Wednesday, September 05, 2012

Labour's economic failure

A recent lecture by Peter Watcyn Jones from Eversheds at the Eisteddfod illustrates dramatically Labour's economic failure in Wales.  Here is an extract of what he said

The report's main message is that Wales, since the mid-90's, has seen a serious economic deterioration, to such an extent that Wales is now at the bottom of the economic table in terms of prosperity and wealth. There is a gap, if not chasm, opening up between Welsh economic success and the rest of Britain. The report suggests that each individual in Wales is £1,850 poorer than their counterparts in England – referred to in the report as "Offa's Gap". It notes that the financial services sector is becoming increasingly centred on London, leaving Wales all the poorer. It suggests that Wales imports far too much, and the famous economist A P Thirwal is quoted as suggesting that long-term growth depends on exports rather than imports. Is this principle also valid when considering the export of talent as well as goods? "

He then went onto say

"When undertaking my budget review, I noted the analysis in "Offa's Gap" with regard to the dearth of large private limited companies in Wales which would be likely to use Welsh lawyers for their work. My understanding is that there are only 16 such companies with an office or base in Wales. Of those, seven are in Cardiff or Newport, two in Ewloe, one or two in Swansea, one on Anglesey, another three in North Wales and one in Chester – possibly on the other side of the Welsh border anyway! The annual reports of these PLCs suggest that only three are represented by Welsh law firms."

Both those points, dramatically and clearly illustrate Labour's economic failure in Wales.  Labour has to raise its game on the economy in Wales, we have seen a consistent jobs flight from the private sector, over the border into England.  Sadly I think this will continue for as long as Labour remains in power in Wales