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Huge Challenge Faces Economy

16 Jul 2007

A CALL for increased capital investment in North Wales firms to cut a huge productivity gap with London was made at a business breakfast event yesterday.

But Bangor-based academic Professor Dylan Jones-Evans also said that economic inactivity was also one of the biggest challenges facing the Welsh economy over the next decade.

He said: “The scourge of economic inactivity is an issue which the Welsh Assembly Government has singularly failed to get to grips with in the last eight years.

“There are currently 426,000 adults who are economically inactive in Wales and that has remained roughly constant since devolution. Yes, we have record employment in Wales but whilst the number of adults employed has increased by 35,000 since May 2003 there has not been a corresponding decrease in unemployment or economic inactivity. In complete contrast to what is expected, the number of unemployed people in Wales has risen by 19,000 in the last four years and the number of economically inactive by 18,000.

“Therefore, whilst jobs are being created, it would seem that they are having little impact on the 27.3% of adults in Wales who are not working.”

Professor Jones-Evans, director of the National Entrepreneurship Observatory for Wales, was speaking at the inaugural Venture Wales Business Breakfast, Nothing Ventured, Nothing Gained, at Technium CAST, Parc Menai, Bangor, yesterday. The HSBC-spsonored event was attended by more than 60 SME delegates.

He added: “Improving the level of capital investment within North Wales would make one of the biggest differences in reducing the 42% productivity gap with London. Many firms would like to have cutting edge equipment within their premises and it is up to the Assembly Government – through innovative funding programmes that mix loan and grant schemes – to provide the right type of financing that will enable our manufacturing sector to upgrade their ability to compete effectively.”

Venture Wales is the largest pan-Wales development agency, providing support to start-ups and growing businesses in Wales to realise their full potential.

Its managing director Phil Cooper said: “Events like this provide great opportunities to meet with likeminded entrepreneurs facing similar challenges and hear from people leading the economic debate in Wales.”

Other speakers included Jonathan Turner, managing director of Mold-based AGS Security Systems Ltd, who has increased sales by almost 40% and profitability more than five-fold, and Barry Griffiths, managing director of Rhyl-based digital printer Borble Ltd.