For many, the purpose and benefit of devolution is to enable more suitable policies to be developed for Wales, with the key aim of bridging the wealth gap between Wales and the rest of the UK.
Since 1999, there has been a range of policy reviews, strategies, action plans and consultations, all aimed at ultimately improving Wales’ GDP.
Many of the early documents set specific targets at the outset on which progress could be measured. Later plans, however, are somewhat vaguer.
The ultimate goal of all the early targets was to increase the size of the Welsh economy to 90% of UK GDP per capita by 2010.
The first Economic Development strategy, A Wining Wales, contained a specific chapter on targets, where it mentioned that success of the whole strategy would be to achieve the 90% level.
The latest incarnation of the plan, in the form of, Wales – A Vibrant Economy (WAVE) has now had the 90% target airbrushed from its contents, in the full knowledge that it will not be achieved.
We have European Structural Funds, Objective 1 in particular, available to assist and help finance some of the structural changes needed to bridge the gap between Wales and the rest of the UK and Europe.
Much of the difficulty the Welsh Assembly Government now face is that sufficient time has passed since the formation of their administration from which progress can be measured. Sadly, worrying trends are emerging.
The Objective1 target was to support 3108 businesses, by January this year, however, only 970 companies have received assistance.
There was a goal to create 3,000 new jobs in the high technology sector, yet only 723 have yet been created and similar evidence along these lines could be highlighted across almost every target that was set.
This is evident when you look at our performance across a range of sectors, with manufacturing being the most worrying.
Since 1999, Wales has lost 62,000 jobs (25%) in the Manufacturing sector. Output in Wales fell by 6.6% during the last year, compared to a fall of 1.1% in the UK.
It could be argued that competition from an enlarged Europe is having a temporary adverse effect on our manufacturing sector.
China and the Far East also offer new threats. However, if this was the main influencer, why is England doing better than Wales?
Shouldn’t the devolution dividend have started to pay a return to the shareholders by now?
In 1997 Welsh GDP per captia stood at 81.2% of the UK average.
Now, nine years on, our GDP per capita stands at 79.1% of the UK average.
We are now the poorest region or nation of the UK, where traditionally, we have always scored higher than Northern Ireland and the North East.
Questioning the promise that devolution would deliver a prosperous economy could be interpreted as a current objection to the institution.
Nothing could be further from the truth. Our objections are to the policies and structures that have been developed.
As I said at the outset of this article, there is every prospect of developing policies that can answer Welsh needs.
There is an opportunity to make Wales the most competitive place in the UK, at least.
Clearly, infrastructure, transport, skills, availability of finance, amongst others are needed to attract investment and to help indigenous develop.
Devolution affords us the opportunity to develop these needs, offering a competitive advantage here in Wales.
People and productivity make the difference in the modern economic environment.
A long term skills agenda, based on demands from businesses can offer that all important advantage, something that China and Eastern Europe don’t have.
The abolition of the WDA and TEC’s was been a mistake. Clearly, we can’t turn back the clocks but we can develop the best from both organisations.
They offered the opportunity for businesses to take a leading role in meeting their challenges.
TEC’s inaced discretionary spend in the hands of businesses to work with colleges and other training bodies to bridge their skills gap.
If that hadn’t been lost, I am sure that many of the companies that have left would have remained here because of the people and skill advantage.
The RSA grant structure is too inflexible and is geared at capital intensive manufacturing.
Assistance for advanced manufacturing and research and development offer the best prospect of improving productivity.
Very often, higher value operations aren’t capital intensive and regularly create limited employment.
As a result, a grant based on capital investment and cost per job limits doesn’t best facilitate such developments.
The value of their output, however, is very desirable and will distribute Wealth in a dynamic way.
The development of small businesses and new business start ups need access to appropriate infrastructure.
Easy in and Easy out schemes are too limited and such businesses are being squeezed out of our town centres.
The Welsh Assembly Government have had sufficient time to make a difference.
Sadly, the difference appears to be deterioration in our relative prosperity.
Recognition of this fact by the Minister in the first instance would be a start.
Without such an acknowledgement, it is time for a new opportunity and a fresh start with a new government.