++ Ynys Môn still poorest place in UK ++

According to the latest GVA per head figures for 2008 released by the Office for National Statistics this morning, Anglesey is still the poorest locale in the whole United Kingdom:

Bottom five GVA per head 2008
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If we compare the bottom five for 2008 with those for 2007 the one bright spot is that at least Conwy and Denbighshire has managed move up and out.

Comparing the Bottom Five for 2007 and 2008
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Personally I'm not surprised to find Ynys Môn still stuck to the bottom of the prosperity league table. I don't know about you but I haven't detected a sense of urgency by the Welsh Assembly Government to tackle Anglesey's economic problems. Just last week we learned that Holyhead is the worst place in Wales to find a job with 7.4 benefit claimants for every advertised job. The latest official data regarding European convergence funding on Anglesey revealed how over three years only 102 new jobs have been created on the Island -- compared to a University of Wales estimate of 2,100 private sector jobs having been lost over roughly the same period. Similarly, the EU JEREMIE funding figures revealed that Anglesey-based companies had received less than 0.1 percent of the total spent in Wales. On top of that, Agriculture -- one of the Island's largest employers -- has been in decline for some time and likely to suffer further due to the expected abysmal uptake of the new WAG Glastir agri-environmental scheme. Do either our current AM or MP have a vision or a plan how to improve the situation...?

The good and the bad news...

I am so used to bearing bad news through this blog that it makes a welcome change to be able to be able to report some good news for a change -- particularly with regards to jobs and the Welsh economy. According to the latest quarterly Manpower Employment Outlook Survey, Welsh employers are finally looking to start hiring again after almost two years of negative intentions:

Employment Outlook for Wales
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Not only that -- and this makes a big change -- Welsh employers are more confident about hiring than any other region in the UK bar the South West:

Regional comparison of Employment Outlooks in the UK
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With the employers in the North West also buoyant about hiring let us hope that this trend also benefits Anglesey and North Wales.

However, predictably, any good news is bound to be leavened with bad news. And yesterday's announcement of the PISA (Programme for International Student Assessment) Test results -- which compares 10,000 15-year-old students worldwide in reading, maths and science -- were seriously bad news for Wales. The results for Wales were the lowest in the United Kingdom and clearly shows that a considerable gap has opened up between the attainment of Welsh students and those from other regions in the UK, particularly in Scotland and Northern Ireland:

PISA Test Results - all ranks out of 67 countries

It is difficult to reconcile these results with the annual procession of ever better GCSE and A-level passes. For a small country on the periphery of the United Kingdom, education is the most important weapon in our armoury to continue creating better, well paying jobs in the future -- however these PISA results show that there are grave problems with the current Welsh education system. This is a subject to which I intend to return.

From Aluminium to Data?

For Sale: the Anglesey Aluminium site in Penrhos,  Holyhead

If you have deep enough pockets, below you can find the sales prospectus for Anglesey Aluminum's Penrhos site near Holyhead. The total land comes to 33.5 Hectares (184 acres), with 114,781 sqm (1,235,500 sqft) of internal floorspace within the various buildings on the site. AAM will continue to operate a re-melt facility at the site on land rented back from the eventual purchaser. Furthermore, a portion of the land has been earmarked for a biomass plant pending planning permission. AAM have already commenced the decommissioning of the remainder of the site which will take up to 18 months to complete. According to the Daily Post, offers are expected in the region of £10m -- the equivalent of approx. £54K per acre.

Apparently the site has already attracted significant interest from energy and fabrication firms -- indeed, the sales prospectus confidently informs readers that "Expressions of Interest are to be submitted ... by 12.00 Noon on Monday 10th January 2011", in triplicate.

One of the most important aspects of the site's infrastructure is its direct 120MW connection to Wylfa nuclear power station. When operational, Anglesey Aluminium used to use up to 20% of the total electricity consumed daily in Wales. Accordingly possibly the most suitable use for the site would be for a business which requires both huge amounts of energy coupled with an uninterruptible connection to the grid. A regular commenter on this blog has suggested that a Data Centre could fit this bill.

The trend towards cloud computing means that Data Centres -- gigantic, secure facilities which house thousands of computer systems and servers -- are becoming more and more important. Indeed one such plant, the £200m Next Generation Data Centre, was recently completed with some WAG support on the site of an ex-LG factory in Newport, South Wales. As the AAM plant already enjoys a direct electricity supply from Wylfa, has potential access to the "fibrespeed" fibre-optic network already installed at the adjacent Parc Cybi, and access to sea water for cooling purposes, might a Data Centre not only be a suitable use for the site but also provide much needed skilled work in the region too?

