growth 50. Here is a video interview which I undertook with Sion Barry to discuss the origins and success of the project.

Just as another row between the Welsh rugby regions and the Welsh Rugby Union flares in up over training availability for the Autumn internationals, a similar argument is now brewing between local authorities and the National Assembly for Wales. Last week, the Assembly finance minister revealed councils in Wales had over half a billion pounds in reserves. This, he argued, could be spent to compensate for the lower financial settlement to local authorities from the Assembly. Of course, council chiefs disputed this, arguing three quarters of the reserves had already been committed for future capital projects with the rest literally being stored for a rainy day to deal with emergencies such as flooding. They also suggested councils are merely following good financial practice, having been told by the Welsh Audit Office to hold up to five per cent of their revenues in reserve accounts. In contrast, the Assembly currently has only one per cent of its annual budget in its reserves, having b...

With Cosi announcing the loss of 200 jobs and Ifor Williams trailers getting rid of 45 jobs, which factory is next to shed employees? Did the Assembly Government know about these latest job losses before the announcement was made? Who in the Assembly chooses to give millions of pounds to support Ford and yet not to support L'Oreal, Cosi and other companies? Is it right that one company - Ford - gets 14% of the Single Investment Fund ? Did leading politicians know that 800 workers at Ford would be laid off temporarily before Christmas when they announced the grant to the company? What happens if, as expected, Corus starts cutting jobs at Port Talbot and Llanwern? How many of the promises made by the Welsh Assembly Government during the economic summit have been implemented? These are just some of the questions that need answering, and quickly.

At a time when there is only bad news on the economy, today we launch the tenth annual Fast Growth 50 list in the Western Mail. This recognises the fifty fastest growing firms in Wales and incloudes froms froma cross the nation operating in a range of sectors. During the last decade, the impact of a small group of companies should not be underestimated. Since we started with the first publication in 1999, 317 firms have appeared on the ten lists published in the Western Mail. As with all dynamic economies, some businesses have fallen by the wayside. However, it is estimated that, together, these fast growth companies have created around 15,000 jobs and have generated around £3.8 billion of additional turnover into the Welsh economy , much of which is spent on local goods and services. That is an amazing contribution to the Welsh economy and one that should be applauded by everyone across Wales, especially as these firms create wealth and employment in their local communities. It is sai...

Two weeks ago, I appeared on the BBC programme wales@work with Leighton Andrews, the Deputy Minister for Regeneration. When asked what the government should be doing to support business, I responded by saying that it was vital to continue dialogue with large inward investing companies at a time when they may well be considering restructuring and closure. Not surprisingly, the Minister was not happy at this comment, said I didn't know what I was talking about and that his officials knew exactly what was going on in the business sector in Wales. Now, rumours reach me that the Assembly Government knew nothing about the L'Oreal closure until Friday morning, a few hours before the announcement was made by the company. If that is the case, then serious questions need to asked about whether officials are telling the Minister about what is going on and the extent to which his officials are actually in contact with the 3,500 medium-sized and large firms that employ nearly 40 per cent of...

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 d...

The past month has been a strange one for any economy and, as has been discussed during the past fortnight, business is increasingly looking to government for support. The Economic Summit which took place in Cardiff nine days ago has highlighted the main ways in which the Assembly Government can begin to support the business sector in Wales. However, it still remains unclear as to how deep a recession we will actually experience here and whether the industrial structure of the Welsh economy will help or hinder any recovery. Politicians point to the fact that the number of employees in the Welsh economy has grown by more than 114,000 since the Assembly was created in 1999. Unfortunately, at least for this particular recession, that job growth has been in those sectors which are most likely to be hit hardest by the economic slowdown. For example, data from the Office for National Statistics showed that new orders in the construction sector declined by 15% during June to August, compared ...

There has been a recent trend amongst Welsh bloggers to move towards moderating comments. Some of my favourite blogs, including Ordovicius , Glyn Davies and Valleys Mam, moderate the commen ts on their blogs. Even Iain Dale has reverted to this approach because of a "number of anonymous people who have returned to troll and smear". Unfortunately, in the last few weeks, I have followed this trend. However, on reflection, you can get too precious and events like this can put blogging into perspective. Blogging should be about having an open discussion and debate (as happens on Miss Wagstaff ) and if some isolated idiots want to post anonymous comments, then so be it, although I will remove any that are offensive, abusive or legally defamatory.

