Freedom Central » economy

Controversy in Pontypridd

Eluned Parrott — Wed, 08 Feb 2012 09:29:30 +0000

Controversy continues regarding the £10.5million regeneration scheme for Pontypridd. A series of Freedom of Information requests by RCT Welsh Liberal Democrats have uncovered that the Council has no idea of how many new businesses have set up in the area over the last twelve months. With the Labour Cabinet recently launching an economic development strategy which is supposedly going to drive forward the economy agenda and bring new businesses and jobs to RCT, it is unbelievable that the council does not hold any information on the formation of new businesses. Just how are they going to measure the success of their strategy?

Even more concerning, further Freedom of Information requests by RCT Welsh Liberal Democrats have shown that only three businesses have applied for funding from the Townscape Enhancement Programme. This is despite the ‘Love Ponty’ website boasting that over 70 businesses have made enquiries about the scheme.

At a recent Full Council meeting, Welsh Liberal Democrat councillor, Mike Powell, challenged the Labour cabinet member for Economic Development about the low take up and questioned whether the application process was too complicated or the criteria too strict. The cabinet member’s response was that it wasn’t too complicated and when asked what he intended to do to encourage more businesses to apply he responded with “I intend to do absolutely nothing”.

I think that this is hugely disappointing. The businesses that have been awarded grants are an optician who has relocated his practice from across the road leaving an empty unit behind and an office suite now occupied by the Plaid Assembly Member. In the last few days one more has been announced. Why are so few property owners applying for funding support to improve their premises?

There have been regeneration schemes in other towns across Wales where businesses have not had the opportunity to apply for funding from a townscape enhancement scheme. As a result award winning schemes have been surrounded by shoddy looking buildings which have detracted from the investment in the town centres. The cabinet member for Economic Development should be proactively encouraging businesses to make the most of this investment and apply for this grant to ensure that the Pontypridd regeneration is a complete success bringing much needed vibrancy, financial stability and jobs to the town.

Welsh Liberal Democrats call for clarity on Enterprise Zones

Freedom Central — Tue, 31 Jan 2012 06:12:22 +0000

Eluned Parrott AM has called on the Business Minister to use her statement later today to end uncertainty over Enterprise Zones.

Among the unanswered questions that the Welsh Liberal Democrats are calling for details on are:

• What policy interventions and incentives for business will be involved?
• When will the defined zone areas and maps be published?
• What is the timescale for delivery?
• When will measurable targets be set?
• Are any anchor businesses signed up to specific zones yet?
• Who are the delivery partners in each area?
The Welsh Liberal Democrats are also calling for the Business Minister to clarify the process for selecting the second tranche of Enterprise Zones, including:

• The selection criteria and timescale
• Whether the locations are chosen based on economic potential or economic need
Eluned Parrott, Welsh Liberal Democrat Shadow Minister for Business and Enterprise, said:

“After much stalling and delay from the Welsh Labour Government, we are hoping in tomorrows announcement we will finally see the details of what the concept of ‘Enterprise Zone’ actually means here in Wales.

“It is essential the Business Minister reveals the actual process of how she is choosing the Enterprise Zones. The first tranche of Enterprise Zones just came out of the blue, whilst for the second round there has been a whole vetting process where Councils have had to apply to be considered. The Minister must reveal why she decided to change this process, because so far it has been far from transparent.”

West Wales and Valleys would take a huge financial hit if Labour MPs had their way

Eluned Parrott — Tue, 31 Jan 2012 05:26:52 +0000

A suggestion by former Labour Minister, Jack Straw Britain should repatriate £4.2bn in EU funds to Britain will be disastrous for West Wales and the Valleys.

According to the Guardian, the former Justice Secretary wants all of the money Europe spends on structural funds to be taken off them and handed to the UK Government to distribute instead. Wales is a net beneficiary of this funding to the tune of £915 million.

I strongly disagree with Jack Straw’s comments about European funding. Clearly the Eurosceptics have been dripping poison into his ear. West Wales and the Valleys would take a huge financial hit if Labour had their own way.

Under their plan, Wales could well be a loser in a UK wide distribution of these funds as other parts of the UK could benefit at the expense of our poorest areas.

It is also in Wales’ best interests to ensure that all of Europe has an opportunity to prosper as a huge proportion of Wales’ exports go to the European Union. A healthy European market means more opportunities for Wales.

Vince Cable pushes for tax on wealth in the budget

Freedom Central — Sun, 22 Jan 2012 10:19:34 +0000

Today’s Telegraph reports that Liberal Democrat Business Secretary, Vince Cable is pushing for a mansion tax to be introduced on properties worth more than £2million in this year’s Budget.

They say that while the policy is likely to be opposed by George Osborne, the Chancellor, Mr Cable said that he had spoken to Conservative MPs who backed the plan:

“A mansion tax is still very much on the agenda – it is a very good idea,” Mr Cable told The Sunday Telegraph.

