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Showing posts from May, 2009

Another one bites the dust

IT was with great sadness that I read this week’s report that Bangor-based DeepStream Technologies, once chosen as a technology pioneer by the World Economic Forum in Davos, Switzerland , gave up its battle for survival and went into administration yesterday. According to reports, this was not done by the company, but by one of its major creditors who seem to have decided that they would be better off getting back a small proportion of the money owed to them rather than supporting the development of the company. Established in 2003, DeepStream Technologies had designed a range of smart sensors that would enable the next generation of energy efficiency devices to be developed for a range of uses both in the business and consumer markets. They were essentially tapping into the zeitgeist of clean technologies and carbon off-setting, and were recognised as being at the forefront of their field for doing so. For example, under the leadership of its chief executive Mark Crosier the company w...

David Cameron and the National Assembly for Wales

“I believe there is only one way out of this national crisis we face. We need a massive, sweeping, radical redistribution of power. From the state to citizens; from the government to parliament; from Whitehall to communities; from Brussels to Britain; from judges to the people; from bureaucracy to democracy. Through decentralisation, transparency and accountability, we must take power away from the political elite and hand it to the man and woman in the street.” I have just read the groundbreaking speech by David Cameron today in which he defines the "Post-Bureaucratic Age" of smaller and more accountable government and sets the real agenda for change within the UK. It certainly captures the mood of the moment across the country and sets out a clear and defining contrast with the Labour Party and its supporters. For Wales, there are a number of mixed messages. For example, despite the promise of greater devolution from the UK central government, there is no indication that ...

Food for thought?

Interesting story in the Western Mail about the call , from the Taxpayers Alliance, to take food off Assembly Members' expenses. According to the report, "In 2007-08 four AMs – all members of Plaid Cymru – claimed more than £3,000 for meals and subsistence. South Wales East’s Jocelyn Davies claimed £3,586.05, followed by Ceredigion’s Elin Jones (£3,187.60), Mid & West Wales AM Nerys Evans (£3,003.70) and Carmarthen East and Dinefwr’s Rhodri Glyn Thomas (£3,303.13). As the Assembly sits for only 30 weeks of the year on average, and that Assembly members are normally in Cardiff for only three nights of the week, this equates to around £109 per week or around £35 per night. With all four currently charge the taxpayer for second homes in Cardiff (presumably with kitchens), you would wonder what they are actually eating every night, especially as the average weekly bill for households (i.e. the whole family) in the UK is £48.10 . i.e. £12.80 is spent on meat, £3.70 on fresh veg...

Cleaning up politics

In an attempt to clean up up the political mess that has engulfed all parties, David Cameron is to open up the Conservative Party's list of candidates to anyone who wants to join. This is a long overdue move that will help to modernise the Conservative Party, get rid of the so-called 'party grandees' who expected a seat for life, and I hope other parties will follow suit. Politics should be about public service, not just about getting your expected due reward because you have been a member of a political party since you were three years old. Ironically, this process of open selection in politics could have started at the creation of the National Assembly for Wales when Kevin Morgan, Chairman of the Yes campaign, asked for the "brightest and the best" to be attracted to the new devolved body. He again expressed his frustration that talented people had not been able to gain nominations for winnable seats because they were not “party insiders”. "Speaking at a co...

A confused Welsh Labour Party?

Just found this pearl of wisdom on the Welsh Labour website, Aneurin Glyndwr "With the European elections just around the corner, let's remind ourselves exactly what a victory for the Tories would mean. David Cameron's policy of isolation in Europe and promise to abolish Regional Development Agencies would be a double blow to British business. RDAs drive their regional economies forward, pulling together European investment and identifying local priorities to deliver for business. Independent auditors recently found that, overall, every pound invested by Regional Development Agencies grows the local economy by four times that." So it would seem that the Labour Party believes that regional development agencies are good for the economy. Therefore, such perfect logic from this website begs the question why did the Labour Party abolish the Welsh Development Agency in 2006? Yet more proof that, as Huw Lewis has pointed out , it is time for Labour to focus on constructing a...

The challenge of public sector pensions

With the expenses scandal overwhelming the pages of almost every newspaper in the country, other important stories have been largely overshadowed. One of those which would normally have made front page headlines was the publication of a report by the accountants PWC which showed how the gap between the public and private sectors has widened enormously during the last thirty years. It showed that, over the course of a typical working career, a civil servant starting work in 1981 will have accumulated £340,000 more in net wealth by the time of their death than his or her counterpart working in the private sector. This is mainly due to the long term job security offered in the civil service and a far more generous pension scheme. For example, whilst the private sector employee and his employer would have paid between 4 and 6 per cent of the salary into his pension, the report shows that the civil servant does far better, paying in only 1.5 per cent of salary over the course of his career,...

Top Up Fees - the missing data?

