The 2011 Census results have attracted plenty of interest; one interpretation is the confirmation that Wales is a resource rich country with a poor people. This is something that even unionist opponents of independence would do well to recognise, along with the acknowledgement that we are not predetermined (or doomed) to be poor. Historically our natural resources were largely been exploited by others for the benefit of others. There were scant benefits for the great majority of the Welsh people beyond low pay and dangerous employment in the extractive or manufacturing processes.
Following the almost wilful destruction of the heavier industries, the Welsh Office and then the National Assembly pursued a policy of blindly throwing vast sums of public money towards attracting external industry to Wales by providing relatively cheap labour. This largely short policy known as 'inward investment' by and large failed to secure long term employment or grow small to medium sized indigenous enterprises, which are the key to sustainable prosperity.
I for one am pretty tired of seeing the same old recycled old WDA press release in the Western Mail / Daily Post going on about how this or that development will create 6,000 jobs (again). The Government in Cardiff (even with relatively limited powers and an even more limited imagination) reacted far too slowly to the emerging challenges from Eastern Europe and more distant competitors.
We in Wales have paid the price for that inbuilt smug complacency as between 1998 and 2008, some 171 foreign-owned sites closed, with the loss of 31,000 mostly manufacturing sector jobs. The economic development model as practised by the Westminster Government (and the Welsh Office) before 1997 and by the Welsh Government (save between 2007 and 2011) was fundamentally flawed at a very basic level – focused on the short term and fundamentally dependent upon a combination of relatively cheap labour and other inducements.
Economic development (from the 1950's onwards) was focused on one-off large scale developments (single egg solutions), which promised much and deliver significantly less. The assumption, not entirely incorrect, may have been that other smaller business would develop supply materials, goods and services to the primary larger employer – this happened in part, Llanwern Steel works (before the rundown) being a reasonably good local example.
The problem was that if the larger economy suffered a downturn or caught cold then the smaller firms would suffer with varying degrees of pneumonia. The focus should have been on developing small to medium size local businesses, which are significantly less likely to up sticks and leave for perceived greener pastures and fresh applications of development grants and also tend to trade with each other and other local firms.
The LG development near Newport was a classic example of this flawed economic vision - promising the usual 6,000 jobs – it accrued significant public funding (from the then Welsh Secretary, William Hague) yet never delivered anything like what was promised. Most economists (even Conservative ones) should have had serious concerns about the state of the Korean and the Far Eastern economies and a basic understanding of where technological developments in relation to PC monitor screens were going, enabling them to say hang on a moment.
This combination of fantasy island economic assessments, a fatally flawed business case and a forthcoming Westminster election led to one of the more spectacularly duller decisions of recent years being made, something that ended up costing us millions of pounds worth of public money. The old WDA never delivered anything like long term economic stability and much needed long term job opportunities to our communities – something that it should have done considering the amounts poured into it.
Wales is a recipient of significant quantities of Objective One funding, targeted at the West and the Valleys since New Labour recognised the economic and social affecting those parts of our country. Yet European funding opportunities appears to have been seriously squandered, where are the physical assets, by which I mean the things you can literally put your hand on like improved communications (rail and road), broadband infrastructure, etc - that bring long term real benefits to our communities.
Yes, we have developed a highly profitable training culture (in and around Cardiff) quite exactly what this delivers for the Welsh people is open to question? How much money has been scammed (and scammed may be the key word) into dubious expensive training programmes and questionable educational programmes that fail to deliver the necessary skills that workers and potential workers need to make a decent living in the modern economy?
The Plaid driven One Wales Government (2007 – 2011) made significant efforts to think and act differently when it came to economic development with its focused support for small to medium sized enterprises. The current Labour Party in Wales’s government in Cardiff has simply returned to the failed economic development policies of the past.
Living in the past simply won’t work! The old failed model of going out to attract branch factory operations for a relatively short term period has been rolled out once again. This does little to help develop our economy or equip our people for the twenty first century world of work it merely repeats the costly mistakes of the recent past, but, of course Labour in Wales is far happier living in the past than planning the future for Wales.