On July 8 th , I wrote "It seems that it is finally here. According to a survey from the British Chamber of Commerce, the UK is facing a serious risk of recession within months. The focus of the Assembly's Economic Development Department must change immediately. In economic terms, Wales is on a war footing and for the first time, we have some autonomy over how we react to this recession thanks to devolution. This is no longer about managing its usual economic priorities but about ensuring that the Welsh economy comes out of this situation better than other parts of the UK over the next couple of years. It is about survival, not growth; it is about consolidation, not expansion, and critically, it is about retaining highly skilled jobs rather than attracting new ones. The warnings are clear. Let us hope that our politicians have the courage to act accordingly. Today, we get the official news from the ONS that we are in recession but it is clear that this has been coming for a l...

In the light of the Welsh Assembly Government's decision to focus on public procurement, someone has asked when was the first time I raised this issue. I started writing for the Daily Post a fair number of years ago, originally within the business pages but then graduating to the main comments page on a Monday morning. In March 2004, I wrote that public procurement was one place “where the Assembly Government can possibly make a real difference to the development of Welsh businesses. The public sector in Wales currently spends approximately £3 billion on services, although very few small firms seem to be able to access this. Certainly if we could improve the process whereby local firms could be supported in accessing public sector contracts, the impact would dwarf the effect of the £60 million in grants awarded by the Assembly Government annually. Before this is dismissed as yet another crackpot idea by an academic, it is worth noting that the US Government has set targets for its ...

According to a report from the public accounts select committee , more than 25% of Britain's 700 largest businesses paid no corporation tax in 2005-6. It found that 181 of the UK's largest firms paid no corporation tax at all in 2005-6, although 50 companies accounted for two-thirds of the £24 billion collected in 2006-7. This suggests that at least £8.5 billion of legitimate tax was lost to the Treasury, which is equivalent to around 2p on income tax. Alternatively, if this lost tax was collected, the Government could cut corporation tax substantially for small firms at a time when, during the last two years, it has risen by 2p in the pound. This situation is completely unacceptable and demonstrates that large firms have been treated lightly over the last decade. We need a fairer and more transparent system of business taxation in the UK and I hope that the next Conservative Government will consider a complete revision of corporate tax to ensure that every company, large or...

Following the economic summit on Thursday, which this blog called for nearly 10 months ago, the business sector should be grateful that the Assembly Government is finally engaged in some sort of dialogue. However, it is extremely disappointing that the only two new schemes to emerge from the summit were an extension of credit unions across Wales and the release of government-owned land for development. Much of the rest was rehashed policy, including the creation of a financial services forum, a body that was originally set up by the WDA in 2003 . It also refused to do anything about cutting or freezing business rates in Wales, as it did when the foot-and-mouth crisis hit rural Wales a few years ago. At least the business community in Wales seems to have finally got its act together, although it too should have pushed the Government for action at a much earlier stage. The joint submission by the CBI and the TUC reflected much of what was discussed in this blog last week, and their call ...

In the Observer today , David Cameron discusses his strategy to support small businesses during the coming recession. First, councils have an important responsibility. Lots of our small businesses provide goods and services to local authorities, with payment normally coming within 30 days. But Brentwood and Castlepoint councils have led the way in reducing this to just 20 days. These 10 days can make all the difference in paying bills and staff, and helping businesses survive, and I want more local authorities to take it up. Second, banks have got to behave more responsibly too. They've got to understand that now taxpayers are keeping them afloat it's their duty to unblock the credit channels, treat small businesses fairly and stop the march to mass insolvencies. Third, and most important, government can do most to help our small businesses. Bureaucracy in the Treasury means that many businesses are still waiting for tax rebates. And this government is still pressing ahead with...

As discussed below , public procurement has finally become a key government priority. For those who are interested in reading up on this, then this blog has a number of entries on this subject over the last couple of years: Buy local (2007) Buy Welsh (2007) Too dependent on the public sector Buy Welsh (2008) Buy Welsh II (2008) I have also written extensively on this pre -blogging (for example, in the Daily Post in 2004 and 2002 ). It would be easy to to say "I told you so" but clearly government in Wales moves at its own pace and listens to those closest to it. The important thing is that the First Minister has finally recognised the problem, although despite the warm words towards finally doing something positive on this issue, it would seem that public sector bodies continue to ignore local suppliers. As an article in the Daily Post points out today, pupils on Anglesey are being served up foreign meat by private contractors brought in to provide the school dinner serv...

