It’s been less than a week since the Holtham Commission report was published and while some Welsh politicians were making positive noises on Tuesday about the report’s findings, there were many others eager for the Holtham Report to end up on the shelves in Cathays Park gathering dust like the Richard Commission before it, proving that despite Welsh politics radical reputation when it comes to changing the status quo, Welsh politicians remain very conservative in their outlook.
However if many in Wales are less than impressed by Gerald Holtham latest Commission findings, his conclusions have attracted quite a lot of attention and provoked debate in Scotland over funding, it may be partly out of self interest with another report stating the Scots get too much from Barnett, but most seems genuinely trying to grapple with the issues being raised.
A couple of examples are in the Herald with a piece entitled ‘A perfect example of how devolution should operate’ looking at the implications for the Calman Commission legislation, political relation between Scotland and Wales over the funding issues, and how far Wales has traveled since the 1998 Devolution referendum
Similar themes are picked up by Brian Taylor BBC Scotland’s Political Editor and also looks at the Scottish party’s response to Holtham’s findings, it’s also prompted the SNP to call again for full fiscal powers to be devolved to the Scottish Parliament.
With all this in mind it’s worth noting is Alan Trench and his thoughts in Public Finance Magazine for politicians in Cardiff, Edinburgh and London on the future funding for the UK.
His final paragraph states ‘The big question now will be what the UK government does. We’re promised a further white paper, and a bill, implementing Calman in the autumn. The expectation has been that that would just relate to Scotland. Indeed, the Coalition’s Programme for Government not only covers that, but prejudges the Holtham report by promising a ‘Calman Commission for Wales’ at some future date, when the public finances are restored to order. The Holtham report puts the UK government under a lot of pressure to rethink that. It has done much of the heavy lifting to work out how limited fiscal autonomy and a needs-based block grant would each work, and interact with each other. This is work that the UK government appears never to have done at all (it has never published it if it did it). And as the Holtham report argues strongly that this approach can be made to work for Wales as well as Scotland, it creates a basis for a more consistent way of funding devolution across Britain, in contrast to the disjointed and ad hoc approach that has been taken up to now.’
Even if Welsh politicians want to ignore the issues Holtham raised this week, events elsewhere might force them to engage with these complex issues or risk seeing those opposed to devolution gain more of the upper hand in any coming or future debate over Welsh Devolution.
Friday, July 9, 2010
So much for the new economic dawn, the begging bowl is still out
First Minister Carwyn Jones and his deputy Ieuan Wyn Jones were in Brussels earlier this week according to WAG’s website making the case for Wales to get more European Convergence Funds after the current money runs, their trip comes a few days after Deputy First Minister Ieuan Wyn Jones announced a move away from the substantial subsidies that the Welsh Economy has been built around for decades in the Economic Renewal Programme, maybe someone should tell Ieuan that European funds are some of the biggest economic subsidies around and in Welsh Government hands have been squandered over the past decade or so.
But Ieuan isn’t alone First Minister Carwyn Jones seems to be backtracking on earlier statements on European Funds as well, is answer to a question at First Minister Questions last week on Welsh productivity he said that ‘Nevertheless I want to make it absolutely clear that the aim of this Government is to ensure that we do not qualify for the top level of structural funding from 2013 onwards.’
So how serious is the Welsh Government and political parties in it committed to the shiny new economic plan they have just announced with this as a backdrop or is it as I suggested on Monday another PR exercise to make voters believe they are doing something.
But Ieuan isn’t alone First Minister Carwyn Jones seems to be backtracking on earlier statements on European Funds as well, is answer to a question at First Minister Questions last week on Welsh productivity he said that ‘Nevertheless I want to make it absolutely clear that the aim of this Government is to ensure that we do not qualify for the top level of structural funding from 2013 onwards.’
So how serious is the Welsh Government and political parties in it committed to the shiny new economic plan they have just announced with this as a backdrop or is it as I suggested on Monday another PR exercise to make voters believe they are doing something.
Tuesday, July 6, 2010
Holtham and Welsh Campaign for Fiscal Responsibility
While the latest comprehensive report from Gerry Holtham and his fellow Commissioners gets kicked into the long grass next to the first report he produced last year for the Welsh Assembly Government, maybe the politicians and activists from across the political spectrum who have welcomed today’s report and its findings giving the Welsh Assembly the same tax powers that he Scottish Parliament currently has, should look to Scotland to see how they can build further support for the proposals announced today and move the debate on.
