PROFESSOR DYLAN JONES-EVANS

In 2009, a new fund was established in partnership between the Welsh Assembly Government (WAG), the Welsh European Funding Office and the European Investment Bank. Known as JEREMIE and managed by Finance Wales, it would have the ability to invest up to £150 million in Small to Medium Sized Enterprises (SMEs) across Wales. So what has been the performance of the fund to date? According to the latest data, it had invested £42 million in 256 SMEs by the end of September 2010 and leveraged in another £75 million of private sector investment. One could argue that is a remarkable achievement, given that the economy was still struggling out of recession and there was little appetite for growth amongst the business community. On the other hand, the high street banks had reduced much of their lending to the private sector during this time and the fund could be seen as potentially the only source of cash for companies wanting to expand across Wales. One key factor in its success could...

According to the National Assembly’s Enterprise and Learning Committee , STEM (science, technology, engineering and maths) skills amongst young people are is simply not up to scratch, highlighting a lack of high-quality specialist teachers, poor student performances and negative perceptions of the subjects. Their report showed that the proportion of students in Wales taking sciences and maths at A-level is significantly below the rest of the UK, and the teaching of combined science as opposed to separate biology, chemistry and physics at GCSE was proving ineffective.  The Committee recommends that WAG works to recruit and retain teachers with specialist expertise, and says government and industry need to address gender stereotypes in the subjects, which were seen as “male” domains. It also calls for more partnerships between schools and employers to allow pupils to get work experience.  Interesting to note that whilst the WAG spokesperson noted that “The mini...

On Monday, I had a response to the Yes for Business article from the VoteNoWales2011 twitter that asked   "How many businesses in Wales support more powers?". I naturally replied by asking "How many businesses in Wales are against more powers?". Obviously without a detailed survey, that may be a difficult question to answer but it is worth noting what the FSB, which has 10,000 members in wales, said last year on the matter after a survey of their members, namely: “Generally the FSB supports the transfer of power from Westminster to Cardiff Bay where it can be demonstrated that the powers would be used to benefit Welsh business. We would stress the importance of ensuring that the decisions made by the National Assembly for Wales should not put business in Wales at a disadvantage to counterparts in the rest of the UK." Personally speaking, I feel that the Yes for Wales campaign has been weak in terms of explaining what further powers would do for the busi...

Is there a difference of opinion developing between the CBI in Wales and its UK parent organisation? During the last few years, there has been an obsession by the Welsh CBI in backing large businesses, a focus which culminated in their backing for the Economic Renewal programme and the statement that CBI Wales  agreed "with the first minister that Wales largest 'anchor' companies are key to economic growth and prosperity. In fact, Wales is more dependent on large companies than England, as Wales' largest 1.8% of companies account for 69% of national turnover. As a result, we stated that only targeted government action to support these 'anchor' companies will deliver real growth and employment". In contrast, John Cridland, the new CBI Director-General-Designate, recently stated that “With the UK’s 4.8 million SMEs providing 60 per cent of private sector jobs and accounting for half of all private sector turnover, we have much to do to help these com...

Over the next few weeks, there will be considerable debate over whether the National Assembly for Wales should be granted further powers. The two camps supporting and opposing further powers are putting their arguments to the public, with each hoping that they will prevail when the polling booths open in just under six weeks’ time. So, let me take this opportunity to put my own cards on the table. For those who have read this column during the last seven years, my views have always been that that Wales should be given every opportunity to maximise its economic potential. As a result, I will be voting ‘Yes” on March 3rd. But not because we have a devolution deficit relative to the other parts of the UK as some politicians have argued but because I believe that greater powers can make a real difference to Wales and the Welsh economy. Indeed, I believe that the assumption that full law making powers for the Assembly would not help Wales, as indicated by several business organi...

Having been a member of the  Institute of Welsh Affairs for many years, I was under the impression that despite have becoming part of the Welsh establishment, it remained an independent, membership-based think tank that "owes no allegiance to any political or economic interest group". Yet last week, it allowed the First Minister to give a speech at the North Wales branch’s annual dinner that even the most independent observer could only describe as highly political. Here is one extract: "So, I say to all Welsh Liberal Democrats – voters and members alike. If you still think of yourself as a radical. If you still believe in social justice. If you want to build a better society, then there is a home for you in Welsh Labour. That is my message. Come home. Come and join us. Help us build a better Wales together. Because of our values and radical traditions it falls to Welsh Labour yet again to be standing up for Wales. In the coming months this will be Welsh L...

Last week, I wrote a piece about China’s Vice Premier trade mission to the UK which started with a trip to Edinburgh where separate talks were held with the Scottish First Minister. I also noted that, during the visit, the Chinese Vice Premier did not come to Wales, and the fact that many were now starting to ask why Wales was excluded from the agenda for the visit by this high-powered Chinese delegation, an agenda which resulted in trade deals worth £2.6 billion with most regions of the UK except Wales? I made the case that part of the answer lies in the fact that there has been a real personal commitment by the Scottish First Minister - who has visited China twice a year for the last two years - and whose discussions with senior Chinese officials undoubtedly influenced the Scottish trade deals that were made last week. In contrast, I questioned the trade record of our own First Minister since he was appointed to the post at the end of 2009 and asked ow many times has he led tra...

In the Economic Renewal Programme document, it was suggested that  "all businesses in Wales will have access to next generation broadband by the middle of 2016, and that all households will be enabled by 2020. This is ahead of the EU’s target of ensuring that all of the EU population can access 30Mbps broadband by 2020 with over half able to benefit from speeds of 100Mbps by this date. We need a full procurement exercise and State Aid approval to achieve this aim. The next steps are to engage quickly with the market during summer and autumn 2010 and then to commence a full procurement exercise by spring 2011". Yet at least one business is ahead of the game when it comes to getting this multi-million pound procurement contract.  According to the Daily Post  on Wednesday, the Director of BT Wales allegedly suggests that BT is already in talks with the Welsh Assembly Government over its procurement plans...