Showing posts with label LG. Show all posts
Showing posts with label LG. Show all posts
Thursday, 13 December 2012
Monday, 27 February 2012
DOOMED TO REPEAT THE MISTAKES OF THE PAST?
The Westminster Welsh Affairs Committee is correct when it says that Wales was ‘slow to adapt’ to changes in the international market for overseas investment. There is much truth in the Committee's labelling of the late 1980’s and early 1990’s as a ’golden age’ for attracting foreign business investment thanks to a combination of grants, land and relatively cheap labour costs.
The Committee is also correct to say that successive governments reacted far too slowly to new emerging challenges from Eastern Europe and more distant competitors. Wales paid the price for that complacency as between 1998 and 2008, some 171 foreign-owned sites closed, with the loss of 31,000 jobs, mainly in the manufacturing sector.
The economic development model as practised by the Westminster Government (and the Welsh Office) well before 1997 and by the Welsh Government before 2007) was fundamentally flawed at a very basic level – it was short term and fundamentally dependent upon a combination of relatively cheap labour and other inducements that could never compete on a truly level playing field.
For too many years economic development (from the 1950's onwards) was focused on one-off large scale developments - what can be best described a single egg solutions, which promised much and deliver significantly less. The assumption, not entirely incorrect, may have been that other smaller business would develop supply materials, goods and services to the primary larger employer – this happened in part, Llanwern Steel works being a reasonably good example.
The problem was that if the larger industry suffered a downturn or caught cold then the smaller firms would suffer with varying symptoms of pneumonia. The focus should have been on developing small to medium size local businesses, which are significantly less likely to up sticks and leave for perceived greener pastures and fresh applications of development grants and also trade with each other and other local firms.
The LG development near Newport, was a good example of this - promising the usual total of 6,000 jobs – it accrued significant public funding (committed by the then Welsh Secretary, William Hague) yet never delivered anything like what was promised. Most economists (even Conservative ones) should have had serious concerns about the state of the Korean and the Far Eastern economies and a basic understanding of where technological developments in relation to PC monitor screens were going, enabling them to say hang on a moment.
A combination of fantasy island economic assessments, a fatally flawed business case and a forthcoming Westminster election led to one of the spectacularly duller decisions of recent years being made, something that ended up costing us millions of pounds worth of public money. The old WDA has in truth not really consistently delivered anything like long term economic stability and much needed long term job opportunities to our communities that it should have done considering the amounts poured into it..
European funding opportunities has been seriously squandered, where are the physical assets, by which I mean the things you can literally put your hand on like improved communications (rail and road), broadband infrastructure, etc - that bring long term benefits to our communities. How much money has been scammed (and scammed may be the key word) into dubious training programmes and questionable educations programmes that fail to deliver the necessary skills that workers and potential workers need to make a decent living in the modern economy?
What was called in some circles the Plaid driven One Wales Government (2007 – 2011) at least made significant efforts to think and act differently when it comes to economic development and support for small to medium sized enterprises. Simply going out to attract branch factory operations for a relatively short term period does not help develop our economy it merely seeks to repeat the mistakes of the recent past, but, of course Labour (New or Old) is far happier living in the past than in Wales.
The Committee is also correct to say that successive governments reacted far too slowly to new emerging challenges from Eastern Europe and more distant competitors. Wales paid the price for that complacency as between 1998 and 2008, some 171 foreign-owned sites closed, with the loss of 31,000 jobs, mainly in the manufacturing sector.
The economic development model as practised by the Westminster Government (and the Welsh Office) well before 1997 and by the Welsh Government before 2007) was fundamentally flawed at a very basic level – it was short term and fundamentally dependent upon a combination of relatively cheap labour and other inducements that could never compete on a truly level playing field.
For too many years economic development (from the 1950's onwards) was focused on one-off large scale developments - what can be best described a single egg solutions, which promised much and deliver significantly less. The assumption, not entirely incorrect, may have been that other smaller business would develop supply materials, goods and services to the primary larger employer – this happened in part, Llanwern Steel works being a reasonably good example.
