Archive for the ‘Economy’ Category

As interested readers are no doubt aware the Gwynt y Môr wind farm development was approved some 18 months ago despite the opposition of local councillors and the concerns of the significant tourism sector centred on the town of Llandudno in this constituency.

The announcement of the success of the consortium led by RWE Npower Renewables in attracting the funding for the project, around £2.2billion, was made a few weeks ago and whilst this was in many ways a disappointment to local protesters and businesses which argued against the development. However, there was also a realistic view expressed by many that “we are where we are” and as such there was a clear need for the area to benefit financially from the development. This potential financial benefit would come in two ways;

1. The opportunities for local businesses to benefit from opportunities to win contracts with the developers.

2. The Community Benefits Package which had been discussed by the consortium with the local authority, Conwy County Borough Council.

I have contacted the Welsh Assembly Government Department of Economy and Transport in relation to the first opportunity in relation to the potential to use the Local Supplier Development Programme to support and guide businesses in relation to what they need to do to access the opportunities arising from the development. In the same way I have, in private meetings with the Secretary of State for Wales, asked her to make representations to the Consortium in relation to the accessibility of contract opportunities for local businesses. I hope to be involved in a ‘meet the buyer’ type event in the area in due course and will keep readers posted on any development.

However, my real concerns at this point relate to the Community Benefits Package. In the original discussions between Conwy Council and the consortium there were two separate strands for support discussed. These were;

1. Tourism support package for Llandudno (subsequently changed to Conwy Council Area) worth £230k per year
2. Community Benefits Package of £1m per annum for a period of 20/25 years

The concerns I have, which are shared by constituents, is that the Tourism Support Package is now been described by the Consortium as a package of support for Conwy and Denbighshire. It was disappointing, but perhaps understandable in many ways, that the initial tourism package which was proposed for Llandudno had been changed by Conwy Council to include the whole of the County. However, this package is now being described by the Consortium as a fund for the counties of Conwy and Denbighshire.

This is contrary to the spirit of the Memorandum of Understanding between the Consortium and Conwy Council which stated specifically that the Conwy Coast Tourism Programme (originally for Llandudno only) would be separate from any discussions with other authorities along the North Wales coast. The local population feel that the Consortium have made promises in order to attempt to win the support of Llandudno residents and businesses which are now been significantly changed since public support is not now needed. This change in the Llandudno Tourism package was made know to the Council on the 14th of April.

Secondly, in the same letter dated 14th April 2010 the Consortium informs Conwy Council that the Community Benefits Package will be significantly reduced from the promised £1m to £768k per year. This is justified on the basis of detailed site design work resulting in a project with a capacity of 750mw being reduced to 576mw.

At the Welsh Select Committee I asked the Secretary of State to meet with representatives of the consortium to discuss the unilateral changes to both the Tourism Support Package and the Community Benefits Package. Furthermore I also asked the Secretary of Sate whether she was of the view that there was a need for an agreed level of compensation for communities affected by large scale developments in order to ensure that a consortium such as the one led by RWE at Gwynt y Môr would not be in a position to make promises and then change them without consultation once planning permission had been secured. On this point I was advised to raise the matter with the Department of the Environment and Climate Change which I am now progressing.

ITV Wales and the Daily Post provided coverage for the fact that the issue was highlighted at the Welsh Select Committee – it might be possible to embarrass the consortium into honouring the original Memorandum of Understanding!

Guto

One of the first calls for support I received after my election was from traders and concerned residents in Penmaenmawr. Since early April numerous businesses have closed in the village with other businesses increasingly worried that the loss of a number of independent traders could easily have a dangerous knock-on effect on the surviving traders. The main concern expressed by all the traders whom I met was the extraordinary increase in their business rates valuation.

