Welsh Conservatives have today welcomed WAG’s recognition that their economic development policies are in need of fundamental reform. This is something the Opposition has been saying for 3 years and we believe that WAG’s failures in this area have contributed considerably to poor GVA figures.
The Economic Renewal Programme (ERP) will be judged on its outcomes. It remains to be seen whether WAG’s desire for a more innovative and less centralised system for business support is put into practice.
The Welsh Conservative Party believes that successful economic development policies must have the following at their core:
- Listen to and respond to the voice of business. We have consistently called for a stronger role for the Business Partnership Council.
- Supporting small businesses. Welsh Conservatives have been at the forefront in championing Business Rate reform for small firms in Wales and WAG must ensure that our local businesses are not financially disadvantaged relative to those in England and Scotland.
- Replacing government grants with loans – the current system of grant support is unsustainable. The Welsh Conservatives believe that there needs to be a move away from the grant culture in Wales towards an environment where companies get quicker access to repayable loans that can lead to a more sustainable financial support structure for business to flourish and grow
- Encourage entrepreneurship. WAG needs to revive the private sector led Entrepreneurship Action Plan and ensure that entrepreneurs are driving the economic recovery in Wales through a clear and coherent strategy that encourages more business start-ups
- Localism. Decisions should be taken as close to the businesses as possible and not centralised. The Welsh Development Agency’s decentralised model was replaced by a top down structure that has given too much power to civil servants. WAG should streamline and simplify the business support programme, cutting red tape and bureaucracy and ensure that the right support gets to businesses quickly and easily.
- Encourage innovation so that the amount of R&D undertaken in Wales increases substantially. Welsh Higher Education Institutes have a key role to play here and WAG funding must incentivise the commercialisation of knowledge, whilst maximising the potential linkages between academia and industry.
- Increase the size of the private sector. The Welsh Conservative Party believes that the public sector must be opened up so that the private sector is seen as a vital partner. Public sector procurement should be made more amenable to Welsh based companies.
- Provide world class infrastructure such as super broadband and transport improvements.
- Encourage a more international approach to business which again makes Wales the most favoured location for inward investors whilst also supporting Welsh businesses in their exporting activities and ensuring that they takes full advantage of the opportunities presented by a growing global economy.
Leader of the Opposition Nick Bourne AM said:
“A successful economic development policy must be combined with a world beating skills strategy. Quite simply, we must make Wales one of the World’s most business friendly places.”
Shadow Minister for the Economy and Transport David Melding AM added:
“WAG must realise that economic development is a matter for the whole of government and not just the Economy and Transport department. We need a fully integrated approach.”
