21 February 2010

Spring Conference 2010 Speech

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Conference, during the last thirty years our communities have been subjected to Thatcherite doctrine. Twenty years of Conservative rule only to be replaced by Blair and Brown – the sons of Thatcher. In 1997 communities across the UK were crying out for change – but essentially the so called Third Way was the old Thatcherite way. The city was allowed to run riot; Peter Mandelson infamously declared that he didn’t care if people got filthy rich, core macro economic policy continued to based around the economic elite of the square mile. Traditional producing economies such as ours were rewarded by Labour for a century of loyalty with the loss of well over a million manufacturing jobs. If Brown and Blair were the sons of Thatcher – then what does that make Cameron and Osbourne? Friends, the line of descent is a long one and it’s time to break the lineage and the legacy. The choice between the Tories and Labour is no choice at all. They are the parties of the super rich and exist to protect the wealth and status of their city paymasters.

When it comes to responsibility for the recession, there is little doubt that Labour is guilty as charged. In accepting the core economic policies of their Tory predecessors the financial sector became even more dominant over the UK economy as a whole. The so called golden goose became a noose over economies such as ours. Even after the recession inner London continues to be the richest part of the European Union with a GVA rate of well over 300 percent of the EU 25 average. Whilst West Wales and the Valleys, less than a couple of hours down the M4 is one of the EU’s poorest regions with a GVA of 70%. Isn’t is a disgrace that the £1.3 trillion banking bailout means that ordinary working people from our communities are effectively subsidising the multi million pound bonuses of the reckless bankers that caused the recession. It’s a double insult that the banking bailout will be paid for by an equally careless public sector cut which will disproportionally damage the economies of areas such as Wales’ and reduce the living standards of those vulnerable people dependent upon public services. The downturn was more severe here as a direct result of Gordon Brown’s failed economic policy – why can’t he be man enough to admit his own culpability? Perhaps there are some mistakes that are too big to admit to. Or perhaps the Labour party is so collectively vain that they believe their own propaganda.

Even after the complete collapse of New Labour’s economic credibility – They refuse to stand up to the city. Even after the radical policies brought forward by the US Government to divorce commercial and investment banking – a policy we immediately called for after the collapse of the financial system – New Labour drag their feet. You would think that the British Bankers Association was directly composing UK Government economic policy. Well we say here today that there can be no return to business as usual; that we can not have banks and financial institutions that are too big to fail; that the economy can not be held to ransom by a handful of greedy speculators; and never again should taxpayers be forced to step in to bail out casino bankers and spivs.

Which brings me to the Tories, the public debt is a serious issue – losing the triple AAA credit status would be of symbolic importance and potentially could make Government debt more expensive. But let’s not forget that the NHS was born in the aftermath of the Second World War when public sector debt as a percentage of GDP was nearly double what it is now at 150% compared to today’s level 80%. Japan has a public debt level of 198% of GDP and it continues to be able to borrow at favourable rates.

Basing fiscal policy solely on deficit reduction before the economy has stabilised is irresponsible. An overt fiscal strengthening policy and monetary tightening will inevitably lead to a double dip recession with the public sector reliant economies such as Wales bearing the brunt.

Talking up the public debt is a political tactic by the Tories that serves two political objectives. Firstly it highlights economic mismanagement -quite why Labour are also talking up the imperative of deficit reduction I don’t quite know – as they are effectively highlighting their own incompetence. Secondly, let us be under no illusions, the Tories will use this deficit as a mandate to pursue their life ambition of declaring war on the public sector. Tory Shadow Cabinet Members are at this very moment gleefully overlooking where they could wield the axe. It will be be messy and uncoordinated as new Tory Ministers look for the biggest Telegraph and Daily Mail headlines during the so called ‘war on waste’. The real priority should be stabilising the economy and ensuring a return to sustainable growth. Removing the floorboards will take away the economy’s life support. It is of huge concern how quickly the dutch auction amongst the London parties surrounding public sector cuts has become the new orthodoxy.

Contrast this with the manner in which our Leader Ieuan Wyn Jones has responded to the economic crisis. By choosing the economic portfolio in 2007 when we formed the Welsh Government, Ieuan took on the most difficult and challenging role. Most commentators at that time knew that London New Labour’s excesses were about to be come to a head – we all knew that the economy at UK level was heading for a difficult period – admittedly we didn’t know quite how bad things would get with the complete collapse of the financial system. We also knew that every downturn affects economies such as ours worse – most of our communities haven’t recovered from the Tory recessions of the 80s and 90s. We also knew that the Welsh Government currently has precious few economic tools – and that the fate of our economy is mostly determined by UK Treasury policy. Yet Ieuan showing true leadership decided to take the challenge head on. His response has been to invest in the people of our country by keeping as many people as possible in work through the React and Proact schemes and up skilling the workforce; he developed an all Wales economic strategy and he has just completed an economic renewal programme that prioritises investing and developing our existing businesses and enterprises. This recession will yet again be more severe in areas such as Wales. It will always be this way whilst the key policy leavers are held by those that treat our communities as an afterthought. But the work Ieuan has done as Economic Minister has made sure that the limited power at our disposal here in Wales has been used to limit the damage of London Labour’s recession.

Labour have based their election strategy on trying to out Tory the Tories – it is doomed to fail. They are skiing down an electoral black slope with a mile long crevasse at the bottom. The best they can hope for is a hung Parliament.

In a few months time it is likely David Cameron will be Prime Minister. Having abandoned their principles for power – and without the glue of government to hold them together the Labour party will implode. In the face of a reckless London Tory Administration– it will be up to Plaid to stand up for the communities of Wales. We have to be ready for the challenge of leading our country through the trials ahead. Our self determination – our conviction – and our resolve will make a clear case that the alternative to a Tory London Government is not another tory light Labour Government in London but the growth of Welsh democracy and sovereignty. This is our chance to create our own history and create a better future for our communities.

My message today to the people of our country is this. The London parties have had their chance and failed. They offer the same old botched policies of the past. They have lost all credibility. Cameron, Brown and Clegg are cut from the same cloth.

The people of Wales face a distinct choice come the General Election:

Whilst the London parties prioritise the economic establishment we will prioritise the people of our country.

Whilst the London parties base economic policy on appeasing city creditors we will base policy on rebuilding our economy and redistributing wealth to create a more equal society.

Whilst the London parties spend money on a new generation of nuclear weapons, draconian ID cards and tax breaks for the super rich – we will lift our pensioners out of poverty.

Plaid is the only party at this election offering a policy programme based on the hopes and aspirations of our people. Think different and join with us, and together we can build a modern future based on fairness, justice and prosperity.

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