Consultations with local businesses (a slow process due to Data Protection Legislation) found that the increase in business rates vary from two cases where the increase is 35% and 36% to eight cases where the increase is in the region of 50% (most are at 50.6%). There are then two outliners where the increase has been 111% and 83% respectively. All these businesses are in the central Penmaenmawr retail area and all the businesses will, as a result of the new rateable value, face a real increase in their payments despite the change in the multiplier from 48.9p in the pound to the current 40.9p. When I recall the numerous occasions when Plaid Cymru supporters indicated that the changes in business rates would be ‘neutral’ (as many winners as losers was the claim if I remember correctly)it is difficult to see how this can be the case in view of the evidence collected from 14 businesses in Penmaenmawr.

Why the uniform increase in the context of Penmaenmawr? Is it a direct result of the substantial investment that has been made in the retail area over recent years? It seems almost perverse that public money has been spent by several agencies in order to re-vitalise the commercial heart of the village and their investment is now being undermined through the decisions taken by another government agency to increase rateable values by a margin which bears no relationship to the commercial realities of operating a business in the village.

It should also be noted that two businesses within a walking distance of the centre of the village have suffered rateable value increases of 121% and 309%! Whilst not in the central retail area these businesses have also contributed to the renewal of the commercial potential of the area and there is a real question as to how such significant increases can be justified.

I’m aware that a number of businesses are appealing their valuations due to the commercial impact of such above inflation changes on their businesses. In addition to supporting fully these individual appeals I have written to the Valuation Office requesting an explanation as to why Penmaenmawr has been subject to such huge increases. I have also offered to take officers from the Valuation Office on a fact finding tour of businesses in the village to show them that neither rental charges or the level of trade have increased in any way which could conceivably justify the massive increases in rates identified.

On a final note – if readers of this blog are aware of similar circumstances where all the businesses in an area are losers from the rates revaluation then get in touch. I would be delighted to take issue with the Valuation Office with respect to any area where the vast majority of traders are losers and not winners from the revaluation process.

Guto

Firstly, my apologies. Apart from a few postings in the first week after the election I have been very quiet on the blog. This is due to a heavy workload since the election coupled with issues such as dealing with new offices, IT systems, employment law and the small matter of getting used to life at Westminster, finding somewhere to live and dealing with loose ends from my business.

But for the past few weeks I have finally felt myself to be on top of things. Surgeries are going well with numerous and varied cases coming through the door. My series of local surgeries and public meetings for late August and September are almost agreed and locations for outreach surgeries and dates are in place. Finally I have no excuse for not blogging on an occasional basis.

As the MP for Aberconwy I will endeavour to keep you informed of what is happening at Westminster, comment on Welsh issues and keep you posted on my activities. However, I would also want to see this forum used as an information source for myself. For example, my first posting in my new blogging career is in relation to the issues of Business Rates in Penmaenmawr. It would be interesting and useful to hear of other localities where the alleged ‘neutral’ nature of the revaluation can be called into question. In a similar vein I will be blogging on the situation in relation to the MIU at Llandudno Hospital and would be very keen to hear your views on the announced downgrade of the Unit.

Any local issues or concerns that you have can be communicated to me on my parliamentary e-mail which is;

guto.bebb.mp@parliament.uk

All the best,

Guto

Visteon was the automotive parts division of Ford Motor Company that was spun off from Ford in 2000. Visteon subsequently went into administraion in 2009 resulting in the loss of over 500 jobs and leaving many more with either reduced or frozen pensions rights. Stephen Metcalfe the Member for South Basildon and East Thurrock has contacted me to check whether there are any constituents in Aberconwy who have an interest in this issue. If you do, would you please contact the Constituency Office so that I can pass on your details to Stephen.

The blogging has been sparse due to the excitement of the past week, massive information overload at Westminster and efforts to establish a constituency office.  As I write I feel almost relaxed for the first time in ten days but with London calling again tomorrow I suspect that things will be busy again next week.  Despite my intense schedule I am amazed at the work that David Jones MP will now need to undertake in his much deserved role as Minister of State at the Welsh Office.  Discussing a number of local issues with David on Saturday I was exhausted just listening to his intense workload for the next few weeks.  It’s a good thing that he is so clearly the right man for the job.

Due to the web designer being on holiday this site will only slowly develop into the website of your MP.  It should be sorted by the end of the month but until then blogging will be sporadic.

