Kirsty Williams AM

Border Business

Border Business

Those of us who live in the 'borderlands' know that such a strange and mystical name well fits the image all too many officials have of our area. Sadly the particularities of our rural border businesses are all too often forgotten by the centralist governments of Cardiff Bay and Whitehall.

Much potential lies in enabling Small and Medium Enterprises to grow and excel. At present, 99% of businesses in Wales are SMEs and no where are they more important than in the rural areas of the marches. These businesses tend to be more socially and environmentally focused. Profit from SMEs tends to stay in the local communities, rather than flowing to head offices in London. Manufacturing, entrepreneurialism and small businesses have long played pivotal roles in our mid-wales and border economies but all have been slowly eroded by successive government's lack of support at both ends of the M4. For many businesses things are worse now than ever before; as they struggle to balance high business rates, with a downturn in consumer confidence, and high energy bills. Whilst some outstanding and ground breaking companies are still going strong - in my own constituency of Brecon and Radnorshire we have businesses such as Sky Instruments and Manga International producing technical and specialist products and employing highly skilled workers - other equally successful and profitable businesses have folded often due to a lack of bridging support to see them through these tough times.

The Welsh Liberal Democrats believe that we need to begin a transition from a public sector reliant economy to an economy enabled by Government. At our recent conference in Wrexham we brought forward strong new proposals for rail transport, a new green economy, Severn tidal power and economic opportunity zones along with Regional stock exchanges, highlighting our commitment to radical, market-enabling solutions. Furthermore we want to roll much of the myriad grants and support schemes, into a single rate relief scheme. For a business with a turnover of less than £50,000, business rates can be equivalent to over a third of their profits. When cash flow is crucial to the survival of business, such a scheme could be essential to saving businesses and jobs and encouraging entrepreneurialism.

As well as facilitating the entrepreneurialism of our people, we must better protect and enhance the structural, environmental and cultural capital which underpins our economy. It is the health of our nation, in the broadest sense, which will ensure better times are ahead. An Assembly Committee recently found that investment in Higher Education is beneficial to the economy - for every £1 spent the economy benefits by £5.30. Further Education is so valuable that virtually every FE College is oversubscribed. In light of recent cuts, an audit of the Government's priorities is certainly required. Likewise our cultural capital must be better harnessed. There are already schemes to promote Wales as a tourist destination and to promote traditional Welsh products abroad. We can go much further in making sure that what we make and offer here is sold overseas. Small nations, with rich cultural heritage can succeed if they show confidence and ambition, many of our European neighbours have done so and it is time we learnt from them.

We all know that long-term investment in future-fit infrastructure is a necessity - with an emphasis on improved communication and transport links. But in this forgotten area we have broadband and mobile coverage that keeps us in the dark ages and a road system that holds back our business links from both east to west and north to south. Whilst European neighbours have used European funding to overhaul their transport and energy infrastructure, Wales and the borderlands maintains the same-old dusty and dated systems.

In order to sustain our rural communities we need an inflow of young people and young families. We need the social and financial boosts they bring - the skills and business start-ups, the schools, shops and the essential stimulation of local economies. There are benefits for graduates themselves in moving to our area, including a lower cost of living, better quality of life, belonging to a community, more diverse employment opportunities. As 'locals' we must be better at challenging perceptions about rural life and must advertise these very real benefits. But it is not just an issue of attracting skilled workers to our area it is also about building upon those we already have. Many of my local businesses complain that they and their employees are unable to access training which is needed to take their company to the next level. The government must stop paying lip service to up-skilling and actually get on and support training on the ground.

As it stands the Welsh and Westminster Government's are carrying on with the same-old gradualist approach to governing, seeing themselves as the providers, as deliverers of economic capital. The same is true of their approach to local government, to schools, universities and hospitals. Money and support is available, but its use is precisely prescribed and those delivering services are far removed from strategic planning.

We must instead move from a Governmental mindset which assumes that Ministers know best, to a more enabling and inclusive approach. We need better-funded local authorities providing tailored local solutions to local economic difficulties. A one size fits all solution from Government isn't proving itself to be quick or effective in times of economic difficulties. Our rural border economy will only thrive when we free our businesses from red-tape and invest in enhancing our existing capital.

Kirsty Williams is Assembly Member for Brecon and Radnorshire, Powys, and leader of the Welsh Liberal Democrats.