Spending focus ahead of 'summit'

Hundred of Budelpack Cosi workers in Maesteg, have already lost jobs

The Welsh assembly government is holding its third economic summit, after a series of major jobs losses in Wales over the last month.

Ministers say hundreds of millions of pounds in spending commitments have been made since a first crunch meeting in October.

But the last few weeks have seen more than 4,000 Welsh jobs cut or at risk.

Conservatives are warning that Wales is suffering more than other parts of the UK and could take longer to recover.

But the assembly government is highlighting £877m of commitments aimed at tackling the impact of the world's economic meltdown.

It includes investments of £350m for 19 projects which include affordable housing, rail and road links, school buildings and the health service.

There is also £160m being pumped into Heads of the Valleys regeneration, the SA1 development in Swansea and research in Welsh universities.

We need to know how much of this money is new investment and how much is simply already planned expenditure Jonathan Morgan AM, Conservative

"This is a global economic slowdown from which no country in the world is immune," stressed First Minister Rhodri Morgan.

"Wales is inevitably adversely impacted by the unprecedented volatility in financial markets and in the real economy.

"This investment shows that we are taking swift, practical and collaborative action to support families, businesses and communities in coping with the downturn."

However, much of the spending announced since October has to be spread out over the next two financial years.

Conservative AM Jonathan Morgan has questioned whether the measures are enough.

"While we welcome all the support government can give to help people and businesses through the economic downturn this sort of creative accountancy is scarcely credible," said the assembly member.

"We need to know how much of this money is new investment and how much is simply already planned expenditure.

"Wales is suffering more than other parts of the United Kingdom during this downturn and as a consequence could take longer to recover from it."

Progress

The latest economic summit on Friday is an opportunity for the assembly government leaders and the Welsh Secretary Paul Murphy to report on progress since their last meeting in November.

However, since then there has been bleak job announcements for Hoover at Merthyr Tydfil, the Novelis Europe aluminium plant near Newport, and the Bosch automotive site at Miskin, near Llantrisant.

Three hundred posts are also set to go at the 118 118 call centre in Cardiff, and 263 posts have gone at the Budelpack COSi cosmetics plant in Maesteg.

But the Deputy First Minister Ieuan Wyn Jones insisted: "We are doing all we can to focus energy and resources on helping Welsh families and Welsh businesses through this economic downturn.

"Many Welsh families are facing an uncertain end to 2008. Our message is that this government is and will continue to do everything in its power to help Welsh communities weather this economic storm.