Double-dip disappointment as UK economy remains stagnant

Plaid Cymru have responded with disappointment to figures this morning which show that the UK has suffered two consecutive quarters of negative growth, blaming the double dip recession upon the direction of the UK Con-Dem government’s economic policy and the austerity cuts that they have introduced.

UK’s first quarter GDP figures, published this morning, showed a contraction of -0.2% in the economy, following last year’s fourth quarter figures of -0.3%. This means that the UK is in a ‘double-dip’ recession, as consistently warned by Plaid since the 2010 UK General Election when the Con-Dem coalition announced their economic plans.
Plaid Cymru Treasury spokesperson, Jonathan Edwards MP, said:

“These are disastrous figures and this ‘double-dip’ recession shows the abject failure of the UK Coalition’s economic policies.

“These figures show that the UK economy remains stagnant, years after the financial crisis began.

“We are now firmly looking at an economic lost decade – with most of the cuts still to come and most of the public sector job losses yet to take place.

“Worse may still come with the Eurozone in crisis and no real sign of growth in domestic demand as families continue to tighten their belts.

“Plaid have warned since the very beginning of the financial crisis that growth was vital for the economy’s well-being, but the UK Coalition’s package of austerity cuts, job losses and tax rises for ordinary people have undermined the economy and led to the double-dip recession we are now in.
“Our policy throughout the crisis has been to invest in infrastructure projects, such as hospitals, schools, rail and roads, which would have created jobs now to boost the economy and invest in better prospects for the future.

“In recent weeks we have had the Con-Dem’s giving tax breaks to their rich friends who earn more than £3,000 a week while the economy is stagnant. The Tories are out of touch.”

PLAID ATTACK POLARISING UNION

30 YEARS OF TORY-LABOUR GOVERNMENT MAKES RICH RICHER AND WALES POORER

Plaid Cymru Treasury spokesperson Jonathan Edwards MP has used his Spring Conference speech to criticise ‘the polarising union’, attacking three decades of economic policies from British Conservative and Labour governments.

He also responded to Wednesday’s Budget speech by UK Chancellor, George Osborne, in which he cut tax for mega earners while announcing proposals for regional pay, a further £10bn of welfare cuts and the so-called ‘grannytax’ where pensioners tax-free
allowances have been frozen.

Mr Edwards said:

“The British state is a polarising union, not a redistributive union.

“After three decades of increasing inequality we saw a Budget on Wednesday in which the richest in the British state were given a tax break worth thousands of pounds each. 

“At the same time, the Tories announced real terms pay cuts for public sector workers, a further £10bn of cuts to the needy and vulnerable on welfare and a tax grab from pensioners.

“These last three decades have shown that the alternative to the austerity cuts won’t come by changing the colour of the government in London.   

“The Labour-Tory tag team at Westminster has polarised wealth at an unimaginable scale, sucking up to the City and feeding the financial sector at the expense of the working people of Wales. 

“Last week’s highly disappointing GVA figures for Wales – again bottom of the British state - made the challenge for us clear.

“We cannot rely on Westminster and London politicians to do what is right. 

“If we are to break this economic cycle then we must take responsibility for our future – to develop our economy, invest where we think is right and fight for a better Wales.

“Only Plaid Cymru have this positive agenda for a fairer society.”

Support for greater powers, or independence for Wales has increased significantly - ITV-YouGov poll

Commenting on the ITV-YouGov poll released today (Thursday), Plaid Cymru’s Jonathan Edwards MP said;

“Support for greater powers, or independence for Wales has increased significantly in the space of just a year - up from 17% 42% when people consider the possibility of Scottish independence.

“There can be no doubt that political structures of the United Kingdom are changing. Wales must not be defined purely in relation to what happens north of the border. We must chart our own path.

“Wales is clearly growing in confidence and people are now leading the calls for greater responsibilities to be transferred so that we in Wales can create jobs, help our businesses grow and improve people’s lives.

“Plaid Cymru will be setting the agenda on these issues by showing how control over our own affairs will give Wales the best possible chance to help our nation flourish.

“Meanwhile, the unionists parties face a major crisis in terms of the future of the UK.

“Only yesterday, Labour united with the Tories in Westminster to vote against giving Wales control over our vast natural resources. It seems that once again, Labour prefers Tory rule to home rule.” 

Partnership of equals: the only positive way forward for the nations of these Isles

25/01/2012

Current devolution settlement will always hold our nation back

As the Scottish Government today announces its plans for the independence referendum, Plaid Cymru’s MP for Carmarthen East and Dinefwr, Jonathan Edwards has said that the current devolution settlement delivered by Labour wasn’t sustainable and would always hold our nation back.

