Without hard economic data Carwyn’s yearly report’s are meaningless

Iestyn Davies of the FSB has a pretty hard hitting article in the Western Mail  call for hard economic data (GDP, Business start up) to be included in this yearly ‘progress report’ from the Welsh Government.

The article states ‘But while there is room for a measure on the punctuality of Arriva Trains Wales among those 48 benchmarks, there is no room in this report for a measure of the new companies being created here in Wales.

With that important measure and others such as the number of active businesses per 10,000 of population omitted, one has to ask whether this report really does give a sound basis for the electorate to hold the Government to account when it comes to its role in economic development.

In Wales the report highlights Gross Disposable Household Income as a key measure, describing it as “probably the best single measure of economic well-being”. Yet GDHI in Wales is boosted by the fact that Welsh households receive the highest proportion of their income in benefits and pensions of any part of the UK. Is this really how we should measure our economic performance?

Contrast the Welsh Government’s measures with those of their counterparts in Scotland. There they have set themselves stretching targets against hard statistics which compare them with others. Their targets include matching the GDP growth rate of the small independent EU countries by 2017 and aiming to rank in the top quartile for productivity against key trading partners in the OECD by 2017.

Scotland’s are testing targets indeed, but at least the Scottish Government has set its sights high. It appears that in Wales we are setting our sights too low, and even then there is a big question mark over whether we are hitting the target.

When we look at real measures of Wales’ economic performance, such as the spending power measure of GDP per capita (PPS) we find that Wales comes behind the likes of Scotland, Greece and Slovenia. Given such harsh statistical comparison with others there really can be no room for complacency.

We desperately need greater ambition for the Welsh economy, and real moves to encourage the economy in towns and cities across Wales. We badly need measures such as the long-overdue reform of business rates in Wales. We have the worst business rates system for small firms of any part of the UK.

We also need a proper, meaningful and comprehensive set of economic statistics so that we can effectively measure Wales’ economic progress and see where things are going wrong

(or right!).

Admittedly, the fault for the problems within the Welsh economy cannot be laid entirely at the doors of the Senedd, but that does not mean that politicians in Cardiff Bay should not take ownership of the issue. After all, if they do not then who will?'

The full article is HERE but why doesn’t the FSB Wales publish its own set of regular quarterly GDP data on the Welsh economy in the meantime to at least make the Welsh Government respond and possibly rethink its annual GVA policy?

Any source