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Business Argus

Tuesday, April 8, 2014

Out & About

Student team beats competition for a place at the Young Enterprise finals
THREE teams battled it out at the recent Newport and Monmouthshire regional finals in the Young Enterprise 2014 competition. The team from Rougemont School in Newport, Envico, were named Best Enterprise Company and will go to represent the area in the all-Wales final.

Electrication row is harming the economy

By Richard Selby, cofounder of Langstonebased Pro Steel Engineering looks at an issue which could harm the Welsh economy
THE row currently taking place between the UK and Welsh Government over payment for the Valleys rail electrification is threatening to delay the upgrade of the main line between London and Swansea, potentially harming the Welsh economy. The main line upgrade is due to be completed in two stages by 2018. This development at a total cost of more than 1bn is planned to cut some 20 minutes from the three-hour journey between Paddington and Swansea, as well as using newer, larger trains on the line, designed to boost capacity and efficiency of service. Alongside this main line upgrade, it was also announced the Valleys commuter lines would be upgraded, including the Newport to Ebbw Vale line, and lines to Maesteg and the Vale of Glamorgan. After announcing this work back in 2012, the Department for Transport said once the whole project was completed, two-thirds of people in Wales would be served by an electrified train service from their local station. One business expert even hailed the decision as the most significant investment in Welsh rail since the Severn Tunnel. However, since then, both the UK and Welsh Government have been at loggerheads as to who should pay for the additional electrification of the Valleys commuter lines. In an interview in October, Prime Minister David Cameron said: Its this government thats putting the money into the electrification of the railway line all the way up to Swansea and, of course, the Valley lines. However, it has been reported in a letter to First Minister, Carwyn Jones, from the Prime Minister, that the UK government will pay directly for the electrification from London to Cardiff which is good news for Newport and then the stretch from Bridgend to Swansea. No mention of Cardiff to Bridgend or the Valleys lines, though. This is because the gap between Bridgend and Cardiff and the Valleys lines are initially going to be paid for by Network Rail. It will then recoup the money in the form of charges to the rail operating company that has the franchise

Dr Jonathan Deacon, of University of South Wales, and Ben Glazier, business advisor at Business Wales

Business leaders were out in force at the event

Kath Lewis, Mayor of Newport Cllr Cliff Suller, Damian Phillips

Nikki Thomas, of HardingEvans, and Jay Waugh of Blesio, Duffryn Comprehensive School

Cllr Cliff Suller, Deserie Manseld and James Woodcock, both of Monmouthshire County Council

Kay BrussalisDavis from the South Wales Chamber of Commerce, Vicki Daley Business Wales

Arriva Trains Wales. As theres a substantial subsidy on that franchise paid for by the Welsh Government, it appears the money will ultimately have to come from Cardiff Bay . Yet, the Welsh Government has responded by categorically stating this will not be the case, as infrastructure is not devolved. And this is where we are today . Nobody is giving an inch either way . While it may not be important to many of the public who pays for the line, what will cause concern is the Welsh Secretary saying the dispute is having knock-on effects over electrifying the main line to Swansea. The delay over the Valley lines which includes the section of the main line between Cardiff and Bridgend was causing problems over the upgrade of the route to Swansea, he said. With the row intensifying over the past few weeks, it seems the decision-makers have forgotten the very reason the electrification announcements were made in the first place, to improve the infrastructure in Wales to boost its economic competitiveness. Nearly two years ago, before the announcement was made, groups of large businesses including Virgin Media, Admiral, Amazon and Royal Mail had already met in Swansea to press the case for further electrification. With many businesses already investing in presences in south Wales, this electrification will surely lead to further growth, boosting job crea-

tion and economic prospects in areas badly hit with unemployment, such as Newport and the Valleys. With a business based in Newport, which provides services across the UK, Im sure Im not alone in urging for leaders in both the Welsh and UK Government to sit down on the negotiating table and come to a solution to this dispute. While it is understandable both Governments want to keep their costs down, perhaps they should not have announced this significant work before such critical decisions were made? The Welsh economy, especially in vulnerable areas such as Newport and the Valleys, has been in desperate need of an injection of impetus for some time now, and many thought it would arrive with this investment. Now we are at risk of delays, harming the development of Welsh companies relying on these improvements. A stronger economy here in Wales boosts the strength of the UK as a whole and, as a nation, we need this rail electrification to happen sooner rather than later. With faster and improved infrastructure services, Wales immediately becomes a more attractive investment for businesses. These delays threaten this potential, harming our businesses seeking to compete on national and international scales, exactly why the work was announced in the first place. We must not forget the ends while we discuss the means.

SMEs smart about skills

SMALL business owners in Wales are better educated and keener to increase investment in skills than SME bosses in the UK as a whole, according to the FSB Voice of Small Business Member Survey for Wales. The report that 44 per cent of FSB members in Wales are educated to a degree level, ahead of a figure of 41 per cent in the UK as a whole. Of those, 16 per cent are educated to masters level or higher, with three per cent of FSB Wales members holding a doctorate or equivalent. The survey also suggests SMEs in Wales are more focussed on up-skilling their workforce than those in the wider UK. The study found 28 per cent of businesses in Wales are planning to increase staff training, compared to 25 per cent across the UK. When it comes to apprenticeships, 32 per cent of Welsh SMEs questioned offer government-backed apprenticeships, compared to 29 per cent in the UK as a whole. FSB Wales policy manager Dr Rachel Bowen said: The findings shatter any stereotypes which still exist about small business owners not being keen to invest in skills.

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