A ‘Campaign for Fiscal Responsibility’ website has been launched in Scotland and is asking for signatures for the following declaration
‘A Scottish Parliament with far greater responsibility for raising the money it spends would lead to better government in Scotland. It would make politicians more accountable for the financial decisions they take while giving them both the incentive and the fiscal tools necessary to achieve improved public services and faster economic growth - vital in the current economic circumstances. Further, it would help to foster a healthy relationship between Westminster and Holyrood.
All of the main Scottish and UK parties agree that the Scottish Parliament should have greater financial powers. The debate is now about which powers should be devolved and when.
Much has changed in the last year and the opportunity now exists to go further than the limited financial proposals outlined in the Calman Commission report.
Therefore, we are calling for the control of most current taxes to be devolved to the Scottish Parliament as soon as possible.’
Admittedly its more advanced than political discussion in Wales to date over how Wales is funded, but rather than complain endlessly about the Conservative/Lib Dem Government sell out over the Barnett Formula and the general unfairness of the budgets cuts to come, let’s see if Labour, Plaid Cymru and other parties who believe in more fiscal powers are capable of constructive action to further Wales's cause rather than whinging constantly.
A ‘Campaign for Fiscal Responsibility’ website has been launched in Scotland and is asking for signatures for the following declaration
‘A Scottish Parliament with far greater responsibility for raising the money it spends would lead to better government in Scotland. It would make politicians more accountable for the financial decisions they take while giving them both the incentive and the fiscal tools necessary to achieve improved public services and faster economic growth - vital in the current economic circumstances. Further, it would help to foster a healthy relationship between Westminster and Holyrood.
All of the main Scottish and UK parties agree that the Scottish Parliament should have greater financial powers. The debate is now about which powers should be devolved and when.
Much has changed in the last year and the opportunity now exists to go further than the limited financial proposals outlined in the Calman Commission report.
Therefore, we are calling for the control of most current taxes to be devolved to the Scottish Parliament as soon as possible.’
Admittedly its more advanced than political discussion in Wales to date over how Wales is funded, but rather than complain endlessly about the Conservative/Lib Dem Government sell out over the Barnett Formula and the general unfairness of the budgets cuts to come, let’s see if Labour, Plaid Cymru and other parties who believe in more fiscal powers are capable of constructive action to further Wales's cause rather than whinging constantly.
Monday, July 5, 2010
Another day, another Welsh Economic strategy
As Brian Morgan pointed out in his article over at the IWA on the weekend ’It seems that (Welsh) economic policy is being driven more by politics than economics’ and you have to ask is today’s launch any more than a PR exercise and lip service, like so much that WAG has done in relation to the Welsh economy since it was set up.
If you were being generous you could give marks for effort to Ieuan Wyn Jones and his WAG colleagues for publishing the Economic Renewal Plan today, but im not having see what’s been announced today its what WAG should have been focusing on when the Assembly was first set up back in 1999, when inward investment was drying up fast and Wales was awarded Objective One European Funds, it should have been the catalyst needed to refocus efforts on more home grown business to create the jobs that were rapidly disappearing.
The fact it’s taken the geniuses in the Welsh Assembly Government eleven years to come to a conclusion that most serious economists, business people, financiers and political commentators had back then speaks volumes about the lack of engagement with Welsh business and political priorities from Labour in particular. It’s also good to see Rhodri Morgan’s decision to scrap the WDA roundly panned by people who actually know what they are talking about.
However as I have said previously the opposition parties aren’t free of blame, neither the Conservatives, Lib Dems or Plaid Cymru have managed to change economic arguments in Wales the last decade, we have arrived at this point because of external economic and global factors, not through any type of political leadership.
Finally I noticed that Andrew Davies, former Labour Economic Development Minister is preparing the ground for the policy when its fails by blaming the intransigence of Welsh Civil Servants because he put similar plans in place a few years back and it failed to produce any discernible results (ahem), so what does it say about Welsh Ministers and the state of Welsh Government that they are letting Civil Servants dictate progress on something as important as economic development, aren’t Minister supposed to be the ones in charge?
There's more from Dylan Jones Evans and Jaxxland
If you were being generous you could give marks for effort to Ieuan Wyn Jones and his WAG colleagues for publishing the Economic Renewal Plan today, but im not having see what’s been announced today its what WAG should have been focusing on when the Assembly was first set up back in 1999, when inward investment was drying up fast and Wales was awarded Objective One European Funds, it should have been the catalyst needed to refocus efforts on more home grown business to create the jobs that were rapidly disappearing.
