News
Years of plenty over, says Davies
11 March 2009
Years of plenty over, says Davies
Finance minister Andrew Davies has warned that year-on-year Assembly Government spending increases are over and that efficiency savings must be made if services are to improve. Estimates indicate public services in Wales may have £500m less to spend next year, partly because UK government cash has been diverted to rescue the economy.
Davies said on BBC TV: "The years of plenty have come to an end and we need to be planning for some lean years ahead. There has been significant progress, but clearly we've got just over a year to plan for a very difficult financial environment and we need to make some significant progress." Davies suggested savings could be made by removing duplication of effort between Wales' 22 local councils, and a clearer focus by Assembly Government departments on services rather than budgets.
Trade unions say investment in public services must continue if Wales is to fight its way out of the recession. Unison's Welsh secretary, Paul O'Shea, has insisted that the public sector remains the "engine room" of the Welsh economy. "If communities lose public sector jobs, then people stop spending. If people stop spending, then manufacturers stop making things - it's a vicious circle," said Mr O'Shea. "The public sector is the engine for recovery in this recession."
