The Wales section of UK plc includes key facts, Top 25 companies ranked by turnover, transport statistics, political tables and regional contacts.
This is an extract from the Wales section of UK plc
Building amid changing leadership
It has been a fascinating 12 months for the Welsh economy. It has entered what many are calling a construction boom in the past year. Meanwhile, there have been a lot of changes in terms of who is steering its economy.
Unlike other regions reviewed in this guide, Wales has its own government with significant influence over its economy and it has been a period of change at the Welsh Assembly Government. In March 2006, the Welsh Development Agency (WDA) and the Wales Tourist Board were merged into the main body of the Assembly in the biggest restructuring of government in Wales since devolution in 1999. The WDA had built up a good reputation for its inward investment successes and its abolishment was controversial.
Despite the promises of a smooth transition, there was the inevitable confusion as responsibilities changed. The job titles of ministers were also changed to accommodate the move with Andrew Davies becoming head of the Department of Enterprise, Innovation and Networks as a result of his extended department. A year on, things were just starting to settle down when an election meant more political turmoil. An inconclusive election result in May 2007 meant months of political wrangling until a deal was finally done that saw Welsh national party Plaid Cymru share power with Welsh Labour.
As a result of this, Plaid leader Ieuan Wyn Jones was given the post of minister for the Economy and Transport in addition to his role as deputy first minister for the country. His appointment was welcomed with cautious optimism by business leaders in Wales. The importance of his role also has a new resonance thanks to the Government of Wales Act that also came into force in May 2007, giving Wales extended law-making powers.
In terms of economic strategy, the Assembly remains committed to positioning Wales as a knowledge economy. But it still faces huge challenges as it shrugs off its industrial past. The painful learning curve this involves has been seen starkly recently with a number of major factory closures.
The most high-profile of these was the closure of the Burberry factory near Treorchy. Celebrities and politicians succeeded in generating newspaper headlines about a “British” brand outsourcing production to China but to no avail. The incident highlighted the challenges politicians face as they try to reposition the economy. While small gains might be made, large scale job losses make headlines.
A growing number of Assembly-funded initiatives are in place to help this type of economy take root. A vast array of Assembly-funded business support organisations are active in Wales and the now pan-Wales Technium buildings remain a flagship of attempts to nurture high-end knowledge-based businesses.
But the successes of such schemes are less clear. A recent report into Wales’ success at commercialising the intellectual property in its universities was very critical of existing initiatives and argued that a more coordinated approach with clear goals and measurable results is needed.
Meanwhile, Wales is clearly in the middle of something of a construction boom at the moment. Driven in part by the arrival of the Ryder Cup in 2009, the city of Newport is undergoing major regeneration with a new business district and revamped shopping centre at its heart. Cardiff will soon be home to one of the largest retail centres in the UK as the St David’s II development starts to take shape.
Meanwhile, Swansea, driven by the ongoing success of SA1, is also experiencing a construction boom. And on top of these city centre developments, Wales also has some major regeneration projects underway. The regeneration of Llanwern steelworks near Newport and the former BP works in Llandarcy near Neath is now underway: two massively important projects for Wales. Elsewhere, the regeneration of the former steelworks in Ebbw Vale has received the greenlight as has a former opencast mine in Merthyr Tydfil.
Finally, several one off projects have also got the go ahead in the past 12 months. Bluestone, a £110m green leisure village in Pembrokeshire will represent a big fillip to the West Wales economy; the first new racecourse to be built in the UK in 80 years is now being built in Trimsaran, in West Wales; Cardiff City FC will get a new stadium thanks to a financial deal being struck with new owners and Cardiff Council; the Llanelli Scarlets should also get a new stadium if planning disputes over its old ground can be overcome and work has finally started on Valleywood, a regeneration project in the Rhondda Valley that will incorporate several new film studios.
Wyn Jenkins is editor
of Wales Business Insider magazine