The latest corrected statistics on the number of students at Welsh universities has just been released by the Welsh Assembly Government . The report states that "Since 2001-02 the proportion of Welsh domiciled students studying in Wales has increased from 62 per cent to 66 per cent (in 2007-08). Yet, interestingly, this fact is nowhere to be found within the recent Assembly commissioned report into university funding. I wonder why?

Time for General Election

At the European election launch today, David Cameron said: "I think the scale of the problems facing Britain today - the recession, the debt crisis, and above all the political crisis - all point in one direction. I think there is now only one way of sorting out the mess, and that is for Parliament to be dissolved and for a General Election to be held right away." About time too as the people of this country have waited too long to have their say on the state of this nation, the management of the economy and the way their Parliament has been dragged through the mud by the greed and avarice of MPs from all parties. To emphasise the point, he has launched a national petition calling for a general election which can be signed here .

Making skills work for the Welsh economy

Sometimes in life you are lucky to come into contact with individuals who can make a real difference to the world around them. In my case, I was fortunate enough to work closely with one such individual for four years when I held the chair in entrepreneurship at the University of Glamorgan between 1996 and 2000. Sir Adrian Webb, Vice-Chancellor of the University of Glamorgan during my time there, was a visionary who created a new vision for higher education in Wales, a vision that became a shining example of how to create a new type of academic institution that took its role as critical actor in the Welsh economy seriously. After retiring from the post, Adrian has supported many new initiatives, and currently holds the chairmanship of the Wales Employment and Skills Board. This body was created to strengthen the voices of employers on skills in Wales, give expert advice to Welsh ministers, and help Wales to develop a high-skills economy with opportunities for everyone. Last week, it pu...

Politicians and leadership

In these troubled times for our politicians, it is worth reading the latest entry on the management blog of the Financial Times They define a leader as: "Decisive. But even-handed. Confident. But not arrogant. A front runner. But also a team player. A leader. But a manager, too." I wonder which of the political leaders in the UK currently live up to that description?

The Welsh economy - a view from London?

A disappointing piece about the Welsh economy and devolution in the Financial Times today, despite the positive title. Yes, I would be the first to criticise some of the approaches taken to the Welsh economy, especially the dominance of the public sector . However, there have also been successes by small firms and large firms in Wales, something which national papers such as the FT are always slow to note. That, more than anything else, shows the national pride in the business sector and yet it something that is not even alluded to in the article It is shame that this was not a more balanced piece and, unfortunately, it says more about the London papers' isolation from all matters related to Wales rather than the reality of the situation. Wales - National pride in spite of a dependent economy May 14 th 2009 A decade of limited devolution has dispelled some of the self-doubt that still infects Welsh national identity. The Cardiff assembly, which lacks the legislative powers of th...

Don't forget about unemployment

With much of yesterday's focus remaining on MP's expenses, it was easy to forget the latest unemployment figures which showed that 224,000 extra people were out of work in the UK during the period January-March 2009. The current number now out of work in the UK stands at 2.22 million and it is widely expected to reach 3 million by the end of the year. In Wales, 111,000 people (or 7.7 per cent of all working age adults) are out of work, and represents a rise of 44 per cent as compared to a year ago. With small firms are still finding it difficult to keep workers on and even our most successful large businesses are still talking about job cuts , the question is how much more unemployment will rise during the next few months? Are we potentially talking about 150,000 out of work in Wales by the end of the year? I hope not but the statistics from yesterday could be an indication that things are going to get worse before they get better.

MPs expenses - either apologise and repay the money or go

With further revelations in today's Daily Telegraph about the abuse of the expenses system by senior members of the Conservative Party , I believe that David Cameron has no option but to ask them to apologise and to pay back every single penny claimed for these extravagances. If they do not, then he should instruct them that the party whip will be withdrawn immediately and they will not be standing for the party at the next general election. Yes, all this was done within parliamentary rules and was approved by the House of Commons. However, it clearly contravenes the spirit of the rationale for MPs expenses, namely to carry out their parliamentary duties. They should now act like honourable men, admit that they had got it wrong and repay the money. It is as simple as that. This probably the defining moment in David Cameron's leadership of the Conservative Party and I believe, as someone who joined the party because of his promises for change, that he will act decisively ove...

MPs expenses - pay back the money

Like everyone else, I am appalled by the revelations regarding MPs expenses which were leaked by the Daily Telegraph. From the Prime Minister downwards, it seems that MPs of all parties may have been taking advantage of the current arrangements by which expenses can be claimed. However, it remains the case that the Labour Party has had twelve years in power to sort out the system and has done nothing whatsoever to stop the abuses of the system. Consequently, the destruction of the public’s faith in our elected representatives has continued unabated. While Gordon Brown has brought in stealth taxes for everyone else, it would seem that MPs of all parties have been avoiding payment and coining it in by claiming for everything possible from second homes to cleaners to barbecues. The revelation that certain Cabinet members have tried to claim for items such as their children’s clothing at a time when the gap between the richest and the poorest in this country is at its highest is abhorrent...