“It is good for two reasons,’’ he said. ”It would constitute a tax on wealth rather than income, which we believe to be right, and also in economic terms it creates the right sort of incentives for the property market.”

Mr Cable added that it was “perverse” that rich “foreigners” could buy expensive properties in Britain and contribute just £1,000 a year in council tax towards the public finances.

The paper adds that the Liberal Democratss will seek to raise the issue of a mansion tax as they negotiate with Tory ministers in the run-up to the Budget on March 21.

They say that other tax proposals will feature in the talks, including the prospect of scrapping tax relief on pension contributions for higher rate taxpayers and a curb on stamp duty avoidance, which is believed to cost the Exchequer £750 million a year.

Welsh Governments inaction on Enterprise zones as Enterprise Births Stall

Eluned Parrott — Fri, 20 Jan 2012 06:39:37 +0000

New figures have revealed that in 2010 there were 7,500 enterprise births in Wales down 9.8 per cent on 2009 while the figures for the UK fell by only 0.4 per cent.

While the Enterprise Zones are not a magic bullet for all our economic ills the consistent prevarication by the Minister on these, and other areas such as the Manufacturing Strategy do not present Wales as a place to do business.

Money is already pouring into enterprise zones in England and we are in danger of completely missing the boat on a range of potential benefits.

The enterprise figures show some promising signs but we are still in danger of falling further behind England.

Government inaction will cost Wales dear

Kirsty Williams — Thu, 19 Jan 2012 06:33:21 +0000

The continued deferring of decisions regarding the future of Wales’ Enterprise Zones by the Welsh Labour Government is debilitating.

In the Senedd on Tuesday I criticised the First Minister for once again failing to make the big decisions that the people of Wales need.

Last week I asked the First Minister about any progress being made on enterprise zones. He couldn’t answer the question then. This week, rather bizarrely, he seemed to know even less.

His Government is still unable to set the boundaries for the Enterprise Zones that were announced last year. The Labour Government seems unable to comprehend that business is about competition. Just across the border, Hereford have their Enterprise Zone boundary defined, with benefits including relief on business rates, as well as the relaxation and fast tracking of the planning process. Bristol also has its 173 acre boundary defined, with particular focus on the creative industries. As for Wales, yet again we are left dawdling behind with the Welsh Government still unable to offer us any information regarding our own Enterprise Zones.

The First Minister uses capital allowances as an excuse for his failure to provide any sort of plan for Welsh Enterprise Zones. They are one aspect of putting together Enterprise Zones, but by no means the only aspect. In large part they are about improving the planning regime and introducing business rate discounts – both of these areas are actually devolved.

England announced Enterprise Zones back in March 2011. The Welsh Government announced Enterprise Zones a whole six months later, after we had already lost a £355 million Jaguar Land Rover plant deal to an Enterprise Zone in England. Being six months behind is bad enough, but if the Welsh government doesn’t pull its finger out, Wales will slip even further behind. It is so frustrating to watch a Government that is so willing to simply play catch-up.

Welsh Liberal Democrats call for Welsh Government to tackle broadband ‘not spots’

Freedom Central — Wed, 18 Jan 2012 05:38:16 +0000

The Welsh Liberal Democrats are using their debate today to call on the Welsh Government to tackle broadband ‘not spots’ as a matter of priority.

It was announced in the Chancellor’s Autumn Statement that Wales would be receiving £56.9 million of funding to support the roll out of broadband across the country. It is up to the Welsh Government to decide how to allocate this money to support the next generation of broadband.

Eluned Parrott, Welsh Liberal Democrat Shadow Business Minister will lead the debate urging the Welsh Government to focus the funding to ensure that ‘not spots’ in Wales are a thing of the past.

Eluned said: “We welcome the funding from the UK Government to tackle the issue of broadband in Wales and would like to see the Welsh Government take specific action on the issue of not-spots. Currently, Wales is getting left behind – some places can’t access any internet, never mind fast broadband.

“It must be remembered that not spots aren’t merely an issue for rural Wales. They also affect towns and cities throughout Wales. For example, Penylan in Cardiff is a not-spot, despite being less than 3 miles away from the centre of the city. The absence of a proper internet connection is holding back many companies ability to compete.

“The lack of internet connectivity throughout Wales provides a real economic hindrance for businesses and people across Wales. For example, from the 1st of April this year, Revenue and Customs demand that all VAT registered businesses submit their VAT returns online. Such a request seems reasonable enough, yet it is truly astonishing that in this day and age, for some businesses this isn’t even an option.

“Technology moves fast and the difference between those who have broadband and those who do not is getting wider and wider as time moves on.

“The Welsh Government needs to use the money it has been given to invest in the infrastructure to make Wales grow. Broadband opens up a wide range of goods and services to people, from domestic customers who simply want to be able to pay for things online, to businesses who are ambitious to grow and flourish outside of their physical boundaries.”