On a more positive note I went to my first engagement as the Aberconwy MP on Friday attending the re-launch of Llandudno Community Radio at Ty Hapus.  A great initiative which I have been proud to be associated with for months it was a pleasure to be able to accept this particular invitation as my first in the new job.  I will also be undertaking my first constituency surgery next Friday.  Since our new offices are awaiting telephone lines any interested parties wishing to make an appointment are advised to call 01492 583743 for the time being.

Guto

A long day!  Meeting of the 1922 this evening and a warm response to the position taken by the shadow cabinet.  Will it be enough or will the Liberals back Labour?  If they do then we as a country will be in serious trouble.  What we need is a stable administration able to govern for four or five years.  A Lib/Lab/SNP/PC/SDLP/DUP agreement = problems.

We as a party have worked in the interest of the country – will the Liberals do the same?

Guto

I have just watched Plaid Cymru Westminster leader Elfyn Llwyd crash and burn on Dragons Eye.  He was useless.  He was unable to respond to any of the questions put to him and seemed to find the questions about the costs associated with his funding promises to be a personal insult.

This man aspires to a position of responsibility and claims to be the man who will deal with any minority government if there is a hung parliament and yet he had no grasp of any policy issues discussed within his own manifesto.  I can only hope that this interview will be made available on i-player - it will make you laugh if nothing else.

Guto

The following from a BBC interview raises interesting questions about the integrity of Vince Cable;

Earlier in the week the Liberal Democrats launched a poster, warning of a VAT bombshell if the Conservatives won. Cross-examined by BBC1's Politics Show today the Liberal Democrats' Treasury spokesman admitted that the idea of a £389 bombshell was conjecture and conceded that he couldn't rule out a hike in VAT. Transcript below.

JON SOPEL: I mean let’s leave aside whether or whether not there is a black hole in the Tories' finances. Leave that to one side. You don’t know factually, that they are going to raise VAT. That is your conjecture.

VINCE CABLE: It is a conjecture and it’s a reasonable assumption and I wouldn’t claim anymore than that.

JON SOPEL: And that £389 is a rough figure plucked –

VINCE CABLE: It’s a ball park estimate of what it would require in order to fill that gap, and it seems a reasonable way of expressing that argument."

...

JON SOPEL: Would you rule out raising VAT?

VINCE CABLE: No, I don’t. It’s something –
JON SOPEL: So therefore your position is no different to them."

Well done Mr Sopel. Vince Cable is a serial flip-flopper.

The poster can be seen here.

Guto

A good morning in Pensarn with plenty of Conservative votes found in an area where one of my opponents, the Liberal Candidate, lives.  We had a good team out this morning but I had to leave them in order to welcome Francis Maude and Cheryl Gillan to Llandudno Junction.

We had a good visit to the Crest Co-Operative and were very impressed by the work this social enterprise undertakes in the community.  It’s a great shame that they recently lost a substantial contract with Conwy Council’s environmental department but being innovative, hard working and practical I’m certain that they will continue to grow and develop despite this setback.

We will be in Marl this afternoon and I think that the aim is to be in Penrhyn Bay this evening.  

Guto

The Liberals are very proud of Vince Cable.  Their candidate here in Aberconwy is of the view that he does not need to know anything about the economy because Vince will deal with it!  In the same way our North Wales Liberal AM, Elenor Burnham will invariably hide behind Vince Cable in any debate relating to the economy.

Last week he enjoyed added credibility with a story in the Observer which stated that Treasury officials had called him in to discuss a possible future in which he became a Chancellor in a hung parliament.  It gave further credibility to the Vince myth.

However, today the Telegraph has revealed that the request for the meeting was made by one Vince Cable!  The meeting lasted 20 minutes and now Mr Cable has issued an apology for claiming that the meeting was instigated by officials.  Not a great start to a day when he will be part of the Chancellors debate on Channel 4 at 8pm.

The story is covered here by Iain Dale with a link into the Daily Telegraph coverage.

Guto