Excellent news today from Trojan Electronics, one of the 2010 Fast Growth 50 companies, regarding their plans to create an additional sixty jobs through their expansion. What is not so edifying is the sight of the Welsh Assembly Government trying to claim some sort of credit for these jobs because they had partly funded the premises into which Trojan Electronics is expanding. It is a shame that WAG was not so quick off the mark in congratulating Trojan and the other FG50 firms back in October 2010 when the 2010 list was announced. In contrast, the UK Government will be inviting the fifty firms to a Westminster reception to celebrate their success later this year. Does this mean that the next time a private property developer has any new tenants within an office block in Cardiff, that they will also be claiming credit for the jobs created? Are we now going to get a Ministerial press release every time a company uses any road paid for by WAG to deliver goods to a new customer? ...

According to various press reports, several lucrative business and Government contracts are due to be signed with China this week when Li Keqiang, its vice premier, visits the UK. Mr Li, who is widely expected to become Chinese Premier in the future, began his four-day trade mission yesterday with a trip to Scotland to hold separate talks with Alex Salmond, the First Minister, and Michael Moore, the Scottish Secretary. He was scheduled to visit the Pelamis wave energy project in Edinburgh as much of the bilateral talks will focus on Scotland’s renewables and low-carbon energy industry. The First Minister also hosted a lavish state banquet at Edinburgh Castle, having visited China twice in each of the last two years to promote Scottish enterprise. Mr Salmond said: “It is important the Scottish Government, our agencies, businesses and educational organisations continue to do all they can to advance our relationship with China, particularly as we pursue every opportunity to build s...

Having once worked at the cutting edge of technology – I was using email twenty years ago – I must admit to have become increasingly isolated from many recent technological developments on the internet. I did eventually start blogging four years ago and, like another half a billion people, now have an active Facebook profile. After only three months of activity, I have over 600 contacts on the linkedin business networking site. However, the one piece of social networking that I have avoided like the plague has been Twitter. Until now. For those of you who are still blissfully ignorant about Twitter, it is a service that enables its users to send and read messages called ‘tweets’, which are text-based posts of 140 characters or less displayed on the user's profile page. This enables users to update their current profile succinctly and quickly. Whilst it can be used on a computer, it is the growth of the mobile phone, particularly the iphone, which has enabled Twitter to ex...

In the excellent article by Rhys David on the IWA Click on Wales website , he notes that “we should aspire to make 2011 the year when Cardiff airport begins to offer a range of important European business city destinations rather than the broadly holiday destinations currently on offer. Difficult, indeed, when our international business links are withering with the withdrawal of many of the multinational operations that used to populate the Welsh business scene, but essential if we are to build a competitive economy.” A truly important aspiration for South Wales (as I would expect that North East Wales benefits from the proximity to both Manchester and Liverpool Airports). However, it is an aspiration that is, unfortunately, dying a slow death, as the graph below shows. From a peak of 2,024,428 passengers in 2006, the number flying from the airport in 2009 had fallen to 1,631,236. This represents a decrease of 19.4 per cent. In contrast, over 5.3 million people now fly...

The UK Coalition Government has announced that twice as many unemployed people as previously planned will receive government funding to help them set up a business. The new enterprise allowance will now be available for up to 40,000 new businesses by 2013, as the coalition seeks to boost the recovery by encouraging private-sector growth. Under the terms of the allowance all those who persuade business experts that they have a feasible plan for a start-up will be eligible for the funding. Whilst this is a non-devolved area, then one would assume that Wales should be targeting for at least five per cent of this support to support the long term unemployed here, especially within our more deprived communities. This would mean an additional 2,000 businesses being created at a time when the number of Welsh entrepreneurs has been in decline although I would expect that our business support agencies could, with their experience and expertise in this area, get a higher share of the fund...

Over Christmas, I have been asked whether I am a member of the new business advisory panel set up by the Secretary of State for Wales in December. Well, I am glad to say that I actually have been invited to be a member of the panel and attended the first meeting in Gwydyr House on December 14th (I am third from the left in the photograph above). It was a very different type of meeting to the ones I have previously attended as a member of the Business Partnership Council organised by the Welsh Assembly Government, which tended to be formal and dominated by politicians and civil servants. In contrast, this event was far more relaxed, everyone was given the opportunity to have their say and yes, there were actual entrepreneurs and businesspeople sitting around the table in addition to the CBI and the FSB. There was even a representative from the Welsh Assembly Government to ensure that there was joined up thinking between Westminster and Cardiff Bay. Indeed, David Rosser and I see...

This week, I begin my eighth year as a columnist within the Western Mail and my ninth with the Daily Post. More relevantly, as today is the first day of 2011, it is a good time to look back at the economic events of the last twelve months. In January 2010, there could be no doubt that the Welsh economy had been hit hard during the recession of the previous year. Statistics would later show that whilst the public sector was largely protected from the worst ravages of the economic downturn, over 88,000 jobs were lost in the private sector across Wales. Perhaps the biggest symbol of the inability of politicians in Wales to plan properly for the fallout from the changing state of the global economy was the news that Bosch was to close its South Wales plant with the loss of 900 jobs, with hundreds more lost through the supply chain of small local companies. For a number of years, some of us had been urging the Welsh Assembly Government to create strong relationships with the major...