This week we learnt that the British economy grew by 0.5 per cent in the last quarter.
This is welcome news, particularly as we consider that Canada’s economy shrank in the last quarter, for instance, and France saw no growth at all.
There is no doubt that the economic recovery remains difficult.
Unemployment is too high in Wales.
Inflation is putting pressure on many households’ budgets, powered by high global oil and gas prices.
And business confidence is fragile.
But the measures that the UK Government is taking are the right ones, to restore economic confidence, boost enterprise, and create and keep people in jobs.
Thanks to the tough decisions taken by the Conservative-Liberal Democrat government, the UK’s credit rating has been secured.
Borrowing is being brought under control.
And interest rates are at a record low.
The British Parliament was able to have a debate on a possible referendum on its own terms – following a petition from the people on a website – rather than on the terms of the German Chancellor and French President following a petition from the people throwing rocks outside the front door!
The government’s plan is the rock of stability on which Britain’s economic recovery depends.
…
The alternative of course is more borrowing and more debt, when debt got us into this mess in the first place.
Labour’s plan B, which Labour in Wales has signed up to, is a plan for bankruptcy.
Ed Ball’s intention for a temporary cut in VAT would increase borrowing by £51 billion over the parliament.
Plaid Cymru’s call for these decisions to be postponed until we saw three quarters of growth – their plan C – would have jeopardised the recovery further.
The challenge for any sensible administration remains: how to stimulate economic growth without going the way of Greece, Italy and Ireland?
The answer must lie in strengthening the role and contribution of the private sector.
In Wales, Labour’s hostility to business makes this particularly difficult.
Though half a million extra jobs have been created in the private sector in Britain since the general election, in Wales the number of people employed in the private sector actually fell – by 35,000.
The Institute of Directors says its members ‘perceive a suspicion of the private sector’ from the Welsh Government.
The FSB says Labour’s manifesto ‘largely ignored’ small businesses.
Even senior Labour figures admit that their attitude to business and the private sector has cost Wales dear.
Baroness Eluned Morgan admitted last week that ‘many in the private sector have sensed the animosity of the Labour Party in the past and have been reluctant to engage.’
The Welsh economy faces significant challenges.
Average earnings are depressed, unemployment is rising, manufacturing has declined and too few opportunities are created in small and medium sized enterprise.
Clearly, bold solutions are required to turn the Welsh economy around.
But Labour has failed to grasp the nettle on business and enterprise.
It has failed to channel its energies – and the Assembly’s new powers – into creating economic growth and jobs.
Labour intends to use the powers at its disposal to legislate on cycle lanes – which independent authorities have warned ‘are not a natural fit for the problems Wales confronts.’
It refuses to heed our call to introduce business rate relief, even though the FSB tells us that unemployment could be tackled in Wales if our small businesses each took on just one extra member of staff.
It is a matter of shame that despite two rounds of European spending on economic development, the Welsh Government has failed to tackle deep-rooted unemployment, casting some of our poorest communities adrift.
…
On becoming leader in the National Assembly, I promised that the Welsh Conservatives would provide constructive opposition …
… But that we would step in to provide policy solutions where the Welsh Government fell short.
As a result, in September I announced our intention to work with stakeholders on a bid to attract the UK Government’s Green Investment Bank to Cardiff.
The government’s Green Investment Bank shows just what can be achieved when the public and private sector work collaboratively together.
Beginning next April, it will inject up to £18 billion of capital into green projects, in order to power the UK’s transition to a low carbon economy.
It will be the world’s first public bank dedicated to the green economy.
The UK Government believes that 500,000 green jobs could be created by 2020.
The Scottish Government has unveiled ambitious plans to become the Saudi Arabia of renewables – with Alex Salmond as Abdel-McAziz.
And Enterprise Zones have been created the length and breadth of England to take advantage of existing strengths in renewable energy and low carbon technologies.
But Wales has fallen behind in harnessing the potential of this growth sector.
Despite strategy after strategy …
And one policy document after another …
A report last year by the Enterprise and Learning Committee found that there is a lack of Welsh ownership of green industries.
Warned that Wales had been too late to the table in realising the potential of key renewable sectors – which instead had gone elsewhere.
And called for ‘real ambition in this area.’
What better marker of our ambition – what better way to boost Welsh ownership – of the green economy than by bidding to host the Green Investment Bank?
Creating a growth hub to promote sector-specific links between our universities, research institutes and businesses.
Driving export-led growth and investment in British advanced manufacturing.
Sourcing our growing strengths in finance and professional services.
And showing Cardiff – and Wales – off to visitors in the best possible light.
…
Today I’m delighted to reveal that our policy has gathered significant support.
The Environment Agency has told me it is ‘supportive and keen to assist in any way [it] can.’
Eco2, ‘fully support’ the initiative.
And RenewableUK are ‘willing to offer all appropriate assistance in pursuing this bid.’
CarbonZero UK ‘share [our] ambition.’
Westcoast energy are on board.
RES UK agree that ‘Wales must demonstrate that it is open for business on renewables.’
And South Wales Chamber of Commerce say ‘this could be the flagship project that enables the district to take off.’
And in case you’re worried that we’re leaving others behind, I am pleased to tell you that our good friends the Liberal Democrats, in Cardiff at least, are ‘fully supportive.’
In the next few weeks, I will be meeting with each of these groups to begin preparations for putting forward a business case.
There is strong competition for this bid.
Edinburgh, Leeds, Manchester, Bristol, Peterborough and Nottingham have all stolen a march.
But as good Conservatives we believe in robust competition!
On this issue, Wales – and Cardiff – cannot afford to be left behind.
…
So we’re fighting hard for Wales and Welsh interests.
Rolling up our sleeves.
Getting on with the job.
Not just of holding the lacklustre Welsh Government to account.
But stepping in to cover for their lack of ambition.
In an era of tightened fiscal spending, we have to work smarter with the finite resources that we have.
We have to explore all avenues for financing public services and public infrastructure, and maximise the opportunities of private finance.
The Green Investment Bank shows what can be done when the public sector is prepared to harness the resources and expertise of the private sector.
It shows what can be done when the government is prepared to support, and not stifle, private enterprise, economic growth and jobs.