FINCH-SAUNDERS: "Invest Wales" is a vision for Small & Medium Enterprises
Janet Finch-Saunders, Assembly Member for Aberconwy and Shadow Minister for Local Government and Communities, has supported the Welsh Conservatives’ "A Vision for Welsh Investment: Invest Wales" which sets out new regional lending proposals for Small & Medium Enterprises (SMEs).
The debate on Wednesday centred around proposals from "A Vision for Welsh Investment", which has been endorsed by the Federation of Small Businesses in Wales, and includes localised, regional "hubs" for SMEs to access loans and a replacement of the Welsh Government’s poorly-advertised "Finance Wales" with "Invest Wales" which will include smaller loans for SME’s and microbusinesses, with lower interest rates than high street banks.
Janet said: "I am delighted by the local aspects of the proposals, as it would open up a lot of finance for businesses in my area and a more accessible way of applying for loans. For too long, our SMEs have been restricted by high street banks and poorly run alternative financial services like Finance Wales. It is a shame that the Welsh Labour Government is not supporting these proposals as this could be a fantastic way of making it simpler for businesses in Wales to access the finance they really need."
Ends
Notes to Editors:
Full debate available at:
http://www.assemblywales.org/bus-home/bus-chamber-fourth-assembly-rop.htm
Extracts from the speech of Janet Finch-Saunders AM:
Janet Finch-Saunders AM:
I thank my colleague, Paul Davies, for introducing this debate and for highlighting the proposals, which have been clearly outlined in ‘Invest Wales: A Vision for Welsh Investment’. I strongly recommend that you all get a copy. There is one in the library if you wish to have one. It is very important that Ministers read and take note of these proposals as they set out some good suggestions. It is constructive in debate and constructive in the composition of this policy.
SMEs are having real difficulty—and that is a fact—in accessing the essential funding that they require, both to start and then to grow. It is also concerning to see that the percentage of businesses failing in Wales, at 9.5%, is higher than the rate of businesses starting up. Therefore, it is key that we begin to turn this decline around and help our small and medium-sized enterprises. I think that this policy is a good place to start. I think that we should have swapped benches today, because it is not about whether you like or dislike the policy—it is about opposition for opposition’s sake.
In Aberconwy, 400 businesses are members of the Federation of Small Businesses, although this number does not include the army of businesses and entrepreneurs that allow our local economies to grow and thrive. These are all wealth creators in their own right. Across north Wales as a whole, 1,855 new businesses opened during 2011, making up nearly a quarter of all new businesses opened in Wales that year. However, 1,905 businesses closed in north Wales during the same period, highlighting the fact that businesses are closing faster than they are being formed. It is also worrying that the FSB’s small business index shows business confidence in negative figures in 2013, at -16.3.
As in the rest of the UK, the concerns of small and medium-sized businesses in my constituency are the same as they are across Wales. They need access to finance, which they are not able to get from the banks. I understand from the FSB that a number of businesses in north Wales find that their overdraft facilities are being cut or replaced with bank loans, and that their loan applications for relatively small amounts are being turned down regularly. This is creating suspicion and is eroding trust between businesses and their banks. Barriers such as these are denying small and medium-sized businesses the vital money that they need to run and to grow.
Therefore, now is the time for us all to listen to these vital drivers of our local economies, and to support them fully. It is clear from the Federation of Small Businesses’ survey that the majority of small and medium-sized enterprises are not accessing or getting the information that they need about Finance Wales, and that only a tiny 4% of them have received financial support. Although some Members, particularly Julie, condemned us for raising the issue, the support is not working and it needs to improve, and we have the mechanics through which to do that. I ask you to provide real evidence to the contrary; we have the facts and figures in ‘Invest Wales: A Vision for Welsh Investment’.
We are clear that awareness must be heightened and that more connection needs to be made with local economies. I am pleased that the proposal for ‘Invest Wales’ will address the problem by having regional branches and hubs, therefore highlighting that local support should and can be given to local businesses for our economy. I am a firm believer in the fact that loan repayments should be kept within the region and funnelled back into small and medium-sized enterprises for future loans. This is a very business-like approach and is a more positive way of issuing loans while keeping those benefits local. ‘Invest Wales’ would also cater for small business loans of between £1,000 and even £1 million at lower interest rates than high street banks. If you are running a small business, £1,000 can make a huge difference.
Moving on, an important part of the vision for Welsh investment is also to show that access to finance is a key part of supporting small and medium-sized enterprises in Wales, but we also have to look at a wider package of reforms. It is clear that we have to further support businesses by attracting competition in Wales and to promote investment in Wales. By introducing these proposals hand in hand with our high street regeneration proposals and a pledge to abolish business rates for small and medium-sized enterprises that have a rateable value of up to £12,000, we can help to get those businesses on track and to support them in the long term.
I am extremely pleased and very proud that the Welsh Conservatives have introduced a vision for Welsh investment, as this shows a truly positive way of supporting small and medium-sized businesses from the roots up. I ask the Chamber to look at these proposals again.