Has Carwyn done a U-turn on Corporation Tax?

Despite the First Minister Carwyn Jones seeming reluctant over the past few weeks to even contemplate Corporation Tax powers for Wales, there seems to be a change of heart from the Welsh Government.

Especially in light of the Northern Ireland’s First Minsters pressing a strong case that has political and business backing and Scotland’s First Minister Alex Salmond calling for Corporation Tax powers to be devolved to the Scottish Parliament as soon as possible and Carwyn was on his own calling for only borrowing powers at the Devolved Heads meeting and the Joint Ministerial Committee meeting a few weeks ago.

In a reply to the Belfast Telegraph the Welsh Government yesterday seemed to back powers for Wales if they are granted elsewhere.

A Welsh Government spokesman said: “We are aware that the UK Government is considering devolving powers over corporation tax to Northern Ireland.

“If the UK Government does propose to devolve corporation tax powers to one or more of the devolved administrations, it should make a similar offer to Wales.”

The corporation tax issue is due to be debated in the Welsh Assembly early next week.

However there are a few caveats, notice the use of the words ‘similar offer’. What does the Welsh Government's similar offer look like and of course any offer can be rejected.

Maybe Carwyn and his team are finally waking up to the fact they are isolated by calling for only borrowing powers and taking on board the criticism leveled at him and are responding albeit slowly and cautiously to it, something to be welcomed and noted by the Opposition Parties if they want to change things in the months and years ahead.

Time for Action not Defence on the Welsh Economy

Sir Roger Jones calls yesterday at the Welsh Affairs Committee for an arm’s length economic body to be set up as soon as possible after he accused the Welsh Government of wasting £100 million per year on economic development programmes that have achieved ‘next to nothing’ weren’t new but are certainly welcome.

Anyone who wants to see more investment, jobs and prosperity in Wales and those who have had the misfortune to have dealt with the inept civil servants and bureaucracy in the Economic & Business Department over the years will be hoping that Sir Roger’s calls will gain traction and become a reality, especially as economically things are about to get a whole lot worse here in Wales with the full impact of the public sector job losses.

And at a time when most acknowledge that the Welsh Government has few tools at its disposal to help the Welsh economy grow, a new arms length development agency is something that needs only political will to make it a reality.

Will the Welsh Government come out from its complacent and defensive shield and grasp the opportunity to make Wales more prosperous - judging by the slim pickings in Carwyn Jones statement of his priorities for Government for the next 5 years, I doubt it.

But the Opposition Parties have a chance to push to get a new development agency off the ground and put their energies into this rather than continually deride a Government that has no clue on economic matters or will to change the status quo.

Andrew RT Davies, Dylan Jones Evans and the WDA

It’s fair to say that the contest to replace Nick Bourne as leader of the Conservative National Assembly Group has been low key attracting little interest from the press, bloggers or other parties and politicians despite Andrew RT Davies and Nick Ramsey being on the campaign trail for a few weeks.

Interest may or may not change in the weeks ahead but two things caught my eye today, both about Andrew RT Davies, firstly he announced that he wants to re-establish the WDA to help ‘drive Wales economic recovery’ as part of his Manifesto and secondly Professor Dylan Jones Evans endorsement of him for leader in the Daily Post.

First on the issue of the resurrection of the Welsh Development Agency isn’t a new idea, but it highlights alternative economic thinking to the current Economic Renewal Programme plus orthodoxy that Labour and Plaid Cymru have and continue to support and has done little for the Welsh economy. It also challenges the other parties over their support for the abolition of the WDA, ELWa and the Wales Tourist Board back in 2005.

On the second point Andrew and his team will be delighted to get the backing of Dylan Jones Evans, not just because he is well respected outside as well as inside the Tory Party and riding on the crest of a wave after his Welsh ‘Silicon Valley’ office announcement last week but also because Dylan will help counter Andrew’s anti-devolutionist views.

I have no idea how the contest is going and Nick Ramsey and his campaign manager former AM Jonathan Morgan are certainly no slouches. Both Nick and Jonathan have appeal beyond traditional Tory voters and have picked up endorsements from fellow AM’s helping their modernising credentials. And Nick’s team have rightly pointed out that the Party is in danger of going backwards under the wrong leadership and wasting the work of Nick Bourne in helping making the Tories more comfortable with devolution.

As for the other parties they would like nothing more than Andrew RT Davies leading the opposition in Cardiff Bay, so that he and the Conservative Group could be painted as right wing reactionaries who are enjoying the destruction to Welsh communities caused by the cuts, but as is the case in politics be careful what you wish for.