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The UK Cabinet met in Cardiff yesterday. Good news as well as a response from business leaders. |
Source the Office for National Statistics
As UK Gross Domestic Product (GDP) decreased by 0.8 per cent in the second quarter of 2009, compared with a decrease of 2.4 per cent in the first quarter Gordon Brown brought the UK Cabinet to Cardiff,Wales.
The FT said "Britain’s economy contracted in the second quarter, marking a full year of decline sharper than any since the 1930s barring that of second world war and its aftermath."
As the Cabinet were convening a number of business asked Lord Mandelson yesterday to look at the business intelligence of public officials and how creative and responsive civil servants should or can be to business. Lord M thinks he can still swing business to vote Labour.You must admire the courage but he did listen.The MP and Assembly Member present faced up to real questioning. The Cabinet Business Secretary appeared not to have been briefed properly on businesses in Wales."Unresponsive civil service" according to the business leaders at the meeting.
The great news of the electrification of railways from London to Swansea was welcomed. It will however as one businessman reminded us, who lives in Bwlch in Powys ," ... take 10 years".But it is a start.
One area UK Government can continue to address is construction where output decreased by 2.2 per cent, compared with a decrease of 6.9 per cent in the previous quarter.
One of the biggest Industrial Parks in Wales Treforest is 30% unlet compared to similar sites in England which are 10% unlet.Let's build on it and update facilities. Good news too for an International Business Park on Junction 33 of the M4.
Total production output declined in the second quarter, decreasing by 0.7 per cent, compared with a fall of 5.1 per cent in the previous quarter.
Electricity, gas and water made the largest contribution to the decline falling by 3.8 per cent, compared with a fall of 3.7 per cent in the previous quarter. Manufacturing output fell by 0.3 per cent compared with a decrease of 5.5 per cent in the first quarter.
We have only one coal mine in Wales operated by Energybuild plc(AIM listed). This is in Peter Hain's constituency.http://www.energybuild.co.uk/. It employs over 200 people and operated efficently by Rhydian Davies the CEO and his team.This company could be offered more investment.
Mining and quarrying fell by 1.0 per cent compared with a decrease of 3.6 on the previous quarter.
Services output weakened by 0.6 per cent compared with a fall of 1.6 per cent in the previous quarter. Business services and finance contributed most to the decreased rate of decline.
In Wales we had the Ashes series and Hotels/Leisure hasdone well in July in Cardiff.The Cabinet met at the SWALEC Stadium yesterday.
Distribution, hotels and restaurants fell by 0.5 per cent, compared with a decrease of 1.5 per cent in the previous quarter. Wholesale and motor trades contributed most to the decline.
Transport, storage and communication fell by 2.1 per cent, compared with a fall of 3.0 per cent in the first quarter. Land transport and transport support made the largest contribution to the decrease.
Business services and finance decreased by 0.7 per cent, compared with a decrease of 2.5 per cent in the previous quarter. Computer Services made the largest contribution to the fall.
Government and other services output decreased by 0.2 per cent, compared with positive growth of 0.2 per cent in the previous quarter. Public administration and defence made the largest contribution to the decrease.
Agriculture, forestry and fishing output decreased by 2.3 per cent compared with a fall of 0.1 per cent in the previous quarter.