Ieuan calls for your ideas on alternatives to grant culture

by Aled Blake - 19/01/2010

"THE deputy First Minister is warning again that the days of multi-million-pound grants to attract inward investment are over, as the Bosch closure announcement is still sending out shock waves."

Ieuan Wyn Jones, who is also Minister for the Economy and Transport, is today calling for ideas on a new economic strategy to help shape the Welsh Assembly Government’s economic strategy.

The Tell Us campaign is asking for the views of every part of Welsh society – from individuals, companies, universities and unions – on the Welsh economy and the new Economic Renewal Programme.

The Economic Renewal Programme aims to change the way Welsh Ministers help business and attract investment, according to the Assembly Government.

It comes after criticism aimed at the Assembly Government over its economic strategy, and particularly its policies on the manufacturing sector, following the announcement by Bosch that it will be pulling out of Wales.

The German multinational is to close its car parts plant at Miskin, north of Cardiff, with the loss of 900 jobs. Production of a new alternator is to be taken to Hungary instead of South Wales.

Mr Jones admitted a new strategy is needed to address the changes Wales’ economy is facing. He will hold a series of round-table discussions with “key stakeholders”, while a website is being set up where people can air their views.

Mr Jones said: “As last week’s announcements from both Bosch and Welsh Country Foods demonstrate, we live in challenging times with the global recession changing the rules of the game.

“To push Wales towards recovery we need a new approach to how government helps businesses and attracts investment. We need a new strategy that is fit for the future and so we are ready to compete with the rest of the world.

“Our approach to economic development and inward investment needs to reflect this reality. That is why we are developing our Economic Renewal Programme.

“Its aim is to position the Welsh economy to be fit for the future and ready to compete in high- value markets.

“Part of this is adjusting our £240m economic development budget so that it’s focused more on developing the right skills for our workforce and to encourage world-class research and development.

“However, the overall aim is a complete culture change – to bring about real, sustainable investment to the Welsh economy.

“The days of using big grants to attract companies who are not committed to Wales in the long term have gone. Our investment needs to be smarter.

“This is not just about adjusting budgets. It is about creating long term, economic development. Creating jobs and industries that are here to stay and move Wales up the supply chain.”

Mr Jones called on Wales to “work together” if the economic renewal strategy is to be a success.

He said: “I appreciate the commitment already made by so many people who have pledged to play their part in creating a stronger, more sustainable economy.

“The Tell Us campaign extends the invitation to anyone, in Wales and beyond, who is interested in creating a more prosperous Welsh nation.

“To achieve this we want to engage with all sectors of Welsh society to help us shape this approach. We want to hear from all those involved in business in Wales.

“We want to gauge their opinion and get responses from as many people as possible. We can only make lasting change by getting the input from others, and this is a vital part of our agenda. That is what the Tell Us campaign is about. It is the start of a dialogue to get Wales on to the road to recovery.”

More Details: http://www.walesonline.co.uk/business-in-wales/business-news/2010/01/19/ieuan-calls-for-your-ideas-on-alternatives-to-grant-culture-91466-25629399/