Go East

Having spent the past week in the Far East on business, it quickly became obvious, even to an outsider, there is just as much confusion in the Asia Pacific region about how long recession will last as there is in Europe and the United States. There are mixed messages from a range of indicators in the region. For example, stock markets in Singapore, Hong Kong, Taiwan and India rose considerably on Tuesday after the news there could be an unforeseen revival in manufacturing in China, thanks to the £400bn pumped into stimulating domestic demand by the Chinese government. This news came after the publication of a totally unexpected increase in the Purchasing Managers’ Index in China for April , which went above 50 for the first time since July 2008 (in March it was 44.8). This implied manufacturing was actually expanding in the world’s third largest economy. The good news didn’t last. Next day, there was a depressing forecast by the International Monetary Fund (IMF). This indicated that ec...

Labour Party hits new low

Following another disastrous week for Labour, the latest poll shows that the Labour party has slumped to its lowest level of support since opinion polls began . The BPIX/Mail on Sunday poll shows the following Conservatives - 45 per cent Labour - 23 per cent Lib Dems - 17 per cent This is now a desperate position for any party and the worst showing for Labour since 1943. Of course, desperate times call for desperate measures and as I have stated before, I expect the next election to be one of the dirtiest on record. Damian McBride has temporarily left the building but many of his acolytes remain. In Wales, the website Aneurin Glyndwr has already set the tone for this and has little constructive to say in terms of policy since its creation, focusing instead on the class war against 'Toff Dave'. Reflecting its leader's style of politics, this Labour website allows no comments, no discussion and remains a pravda-like series of propagandist press releases that do little for pol...

Expenses - another week, another disaster for Labour

As another week draws to a close, it would seem that the Labour Government struggles from disaster to disaster after another day of sleaze and ill-informed policy development. First of all, we have the spectacle of the Prime Minister and his Cabinet playing the expenses system for their own benefit , with Gordon Brown yesterday being forced to pay back a plumbing bill he had claimed for twice as well as paying his brother more than £6000 when they 'shared' a cleaner. Paul Murphy, the Welsh Secretary - even claimed a new boiler because the water in his flat was 'too hot'. As if this wasn't bad enough, this was followed by five Gurkhas being banned from the UK despite the agreement by the PM earlier this week to allow them to settle here. Harriet Harman, in her own inimitable style, has also "provoked further outrage by accusing opponents of the Government's DNA database policy of putting themselves against justice". Finally, as if that wasn't enough...

ProAct rejected by leading industrial firm

Despite being thousands of miles away in Hong Kong, I have been trying to keep up with some of the news emerging from home, despite the seven hour time difference and a hectic schedule of meetings. One that I picked up upon earlier today was this from the People Management website in which JCB is castigated for daring not to take part in the much vaunted ProAct scheme which has been heralded as the first wage subsidy scheme in the UK . Two interesting points emerge from this story. First of all, JCB said it had examined the scheme and had not applied because the wage subsidies are only paid for employees in training. This meant that the two Welsh JCB factories could not take part because they are just-in-time suppliers to nine JCB factories in England. As a result, they could not set time aside for training as it would have an effect on the whole supply chain. If this is the case with JCB, what is going on with the other companies who are being targeted for the ProAct scheme? As most ...

Gordon Brown - it's time to go

Last week was probably one of the worst for the Labour Party since it swept into power in 1997. Still reeling from the widespread revelations that his own special advisor had been planning to smear leading members of the Conservative Party and their families, the Prime Minister was hit for six by a number of political defeats and personal criticisms. First of all, he was embarrassed when, during a joint press conference, the Prime Minister of Poland chastised the UK Government for not controlling its debt and for its ineffective supervision of the banking sector. This followed an earlier criticism, this time from President Michelle Bachelet of Chile. The South American leader said, during a visit by Gordon Brown last month, that his country was doing better than most because it had reduced its levels of debt during the boom years. On arriving home, things did not get any better. Having refused to back down over the highly emotive issue of settlement rights for those Gurkhas who had ser...

Making universities work to beat the recession

Whilst much of the focus has been on the negative aspects of the current recession and its impact on the business sector, it must not be forgotten that a strong knowledge base and the ability to exploit new technological and market opportunities are critical components in any plan to emerge successfully from the current economic crisis. The higher education sector, in particular, has an important contribution to make to this process, especially as perception of universities as mere institutions of higher learning has, during the last decade, given way to a view that they are important engines of economic growth and development. The key question is how programmes can be developed which create innovation-based strengths such as the ability to develop new products, access successfully new markets, apply new technology, incorporate best practice in the management of enterprises and develop skill levels across the full spectrum of the labour force, as these are what will lead to rapid econo...