The fact it’s taken the geniuses in the Welsh Assembly Government eleven years to come to a conclusion that most serious economists, business people, financiers and political commentators had back then speaks volumes about the lack of engagement with Welsh business and political priorities from Labour in particular. It’s also good to see Rhodri Morgan’s decision to scrap the WDA roundly panned by people who actually know what they are talking about.
However as I have said previously the opposition parties aren’t free of blame, neither the Conservatives, Lib Dems or Plaid Cymru have managed to change economic arguments in Wales the last decade, we have arrived at this point because of external economic and global factors, not through any type of political leadership.
Finally I noticed that Andrew Davies, former Labour Economic Development Minister is preparing the ground for the policy when its fails by blaming the intransigence of Welsh Civil Servants because he put similar plans in place a few years back and it failed to produce any discernible results (ahem), so what does it say about Welsh Ministers and the state of Welsh Government that they are letting Civil Servants dictate progress on something as important as economic development, aren’t Minister supposed to be the ones in charge?
There's more from Dylan Jones Evans and Jaxxland
Sunday, July 4, 2010
A Balls up or what Labour really thinks of Wales?
The Labour leadership contest to replace former PM Gordon Brown rolled into town today at the Millennium Stadium in Cardiff and ahead of the hustings Ed Balls, Shadow Education Secretary and former economic advisor to Gordon Brown told the Wales on Sunday that the Barnett Formula was not unfair to Wales and that Wales benefitted disproportionally from other Benefits and European Funding because of the needs.
He said ‘“The important thing that I know from my time in the Treasury is that the Barnett Formula applies to part of public spending. But you’ve also got in addition to that, the spending outside the Barnett Formula which comes on the basis of need... because of unemployment, because of child poverty, and also because of the need for regeneration.”
Mr Balls also said Wales had “disproportionately benefited” from European aid, unemployment benefits and tax credit support “because there has been greater need and disadvantage in some parts of Wales because of the legacy of the Thatcher unemployment of the 1980s”.
He said it was important to focus on these “non-Barnett spending lines” which the Tories were now targeting. “Their welfare reforms are welfare cuts,” he said.
“It’s the biggest threat to the welfare state for 60 years, it’s a welfare state which has hugely been of benefit in particular to Wales, and seeing a family in Wales now where you have two adults on £15,000 a year each – not big salaries – they’ll lose £500 directly in child tax credits because of the decisions in the Budget. And that is a loss which will disproportionately hit Wales outside of Barnett.
“So we need to keep talking about these wider, long-term spending decisions, but let’s also be clear: when it comes to public spending based on need, Wales has benefited, the Tories and Liberals are trying to cut it, and we need to make sure that we campaign together and robustly against those cuts.”
I wonder what Peter Hain, Carwyn Jones and Jane Hutt make of those comments from Ed Balls and what does it say about their influence they have inside the Labour Party?
He said ‘“The important thing that I know from my time in the Treasury is that the Barnett Formula applies to part of public spending. But you’ve also got in addition to that, the spending outside the Barnett Formula which comes on the basis of need... because of unemployment, because of child poverty, and also because of the need for regeneration.”
Mr Balls also said Wales had “disproportionately benefited” from European aid, unemployment benefits and tax credit support “because there has been greater need and disadvantage in some parts of Wales because of the legacy of the Thatcher unemployment of the 1980s”.
He said it was important to focus on these “non-Barnett spending lines” which the Tories were now targeting. “Their welfare reforms are welfare cuts,” he said.
“It’s the biggest threat to the welfare state for 60 years, it’s a welfare state which has hugely been of benefit in particular to Wales, and seeing a family in Wales now where you have two adults on £15,000 a year each – not big salaries – they’ll lose £500 directly in child tax credits because of the decisions in the Budget. And that is a loss which will disproportionately hit Wales outside of Barnett.
“So we need to keep talking about these wider, long-term spending decisions, but let’s also be clear: when it comes to public spending based on need, Wales has benefited, the Tories and Liberals are trying to cut it, and we need to make sure that we campaign together and robustly against those cuts.”
I wonder what Peter Hain, Carwyn Jones and Jane Hutt make of those comments from Ed Balls and what does it say about their influence they have inside the Labour Party?
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