WAG is bad for business

Forty thousand businesses in Wales will be hit by higher rates next year, Welsh Conservatives have learned.

The Assembly Government's own figures suggest firms across the country will be hit with bigger bills from April, despite ministers claiming to help businesses during the recession.

Welsh Conservatives have also warned that a rise due to revaluation will come on top of a planned 1.5% rise in rates due to the Assembly Government's decision to phase in a 5% rise over three years.

Shadow Minister for the Economy David Melding AM described the Assembly Government's decision to lower the level at which business rates bills are calculated as "a smokescreen".

He repeated the party's call for the rates revaluation to be postponed until at least April 2011, and said ministers should consider Conservative plans to scrap or reduce the level of business rates for as many as 90,000 firms.

And he warned that the overall uncertainty about the impact of business rates next year was having a destabilising effect on the SME sector.

David Melding AM said:

By the Assembly Government's own admission 40,000 businesses will pay more in rates next year. Instead of helping small businesses during the recession Labour and Plaid Cymru ministers are making life more difficult for them.

The announcement to lower the level at which rates are calculated, while welcome, is nothing more than a smokescreen. If ministers really were on the side of Welsh businesses they would do everything in their power to postpone the rates revaluation planned for April and deliver a meaningful relief scheme to lift thousands out of rates altogether. They also need to end the uncertainty about the impact of revaluation and possible rates rise so businesses can plan for the future.

Businesses want real support from the Assembly Government at a time of economic difficult. I acknowledge and welcome the fact as many as 64,000 businesses could see a rates reduction next year. But for tens of thousands more their rates will rise.

For those businesses the increase will make life even harder as they struggle to cope with the impact of the recession. And for some it could determine whether or not they remain trading, lay off staff, or shut up shop altogether.

Rhodri Morgan's legacy: The failure of a government department

While we hear news that the number of unemployed people in Wales has gone up by 24,000 - the largest rise of any part of the UK [There are now 130,000 jobless in Wales. The unemployment rate is 9.1%] and the only regions with a worse figure are the North-East of England and the West Midlands, the Welsh Assembly Government's business promotion arm is showing muscle fatigue of the worst kind.

International Business Wales (part of the Welsh Assembly Government) has been targeting the wrong companies in the wrong marketplace and must be overhauled, Deputy First Minister Ieuan Wyn Jones said yesterday.

Two major reports yesterday dealt a blow to IBW’s reputation as a champion of Welsh business overseas.

A study by independent inward investment expert Glenn Massey highlighted areas where it was delivering poor value for money and warned:

1. The IBW brand is not strong or well recognised.
2. Clearly, the performance of IBW and its predecessor over the past 10 years has at best been mixed.
3. Wales has spent more than £3m a year on overseas offices but out of the 12 UK regions came last in the rankings for safeguarding jobs.
4. In 2008-09, the number of new jobs created by foreign direct investment was the lowest ever recorded for Wales.
   

The report also reveals that the member of staff stationed in IBW’s Munich office cannot speak German.

A major concern it highlights is that IBW has no responsibility to encourage the 500-plus foreign-owned companies in Wales to reinvest in the nation.

Conservative Shadow Minister for the Economy David Melding AM said:

The report into the effectiveness of IBW is disturbing and raises serious questions about whether the organisation is delivering value for money. The Assembly Government needs to review its programmes regularly and not only in response to a crisis as it did in this case over expenses. It is clear we have underperformed on inward investment compared to other parts of the UK. We were once the market leader.

How many of the Assembly Government’s programmes are underperforming badly?
That is the question ministers must now answer.

Blow the whistle and they don't come running

The Western Mail's latest leaky story concerns CLAIMS made by an Assembly Government civil servant raise serious concerns about the running of the Department responsible for the Welsh economy, according to the Conservatives.

In a letter to the Western Mail, the whistle-blower lists a series of alleged shortcomings, claiming they illustrate how the Department for Economy and Transport is letting Wales down, and which include:

• Recent Ministerial refusal to meaningfully engage with the UK Government on stimulating bank lending to Wales’s businesses in favour of WAG lending of public money direct to business;


• hundreds of millions of pounds of European aid being diverted from the private sector into the continuation of longstanding, re-branded public sector schemes with poor track records;


• the much-trumpeted Single Investment Fund and WAG’s SME (small and medium enterprises) relationship manager support is only reaching a minuscule number of Welsh businesses;


• millions of pounds of funding intended for SMEs not being used and handed back;


• an expensive IT project to develop a customer relationship management system not delivering;


• major problems with the public transport concessionary fares scheme;


• ministers’ decision to reject connecting with the highly praised Business Link and Direct Gov websites, helping millions of individuals and businesses elsewhere in the UK, on the grounds that they are “too English” and would make the millions of pounds invested in WAG’s site look embarrassing;


• expensive staff events continuing at some of Wales’ best hotels regardless of the recession; and
• the department’s staff having the least faith in senior management, according to staff survey results.
  
