Wednesday, 30 January 2013

HS2, 5%, WALES AND THE UNION

The much publicised Westminster government's plans to extend the HS2 rail development to Manchester (Stage 2) has stirred up a whole range of reactions in England from approval to objections and much in between. This investment focuses on creating a high speed rail spine in England from London to Birmingham and then onto Manchester and Leeds.

The Scottish Government has rightly called for a "concrete timetable" to extend the HS2 high-speed rail network to Edinburgh and Glasgow, calling on the UK Department for Transport to clearly spell out when high-speed rail project would reach Scotland. Fair play to Scotland Now that’s fair enough but what about Wales, will we see any benefits (fringe or otherwise)? Over to the Welsh Government then... ?

Labour in Wales’s less than eloquent silence aside, the bottom line is quite simple if unionists want the union to work for all of its inhabitants then what’s Wales’s share of the investment in the transport infrastructure programme. The Westminster Government has to ensure that any investment in transport infrastructure must benefit the whole of the UK, not just England. If the unionists believe in fair funding for the constituent parts of the UK then Wales is owed a Barnett consequential of approximately £1.9 billion from the projected HS2 spend.

If David Cameron is serious about making the union work then it’s time that this Westminster Government to urgently review the flawed and unfair funding arrangements. The lack of investment (and lack vision) that exists when it comes to developing and improving Welsh transport links that goes way beyond the current (and historical) poor financial settlement. The electrification of the great western line from Swansea to Cardiff (and beyond) is significant but is long overdue.

The electrification of the Glasgow-London line was completed in 1974, if nothing else this highlights how far behind (if not out of sight and out of mind) we are in terms of any improvements to transport links. It is also worth noting that Liverpool has long had an electrified rail link to London and has scarcely benefited economically from it. The commitment to electrify the Valley lines is a major step forward, but, as yet Wales, Albania and Moldova have no electrified railways at all.

If we are serious about delivering reliable, effective and sustainable all weather communications to our communities then it’s time to consider reopening old railway lines to passenger and rail freight. Reopening the old railway lines between Llangefni on Anglesey, Caernarfon to Bangor, Aberdare and Hirwaun (in the Cynon valley) and Usk (via Little Mill) to the main line and between Builth Road to Builth would make a real difference.

Having a minor let alone a major infrastructure investment policy that functions outside of England would demonstrate that this Westminster Government is actually serious about making the union work for all its inhabitants. Investing in our public transport system would reduce carbon emissions and cut road congestion. Reopening and refurbishing our old railways and upgrading our existing lines for passenger and fright traffic could provide serious economic stimulation to the local economies and provide a real opportunity for our people.

Tuesday, 29 January 2013

PLAN B OR ABANDONING AUSTERITY?

The latest GDP figures don’t make pleasant reading, showing that GDP fell by 0.3% in the last quarter of 2012, this should give further confirmation to most people (including economists) that the Con Dem Coalition Government’s questionable austerity experiment (Plan A) is clearly failing. This has prompted a flurry of calls for a change of approach (Plan B) from all quarters, including the chief economist of the International Monetary Fund (IMF). It’s time for the Chancellor to change course and announce radical growth measures in the Budget which takes place on 20th March.

Austerity is not just not working, it’s actually smothering any prospects of sustained recovery and economic growth. It’s time for some balanced well thought out investment in infrastructure and green energy which will help to create  jobs and provide the key to getting the economy back on track. Plaid Cymru has long advocated a progressive alternative to drastic public sector cuts (and their consequences) in order to stop the UK sliding back into recession and to avoid a whole decade of economic decline.

Plaid Cymru's Treasury spokesperson, Jonathan Edwards MP, said:

"These latest GDP figures signal the latest disaster for a Chancellor whose ideologically-motivated policies make him deaf to all warnings and cautions.

"Tackling the Government deficit and debt should only be done when the economy is growing and confidence is high. Current austerity is strangling any sustained recovery. 

"It looks increasingly likely that the cherished AAA credit rating is in jeopardy making the pain of the Government debt pointless. There is now a real threat of a triple-dip recession and the Chancellor has no choice but to change course.

"We must invest in infrastructure and focus on creating meaningful jobs if we are to get the economy back on track - this is what Plaid Cymru outline in our plans for a Bank of Wales to support SMEs and what we achieved in our recent Budget deal with the Welsh Government.

