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TWEEDLEDUM AND TWEEDLEDEE

"...the assurance that I can give all businesses in Wales is that, in the delivery of the programme that I have announced, size does not matter in the sense that we will give support to businesses whatever their size. So, there is no discrimination against small businesses and, indeed, the benefits will be felt by all businesses".
Ieuan Wyn Jones, response in the Assembly Chamber, September 22nd 2010

"We 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".
CBI Wales response to the Economic Renewal Programme

Comments

Anonymous said…
This perfectly describes the chaos within WAG at the moment. It is policy made on the hoof by a small group of sycophants whose future careers is tied to the Gauleiter for Economic Development, Gareth Hall. Most of the best managers (ex WDA) have realised the game is up and have applied for voluntary redundancy although a another 300-400 also wanted to go. Those at the top are more obsessed with leaks than getting the economy right although with many leaving over the next few months, is it surprising that WAG documents are being widely circulated amongst the business community?

You are not a well-liked figure amongst those in power, Professor Jones Evans but those of us at the bottom of the heap appreciate it. Keep it up!
September 24, 2010 8:05 am
Disgusted said…
IWJ - end of the grant culture.

Proposed closure of TRW announced yesterday

http://www.bbc.co.uk/news/uk-wales-south-west-wales-11397293

BBC saying the following:

"Economy Minister Mr Jones said his officials and NPT had sought to back managers' plans to keep the plant open, including the offer of grant support.

Total hypocrisy.
September 24, 2010 8:19 am
Anonymous said…
69% of national turnover?! Are they deluded?
September 24, 2010 9:01 am
Anonymous said…
Even if I did believe the CBI's stat that "Wales' largest 1.8% of companies account for 69% of national turnover", this only highlights the problem with the Welsh economy. In what way is having 69% of turnover in the hands of 1.8% of businesses any good for the Welsh economy?

The CBI points out that "Wales is more dependent on large companies than England". Maybe so, but the last thing we want for the Welsh economy is to make the rich even richer through supporting large anchor companies.

How much of the profit from the 1.8% of businesses stays in Wales? Theses no multiplier effect if the money leaks out of Wales.

Just to throw another one of the CBIs stats back at them....40% of private sector employment is in big businesses, 60% in SMEs. In what way can the CBI argue that their members need more help from WAG when they account for 69% of turnover, but this only equates into 40% of private sector employent?

In terms of big business

1)They have larger budgets to fight planning authorities in Wales so they get their way to build supermarkets, even if the local authority is against.

2)Business Rates account for a much lower % of their TO than SMEs

3) Procurement systems are biased towards big businesses


4)They benefit from economies of scale

5) They are big enough to squeeze their suppliers so SMEs in their supply chain get next to nothing.

I definately could go on, but my point is that bigger business benefit from the system as it is. It's time to help the 98.2% of businesses of Wales. 1.8% of business stock = 69% of national turnover! And the CBI want more support for their members?! I just hope WAG sees the error in sucking up to the CBI (this also goes to all political parties as they're all guilty of this).
September 24, 2010 9:38 am
Anonymous said…
Keep it up Dylan. Your blog has become a most compelling (if dispiriting) read. If its true we get the political leaders we deserve what on earth can the people of wales have done to land us with this shower?
September 24, 2010 3:23 pm
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