Plaid Cymru has reiterated its call for the Welsh Government to have the ability to issue bonds. The party says that Wales needs to maximise its financial powers in order to secure a long-lasting economic recovery.
The UK Government has today announced that the Scottish Government will be able to issue bonds in addition to its borrowing powers under the Scotland Act 2012. The Silk Commission has recommended that Wales be given the same power, but the UK Government has so far rejected this.
Plaid Cymru has already raised the need for a Welsh bond issuance power in scrutiny of the Draft Wales Bill. The party will table amendments to the legislation on bonds and also to reflect other Silk Commission proposals that have been sidelined by the UK Government.
Shadow Economy Minister Rhun ap Iorwerth said:
“The power to issue bonds is rightly being given to Scotland, but the UK Government has watered down the Silk Commission proposals that would have given Wales that same ability. Their argument is that it is cheaper at the moment to borrow through the Treasury instead. But if we don’t get bond issuance into the Welsh legislation we could find ourselves stranded when borrowing conditions change and it becomes more attractive to issue bonds.
“The bottom line is that Plaid Cymru wants Wales to have as much financial flexibility as possible. Having a whole menu of options at our disposal is the only way to plan our long-term economic future and create better-paid jobs for the people of Wales. The UK Government needs to respond positively to our amendment at Westminster and make sure the bill gives Wales some real financial muscle.”
