Friday, May 01, 2009
Debate on Welsh budget begins
It would be easy to portray the latest controversy about cuts in the Welsh budget as yet another split in Plaid Cymru, however that is not my intention here.
On the one hand we have the party's principle economic advisor, Dr Eurfyl ap Gwilym, arguing that efficiency savings are not enough to cope with the sort of cuts in the Assembly block grant expected over the next few years. He says that there will have to be job losses beyond natural wastage to make ends meet, even in areas like health and education.
On the other hand, the Deputy First Minister and Plaid Cymru Leader, Ieuan Wyn Jones is more cautious. He wants to retain controversial freebies such as free prescriptions and free school breakfasts and he has been careful not to agree to the proposition that cuts in core services will be required. Naturally, he wants to keep his powder dry for the budget process and not commit himself in advance of those discussions.
In many ways it is important that people understand the dilemma that Ministers will be facing in setting future budgets. The international recession and the mismanagement of parts of it by UK Labour Ministers has left Wales in an invidious situation. The days of plenty are behind us, from now on we must cut our cloth according to our means.
What the debate is starting to focus on now is priorities. I agree with Dr. Ap Gwilym that efficiency savings are not going to be enough. My fear though is that the Welsh Assembly Government will pass on many of the tough decisions to local government by bolstering their own budgets at the expense of the Revenue Support Grant to Councils. That must not happen.
If the One Wales Government is going to protect free car parking, free school breakfasts, free bus travel for OAPs and free prescriptions, as I believe they should in the vast majority of cases, then they will need to make cuts elsewhere. How sensitively and skillfully Ministers handle that problem will be a major test of the One Wales' Government.
The one light at the end of this tunnel is that it appears from the Deputy First Minister's remarks that the M4 extension around Newport and through five SSSIs is now dead in the water. It is simply unaffordable. However, as this expenditure has not been budgetted for it does not constitute the sort of saving that will assist the Government in meeting the cut of £200 million in next year's capital budget. That may involve more difficult decisions.
On the one hand we have the party's principle economic advisor, Dr Eurfyl ap Gwilym, arguing that efficiency savings are not enough to cope with the sort of cuts in the Assembly block grant expected over the next few years. He says that there will have to be job losses beyond natural wastage to make ends meet, even in areas like health and education.
On the other hand, the Deputy First Minister and Plaid Cymru Leader, Ieuan Wyn Jones is more cautious. He wants to retain controversial freebies such as free prescriptions and free school breakfasts and he has been careful not to agree to the proposition that cuts in core services will be required. Naturally, he wants to keep his powder dry for the budget process and not commit himself in advance of those discussions.
In many ways it is important that people understand the dilemma that Ministers will be facing in setting future budgets. The international recession and the mismanagement of parts of it by UK Labour Ministers has left Wales in an invidious situation. The days of plenty are behind us, from now on we must cut our cloth according to our means.
What the debate is starting to focus on now is priorities. I agree with Dr. Ap Gwilym that efficiency savings are not going to be enough. My fear though is that the Welsh Assembly Government will pass on many of the tough decisions to local government by bolstering their own budgets at the expense of the Revenue Support Grant to Councils. That must not happen.
If the One Wales Government is going to protect free car parking, free school breakfasts, free bus travel for OAPs and free prescriptions, as I believe they should in the vast majority of cases, then they will need to make cuts elsewhere. How sensitively and skillfully Ministers handle that problem will be a major test of the One Wales' Government.
The one light at the end of this tunnel is that it appears from the Deputy First Minister's remarks that the M4 extension around Newport and through five SSSIs is now dead in the water. It is simply unaffordable. However, as this expenditure has not been budgetted for it does not constitute the sort of saving that will assist the Government in meeting the cut of £200 million in next year's capital budget. That may involve more difficult decisions.
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Sounds like your against free prescriptions. I might as well join the raving loony party, I cannot find a bloody party that looks after the people at the bottom.
No, the Welsh Liberal Democrats opposed their introduction, preferring instead to extend the list of exemptions to include all long term illnesses but we are now revising that policy. I cannot see us seeking to take away what is already there and in any case the bureaucracy of reinstating means testing may cost more than any additional revenue.
The Welsh Lib Dems have started a consultation on what our policy should be in advance of a proper debate at a future conference. I will be recommending that we support the continuation of free prescriptions.
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The Welsh Lib Dems have started a consultation on what our policy should be in advance of a proper debate at a future conference. I will be recommending that we support the continuation of free prescriptions.
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