The Federation of Small Businesses in Wales has called for the Welsh Government to be more accountable for its spending decisions.
The body, which represents 10,000 Welsh businesses, will raise the issue today at a planned meeting with UK Welsh Secretary David Jones about borrowing powers and UK Government investment in infrastructure.
FSB Wales has said it will impress on the Secretary of State for Wales the need for any moves towards greater fiscal autonomy, including the acquisition of borrowing powers, to be matched by more effective governance arrangements within the Welsh Government.
The FSB will also call on the Welsh Government to establish a ‘Wales Treasury’ function to provide clear evidence of how its public spending decisions are contributing to economic development.
FSB Wales will state that, whilst borrowing powers for Wales are welcome, its members want assurances from the Welsh Government that its governance arrangements are transparent and will allow for robust scrutiny of how its spending results in economic growth.
Iestyn Davies, head of external affairs for the Federation of Small Businesses in Wales, said: “Our members recognise that, at present, we have a situation where the Welsh Government does not have to be wholly accountable for its spending decisions as the amount it receives from Westminster through the block grant remains largely the same, regardless of how it spends its money.
“Today, the FSB will tell the Secretary of State that, whilst it is fully behind Wales receiving borrowing powers, both he and the Welsh Government must recognise that this, and any further move towards fiscal autonomy, must come alongside more effective governance arrangements, such as a ‘Wales Treasury’ function.
“This will ensure that its powers, including those to borrow, are used in a way that is sustainable and entirely cost-effective.”
And, of course, Caerphilly County Borough, in fact Caerphilly Town itself, is the base for the Chairman of this UK body representing businesses in the South East Wales region, Caerphilly Town Councillor Eddie Talbot.
So the Borough is well represented in Federation of Small Business, and, in these important representations on behalf of businesses who are all struggling at the moment to maintain employment of staff and increase job opportunities for the unemployed.
The Federation of Small Business is quite right to urge financial probity and transparency ahead of any changes to the way the Welsh Assembly acquires and spends public money. As an FSB member I do not agree that the changes, allowing borrowing for Wales, are entirely a welcome development. So long as any changes are concurrent with an underpinning of arrangements for public scrutiny my fears are allayed somewhat, a Welsh treasury department is surely a ‘must have.’
Let us hope that the Secretary of State listens carefully to the views expressed by the FSB and acts upon them.
The SoS is an old-style Tory who really wants the Assembly to shut up shop. Such Tories still exist in England… although not I think in the Tory group at the Assembly.
Why have anything to do with David Jones, as he is so right-wing it is unbelievable.
Why do the Federation mean by public accountability? At present the FSB are acting like a right-wing Tory pressure group. We should have an election tomorrow: the Tories are so incompetent at the moment that Wales might be turned once more into a Tory-free zone at Westminster.