"A Welsh Conservative Government would launch a seaside towns initiative to assist resorts like Tenby , Aberystwyth , Llandudno , Colwyn Bay, Porthcawl and Barry. Most of this initiative would link into the EU Cohesion Funds". Welsh Conservative Manifesto , Nov 2006 "New plan to boost seaside towns - One of the most deprived parts of Wales could benefit from millions of pounds of new investments over coming years. Rhyl and Colwyn Bay have been designated as part of a regeneration area by the Welsh Assembly Government. The scheme is designed to boost prosperity of the towns and rid them of negative images." Welsh Assembly Government announcement , October 2008

"Public purchasing in Wales is worth about £4.5bn per year - which is well over 10% of the Welsh economy," he said. "We've got to see if we can find measures where the proportion given to business goes beyond a half, maybe towards two thirds over the next few years." Rhodri Morgan, Sky News, October 16th 2008 "The budget for economic development within the National Assembly (and the grants that follow) pales into insignificance when compared to the £4 billion (or 11 per cent of GDP) that the public sector spends annually on purchasing goods and services in Wales.As in the case of giving grants to large foreign investors, our civil servants and public agency executives seem to be more impressed with suits from over the border than in the abilities and capabilities of Welsh firms. As a result, we are losing out on a crucial opportunity to use public funding to build up high value added businesses and industries within Wales. Only 30 per cent of the goods and ...

Whilst politicians are looking after the ‘big boys’, I thought I would post this message that was sent to me' earlier this week. It shows what is happening in the real world of small business away from the soundbites of a so-called 'economic summit. Although the author said that it could be used freely, I have changed the name of the company. “I trust that you are well and apologise for taking up your time. I am not looking for any help but, as I am not a member of any other organisation (Chamber of Trade etc.), I just thought that I should tell somebody about the effect that the 'credit crunch' is having on my business - ABC Independent Financial Advisers. Sitting alongside the IFA business I also have ABC Commercial Finance and ABC Vehicle Solutions. In 2007 we were probably South Wales' largest IFA firm (both by turnover and numbers of financial advisers) - with locations in Cardiff, Swansea and Tenby . We also have offices in Wrexham , Hereford, Bristol and So...

Interesting (but despairing) news reaches me about the economic summit that is taking place tomorrow. You would expect, given the importance of this discussion between Government and Business, that there would at least be a whole day devoted to this critical issue of how the Assembly Government will support Welsh businesses so that the views of industry can be heard loud and clear and, more importantly, acted upon. However, it would seem that an item entitled "The Credit Crunch in Wales" is merely being added to the agenda of the Business Partnership Council and that it will be shoved in at the end of two presentations by Atradius and the Principality which were arranged months ago. Having called for a summit months ago, I finally thought that the Assembly Government was finally taking its role in supporting the Welsh economy seriously. How wrong I was to expect anything less than what will be a general waste of time. Dr Samuel Johnson once said that, “The pleasure of expecti...

As Cynical Dragon sadly calls it a day, it gives me even more reason to make the return to blogging permanent. During the last month when I have been off blogging, I have had people come up to me out of the blue saying that they read the blog and were wondering why I had stopped. It really surprised me as I thought that hardly anyone bothered. The reason for stopping was nothing sinister - my whole focus during the last six weeks has been on getting into my new job and ensuring that a multi-million pound project gets the funding to support Welsh business. I have also been spending all my spare time ensuring that this year's Fast Growth 50 project was completed. This is now done and a week on Friday, 400 businesspeople will be actually celebrating the success of Welsh business at our gala dinner. I am also probably the only person in Cardiff who is currently moving house! Anyway, I will now make the time to blog as we do need a political balance on the Welsh blogosphere, especially ...

Valleys Mam has challenged me to respond to the current economic crisis. So, breaking my silence, here is my article which appeared in the Western Mail on Saturday which really says it all. " The turbulent events over the past fortnight have been unprecedented and who would have guessed, even a few days ago, that the UK Government would have to bail out our high street banks, as it did on Wednesday. Given that the situation has gone from bad to disastrous in a matter of weeks, where does such high level economic decision- making leave Wales? Does this mean we cannot influence the economy as some of our senior politicians have noted? Of course not, especially as responsibility for economic development and supporting businesses is a devolved matter and, despite the suggestions from Ministers that the situation is out of their control, there are a number of immediate measures that can be taken. Firstly, the Assembly should re-examine the funding being made available to support enter...