"Wales is suffering disproportionately as a result of the Coalition's austerity experiment. The Bevan Foundation recently announced that welfare cuts would wipe £100m from the Welsh economy. Real terms cut to benefits will suck demand out of local economies as ordinary families are forced to tighten the purse-strings even more.

"As the Chancellor announces his Budget in March, we in Plaid Cymru will present our alternative economic vision that would generate growth, tackle unemployment, and equip Wales with the powers necessary to have meaningful control over its own economy."

Sunday, 27 January 2013

THE JOYS OF WAITING TO GET STUNG!

Once again from one end of Wales to the other, in urban in rural communities we are bracing ourselves for yet another increase in petrol prices as fuel campaigners have warned us about the possible 4p per litre rise in petrol prices. The Petrol Retailers Association (PRA) has called for a “full review" of the wholesale fuel market. Motoring organisations and small business organisations have backed the call for a review and the Office of Fair Trading (OFT) is due to report on whether reductions in the price of crude oil are being passed on to drivers.

Over the last few months we have lived though a relative lull if not a slight drop in petrol prices. Ironically the relatively recent arctic weather resulted in a drop in the demand for fuel across northern Europe and oil refinery bosses began moaning about their glut of petrol capacity". Wholesale costs have however risen by 5p per litre in the four weeks since Christmas. Oil prices reached $147 a barrel before the recession in 2008, but dropped to around $100 a barrel (March 2011), the barrel price currently stands at around $113 (25th January 2013).

Plaid Cymru has long favoured the introduction of a fuel duty stabilizer mechanism to regulate tax on fuel in order to mitigate the effects of high prices at the pumps, and for a fuel duty regulator to cap the price of petrol at the pump when it rises too quickly. Wholesale oil prices will inevitably rise over the next few years as the world economy re-builds itself in the face of an increasing demand for oil and all of us will pay for higher fuel prices directly or indirectly.

Plaid Cymru MP Elfyn Llwyd said:

 "Since the beginning of the recession, fuel prices have been one of the main sources of rising inflation yet the Chancellor has failed to tackle this problem, instead choosing to introduce tax-cuts for the rich and slash payments for the elderly.

 “Speculation that prices are set to rise by 4p a litre during the coming days is extremely worrying, particularly given the soaring costs of other essentials such as food and utilities.

"I am particularly concerned for rural communities in constituencies such as my own that are bearing the brunt of Government inaction on this issue. They are forced to spend significantly more on fuel than those in urban areas, and figures from the Office for National Statistics also show that poorer families spend more on their income on petrol than richer families.

 "Plaid Cymru have been pushing for a genuine fuel duty stabiliser for the past decade. It is hugely disappointing to see that neither the Labour nor Conservative governments in London have agreed to this common sense idea. This must change without delay."

Friday, 25 January 2013

DAVE’S EUROPEAN DREAM

Well yesterday Dave went and finally did it and has possibly set the stage for a referendum on the UK’s future in or out of Europe.  As David Cameron pledged to put renegotiated UK membership of the European Union to the electorate in a referendum sometime in 2017.  This of course works on two significant assumptions coming to pass; firstly the rest of Europe goes along with a renegotiation that the Brit’s never really objected to and secondly the Conservatives manage to win an outright majority at the next Westminster general election.

David Cameron
As for Cameron’s motivations, they may have more to do with the fact that his party is down in the polls and under threat from UKIP. As noted by the YouGov Poll for the Sun (dated 22nd January 2013) which suggests a Labour majority of 96 (pre speech) may have reared large in Tory minds. I suspect that any referendum debate if it ever occurs (the ‘if’ is significant) will not necessarily be clothed in any degree of rationality.

Even if all these things come to pass, I don’t expect any form of rational balanced sensible debate on Europe. I have little doubt that there will be a great deal of scare mongering, blatant inconsistencies and downright untruths about Europe in the run up to a referendum.  To gain an idea as to what a no campaign may look like then simply take a long hard look at the way the unionist NO campaign is playing out in Scotland.

UK Polling has noted that when it comes to referenda, polls consistently show that people support the idea of a referendum on Europe. They also reveal that people would like a referendum on almost any subject they get asked about. This flags up an interesting point, in that polls showing people approve of the referendum don’t necessarily mean that people think that it (whatever it may be) is an important issue and that they necessarily crying out for a referendum on that particular issue.