Leader of the Welsh Liberal Democrats, Kirsty Williams added:

“The lack of broadband provision in many parts of Wales hinders people from living a modern day life. People across Brecon and Radnorshire contact me on a regular basis about the speed of their internet provision. Wales’ technological infrastructure has to be dragged into the 21st century.

“We see the Government increasingly asking people to use the internet to access services such as submitting their Glastir applications, applying for blue badges or applying for student finance. People with fast broadband are also making fundamental decisions about what services they are going to use by accessing comparison websites or doing online shopping. This means that those able to access the internet are able to get the best deals, whilst those without access are being left further and further behind.

“The Welsh Government now have the resources to put this right. They need to take the time and energy to get the solution right, so that as much of Wales as possible has access to the internet. In the days of modern technology, there must be a way to make sure that everyone can access a utility that many of us take for granted

Business rates reform “must not be a bean-counting exercise”

Eluned Parrott — Sun, 15 Jan 2012 06:21:12 +0000

The Welsh government’s review of business rates “must not be a bean-counting exercise” but concentrate on the real issues of supporting businesses and promoting growth.

I have just sent a detailed letter to the Business Rates Review Group outlining five key issues that review must address. My submission makes clear that any solution must:

• Avoid the scenario whereby improvement of premises increases their value and therefore their business rate.
• End huge rises in business rates when values increase.
• Change the role local authorities have in collecting and retaining business rates.
• Extend business rates relief to more community facilities.
• Determine whether Wales would benefit from adopting the same accounting arrangements as Scotland and Northern Ireland do.

There is a real danger that this review would simply focus on a few technical changes to the business rates mechanism. Unfortunately, the Welsh economy needs much more radical changes. This review must not be a bean-counting exercise.

I have outlined the problems faced by businesses that invest in their premises and, as a result, see their rateable value rise. This acts as a huge disincentive to businesses and communities who want to invest in their local environments. The review must make this a key priority if we want to see entrepreneurialism rewarded in Wales.

Specific proposals include a cap on the rise a business can see in its rateable value and allowing businesses to phase in their rise.

Local councils should also be more involved in the process and they should benefit from additional business rates income that they generate. Local councils that create economic growth should benefit from the money that this produces. Putting local councils in charge of business rates will make the concentrate on the economy and gives a financial incentive to do so.

The changes I have identified would encourage businesses to invest in themselves and encourage local councils to pursue economic growth. If the review addresses them, we will ensure the Welsh economy is firing on all cylinders.

Wales’ Economy Needs Positive Leadership

Freedom Central — Mon, 09 Jan 2012 15:46:23 +0000

Welsh Liberal Democrat Shadow Business Minister Eluned Parrott has responded to today’s Business in Britain report from Lloyds TSB Commercial by calling for the First Minister to “Focus on getting Wales right and stop talking Wales down”.

The report found that business confidence in Wales has plunged to its lowest level since December 2008 and that Wales, with the weakest level of sales, has had the biggest fall in the net balances for sales in the past six months.

Eluned said “Too often the First Minister is more concerned with opposing the UK Government than being positive for the Welsh Economy.

“I would never seek to compare us to London or the South East but Wales’ sales over the last six months are -12% compared to +17% for the West Midlands, +26% for Yorkshire and +2% for the North East. The buck cannot be passed to the UK Government on this one.

“It is clear that Wales is struggling against the English regions. Business Confidence is down 14% in Wales compared to plus 21% for Yorkshire.

“The focus needs to be on giving business the confidence to invest and generate jobs through positive leadership. The Welsh Government continually talking down the economy is hardly going to inspire confidence.”

Clear direction needed on Welsh economy

Eluned Parrott — Thu, 15 Dec 2011 05:26:44 +0000

Statistics released yesterday show that unemployment in Wales is 133,00, up 11,00 over the last quarter.

The Office for National Statistics have also revealed that GVA per head (Gross Value Added – a measure output similar to GDP) stood at just 74% of the UK average, the lowest amongst the devolved countries and English regions.

GVA per head in Wales in 2010 was £15,145. This is the lowest amount, putting it behind Northern Ireland (£16,651), Scotland (£20,220) and England (£20,974). Wales’ ranking has not changed since 1998 when it fell below Northern Ireland.

Wales now has an unemployment rate of 9.3%, 8,000 more than this time last year. For more than decade, the Welsh Labour Government has presided over a structurally weak economy and the people of Wales are paying the price for their failure.

It comes as no surprise that Wales has been confirmed as UK’s poorest nation. We have a weak and short-sighted Labour Government whose lack of ambition on the economy over the years has crippled small business and stifled any chance of significant growth.

We need clear direction and leadership from the Business Minister, but instead all we get is excuses and blame directed elsewhere.