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FURTHER COMMENT ON THE ECONOMIC RENEWAL PROGRAMME

This comment was left yesterday by Bob Shepherd on one of the blog entries from last week.

I reproduce it here for those who may have missed it as it demonstrates the strong feelings out there in the business support community over these changes to economic development in Wales.

Unlike some of the commentators who have posted on this blog lately, individuals such as Bob are those who are working every day to try and bring business into Wales.

Yes, these changes directly affects businesses such as Bob's but it is clear that, at least in the short term, the ERP will also affect the potential of the rest of the Welsh economy to grow itself out of recession.

"I am a consultant who has dealt with grants, finance and mentoring, both for and despite the WAG activities. I have friends and colleagues who move in my world, some of whom are (still) working for WAG in some context or other. I am not a big fan of the WAG business support efforts in recent years but what has happened lately is beyond belief. My own blog has followed a similar line.

One could argue some of the points made in the ERP would be a good idea if we were starting off right now. But to guillotine grants and much of what was in train without something in place to follow on is laughably inept, unprofessional, needlessly destructive and frankly typical of the WAG dabbling in an area they really don't know too much about.

I understand the staff don't know what is going on. The clients don't know if their grant application made the cut, so to speak. There are good propositions out there which were being prepared at no small cost which are now scrapped or on hold at best. There are consultants who relied on the complexities of the grant system for a business themselves who are wondering what to do. There are businesses shying away from coming to Wales, not only because they can't get a grant but because of the chaotic business environment now apparent. I could go on but you all know what I am talking about.

The last I heard is that WAG are expecting some decisions to be made by the New Year!

I am joining a small campaign that is growing which is to personally email ieuan.wynjones@wales.gov.uk and ask him why this situation has been allowed to develop, to let him know about clients I have that will probably go elsewhere to a more professional environment" .



Thanks for commenting Bob. 

Further comments from other business professionals are welcome as you will be assured that, given the frequency of visits from WAG to this website, someone in Cardiff Bay will be reading them.

Comments

ANON said…
Nice one Bob

I've been writing to my clients to advise them of the situation and encourage them to write to IWJ to vent their views.

FSB: Put your money where your mouth is and ask your members to write in and complain. Earn my membership for next year!!
Marshall said…
The same call should go to the South Wales Chamber of Commerce who simply rolled over on their backs. They may also find subsciptions falling as members find it harder to continue under the new austerity regime.
Charl said…
Whilst I agree with some of Bob's comments his main motivation would appear to be personal - Bob makes a living from the grant schemes charging his clients a fee to obtain public support.

So the scrapping of the current WAG support programme has a direct impact on his consultancy business - no grants no fee!

To make matters worse WAG propose to streamline and simplify the support process so maybe the services offered by consultancies such as Bob's are no longer viable.
Anonymous said…
I have been assured that grant funding for R&D projects will continue (as before) as long as you are in one of the 6 sectors, and that the export support my company has received will also continue as it has in the past. So, hopefully, no change to the successful status quo for us.
Anonymous said…
For what it is worth I e-mailed Ieuan Wyn Jones and my local AM Alun Ffred over a month ago regarding the effect that these impromptu decisions would have on my new business and its future viability. I have not had an acknowledgement or reply of any sort from either individual. In fact the e-mail address listed for Alun Ffred was not even correct and bounced. I had to delve deeper into Google in order to get hold of the correct address.
On the rare occasion that I have written to my local MP he has always replied and dealt with the matter raised in a courteous and professional manner, whether by e-mail or letter.
The lack of any acknowledgement or reasoned response from either individual to a valid and not inconsequential query implies that they have nothing but contempt for their constituents and the current economic climate that has been further exacerbated by their actions.
I would therefore recommend that any e-mail is backed up by a letter.
Ieuan Wyn Jones
Ty Elwyn Roberts,1 Maypole Steps,45 Stryd y Bont, Market Street, Llangefni,Ynys Môn, LL77 7PN
Alun Ffred Jones AM
8 Castle Street, Caernarfon, LL55 1SE
Anonymous said…
"I have been assured that grant funding for R&D projects will continue (as before) as long as you are in one of the 6 sectors, and that the export support my company has received will also continue as it has in the past. So, hopefully, no change to the successful status quo for us."

So one rule for one and another rule for another. What if you are not doing R&D but are trying to create jobs in more traditional sectors? We need every type of jobs in Wales when we have 130k unemployed.
Dissident Dragon said…
Charl really does miss the point. I accept that grant advisers do make a living helping companies to access grant support - I'm one of them. However, this is only a small part of what we do. The majority of our time is spent helping businesses to prepare robust business plans and financial forecasts and in securing the considerable amounts of commercial funding which accompany each project. The grant process itself probably only accounts for about 10% of the time we spend.

