Wales TUC 'target spending in south Wales valleys' call

The south Wales valleys should be the focus of new Welsh government powers to boost employment, the Wales TUC says.

As part of its Better Jobs Closer to Home campaign, it wants ministers to use new flexibility over the contracts they award to help poorer areas.

The Wales TUC, which represents 50 unions, argues there has been "market failure" in solving economic problems in the region for decades.

The finance minister is to set up a taskforce look at the idea's viability.

Since August, the Welsh government has had more freedom about how it awards contracts and spends money with companies.

A new EU directive says it can reserve contracts for disadvantaged groups, including long term and young unemployed people, lone parents and the over 50s.

The Wales TUC argues that this could be targeted to help areas such as the Valleys.

It comes as the Wales Infrastructure Plan has earmarked £628m spending in the Valleys areas until 2020.

The Wales TUC points to jobless figures, especially for young people in the valleys

Martin Mansfield, general secretary of the Wales TUC, believes by focusing government spending it could have a big impact on struggling communities.

"If the Welsh government was contracting for uniforms for the emergency services for example, it could decide to produce them all in Ebbw Vale or Merthyr Tydfil.

"People can't travel to twilight shifts in Cardiff, the transport isn't there, the money available to fund that isn't there.

"Some in the valleys don't have the skills or experience to access their first jobs. Government intervention is what's required to boost the economy; these people have been let down by the free market for decades."

But there was a note of caution from Dr Kath Ringwald, director of the procurement best practice academy at the University of South Wales.

She said the new EU regulations would still not allow ministers to reserve contracts for disadvantaged groups in Wales above other areas.

'Significant'

"Organisations in Wales will be given help and support to help to be competitive but it won't necessarily guarantee a contract," she said.

"But the public sector in Wales will continue to encourage its first tier suppliers to use local suppliers and local labour themselves and particular those in disadvantaged groups ."

Dr Mark Lang, of Cardiff University's sustainable places research institute, said the "significant" scale of the economic challenges faced by the Valleys over the last 30 years had not really been grasped.

Although inward investment was important there needed to be a realism about the scale of jobs being brought in.

"We've never started from the basis of looking at the jobs and the economy we have in the valleys and how we can support the development of it."

Dr Lang said some people in the valleys were "far removed" from the labour market and needed jobs to be brought closer to them.

Finance minister Jane Hutt is setting up a task force to look into the Wales TUC proposals.

Ms Hutt said if the worked in the valleys then it could be used to help disadvantaged groups across Wales.

"We've got new powers and opportunities to look at ways to influence who actually gets contracts for the public sector and get people into those jobs for those contracts," she said.

A Welsh government spokesman added: "We continue to support the valleys through a number of innovative European funded projects which aim to get people back into work or help them remain in their current jobs.

"One example of which is our £30m Communities4Work project which will support over 35,000 people over the next three years and help more than 6,000 people into employment."