The problem was that if the larger industry suffered a downturn or caught cold then the smaller firms would suffer with varying symptoms of pneumonia. The focus should have been on developing small to medium size local businesses, which are significantly less likely to up sticks and leave for perceived greener pastures and fresh applications of development grants and also trade with each other and other local firms.
The LG development near Newport, was a good example of this - promising the usual total of 6,000 jobs – it accrued significant public funding (committed by the then Welsh Secretary, William Hague) yet never delivered anything like what was promised. Most economists (even Conservative ones) should have had serious concerns about the state of the Korean and the Far Eastern economies and a basic understanding of where technological developments in relation to PC monitor screens were going, enabling them to say hang on a moment.
A combination of fantasy island economic assessments, a fatally flawed business case and a forthcoming Westminster election led to one of the spectacularly duller decisions of recent years being made, something that ended up costing us millions of pounds worth of public money. The old WDA has in truth not really consistently delivered anything like long term economic stability and much needed long term job opportunities to our communities that it should have done considering the amounts poured into it..
European funding opportunities has been seriously squandered, where are the physical assets, by which I mean the things you can literally put your hand on like improved communications (rail and road), broadband infrastructure, etc - that bring long term benefits to our communities. How much money has been scammed (and scammed may be the key word) into dubious training programmes and questionable educations programmes that fail to deliver the necessary skills that workers and potential workers need to make a decent living in the modern economy?
What was called in some circles the Plaid driven One Wales Government (2007 – 2011) at least made significant efforts to think and act differently when it comes to economic development and support for small to medium sized enterprises. Simply going out to attract branch factory operations for a relatively short term period does not help develop our economy it merely seeks to repeat the mistakes of the recent past, but, of course Labour (New or Old) is far happier living in the past than in Wales.
Tuesday, 20 September 2011
ANYONE LISTENING?
The man from Admiral (chief operating officer and executive director, David Stevens) hit the nail on the head when talking to the Welsh Affairs Committee inquiry (last week) on inward investment about attracting and developing start-up businesses in Wales. Wales should chase and help to develop young businesses rather than spend time and money chasing big international firms. Start-up enterprises are more valuable to the Welsh economy and less likely to up sticks and pull out in times of economic austerity.
David Stevens from Admiral rightly pointed out that companies with their HQ's and senior management teams based in Wales were more valuable than "off-shoots of big companies based elsewhere". He also pointed out that "Businesses with only 'muscle' in Wales are more likely to withdraw in hard times or if cheaper location options emerge," and that targeting "glossy" adverts to attract "sexy sectors" of industry was not the best strategy for boosting investment. The importance of good infrastructure was highlighted, including railways, with the man from Admiral saying he supported the electrification of the Great Western rail line to Swansea. At present the UK Westminster government only plans to electrify the line as far as Cardiff.
There has been fat to much focus on attracting large scale single enterprises, which promise much but deliver significantly less than anticipated. The LG development near Newport, is a good example of an expensive disaster / fiasco [please take your pick] which promised the usual total of 6,000 jobs - accrued significant public funding - committed by the then Welsh Secretary, William Hague, yet never delivered anything like what was promised.
Anyone (even a Tory) with half a brain or even half an understanding of the state of the Korean and the Far Eastern economies at the time that might has hesitated, but not the then Tory Government. Anyone with a partial understanding of where technological developments in relation to PC monitor screens were going, would have put their hands up and said hang on a moment - but not obviously not in the the corridors of power in Cardiff.
A combination of what can best be described as fantasy island economic assessments, a fatally flawed business case and a forthcoming Westminster election led to one of the spectacularly duller decisions of recent years being made, something that ended up costing us millions of pounds worth of public money. The old WDA has in truth not really consistently delivered anything like long term economic stability and much needed long term job opportunities to our communities that it should have done considering the amounts poured into it.
How well any of this will go down with the dinosaurs making the decisions in WAG is another matter. In the last Government in Cardiff, Plaid's Ieuan Wyn Jones (AM) then Minister for Economic Development tried to change things and to focus on growing indigenous businesses. The Plaid driven One Wales Government made efforts to think and act differently when it came to economic development and support for small to medium sized enterprises, which are the only real thing that will put wealth into our communities, and develop and sustain longer term employment possibilities.
