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Showing posts from July, 2009

Getting the facts on grants

As an academic studying economic development in Wales, one my regular highlights was analysing the papers of the Assembly’s Economic Development Committee. This was because you could access vital government information that couldn’t be obtained elsewhere, including assessments of WAG’s different support programmes, quarterly economic analyses, reports from Ministers on the state of the economy and a wealth of other material. In particular, I was always fascinated to see the regular report from the Minister on the number and distribution of Regional Selective Assistance and Assembly Investment Grant offers made every year as this gave a clear indication of how WAG’s main policy instrument was being sued to support the Welsh economy. Unfortunately, since the establishment of the third Assembly, Ministers no longer turn up to regularly inform members on what happening within their portfolios and, more importantly, to be held accountable for their actions. Worst of all, very little informa

A road too far?

On Wednesday, the Deputy First Minister announced the National Transport Strategy for Wale s with the main headline being the cancellation of the M4 relief road, a project with an estimated pricetag of £1 billion. With the inevitability of significant reductions in the amount of funding coming from the Treasury to Wales during the next few years, this was a relatively easy decision for the Assembly Government to make in order to focus dwindling resources on other areas. The main question, of course, is whether it was the right decision for a Welsh economy which remains firmly rooted at the bottom of the UK’s prosperity league table and needs every advantage it can get. Certainly, business groups such as the CBI, FSB and the Chambers of Commerce were outraged at the decision , remaining convinced that the road was the "most important scheme needed to take Wales' economy forward". Whilst the cost of the road has now become prohibitive at a time of austerity, the delays by p

Two sides of the coin

Once the latest unemployment figures had come out, I didn't think it would take too long for the Plaid Cymru press machine to start praising the Deputy First Minister's 'decisive actions' in 'driving forward' the ProAct scheme. This is despite the fact that it actually falls under Jane Hutt's skills portfolio rather than his. So much for partnership working across the coalition government when they fall over themselves like dogs over a bone to claim the credit for this programme. Of course, I suppose I should be flattered, given that this blog suggested a scheme such as ProAct as long ago as November , well before the economic summits even got round to discussing this issue. As I said then, "Rather than watching impotently as firms lay off key workers, why doesn’t the Assembly Government set up a multi-million- pound key fund which enables businesses to temporarily move their workers, during the current economic crisis, onto skills training courses? Not

Much ado about nothing?

As Valleys Mam notes , there seems to be an enormous amount of fuss generated about the expenses of International Business Wales in the press today . Far be it for me of all people to defend the Welsh civil service (that would be a first!) but there seem to be some incongruities in the claims that have been released under the Freedom of Information Act. In the Western Mail, Kirsty Williams is quoted as saying "Every taxpayer in Wales deserves an explanation from the Labour-Plaid Government. While we’re in the middle of a recession, it’s disgusting to know that public officials are flying first class, staying in the most expensive hotels, eating in the best restaurants – all at the swipe of the Welsh credit card." For example, I haven't a clue whether there is actually any evidence for "flying first class" but as far as I am aware, it is civil service policy that staff take business class flights for all long haul flights to destinations such as the Far East and

Mixed messages for the construction industry

Last week, a story in the Western Mail suggested that "nearly 30,000 jobs could be created in the Welsh construction industry in the next five years.....the research from the from the Construction Skills Network forecast that employment in Wales can bounce back more quickly than any other part of the UK ". However, this optimistic prediction is in complete contrast to figures published by the Welsh Assembly Government show that: Production output in Wales for Q1 2009 fell by 7.2% compared to the same quarter in 2008. The UK index fell by 5.1% over the same period The index of construction for Wales for the last four quarters fell by 13.8% compared to the previous year. The UK index fell by 2.8% over the same period Construction output in Wales for Q1 2009 fell by 4.6% compared to Q1 2008. The UK index fell by 2.4% over the same period

The Ashes in Cardiff

Having been walking past Sophia Gardens for the last three days and hearing the shouts of the Barmy Army echo across the Taff, I am finally going to see the Ashes Test Match today although, typically, rain is promised. It is still an amazing thought to think that the first Ashes Test match between England and Australia has been held here in Cardiff and not in Lords, Old Trafford or any of the other traditional test grounds around the country. Of course, the exposure for Wales as a result of the test match has been tremendous and a welcome boost for Cardiff business at a time of recession. Some of the local firms have done tremendous businesses with pubs and restaurants reporting over 200 breakfasts every morning for supporters! Whilst, there are estimates that the Sophia Garden development could generate £80 million for the Welsh economy during the next five years , the real fact is that millions of people who didn't know about Wales will have had a highly favourable view of the ca