Anglesey Aluminium For Sale

WAG orders Anglesey and Gwynedd to collaborate

WAG Local Government Minister Carl Sargeant has told Anglesey and Gwynedd councils to find ways of collaborating and sharing resources together in order to jointly deliver services and save money. If that sounds like a merger of the two councils, Carl Sargeant in a written statement (below) is at pains to point out that that is not the case, stressing the following points:

• it is not about merging the two authorities;
• it is not a "take over" by Gwynedd; 
• and it is "not primarily a response to or a solution to Anglesey's [governance] problems." 

Its worth noting however that the use of the word 'primarily' does clearly indicate that WAG sees some form of greater collaboration with Gwynedd as a partial solution to Ynys Môn's issues. This is reinforced by this section of the statement: "if Anglesey’s members and officers show the leadership and commitment necessary to make it succeed, it will be powerful evidence of progress towards a sustainable recovery." Presumably the implicit message here is that not showing such "leadership and commitment" would indicate the opposite.

What will this mean in practice? Well, Carl Sargeant notes that Anglesey and Gwynedd already have a good record of working together, having operated a single education support service for many years and are currently also cooperating in developing a new joint Local Development Plan. However he wants both counties to go much further and look at "the full integration of major services" and "moving towards a shared senior management team". This means that in all probability there will be no direct successor to Anglesey's Interim MD, David Bowles -- the highest paid civil servant in Wales.  Instead it is now far more likely that Gwynedd Council chief executive, Harry Thomas, could become the joint head of both Councils. Furthermore in order to unlock the kind of savings which Sargeant is after, there would also presumably need to be further rationalisation of Service Heads between the two councils.

Councillors will not be effected -- Sargeant's statement says, "I have no wish to reduce democratic autonomy; I want to help safeguard essential services. If this programme is implemented, both councils would continue to exist as separate democratic entities. Councillors would have the same range of responsibilities as they do now, and would be accountable to local people in the same way."

The Leaders of Anglesey and Gwynedd councils, Clive McGregor and Dyfed Edwards, have already issued a joint statement indicating their "willingness to consider" moving forward, and a joint 'scoping study' will now take place to identify exactly what collaboration of services and senior management is possible. The results of this study will be reported back to WAG in February 2011.

Personally I am in favour of greater collaboration and greater sharing of resources between the two councils. It is clearly not acceptable for taxpayers in the UK's poorest locale to pay the wages of Wales's most expensive civil servant. However, as I have often argued in this blog, I would be against any kind of more wide-ranging merger of the two councils. It is imperative that Ynys Môn retains its separate identity as I don't believe that its quite specific needs and problems could be addressed as effectively by a larger, 'super-council'.

You can read the full statement by Carl Sargeant, and the terms of reference of the scoping report below.
Written Statement by the Welsh Assembly Government

Helping Holyhead and Ynys Môn to create jobs

According to figures compiled by the GMB Union, Holyhead has the most jobseekers per vacancy in Wales. This month there are 781 unemployed claimants in Holyhead chasing just 105 unfilled job vacancies -- a ratio of 7.4 potential applicants per job. Bangor, Caernarfon and Llangefni are in 17th place, with 2,138 unemployed claimants chasing 1,077 job vacancies -- a ratio of 2 applicants per job.

Holyhead in particular was severely hit by the recession -- two of its largest employers, both of which had been operating in Holyhead for well over 35 years -- closed within three months of each other at the end of 2009:

• Anglesey Aluminium started smelting in 1971 and continued production all the way through the 80s and 90s, only closing with a loss of 450 jobs in September 2009
• The Eaton Electric plant in Holyhead opened in 1960 under the name Midland Electric Manufacturing Company, it operated all through the 80s and 90s and closed in December 2009 with a loss of 250 jobs

Between them they directly accounted for 700 jobs, not including all the other jobs in small suppliers, support industries, and shops which depended on their trade.

Large companies like Anglesey Aluminium and Eaton Electric cannot be replaced overnight, and it is for that reason that the economic wellbeing of Holyhead and Anglesey must rest with its indigenous small businesses -- a point explicitly addressed in the People's Manifesto:

"the Council needs to recognise that the Island’s economic future rests on promoting and supporting multitudes of small businesses - not just one or two large employers. Accordingly the Council must: (a) avoid supporting developments which merely contribute to the cannibalisation of sales from existing small businesses and shops; (b) prioritise reducing the bureaucracy and costs involved in running small businesses on the Island; (c) provide meaningful and high-quality support to encourage both the growth of existing small businesses and the establishment of new ventures."

Not only does this make good common-sense, it is also backed up by research: for example studies show that nearly two-thirds of all net new jobs in the United States in 2007 were created by companies less than five years old. Therefore it is clear that a country such as Wales which suffers from an under-developed private sector should strategically focus on providing support to its small businesses as a way of growing the number of private sector jobs.