Of all the problems people face, ironically Europe comes pretty low down the list. UK Polling suggests that when asked what the important issues facing people themselves and their families, then Europe is even lower down. Yet, when it comes to Europe, my anecdotal experience on the doorstep and on the street is that a significant number of ordinary voters perceive the EU as a bad thing.

I for one believe that the EU which needs some serious reform (not just in relation to the common agricultural policy) and also needs to be fully democratic. Criticism aside the EU actually does some good and as has been noted elsewhere in a recent report published by Plaid MEP Jill Evans which shows that Wales is a net beneficiary of EU membership. The bottom line actually being that we in Wales get more out of Europe than we pay in to the tune of about £40 a year per person, yet most people don’t see it and tend to view Europe (if asked) as a problem.

Significantly, and somewhat alarmingly what many people in Wales appear to have missed is the fact that both the Conservative and the Labour parties are calling for an end to EU regional policy. Thanks to this Wales has been able to tap into structural funding to create jobs and build the economy in some of our poorest areas, as well as substantial agricultural support for our farmers in rural Wales.

Wales has received more than 2 billion pounds in EU structural funding over the past seven years not to mention other forms of financial support for example, for students, fisheries and small businesses.  What’s actually been done with the money is another issue! Perhaps if Westminster had actually worked for Wales and protected Welsh interests then we would never have needed or been eligible for European regional funding.

Over recent years UKIP has got away largely unchallenged by most political parties with peddling some right old tosh, as political parties have tried to stay away from Europe as it is perceived in some circles as a vote loser on the doorstep.  To blindly dismiss UKIP as some form of better dressed red in the face hyperventilating version of the BNP and to refuse to engage in as a serious and rational debate on the EU sets a dangerous precedent one that could have serious implications if we ever get to a referendum on EU membership.

That said, even amongst UKIP voters (when analysed in 2009) Europe came in as the fourth most important issue after the economy, immigration and crime. As late as December 2012, Lord Ashcroft noted that even amongst people considering voting for UKIP, the economy was one of their most important issues (68%), followed by immigration (52%), welfare dependency (46%),  Europe came in as the fifth most important issue (27%).

So the Conservatives, under pressure from UKIP and behind Labour in the Polls and with their increasingly uneasy Lib Dem coalition partners things could get spectacularly messy poll wise really quickly. Most people are more concerned with the economy, jobs, housing, the NHS, pensions, crime, etc – so if the Conservatives overly focus on Europe to the point of obsession… then they will end up looking even more out of touch to ordinary peoples real more pressing concerns.

Wednesday, 23 January 2013

A BANK FOR WALES

The call from Plaid for a new business bank for Wales to help small and medium sized businesses grow to reach their potential is a welcome one. At present many of our small and medium sized enterprises are  being denied credit by banks and this is stifling potential economic growth and the expansion of the private sector in Wales. Plaid’s economic commission is to investigate proposals for a Bank of Wales, to potentially run in the same way that the Sparkasse and Landesbanken (in Germany) which operate on a strictly regional basis to support local industries.

As noted elsewhere by the oggybloggyogwr; Germany has a unique network of state-owned, federal state-based (Länder) banks called Landesbanken. They offer a mix of commercial and private banking services and employ tens of thousands of people across Germany. They're primarily a source of credit and bonds for both public sector and private companies within their respective states. So the "big bank money" tends to be cycled within the state. That's probably one reason why economic disparities between regions aren't as pronounced within parts of the former West Germany as they are in a unitary state like the UK or France. 

Now to be brutally honest none of this is not a particularly new or radical idea, but, it may be a timely one, historically we once had a network of local banks focused on the drovers who moved livestock to sell in the larger export market. These were killed off as through the last quarter of the nineteenth and most of the twentieth century’s financial services were increasingly amalgamated, centralised and  standardised in London. The process did little for local entrepreneurs, business people and (certainly latterly) has done little for ordinary bank customers as banks have been increasingly run to serve their own needs rather than those of the people.

Alun Ffred Jones AM, Plaid Shadow Economy minister said:

“Plaid Cymru is ambitious for Wales – we want to see more business and economic growth throughout the country, creating jobs and improving skills.