Coulson, News International and the Labour Party

As Sun Tzu said, victorious warriors win first and then go to war. In this case, it would seem that the Labour Party has failed this simple test of political strategy. It has tried its best to get this story rolling through its friends in the Guardian and has failed miserably, despite the BBC's best efforts to keep the story alive. Of course, the biggest mistake is that they have taken on the world's most powerful media mogul to simply get back at the Tories over the Damian McBride affair. Well, guess what. Rupert Murdoch is not some third rate spin merchant and Labour have now ensured that the whole might of News International will, rightly or wrongly, be turned against them over the next ten months up to the next general election. One can only imagine the files his organisation has on senior politicians within the Labour Party. The storm is most definitely coming.

£41 million is a drop in the ocean

An additional £41 million fund to provide an "economic stimulus" to help Wales deal with the recession has been announced by the Assembly Government . £41 million looks like a lot of money and I am sure that politicians will make the most of this. However, let's not forget that, compared to the funding available from the Convergence Fund, it is merely a drop in the ocean. According to the latest information from the Welsh European Funding Office , only 35 per cent of the £1.81 billion available has been committed to projects. This means that over £1.1 billion remains to be committed to projects during the period 2010-2013 or around £200-£250 million per annum. The question is whether how quickly this remaining fund will be spent this year to counter the recession? More importantly, is there any effort by Ministers to focus on fasttracking capital projects to ensure they have an immediate impact on the recession in Wales?

Culling the quangos

Both the Conservative Party and the Labour Government have stated today that they intend to cut the number of quasi-autonomous non- governmental organisations (otherwise known as quangos) to ensure that public funds are used more efficiently during the next few years. Of course, this would apply only to England as Wales had its own cull (or bonfire) a number of years ago. However, the absorption of the Welsh Development Agency ( WDA ) and the Wales Tourist Board into the Welsh Assembly Government is a move that was regretted by individuals from across the political spectrum. For example, Peter Hain criticised the closure of the WDA , stating that it was ‘a successful, worldwide brand, the most successful development agency ever'. Dafydd Wigley , the former leader of Plaid Cymru , is on record that he remains opposed to the merger of the WDA with the Assembly Government. The question, of course, is whether the move was driven by the real need to improve public services or was

The future of Welsh manufacturing

There were mixed messages for the Welsh manufacturing sector this week. In North Wales, 200 workers at the Air Products factory in Wrexham have lost their jobs as the company, which produces gas plant equipment, is moving to China. At the same, Anglesey Aluminium has offered voluntary redundancy to 140 staff as they play a high-stakes poker game with the British Government to try to obtain cheap power for their plant. If, as many expect, this fails to materialise, the result could be the final loss of 500 well-paid jobs in the poorest county in the UK – an outcome which could devastate the economy of Anglesey. In other parts of Wales, there was better news. Hundreds of jobs were saved when the Ministry of Defence awarded General Dynamics, based in the Gwent Valleys, a £231m contract to upgrade the Bowman military communication system . In addition, Compact Orbital Gears of Rhayader , which manufactures and supplies high-quality engineered products and services, has safeguarded 25 aeros

BBC expenses - a reflection

Just when you thought that those who live off the public purse had finally been told that their behaviour is unacceptable, along comes the BBC’s top executives with their expense claims for corporate entertainment, hair styling, insurance claims for a stolen handbag and champagne and flowers for their ‘stars’. Don’t get me wrong. I don’t think anyone objects to the fact that people should get remunerated for expenses incurred as a result of their job. The main objections are when people push the boundaries of what is acceptable, especially when public funds are involved. At a time when the majority of workers in the UK are facing pay freezes, pay cuts or even redundancy, this type of behaviour has brought the salaries of those paid by the public purse into sharp focus. During a week when some staff at British Airways had agreed to work without pay for a month to save their jobs , we discovered that not only were they milking their own expenses system, but that the top fifty executives