When Labour was swept into power in 1997, its leaders promised that a new era of prosperity and equality would sweep through the land.However, twelve years later, what is the reality of the situation?
Well, The truth is somewhat different to the political fables that Wales is doing as well as other parts of the UK.
Since 1997, Wales has experienced the lowest increase in average full time weekly earnings of any UK region. Whilst UK workers have had an increase in their earnings of 58 per cent, it has only grown by 51 per cent in Wales.
As a result, the gap between earnings in Wales and the rest of the UK has actually increased. In 1997, Welsh workers were earning approximately £1800 per year less than the average for the UK in 1997.
By 2009, this gap had grown to £4200 per year.
Given this, it isn’t surprising that in terms of the overall economy, Wales remains the worst performing region, declining from 80 per cent of the UK’s prosperity in 1997 to 74 per cent in 2008.
More shockingly, four of the five poorest areas in the UK are now based in Wales, with the Central Valleys, Gwent Valleys and Anglesey recently being joined by Conwy and Denbighshire.
However, the most damning statistic regards the state of the manufacturing sector, which should be the engine room of any modern economy.
Contrary to the myths that are peddled about how the Conservative Party destroyed the manufacturing sector in Wales, the statistics show that the relative importance of manufacturing to the Welsh economy actually rose from 27 per cent to 28 per cent during the last Conservative administration between 1992 and 1997.
In contrast, it has declined to 18 per cent of the nation’s economic output since Labour came to power in 1997. That is probably the most damning indictment of Labour’s economic and industrial policies in Wales during the last twelve years.
The reality is that, under the last Conservative Government, manufacturing grew by 31 per cent in the five years between 1992 and 1997. In contrast, it has shrunk under the three consecutive Labour Governments we have had since.
Yes, let me say that again - manufacturing in Wales actually grew under the last Conservative administration and contrary to the fables that are thrown around in the Assembly Chamber by both Plaid Cymru and Labour AMs, it is during the last twelve years that we have experienced the largest decline in manufacturing in Wales (and that is before the effects of the current recession are picked up by the statistics office).
Of course, it is not the only sector to have suffered under Labour. Whereas agriculture was generating £634 million for the Welsh economy in 1997, this had fallen to £202 million by 2007.
Wales needs these sectors to thrive and yet the government’s own statistics show that vital parts of our economy have declined under Labour. Yet there seems to be a general acceptance, as if there has been a collective loss of memory by the majority of the commenteriat, that everything was bad under the last Conservative administration and yet the statistics show a very different picture.
Is it because there is an anti-Tory (or anti-Thatcher) consensus amongst journalists or have they simply not tried to find out what really happened in the early 1990s?
Certainly, politicians such as Peter Hain seem to get away with fairytales on Conservatives' economic record without any serious scrutiny.
At the end of a year which has seen tens of thousands of jobs lost in the Welsh economy, it is clear that a new approach is needed to encourage enterprise, invest in innovation and get this country’s economy back to work. Rather than attacking what the Conservatives might do if elected, the Labour Party should focus its efforts on what it, as the party in power, is doing to get the Welsh economy growing again.
Sadly, given its record in ensuring that Wales is the poorest part of the UK, we won’t holding our breath.
At the end of a year which has seen tens of thousands of jobs lost in the Welsh economy, it is clear that a new approach is needed to encourage enterprise, invest in innovation and get this country’s economy back to work. Rather than attacking what the Conservatives might do if elected, the Labour Party should focus its efforts on what it, as the party in power, is doing to get the Welsh economy growing again.
Sadly, given its record in ensuring that Wales is the poorest part of the UK, we won’t holding our breath.
Comments
And anyway, as Professor Jones-Evans points out: the Labour Party "should focus its efforts on what it, as the party in power, is doing to get the Welsh economy growing again".
But alas, Welsh Labour don't know what to do, have no focus on what should be done, they rather blame the Conservatives going back to Churchill et al.
You don't need grants to get your business moving - you just want enough freedom from government intervention to get the venture profitable - however, with the nanny state being the only thriving industry in Wales - that is going to be difficult!
Agree with the sentiment but thanks to WAG's inaction on business rate relief for 2010 you might as well setup a business in England or Scotland where you'll get a better relief system.
I've written a short article about your observations here: http://waleshome.org/2009/12/is-dylan-selling-the-tories-short-on-manufacturing/
Best
Adam