The lazy half-baked Brit Civil service / WDA continues to favour the option of attracting branch factory operations (some of which are only here for a relatively short time) which does little to develop our economy. We need to think differently and focus economic development priorities on attracting and developing start-up companies and smaller local businesses who will be rooted in our country and our communities and offer more flexible employment opportunities.
It's to early to tell whether Carwyn's Labour Government is capable of thought (let alone action) inside or outside of the box. One thing is true though, more of the same old twaddle from Whitehall and Cathays won't do at all, vastly expensive one egg, one basket schemes to generate the standard 6,000 jobs, just won't do.
The London based political parties, when they needed the votes talked the talk but have delivered little, rapidly abandoning any election promises that may have been made to Welsh voters. With a new government in Cardiff (even in times of austerity) we don't need talk, we need concrete steps to encourage growth, boost our manufacturing industry, support and grow our small to medium sized enterprises, otherwise it will just be a case of same old, same old combined with ill thought out out public sector cuts which will do nothing to boost our communities and our economy.
David Stevens from Admiral rightly pointed out that companies with their HQ's and senior management teams based in Wales were more valuable than "off-shoots of big companies based elsewhere". He also pointed out that "Businesses with only 'muscle' in Wales are more likely to withdraw in hard times or if cheaper location options emerge," and that targeting "glossy" adverts to attract "sexy sectors" of industry was not the best strategy for boosting investment. The importance of good infrastructure was highlighted, including railways, with the man from Admiral saying he supported the electrification of the Great Western rail line to Swansea. At present the UK Westminster government only plans to electrify the line as far as Cardiff.
There has been fat to much focus on attracting large scale single enterprises, which promise much but deliver significantly less than anticipated. The LG development near Newport, is a good example of an expensive disaster / fiasco [please take your pick] which promised the usual total of 6,000 jobs - accrued significant public funding - committed by the then Welsh Secretary, William Hague, yet never delivered anything like what was promised.
Anyone (even a Tory) with half a brain or even half an understanding of the state of the Korean and the Far Eastern economies at the time that might has hesitated, but not the then Tory Government. Anyone with a partial understanding of where technological developments in relation to PC monitor screens were going, would have put their hands up and said hang on a moment - but not obviously not in the the corridors of power in Cardiff.
A combination of what can best be described as fantasy island economic assessments, a fatally flawed business case and a forthcoming Westminster election led to one of the spectacularly duller decisions of recent years being made, something that ended up costing us millions of pounds worth of public money. The old WDA has in truth not really consistently delivered anything like long term economic stability and much needed long term job opportunities to our communities that it should have done considering the amounts poured into it.
How well any of this will go down with the dinosaurs making the decisions in WAG is another matter. In the last Government in Cardiff, Plaid's Ieuan Wyn Jones (AM) then Minister for Economic Development tried to change things and to focus on growing indigenous businesses. The Plaid driven One Wales Government made efforts to think and act differently when it came to economic development and support for small to medium sized enterprises, which are the only real thing that will put wealth into our communities, and develop and sustain longer term employment possibilities.
The lazy half-baked Brit Civil service / WDA continues to favour the option of attracting branch factory operations (some of which are only here for a relatively short time) which does little to develop our economy. We need to think differently and focus economic development priorities on attracting and developing start-up companies and smaller local businesses who will be rooted in our country and our communities and offer more flexible employment opportunities.
It's to early to tell whether Carwyn's Labour Government is capable of thought (let alone action) inside or outside of the box. One thing is true though, more of the same old twaddle from Whitehall and Cathays won't do at all, vastly expensive one egg, one basket schemes to generate the standard 6,000 jobs, just won't do.
The London based political parties, when they needed the votes talked the talk but have delivered little, rapidly abandoning any election promises that may have been made to Welsh voters. With a new government in Cardiff (even in times of austerity) we don't need talk, we need concrete steps to encourage growth, boost our manufacturing industry, support and grow our small to medium sized enterprises, otherwise it will just be a case of same old, same old combined with ill thought out out public sector cuts which will do nothing to boost our communities and our economy.
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