“However, what I hear from businesses up and down Wales, and supported by surveys from the FSB and other business representatives, is that small businesses are still finding it difficult to get funding to help with their cashflow and to develop their future growth plans.

“It isn’t a problem which is unique to Wales, and the problem is commonly recognised, but the various credit proposals from Westminster haven’t provided the solution.

“In fact, all too often, we hear stories from business owners that have had to use their credit card to finance their growth plans because distant banks are cutting back on capital and unwilling to commit to plans to improve Wales.

“Private sector growth is vital to our economic recovery.

“Wales therefore needs to have a bank which operates on similar lines to the German Sparkasse and Landesbanken that operate on a geographical basis, developing special expertise in the local industries so that they are better equipped to make investment decisions.

“The Bank of Wales name was bought up by the Bank of Scotland and merged out of existence. It would be good if we could have that name back to use to benefit Wales, rather than it being left in a drawer, and being no good to anybody.

“Plaid Cymru’s economic commission will be investigating how we can make the banking system work better for Welsh business.”

During it’s relatively short life, what was known in some circles (to the intense irritation of Labour in Wales representatives) as the Plaid driven One Wales Government made significant efforts to act differently when it came to economic development and support for small to medium sized enterprises (SMEs). SMEs can and should play a significant role at the heart of our communities; they create wealth and sustainable medium to long term employment opportunities for local people.

Sadly since May 2011 the Labour in Wales minority government appears to have resurrected the old brain dead Welsh office model of economic development. Attracting branch factory operations of a relative short term duration does not help develop our economy. More than ever we really do need to think differently and focus economic development priorities on smaller local businesses who will be rooted in our communities and offer more flexible employment opportunities.

As has been noted elsewhere profits and investments made by home grown locally rooted businesses tend to stay within the communities where they are based. So Plaid’s concept of new Bank of Wales business bank to help small and medium sized businesses should be warmly welcomed, as this is one realistic way of putting wealth into our communities, not to mention developing and sustaining longer term employment possibilities.

Monday, 21 January 2013

TIME FOR A HOME WIN!

Plaid’s ‘Buy Local’ campaign which aims to raise levels of local public procurement, giving Welsh companies and Welsh workers more opportunities to benefit from public spending so that and their wages can circulate in the local economy. The latest figures show that only 52% of Welsh public spending goes to companies based in Wales. Value Wales has calculated that every additional 1% increase means 2000 more jobs in Wales. Improving Welsh procurement to reach 75% would mean an increase of 46,000 jobs in Wales. Plaid has rightly called for legislation in procurement best practice to help create almost 50,000 jobs in Wales. Scotland is consulting on legislation to ensure that best practice in some areas becomes common practice across the public sector.

Plaid Cymru leader Leanne Wood said:

“Public sector procurement in Wales has had some great successes in recent years to make sure that our Welsh pound is spent on jobs and skills in Wales.

“For example, 80% of money spent on the Arbed programme for home and energy efficiency improvements goes to companies located in Wales.

“That money means food on the table and a roof over the head for skilled Welsh workers and their families, and more money circulating within the local economy to be spent down the high street at the butchers, the hairdressers and the bakers.

“In contrast, money which goes to firms outside Wales is lost to our local economies – and that’s every one pound in two.

“There are ways of improving this at all levels, and it needn’t cost more.

“For example, professionally trained and specialised procurement staff in local authorities, such as those introduced by Caerphilly Council when Plaid Cymru were in charge, can generate both financial savings for the council and secure local jobs.

“Another good example is where Gwynedd Council agreed that the slate for improving Bangor High Street must come from local quarries, supporting 200 jobs in Penrhyn Quarry.

“However, the figures alone show that we can do better.

“If we can improve our procurement practices to increase from 51% to 75% of Welsh public spend to go to Welsh companies then that could create almost 50,000 jobs in Wales.

“The McClelland Report released last Summer suggested that, if best practice wasn’t being followed, then we should be legislating to make it happen.

“The Party of Wales believes that this legislation should be brought forward to ensure that this becomes common practice, not best practice.

“Plaid Cymru MEP Jill Evans has also called for the EU to simplify and relax their procurement rules to help Welsh businesses.”

