AMs want better recession plans

Wales has reacted quickly in the recession so far, the AMs say

More longer-term planning is needed to help Wales emerge successfully from the recession, Welsh assembly members say.

The AMs said they want the assembly government to outline how it will use economic levers at its disposal to underpin a post-recession economy.

They said the Education and Skills Department in particular has not reacted as effectively as possible.

An independent review of how the governments worked across policy areas is being urged.

However, the assembly's enterprise and learning committee praised the administration's handling of the downturn so far.

They have produced a list of 16 recommendations designed to help the assembly government improve their response.

Committee chair, Gareth Jones, said: "We found the Welsh government's response to the current economic downturn has done much that is to be commended over recent months.

Pro-Act scheme

"The committee believes, however, that the cross-cutting link between employment and skills, between education and economic development, between knowledge and wealth creation needs to be strengthened if Wales is to have a vibrant future."

In particular, the AMs backed the five economic summits the assembly government has organised in response to the crisis.

They said the summits were "an innovative and effective way of garnering support and stimulating ideas".

The committee members also praised the "rapid introduction" of the £68m Pro-Act scheme which they said will help more than 12,000 employers.

But they added some evidence suggested businesses were already finding the scheme's application process was "bureaucratic" and that "too few companies were benefiting from it."

Cross-portfolio working

Also in their list of recommendations, the AMs say they believe the assembly government should following the Scottish Executive's example and provide more business rate relief, which could help businesses throughout Wales.

They say the administration should restart work on its manufacturing strategy with a view to begin implementing it in the second half of 2009.

They also say it should invite an independent review of its cross-portfolio working across all areas of government, but with particular reference to the performance of the departments for economy and transport and children, education, lifelong learning and skills.

The assembly committee also says in its recommendations that it is important to remember that the private sector will be a key partner in the procurement of services under the convergence funding projects.

It emphasised the importance of ministers using European funds for sustainable projects "and to underpin a strategic vision rather than short-term emergency support".

It also recommended the assembly government consider a more comprehensive role for Finance Wales to enable it to provide more routine credit to businesses.