NORTH WALES AND RAILWAY INFRASTRUCTURE

Last week, the UK Government made its long awaited announcement on the future of the railway infrastructure.

Describing it as the biggest investment in the railways since Victorian Times, it committed £9billion to upgrade transport links across the country.

For Wales, the main Great Western line between London Paddington and Swansea is to be electrified, cutting 20 minutes off the journey. 

There is also going to be electrification of the South Wales Valleys lines, ensuring quicker access from some of the most economically deprived areas in the UK. And, more importantly, both of these investments complement the Welsh Government’s decision to award city region status to Cardiff and Swansea as a catalyst for attracting investment. 

Whilst this is great news for the Welsh economy as a whole, those living in North Wales must wonder what they need to do to attract similar attention from Westminster and Cardiff Bay.

The good news is that the Secretary of State for Wales has made it absolutely clear that she will now be focusing on upgrading key routes in the North, including those to conurbations in North West England which, according to the latest census have arrested decades of decline and are actually growing again.

For example, Liverpool has recorded a 6 per cent growth in its population in the past decade, whilst Manchester recorded an increase of 19 per cent. Connecting North Wales to these growing urban areas are vital in getting both individuals and businesses to markets and job opportunities.

However, the holy grail in terms of attracting real investment remains the link to London. The fact that it takes the same time to travel between Bangor and Crewe on a diesel train as it does on the electrified route between Crewe and Euston, despite the former being only half the distance of the latter, speaks volumes for what can be done.

So how do we ensure that transport in North Wales is fully upgraded in the future?

One of the highlights of the campaign for electrification of the railways in South Wales was the way in which businesses, civic groups and politicians of all persuasions came together to make a strong case for the upgrading of the transport links. However, I would argue that this joined up approach in lobbying the Welsh and UK Governments for further investment has yet to happen in North Wales. 

And while some may argue that we have missed the boat on obtaining significant funding for transport, I still believe that there remain various opportunities to obtain the estimated £300m needed to upgrade the railway infrastructure in North Wales.

For example, it is likely that the poorest parts of Wales, including Anglesey, Conwy, Denbighshire and Gwynedd, will qualify again for the highest level of European Structural Funding. Under such circumstances, and given the fact that the UK Government is picking up the tab for rail improvements in South Wales, one would hope that the Welsh Government will prioritise these funds to pay for a large proportion of the transport links needed in North Wales, thus ensuring a lasting legacy from the billions of pounds of European funding allocated to the region.

And by working closely with the Irish Government, it must also make sure that those road and rail links across North Wales, and that form part of the transport network that connects Dublin to mainland Europe, get their fair share of the £50bn that will be allocated by the European Union to core transport routes in 2014.

So, the hard work begins now and it is critical that the local business, political and civic communities across North Wales come together to make a strong case, as happened in South Wales, for the region to get the attention and funding it deserves in terms of transport infrastructure improvements. (Daily Post column, 23rd July 2012)

WALES, REGIONAL ECONOMIES AND LEARNING FROM THE USA

Last week, a major economic study was released in the USA that received very little publicity on this side of the Atlantic.

And it came from a very unexpected source, namely the group that represents the governors of all fifty American States, namely the National Governors Association (NGA).

With national governments focusing largely on issues regarding the global economy and how to emerge from the financial mess that has engulfed much of the Western world over the last five years, administrations at a state, regional and local level are looking to take greater responsibility for economic development, especially in encouraging their local indigenous business base to grow.

The study, entitled “Growing State Economies”, provides ideas and options to help states to develop those policies that can encourage entrepreneurship and innovation. Drawing on evidence from academics, research foundations and, most importantly, the business community, it develops a framework to help the private sector to expand and create employment.

The report is the brainchild of Governor Dave Heinemann of Nebraska, who last year challenged the other forty nine states wishing to promote entrepreneurial activity and business growth to identify the innovation and industrial assets of their region; determine the best policy strategies to take advantage of their assets and strengths; facilitate relationships between groups such research institutions, investment funds, industry associations and professional networks as sources of ideas, funding and advice; and provide the education and training needed to prepare the next generation of entrepreneurs and business leaders.

To do so, it looks to exemplars of practical policies that have made a difference to each state economy. This includes tax credits offered by Arizona and Nebraska to investors in new businesses that produce medical devices, renewable energy and other high-tech innovations; a commission in New Jersey aimed at eliminating red tape; state-funded research labs in Oregon; and how small businesses in North Carolina and Washington could be helped in expanding into the international market. But this is only is this a report that builds upon best practice from each individual state, from Washington to Florida.

It also provides a set of policy guidelines that should be of interest to devolved governments and city regions within the UK. And being authored from the World’s largest economy, you would not be surprised to learn that it sees the key to economic growth as having as many innovative, productive and globally competitive businesses and workers as possible within each state’s borders. To achieve this, the report examines how governments at a sub-national level can help more start-ups launch and grow, assist firms to gain access to skilled labour, finance and international markets, and encourage new ideas and new technologies to gain acceptance in the marketplace, especially through the development of regional clusters.

As I am sure many of you will agree, none of this is rocket science but what the NGA has managed to accomplish, which many other public bodies have failed to undertake across the World, is to articulate a clear and simple vision of how public policy can support these different priorities that can generate and support economic growth.

It also demonstrates, with Republican and Democrat governors coming together to support this initiative, that there are lessons to be learnt by the different administrations in the UK on putting economic pragmatism above political differences, especially at this time in the global economic cycle.

There is much to learn from this report and, during the next few weeks, I will be focusing on some of the main policy conclusions and their potential impact on the economy. Indeed, with the Welsh government promoting the concept of city-regions and North Wales looking for greater economic co-operation across the six local authorities in the region, there may be much to learn from what is happening at a state and local level across the Atlantic.