Other News
Towards a New Welsh Economy
Sector:Central Government
Date Created::10th Jun 2009, 10:57:47
Source:Welsh Assembly Government
Link: new.wales.gov.uk
Deputy First Minister outlines priorities for a stronger, more sustainable future. Keeping viable businesses trading; providing extra support for small companies; investing in innovation, research and commercialisation; helping businesses to become more competitive; tackling inactivity through regeneration, and investing in a progressive agenda for transport.
These are some of the key priorities of the Welsh Assembly Government as the foundations are laid for a more sustainable and prosperous Welsh economy, the Deputy First Minister and Minister for the Economy and Transport Ieuan Wyn Jones told Assembly Members today.
Mr Jones said that:
"Wales has been hit hard by the downturn – but the Assembly Government had fought back equally hard' and 'had led other parts of the UK with innovative action and in the effectiveness of its social partnership with employers and trades unions.
"We have acted with both speed and flexibility. My own Department for the Economy and Transport, for example, has worked in close co–operation with the Department for Children, Education, Lifelong Learning and Skills to ensure that we have been able to provide an integrated response to job losses which delivered both business support to companies and skills training to their employees."
The Minister was keen to emphasise however that his department was continuing to explore ways of assisting SMEs and announced an extension the Single Investment Fund to help smaller companies and start-ups with the potential to grow. This will provide smaller enterprises with access to revenue support grants of up to £10,000 and capital grants from £5,000–£10,000.
Mr Jones also said that he is exploring what more can be done to assist businesses in the East Wales EU Competitiveness area, following the launch of a fund to help businesses in the Western areas of Wales last month.
Other immediate action being taken by the Deputy First Minister include:
a Business Advice Week to provide one–to–one sessions with over 500 companies across Wales pressing for changes in the EU intervention rates to help with the challenges facing both the public and private sector to match fund Convergence projects during the downturn launching and implementing the "Green Jobs Strategy" which will support skills, innovation and technology working with the Manufacturing Forum to agree an appropriate startegy for the sector.
The Minister also emphasised the need for the Assembly Government to continue to be bold in its approach to the global economic downturn and take tough decisions to position Wales well for the upturn – including focusing on the sectors of most strategic importance to Wales. The sectors have been selected already on the basis of their potential in terms of growth and productivity. New priorities have also been set in terms of future expenditure on Research and Development.
The Deputy First Minister said:
"Whilst it is difficult to forecast when this recession will end, we are planning for the future – a future with an economy that is more sustainable and more resilient to global pressures.
"We will need to be bold in our approach. We will need to take tough decisions. We will need clear focus. We have already taken some of these tough decisions to build our future economy.
"We also need to bring sharper focus to creating a more sustainable economy and that is why I shall be launching the ‘Green Jobs Strategy’ shortly and why we will be focusing on these issues during the Economic Summit process. Its not simply about greening our existing jobs through the more efficient use of resources but also stimulating new green jobs by supporting skills, innovation and new technology.
"Given the reduction in public expenditure over the next few years, we need to ensure that we obtain the best return on both public and private sector investment. This may require fresh ideas about new financial models with greater demand for a more regional approach to financing. We will continue to work with the European Investment Band through JEREMIE to create a legacy fund which will support businesses in Wales beyond Convergence as part of a new financial future."
Mr. Jones concluded:
"There is no doubt that the recession has instilled in us some key disciplines and allowed us to demonstrate the real dividends of devolution.
"We have been able to take bold and swift decisions that are the right ones for Wales, the Welsh economy and the people of Wales; we have been able to act in genuine collaboration across Government and the wider public sector – and most importantly, we have been able to draw on our mature and effective partnerships with businesses, with representative organisations and with trades unions in Wales.
"With these unique strengths, we have laid firm foundations to build a more sustainable and resilient Welsh economy."