For once Wales has been ahead of the curve (even if Labour’s elected representatives in Wales have been dragging their collective feet), as this is something that was recommended to the Welsh Government last summer by the  McClelland Report for the Welsh Government. I think that it is perfectly reasonable for the Welsh Government to take action to ensure that a greater percentage of that money can be spent locally in Wales. If you are going to spend public money then you need to work it extra hard and make sure you get real value for money. At local government level our local authorities spend around £4 billion pounds (April 2012) worth of our money buying goods and services. A target of 75% of the public sector spend, being spent here in Wales, is an excellent idea, as it means that  around £3 billion pounds of tax-payers money staying in Wales.

Back in July 2010 a survey commissioned by the National Assembly Government reported that almost half of all food and drink bought by schools, hospitals and local authorities in Wales was of Welsh origin, and the amount of locally-produced food bought by the public sector had risen by 65.8% in the last six years. The 2010 Welsh Public Sector Food Purchasing survey revealed that Local authorities had increased their purchases of local food by 90.5% in the previous six years. Key categories included bread, milk, fruit and vegetables, ready meals, soft drinks, dairy products and water.

The NHS (in Wales)  purchased 69% of the food and drink products in Wales, when it comes to milk on average, 50.9% of all the milk purchased by Welsh local authorities for schools was locally-produced. When it comes to Welsh purchases in higher education, accounted for 41.3% in 2009, compared with 28.7% in 2003, in the field of further education some, 39.6% of purchases were of Welsh origin, up from a previous figure of 16.8%. The survey reveals that the only organisations to have bought less Welsh food than previously were the MoD and the Welsh Police Forces, which saw a 0.4% decrease in Welsh origin purchases.

The process should build upon Local Sourcing Action Plan’s and should lead to real social, economic and environmental benefits for all our communities by retaining the money spent in the local economy. This is sustainable development as local investment can provide a range of benefits across the whole of Wales benefiting local farmers, local suppliers and producers and local people. This should also be a reduction in food miles, and reduced carbon emissions to help fight climate change. Plaid is right to pledge action to ensure that more of that money remains in local economies, this is a home win for Wales.

Wednesday, 16 January 2013

A PERFECT STORM...

The Conservative dominated Westminster government is running the risk of creating a perfect storm within our police service by cutting starting salaries for new police officers.  This comes on top of budget cuts that have forced many forces to freeze recruitment, and reduce officer and civilian support staff numbers with redundancies. There will be consequences including a shortage of younger and older officers and a reduction in front line services as civilian support staff are also reduced in number.

Many police forces across the UK are already under severe pressure, as they attempt to balance budget cuts and a drop in personnel while simultaneously trying to maintain a high standard of policing and ensuring public safety. On Tuesday the Home Secretary announced that police officers' starting salary will be cut by 17% to £19,000. This is the latest of series of assaults on funding for public services which are ill thought out and ill-timed.

The Con Dem government’s unsustainable budget cuts and proposed changes in working practices will threaten to undermine the morale of hard-working officers in every force in England and Wales.  Our police do a superb and difficult job but both the reputation of our police services and the safety of communities may be put at risk. The Con Dem London government’s priorities are clearly driven by ideology, rather than principle.

We have reached a historic low when it comes to this Westminster Government’s absolute lack of respect for the police service and a complete lack of understanding for the important role our police play in our communities and society. The short term decisions made by this Westminster government will have far-reaching and potentially long lasting consequences by making it more difficult for the police to ensure that they are able to deal with crime and public order.

One unforeseen consequence of Police budget cuts may be a boost to the not so secret Conservative privatisation agenda – back in February (2012) G4S a private security company signed a deal to design, build and run a police station in Lincolnshire. This agreement between G4S and Lincolnshire Police was the first of its kind in the UK and may hint at the future of policing as it is envisaged by Cameron’s Conservatives.

As part of the deal, around two-thirds of civilian support staff employed by the force is to be transferred across to the private sector. This contract might possibly save Lincolnshire Constabulary around £20 million pounds but at what cost over the medium term to support staff terms and condition and the provision of services to the public.

This probably a step too far for most people, but, despite any mutterings to the contrary from Labour in Wales’s representatives in Westminster our Police forces here in Wales are in my opinion acutely vulnerable to back door privatisation and further potential cuts in funding and services. The sooner Policing and Criminal Justice are devolved to Wales the better for all of us as this would strengthen the democratic process and protect our police services and our communities.