Another comment on this blog, which if correct, makes me wonder what on earth is going on within the Welsh Assembly Government.For clarity, this follows a comment where it was suggested that R and D grants would remain non-payable
"I'm afraid total confusion appears to reign within WAG as well as outside. I'm not sure where Anon got his information about R and D grants not being repayable but I've been told ALL grants will be repayable.
Given that the R and D grants eligibility criteria is that there is technical risk - and hence the product may never be launched - why would I saddle myself with a repayable grant when there is a possibility of no product sales with which to repay it.
Since non-repayable grants are available in the rest of the UK, moving the R and D element of my business to England is a compelling option. London First have been extremely helpful and, unlike WAG, understand my business. I also have far greater access to expertise in London and South East Universities than anything Wales can offer.
As a proud Welshman, this is not a decision I want to take, but at the moment I have no faith in the ability of the Welsh Assembly Government to get this right.
And just for the record, we have 1Mb broadband which is more than adequate for our needs (and stops my staff wasting time on YouTube)."
Again, this is a really worrying development if, as is suggested, companies are perceiving the Economic Renewal Programme (ERP) in a negative light that may make them reconsider future investments.
Worst of all, this seems to suggest that the ERP has been developed with no sense of what the competition (i.e. the other UK regions) were offering?
Imagine if a company didn't consider competitors in a business plan. Any potential investor would show them the door immediately.
Surely before drawing up the business plan for Wales PLC, there should have been a detailed analysis of what the other UK regions would also be offering.
Whilst business support in Wales, in the shape of FS4B is disappearing, there will still be active business support organisations in England in the form of the new Local Enterprise Partnerships (LEPs), despite the abolition of the Regional Development Agencies (RDAs).
At the moment, their actual function is currently out to consultation although unlike Wales, they will involve strong partnership between the public sector (in the form of councils) and the private sector (represented by organisations such as the Chambers of Commerce). There are even rumours that, contrary to Vince Cable's original plans, that some may even take responsibility for inward investment activity.
There will also be incentives provided to businesses via the new Regional Growth Fund. Although the final form of this new fund has yet to be fully determined as, similar to the LEPs structure, it is out to consultation with the business community in England, its two main aims are as follows:
- To encourage private sector enterprise by providing support for projects with significant potential for economic growth and create additional sustainable private sector employment;
- To support in particular those areas and communities that are currently dependent on the public sector make the transition to sustainable private sector led growth and prosperity.
This is completely different to how most of the European Structural Funds have been used to date within Wales, with the private sector being largely excluded from direct involvement in any funded projects.
Given that many of us have, for years, called for greater business participation in developing projects that can help our poorest communities (especially during the last recession), this is a breath of fresh air i.e. an approach to regeneration that brings the public and the private sector together in partnership. Unfortunately, it will only apply to England.
Anyway, going back to the original comment and its implications.
The many comments that have been posted on this site on the implementation of the ERP by those working with businesses reflects those made by some leading figures over the lack of detail following its launch in July. Given this, it does make you wonder about the level of analysis and thought that went into the final version of the ERP.
More relevantly, it begs the question whether this revolution in business support was actually requested by businesses or, as many are now beginning to suspect, was dreamt up by a small cabal within the hallowed halls of Cathays Park and Cardiff Bay.
Perhaps it is time to find out the truth - watch this space.
Comments
I am equally worried that Wales is currently in an unusual position in its business support with no one really knowing what is going to be available. This generally leads to the feeling that as has been said here 'Wales is closed to business'.
However I never like to hear comments such as
"Given that the R and D grants eligibility criteria is that there is technical risk - and hence the product may never be launched - why would I saddle myself with a repayable grant".
I could equally argue why taxpayers money should be used to fund something which may never become a reality. How keen would you be to invest your own hard earned money into R&D if you were not likely to gain some financial reward at the end of it. Its one thing to invest public and private money in something which could turn profit and therefore bring income in via employment, taxes etc, but I do question how much public money has been paid out over the years to companies spending on R&D on a whim rather than real sound business observations. I accept not all R&D returns favourable results for a product but we should know when to cut out loses and stop large scale investment in non-business ideas.
What we need in Wales is more real quality business support, focused funding options based on real growth potential and more truthful and clear guidance to business owners.