Economy and devolution
Only the private sector can increase the country’s prosperity and deliver a low-carbon economy.
Economy and devolution overview
The Welsh economy remains the least competitive part of the United Kingdom, with regional GVA per head in 2008 placing Wales as the lowest performing UK region. Relative prosperity in Wales has fallen over the past 10 years to 74% of the UK average.
Only the private sector can increase the country's prosperity and deliver a low-carbon economy. After a period of rapid public sector expansion and economic stagnation, a rebalancing of the economy is urgently needed. Growing the private sector must now be the Assembly Government's overarching goal.
Our response to the Welsh Government economic renewal programme outlines our recommendations for rebalancing the economy in Wales.
CBI policy
CBI Wales believes that the performance of all government departments should be measured on how their actions contribute to economic growth. The Department for Business, Enterprise, Technology and Science itself should focus on three main issues. Firstly, a focus on selling Wales around the world and attracting further foreign direct investment. Secondly, ensuring the private sector is able to play a greater role in delivering the next round of EU regeneration funding - and finally, the department should seek to ensure the planning system is reformed to become a true enabler of economic growth.
The CBI tracks the performance of Wales' manufacturing sector on a quarterly basis through its Welsh Industrial Trends Survey.
The Labour Party manifesto pledges to "build strong links with anchor companies to developed mutually beneficial relationships". We strongly support this pledge. However, at the moment the process has lacked strategic direction. Progress needs to be made within the next 12 months if the relationship between business and government is to have some tangible benefits.
For anchor companies to deliver new jobs and growth for Wales the Welsh Government must Identify a service level agreement between both parties, outlining what each can reasonably expect from the other. This should include an enhanced level of service, support and information sharing for those anchor companies working to bring additional jobs to Wales.
The government should also follow the UK government's "buddy system" and grow mutual understanding between government and key businesses by ensuring a cabinet member attends one company board meeting a year. This approach would provide real meaning to the relationship between government and their anchor companies, giving companies the confidence to maximise their role in job creation and expansion.