Unfortunately the economic development policies currently being pursued by the Welsh Assembly Government -- Ieuan Wyn Jones's "Economic Renewal Programme" -- do the exact opposite: i.e. they support a few large employers in Wales at the expense of the multitudes of small businesses. It has done this by limiting the amount of economic support available and then restricted it only to companies operating in six "key sectors":

• Creative industries
• Information Communication Technologies
• Energy and Environment
• Advanced material and manufacturing
• Life Sciences
• Financial and Professional services

How were these sectors chosen? Nobody knows. The majority of companies operating in these sectors are not small companies. And most importantly to us, none of them (with the possible exception of energy companies) are well represented on Ynys Môn as is clear from the following breakdown of workplace employment sectors in Anglesey and North Wales:

In case you can't read the key: the sectors (left to right) are: Public Administration, education,
health and other services; Agriculture, hunting, forestry and fishing; Production; Construction;
Distribution, transport and communication; Finance and business services. (Source: WAG)

As you can see: Anglesey has a large distribution and transport sector thanks to Holyhead port, fair sized construction and production industries (although this data was collated before the closure of AAM and Eaton, etc.), and the largest proportion of people in North Wales working in areas related to agriculture and food production. None of these sectors are supported by the Economic Renewal Programme and therefore do not qualify for any support. Financial services are supported but, as you can see, Anglesey has the lowest proportion of these companies in the whole of North Wales.

As Anglesey has the highest proportion of people working in Agriculture sector in North Wales it is also important to note that there are severe problems here also. Single Farm payments are denominated in Euros, whose value is falling against sterling because of economic turmoil in Europe. Furthermore the current existing WAG agri-environmental schemes (Tir Gofal, Tir Mynydd, Tir Cynnal, and the Organic farming Scheme) are in the process of being phased out and replaced by the over complicated and widely derided Glastir scheme.  Indeed at a meeting I recently attended of the Anglesey Grassland Society, out of approximately 40 farmers present, only one said he was applying for Glastir. There is trouble ahead.

So what can be done to help the situation in Holyhead and the rest of Ynys Môn?

• WAG needs to change its focus to supporting our small indigenous Welsh businesses. It can do this by reviewing the focus of the Economic Renewal Programme and also by reviewing Business Rates -- which are currently higher in Wales than anywhere else in the UK. (the Welsh Conservatives plan to take all small companies with a rateable value of less than £12,000 out of paying business rates all together).
• More needs to be done to ensure that European funds like JEREMIE (of which Anglesey firms have so far only received 0.1% of the funds available in Wales) are better advertised and taken up by Anglesey companies.
• Closer to home, Anglesey County Council needs to recognise the dangerous effect which expanding the number of pay and display car parks will have on struggling town centre businesses. Gwynedd Council has made all car parks free during the Xmas period to help their small businesses -- why can't we do the same here? I will be pushing the Council to reconsider parking charges entirely.
• Noting the importance of Agricultural and food-based businesses in particular to Anglesey, WAG needs to consider the effectiveness of Glastir. Closer to home we need to look at how we can promote Anglesey produce better.
• Tourism will become more and more important to the Island. I have already discussed here what can be done to help the industry on Anglesey.
• And finally, Planning policies on the island needs to become more business friendly. Present policies are based on the adopted Ynys Môn Local Plan (1996) and the stopped Unitary Development Plan (2005) -- both of these documents are seriously outdated in all areas. Accordingly we need to ensure there is sufficient consultation into the new Local Development Plan (currently being jointly produced with Gwynedd Council) to make sure that planning represents Anglesey's modern needs.

If you have any more ideas or suggestions, please do let me know.

Anglesey Recovery Board - latest report to WAG

Below you can find the latest report by the Anglesey Recovery Board to the WAG Minster for Local Governmen, dated July 29th. A quick summary is set out below:

• The political situation has stabilised following the formation of the Alliance, although the Board notes that, "the focus of the Council in the past two or three months has again been on member behaviour".
• The Board further notes that, "it is becoming clear that that the naming of two councillors in the Alliance’s terms of engagement remains a significant issue of contention between the Alliance and the opposition" and goes on to "urge the Council to dispose of the two existing Ombudsman complaints as soon as possible. Then, all councillors could move on to addressing the very real problems that the island faces".
• Discussing the decision to work on a joint Local Development Plan between Anglesey and Gwynedd, the Board hints that this may be the first of many similar collaborations with other Local Authorities: "We also believe strongly that there are a range of other opportunities for increasing the amount of joint working and collaboration between the authorities in line with developments elsewhere in North Wales ... In any case, developing these sort of arrangements will be an inevitable and essential part of the Council’s response to dealing with the service challenges resulting from fewer resources."
• Bryan Owen, Leader of the Original Independents highlighted that, "opposition members were afraid to offer challenge in the Council chamber in fear of being regarded as undermining the work of the Council." In response the Board states that, "It should be made absolutely clear that offering constructive criticism is welcome and we would urge all members, inside and outside the Alliance, to act accordingly in the interests of maintaining an effective and well ordered democratic forum."
• The report ends by noting, "despite some good work, it is still a time of considerable tension within the Council, exacerbated by the particular form of the terms of engagement."

