Thursday, 25 October 2012

Really - the answer is borrow more?

Somewhat puzzled by the 'big announcement' yesterday that Welsh Government is to be given powers to borrow money, but only if the Silk Commission recommends giving them tax raising powers also.

Rather a premature and pointless announcement then, until we find out what the Silk Commission recommends. Unless that is the Conservative led Coalition Government have already decided to give the Welsh Government tax rising powers....which begs the question how much has the Silk Commission cost and what was it for?

I think its rather strange, that we are told on one hand the blame for the current economic crisis is down to the public sector borrowing to much, and on the other the answer to kickstart the economy is to borrow more.

Now as far as I can remember the Welsh Government or the previous Welsh Office have always been able to borrow money through the Treasury at London. But the ability to raise or lower its own tax and borrow without London strings, does on paper seem to make sense.

After all and as we know there are many infrastructure projects in Wales in desperate need of cash. Though that shouldn't include the electrification of the North Wales mainline as Ken Skates AM says in todays Daily Post. There are far more important projects we should fund and it's not even a devolved issue.

And when shadow Welsh secretary Owen Smith says 'borrowing is vital to kick-starting infrastructure projects and the economy...this is to be welcomed' you really need to question whether Labour has learnt any lessons at all from their time in power.

Lets make it plain and simple....the answer is - do not borrow any more money that we cant afford to pay back.

Having said that, one sector that has suffered in the current downturn is the construction industry, and as we know on Anglesey our public buildings are either falling to bits or not fit for purpose. We need to build some new schools and a new acute care home to name just two projects that could held local construction companies (if they where allowed to bid that is) and boost the economy.

But as we know the Council has already the powers to borrow money to pay for infrastructure projects, it just cant afford the payments currently.

All in all, even with Peter Black AM boasting like the idiot he really is, the announcement yesterday amounted to bugger all - and why Welsh Labour fell for this London trap beggars belief.

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