Mid Wales businesses

Written by Kirsty Williams AM and published in Mid Wales Journal Friday 3rd April 2009 on Sun 5th Apr 2009

Business activity in Wales fell last month at the fastest rate since 2001, driven by another steep reduction in incoming new business. We are seeing small to medium sized companies across Wales being forced to lay off workers as they are unable to get credit from the banks and support from the Government to see them through the rough times; even though in the long-term their businesses may still be viable and workers will be required once they are through the difficult patch. Businesses are struggling to balance high business rates, a downturn in consumer confidence, coupled with high energy bills.

Small businesses throughout Powys are the backbone of our economy and the Welsh Government must work jointly with the Westminster Government to keep them buoyant during these hard times and to build their strength for when we emerge from the financial crisis. We need to see a long-term investment in infrastructure throughout mid-wales - with improved communication and transport links. We need greater emphasis on building our skills base, not just talking about them as the Welsh Government does, but actually providing training and education to those who need it. The Government's solution so far has been economic summits and a ProAct scheme delivered at a snails pace. What we need is better-funded local authorities providing tailored local solutions to local economic difficulties. The needs of a business in Powys are different to those needs of a business in Cardiff so a one size fits all solution from the Assembly Government wouldn't be quick or effective in times of economic difficulties.

To make the situation worse on the first of April the Business Eye advice service in Powys comes to a close and will not be replaced immediately as planned by the Welsh Government's Mid Wales Flexible Support for Business service (FS4B). The FS4B would provide a range of business support including finance, premises, training, tendering and free business workshops, along with information resources, link directories, business news and events. However a dispute over staffing arrangements has meant that the awarded contractor has pulled out of the deal at the last minute. Unless the Welsh Government agrees to make alternative interim arrangements businesses across the whole of Mid Wales will be left in the cold for several months whilst the long tendering process is repeated, leaving them at a great disadvantage and without support in the middle of a recession. Business support employees in Powys will loose their jobs, at a time when so many families are struggling under the credit crunch and unemployment across Wales is at 109,000 up 15,000 since the last quarter. Powys county council will be left to foot the bill for The Transfer of Undertakings (Protection of Employment) Regulations (TUPE) staff and redundancy monies that they could not have reasonably expected, at a time when they are already struggling to provide frontline services following a poor budget settlement from the Welsh Government. This uncertain situation is unacceptable and I have called upon both the First Minister and the Deputy First Minister for the Economy to take prompt action to resolve the current crisis and to ensure that both the desperately needed business support and FS4B jobs are retained and will continue to lobby the Government until action is taken to help our businesses at a time when they need it the most.