tag:blogger.com,1999:blog-4411161795798360588.post3242989496342589220..comments2024-03-26T09:38:39.888+00:00Comments on Borthlas: Regional Pay and GVAJohn Dixonhttp://www.blogger.com/profile/07447224248021209852noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-4411161795798360588.post-9976629991276409682012-02-13T09:55:50.058+00:002012-02-13T09:55:50.058+00:00Anon,
Thanks for that - there are some interestin...Anon,<br /><br />Thanks for that - there are some interesting points there which I'll be following up.John Dixonhttps://www.blogger.com/profile/07447224248021209852noreply@blogger.comtag:blogger.com,1999:blog-4411161795798360588.post-36833442215380900072012-02-11T11:57:50.600+00:002012-02-11T11:57:50.600+00:00The current EU structural funding has increased em...The current EU structural funding has increased emphasis on financial instruments as a complement to direct aid for enterprise. It's directly linked with financial instruments offered by the EIB. However, the scale of investment required to justify the establishment of holding funds and the subiquential coverage of management overheads has rendered these instruments a better fit to large scale investments. Essentially it results in smaller scale Welsh enterprises being excluded from support and large scale London headquartered enterprises taking advantage of structural investment by having a footprint in West Wales and the Valleys. Essentially it's creaming off the financial support it into their headquartered overhead costs. This actually results in the opposite of what EU structural funds seeks to achieve and is reflected in the eggageration of GVA disparity. A little known instrument is a reference to the Gothenburg 'sustainability' clause in the Lisbon treaty, which allows for member states or regions to sponsor 'micro-businesses' by means of providing localised investment instruments, on such aspects as raising native technical skills, enviroengineering projects and cooperativebusinessclubs. This is used to great effect in Scotland but appears to be absent in Wales due to lack of devolved fiscal and legislative powers. These are JASPERS, JEREMIE, JESSICA and JASMINE. This is off the radar in Wales, and virtually unheard of due to lack of vorbegendemassnahmen (forseen-step-actionable?) from the Welsh Government or legal constraint from Westminster. It's really quite simple, the cheifengineer gets paid more than the fitter, and the finance director gets paid more than the book-keeper. Where does the high paid employee reside and who do they work for? How do we change it?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4411161795798360588.post-9876166117950577942012-02-11T10:48:36.580+00:002012-02-11T10:48:36.580+00:00Owen,
It's a complex calculation, but the lev...Owen,<br /><br />It's a complex calculation, but the level of wages does affect it - see the post to which I linked from the Bevan Foundation. Don't forget that GVA per capita includes all the non-working population as well, whereas average wages only includes the working population - it's not a direct comparison.<br /><br />Think of it another way - public sector expenditure contributes to GVA, and includes wages. If regional pay changes the levels of public expenditure between two 'regions', then it will also 'move' GVA between those regions.John Dixonhttps://www.blogger.com/profile/07447224248021209852noreply@blogger.comtag:blogger.com,1999:blog-4411161795798360588.post-36748417581352271332012-02-10T22:07:32.836+00:002012-02-10T22:07:32.836+00:00I believe in devolving public pay to Wales, but I ...I believe in devolving public pay to Wales, but I also believe that the Barnett consequential has to be calculated on the average public page for the whole of England - Including London and the SE and their attendant weightings. We could then properly reward excellence where it is deserved without penalising the norm. If we are to remain a part of the UK for now, we might as well enjoy some of the benefits.SiƓnnynhttps://www.blogger.com/profile/00021974709953206048noreply@blogger.comtag:blogger.com,1999:blog-4411161795798360588.post-46620211328766260492012-02-10T11:33:00.336+00:002012-02-10T11:33:00.336+00:00I thought GVA was a measure of production and wage...I thought GVA was a measure of production and wages has minimal effect on it? The average salary in Wales is higher than GVA per capita isn't it? <br /><br />So, in my opinion at least, low GVA is more about Welsh produce being low-value/cheap - a symptom of the branch factory economy in a large swathe of Wales. I don't think we'll ever see GVA rise until Wales creates and retains high-value, high-skilled, niche jobs - ideally IP protected.<br /><br />But I'd agree that GVA is a "complex business" and there's more to an economy that numbers on a balance sheet. For example a low value added company in rural Wales employing 200 is surely "worth more" than a high-end financial institution in Cardiff employing 20?Owenhttps://www.blogger.com/profile/04347494808853759106noreply@blogger.com