With regard to the changes in the support from WAG available to companies, I have a number of pertinent questions. Firstly, when has the Welsh Assembly Government ever streamlined anything? When did its employees gain the commercial skills to advise clients on financial matters? Do they have the contacts across the financial sector to help companies secure the commercial funding they seek? Who takes ultimate responsibility for the successful delivery of each project? Will the WAG's employees carry the substantial levels of Professional Indemnity cover that all grant advisers have?

I really could go on and on. Suffice to say that the role of advisers is very much misunderstood.
ANON said…
Charl: You seem to be missing the point that for over 30 years there has clearly been a significant demand for grant to help with financial constraint, commercial risk and international mobility cases. Various reports quoted by PDJE have made the case for grants. To date, the grant has been funding of last resort and the minimum given for a project to proceed. Commercial finance or grant advisers have evolved to fill a need in the market i.e. to present cases on behalf of the client so they don’t mess it up. The same reason you appoint a solicitor or barrister to help you in court or an accountant to do your tax returns or compile your accounts.

It’s well known that Wales had the most successful Inward Invest programme in Europe. Naturally, some of those same companies moved to emerging economies to remain viable. Consequently, more effort than ever is required to help indigenous companies start up and grow and capital is critical. The problem here is not austerity cuts, but the policy to waste half the grant budget on ‘high speed broadband’
Bob Shepherd said…
Thanks for the comments all, and thanks to Dylan for providing a forum that has people at WAG paying some attention apparently. Just to be clear on a couple of points - my own consultancy business helps small business SMEs on a higher plane than that offered by WAG business support and indeed only a minor part of my income and client involvement has come from Grants. It is true that I have friends and colleagues who have indeed been fishing in that pond to date who are more affected directly than me. I have worked on WAG contracts and have been around, as it were, for some years in the South Wales business environment. My concerns are that we have had a complete change in direction without practical consideration for what is to follow and we do look silly because of it. Much the same situation existed when the WDA was subsumed into the Assembly. You could criticise it, just as the latest environment was full of holes and could be criticised, but at least you knew what you were dealing with. As it is now, even the staff do not know what is going on. No commercial business would run like it (at least not for long) and if WAG want to take a lead in this field they should take up some commercial thinking in whatever they do with and for the business world.
To see where I am coming from and for criticism of the system pre ERM see http://ow.ly/2rzct which is an article in wrote on South Wales business support.
Thank you all.
Anonymous said…
Where's the significant protest , get these bodies moving and get some visible action out there.
The voice for this ERP to be re visited is so quiet its hardly heard.
Time for all these representitive bodies to get really active.
Whats the sayiny"faint heart never won fair lady"
Charl said…
Bob's article is more of a sales pitch rather than anything meaningful. It knocks every aspect of the support system including organisations that he directly worked for in the past!

Grant advisors play an important role in the network - if you ever get the chance to listen in on their pitch to a prospective client you get a real understanding of their depth and knowledge and their relationship with the grant giving bodies - it is a real eye opener on how the system works.

But like every industry there are good and bad ones.

The valid point that Bob makes in his article is the red tape attached to every scheme. Whilst WAG make the process complicated it is the WEFO conditions that put a strangle hold on the system. They really should rename WEFO as the Welsh European "Fill as many forms as you possibly can" Office.
Anonymous said…
I think you will find that the representative bodies are doing a hell of a lot of work on the ERP. You just don't see it.
Anon said…
Anonymous Your right, no one’s seeing anything being done on the ERP!

A plan should have been drawn up before hand to ensure a seamless transition of policy, as you would have in any properly managed organisation.

1/10 for the ERP Policy and 0/10 for management and implementation.

Oh and finally how many jobs have been lost through this vacuous period?
Anonymous said…
Anon, I was talking about the representative bodies, but on the WAG side, I completely agree with you
Anonymous said…
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&D grants not being repayable but I've been told ALL grants will be repayable. Given that the R&D grants eligibility crieteria 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&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).
Anonymous said…
Unfortunately no matter what happens in the next few months with the grant system, the tax payer is contributing towards the former IBW staff sitting around awaiting their fate. They are unable to generate any work or complete existing projects due to a lack of credible information or guidance. The staff are effectively all on extended leave at the taxpayers expense. Another by product of the Ministers decision to cut off the existing schemes without implementing a replacement.
Anonymous said…
The words brewery, organise and p*** up spring to mind - I am so heart sick to see the mess these elected members are making of our beautiful nation and I voted for devolution for my sins! Their continual naivity of the business need in Wales is jaw dropping and when you think it couldn't possibly get any worse, yet another bombshell is dropped which is even more unbelievable than the last. They need to listen to people, many of whom post on here, inlcuding Dylan himself, who can offer years of good, sound and invaluable professional experience of the business sector. Remember WAG 'pride comes before a fall'!

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