7. 7. Welsh Conservatives Debate: Borrowing and the Economy

Part of the debate – in the Senedd at 5:21 pm on 10 May 2017.

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Photo of Ken Skates Ken Skates Labour 5:21, 10 May 2017

I’d agree with Adam Price about regional equality across the UK, and that’s why we’ve been clear in outlining an intervention in Wales that will be based on place-based solutions at a regional level, creating strong regional economies to spread the wealth in a genuine way, which the UK Tories should look at. The Member calls attention to borrowing too much. The Tory Government between 2010 and 2015 had borrowed more than £500 billion, and what did they have to show for it? Well, let’s just have a look at what they had to show for it: the bedroom tax—they gave us a bedroom tax, didn’t they? And the pasty tax. Remember the pasty tax? They’ve now messed up taxes for the self-employed. They gave us, in the past, of course, the infamous poll tax. Do you know what they’re known as in Clwyd South? Taxastrophe Tories. That’s what they are. They’re the masters of higher value added tax. They touted the tampon tax. You cannot trust the Tories with taxes or with public money.

Deputy Presiding Officer, it’s absolutely clear from the calls that we’ve made on the UK Government that austerity must end. We need a fiscal stimulus to support our public services and to increase investment to much-needed economic activities, especially now as we face an unprecedented challenge that requires an unprecedented response. Investing in infrastructure has been recommended by a broad range of bodies, including the Organisation for Economic Co-operation and Development and the International Monetary Fund. The IMF has repeatedly said that, over the years of Tory Governments, there’s been underinvestment in infrastructure, which must be addressed. The advice from the OECD has been for countries to take advantage of low borrowing costs to fund public investment. Infrastructure investment is a priority for this Government, reflecting evidence that, second only to higher skills, good infrastructure is key to economic development. We’ve sent a clear signal to the market that Wales is open for business, with the commitment of a pipeline of major public-private partnerships. This pipeline includes the completion of the dualling of the A465, the construction of a specialist cancer care facility, and an additional tranche of investment in the next phase of twenty-first century schools.

Deputy Presiding Officer, our track record of supporting 150,000 jobs in the last Assembly term, of fighting for a future for the steel industry, of preventing more than 15,000 young people from experiencing unemployment, of securing record inward investment, highlights that this Welsh Government will continue to stand up for Welsh interests.