He said that public opinion and events had left most of the political establishment behind over further constitutional change and the time had now come for Wales to chart its own course and take control over the vital job-creating economic levers in order to flourish.

Plaid’s Jonathan Edwards MP said;

“As these events unfold in Scotland, people in Wales are already talking about what's best for our nation’s future and considering independence as a real choice.

“The status quo, supported by all three of the Westminster parties, isn’t serving Wales well – and taking greater control over our own affairs through independence, with the agreement of the people of Wales, will mean that we can create more jobs, help our businesses grow and help our nation reach its potential.

“Even for those who believe in the preservation of the UK, a partnership of equals with England, Scotland, Ireland will never be achieved under the current settlement.

“The Labour First Minister has recently made a few belated statements in reaction to events in Scotland, suggesting that making alterations to the makeup of the House of Lords would be enough.

“Public opinion has left him behind on this issue.

“The truth is that a little tinkering on the edges of the UK’s constitution whilst keeping so many of the job-creating economic levers at Westminster, as he is advocating, will neither be sustainable or in Wales’ best interests.

Jonathan Edwards added;

“Unionism is in crisis. The Westminster parties are unable to present a coherent and positive argument for the preservation of the United Kingdom in its current form, or for that matter, in any form.

“The big question that needs asking is if the United Kingdom is so good for Wales, how has it, and successive Westminster Governments, Labour, Tory or Liberal continued to see Wales fall behind.

There’s no good tinkering on the edges as the First Minister is suggesting – we need to know details of exactly what job-creation and economic levers he will support.

“We in Plaid Cymru want our country to stand on its own two feet, an independent nation with the tools to help improve the lives of our people.

“Plaid will be putting forward detailed proposals to the Silk commission on the next steps we want Wales to take to improve the lives of our citizens, create jobs and help our nation flourish. The question now is whether the Westminster parties will join with us in seeking the powers to help Wales chart its own course with the economic levers we need to succeed. 

Welsh election boundary map set to change

Proposals for new Welsh constituencies for Westminster will be released this month, following the publication of proposals for other three countries in the UK.

It is expected that there will be 30 seats for MPs to represent Wales, following the changes which cut the number of MPs from 650 to 600 and introduce a population criterion to determine constituency boundaries.

Plaid Cymru MP Jonathan Edwards said:

“Plaid Cymru fought strongly against the 25% cut in Welsh representation at Wales which was forced through by the Conservatives and Liberal Democrat coalition.

“We disagreed with the cut in the number of MPs at Westminster from 650 to 600 and the way of doing this – ignoring community links or history as the most important criterion for a seat and replacing them with a population criterion which will mean constant change in boundaries to keep the numbers right.

“Plaid Cymru have, of course, contributed our thoughts to the consultation and will respond accordingly when the proposals are published.

“However, it is not certain that these changes will take place.

“Many Conservative and Lib Dem MPs who went through the lobbies to back the cut have now begun to realise that they might lose their own seats through these changes, and have to started to fight against them.

“On the one hand, I hope that they are successful because that would be the right thing to do, but it is worrying that ConDem coalition MPs will fight so hard for their own job while consigning more than 700,000 public sector workers to the dole queue.” 

Today's bank levy rise - step forward but more to be done

Step forward to better bank control but more to be done

Plaid Cymru has welcomed the increase in the bank levy that comes into effect today, but warned that the amounts raised were far smaller than those which could be generated by an international financial transaction tax, also known as a Robin Hood Tax.

The bank levy was raised to 0.88% on debts above £20bn as a behavioural tax to prevent large banks from taking on risky amounts of debt. It is hoped to raise around £2.6bn per annum from the banks.

Plaid Cymru treasury spokesperson, Jonathan Edwards MP said:

“While welcoming the increase on the banking levy, it is confusing that the Tory government can support one form of behavioural tax – to supposedly stop banks from taking on risky debt – but not another – a Robin Hood Tax on financial transactions.

“It seems especially strange in the light of David Cameron’s actions a few weeks ago in vetoing an EU treaty supposedly on the basis of the impact upon the City of London.

“It was the financial sector, not the public sector, which got us into this economic mess and they should be contributing significantly to get us out of it.

“A financial transaction tax, a Robin Hood Tax, would ensure that an often unnecessary and unproductive trade of money will become a socially productive investment in our future.

“There is significant pressure towards the introduction of a Robin Hood Tax, which is estimated could raise anywhere between £10bn and £20bn in the UK alone – depending on the amount charged, and could make a genuine difference if invested properly.”