You can read the whole report below and an archive of all the Recovery Board reports can be found here.
Anglesey Recover Board 7th Meeting

Making sure Ynys Môn benefits from the Royal tourism boost

Bring them home: the Llyn Cerrig Bach treasures represent
some of the finest Celtic Iron Age implements ever
found in Europe.  (Image: National Museum of Wales) 

As I'm sure all readers are aware, a certain Fl Lt Wales, a pilot based at RAF Valley, announced plans to marry long term girlfriend Kate Middleton on April 29, 2011. Following that they intend to continue living on the island until he completes his stint at Valley. Obviously this is fantastic news for Ynys Môn as it will likely result in a significant boost in the number tourists and visitors coming to the Island from all over the World. Accounting for approximately £215 million per annum, tourism is becoming an increasingly important part of the Anglesey economy and we have to make sure that we are able to use the Island's royal connections to our best advantage.

Anglesey has been blessed with fantastic scenery and views, over 120 miles of coastline, and some remarkable heritage sites -- however despite this it has long been apparent that the Island has punched below its weight in terms of attracting visitors. We now have a short window of opportunity whilst Prince William is on the island to try to address these issues, and below is a list of things I will personally be pushing for:

• Anglesey County Council currently runs a number of visitor attractions on the Island, including the Holyhead Breakwater Country Park, Melin Llynnon, Beaumaris Gaol and Courthouse, Moelfre Seawatch Centre, and the South Stack Lighthouse. However, earlier this year the council announced plans to review whether it would continue to manage them citing, "the cost of running these sites is more than the income they generate". In my opinion, this is a very short sighted policy considering the expected Royal visitor boost over the next few years. The council is in danger of shooting the island's long-term economic development goals in the foot for the sake of short-term savings, and accordingly I believe the council should urgently review this policy.
• One of the few things which most people know about Anglesey is that it was once the home of the mystical celtic priestly class, the Druids (real ones, not blogging impostors like me). When you consider this is the era of Harry Potter and magic, it has always seemed odd to me that there is not a single tourist attraction on Anglesey to celebrate and inform regarding this unique part of our history. To this end I intend to campaign for the permanent return of the Llyn Cerrig Bach treasures from the National Museum of Wales in Cardiff and have them put on permanent display here in Anglesey.
• Many visitors have told me that one of their frustrations about visiting Anglesey is that there is nowhere they can sit, for example, by the Menai Straits and have a good lunch or dinner whilst enjoying the incredible views. The scenery on Anglesey looking across to Snowdonia is one of our strongest selling points and we have to do more to allow restaurants and cafes to be built in places where tourists (and locals) would like to eat.
• As an Island, Anglesey should be the natural home of water sports in North Wales. Rhosneigr has already enjoyed some considerable success as a surfing destination, but more needs to be done throughout the Island to promote other water sports such as yachting, canoeing, fishing and so on.
• One of the 'big ideas' in the People's Manifesto was the creation of a unique, large-scale attraction (possibly at the council owned Rhosgoch site) which could be developed as a cross between a Centre Parc, the Eden Project, and the Coed Y Brenin mountain biking centre. The reasoning being that such an attraction would play to Anglesey's strengths (i.e. its suitability as a water sports venue, coupled with its proximity to walking opportunities in Snowdonia) and have the potential to attract visitors from Liverpool, Manchester, and the Midlands without cannibalising existing businesses in the way, for example, a retail park would. In our straightened times funding for such a venture will be limited, but I think the idea itself has great merit and should be investigated further.
• Tranquility-seeking tourism is becoming a big market -- especially when linked with being able to see the night sky. Due to the huge amount of street lighting in most cities, it is becoming increasingly difficult for people to enjoy starry nights. Anglesey should seek to control 'light pollution' so that our starry night sky also becomes another reason to visit Anglesey.
• Finally, Anglesey needs to develop a short-term tourism strategy which recognises the opportunity of Prince William's presence and strategically promotes the island's unique features to those living within 2-3 hours drive.

If you have any more ideas, I would love to hear them.