  

Shadow Minister for the Economy David Melding said:

Businesses and workers across Wales are looking for leadership and support as the recession tightens its grip. They need to have confidence that after five economic summits and countless policy announcements the Assembly Government is delivering on its promises.

These claims, however, suggest the Assembly Government is failing to match words with delivery. They also highlight poor morale among staff at the heart of the Assembly Government and underline the concerns we have raised about ministers’ failure to implement a proper package to help businesses survive the recession. They also raise questions about the performance of [Plaid Cymru leader] Ieuan Wyn Jones as the Minister responsible.

The Assembly Government needs to satisfy the public it is doing all it can to help businesses and workers overcome the growing economic difficulties – not just in terms of words, but also by providing tangible evidence of delivery on the ground.


An Assembly Government spokesman would not respond on a point-by-point basis to the allegations, but said:

This is merely a list of unsubstantiated and spurious claims [that we wouldn't like to talk about] from an anonymous individual [coward] claiming to work for the Department for Economy and Transport [contradiction in terms]. If a member of the Department has any legitimate concerns [and are not bothered about advancement] then they are encouraged to raise them through the proper channels. *

* Correct course of action: Express concern to senior manager - senior manager rejects your concern and explains that you don't have sufficient experience in such matters - senior manager reports to colleagues - discussion takes place behind closed doors while alarm bells are silenced, hoping that no one else will stir up a fuss - problem solved.

Welcome to Tomorrow's Wales

Introducing a 'new' Welsh blog that seems to have been around for a while. I haven't noticed it being part of the blogroll of others. Take a look!

Tomorrow's Wales

The Executive Committee of Tomorrow’s Wales is made up of individuals who are serving in a personal capacity, but drawn from sectors such as academia, business, trades unions, the voluntary sector, the legal profession, popular culture, faith communities and all of Wales’ political parties.

A significant amount of work has already been accomplished by Tomorrow’s Wales, engaging over 300 organisations in Wales to ask for their support, and arranging events across Wales in partnership with other institutions.

Members of the Executive Committee reads as a Who's Who in Welsh life: Mr Graham Benfield, Mr Deian Creunant, Mr Cynog Dafis, Ms Catrin Dafydd, Mr Gerald Davies, Ms Philippa Ford, Mr Michael German OBE AM, Ms Meri Huws, Mr Hywel Ceri Jones, Mr Saleem Kidwai OBE, Mr David Lambert, Mr Gethin Lewis, Lord Richard Livsey of Talgarth, Ms Katie-Jo Luxton, Mr David Melding AM, Most Rev Dr. Barry Morgan Archbishop of Wales, Ms Sharon Morgan, Lord Elystan Morgan, Mr Jon Owen Jones, Mr Peter Price, Most Rev. Peter Smith Archbishop of Cardiff, Ms Fran Targett, Mr Geraint Talfan Davies, Mr Alan Trench, Mr Paul Valerio.

Potential conflict of interest on track in Assembly Government

An assembly government civil servant in charge of monitoring a rail franchise is in a relationship with a top train boss, it has emerged.

The senior official, Alison Teague, is responsible for monitoring the £100m Arriva Trains Wales franchise for the assembly government, and is said to be living with the Managing Director of Arriva Trains Wales, Tim Bell, who was appointed last December.

Opposition assembly members are demanding a meeting with the assembly government about the issue. But the assembly government said stringent processes are in place to avoid any conflict of interest issues.

The Shadow Minister for the Economy and Transport, Welsh Conservative AM David Melding has said he wanted a discussion with Deputy First Minister and Transport Minister Ieuan Wyn Jones about any possible conflict of interest.

The assembly government needs to explain whether it thinks this position is appropriate given the size of the Arriva Trains Wales franchise.

I am seeking an urgent meeting with the transport minister to discuss this situation... I am confident guidance is in place to prevent potential conflicts of interest or the appearance of such conflicts.

The Welsh liberal democrat's transport spokeswoman Kirsty Williams AM, said there was a clear conflict of interest, and the public would question the situation.

I find it incredible that the minister could think it acceptable that the official with responsibility for ensuring value for money for the taxpayer from the subsidies received by Arriva Trains Wales shares a home with the boss of the company.

Whatever procedures are in place, and whatever the integrity of the individuals in question, there is a clear conflict of interest, which raises questions in people's minds.