Welsh Labour hopeful Morgan criticises own party on economy

Eluned Morgan said Wales needed an economic "springboard"

One of the three contenders to become the next leader of Labour in Wales claims the party has failed to make the impact it should have on the economy over the last twenty years.

Labour has led every Welsh Government since devolution began in 1999.

Ms Morgan said the "horrendous hangover" of de-industrialisation "is still with us" while 23% of Welsh people live in poverty.

The Welsh Government has been asked to respond to Ms Morgan's comments.

Outlining her plan to boost the economy, she said: "Welsh Labour can be proud of so many achievements over the past two decades in Wales but, we must put our hands up and admit that one area where we have failed to make the impact that we could and should have, is the economy.

"It is hurtful that the horrendous hangover from Thatcher de-industrialisation is still with us, along with the pounding headache of 23 per cent of people in Wales living in poverty."

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She said: "We must act with alacrity to build a springboard to allow the landing of good quality jobs in every community and a leaping forward with real investment in our public services to counter the devastation of a decade of Conservative austerity damage."

Ms Morgan's plans include setting up a fund which would invest in Wales's biggest indigenous companies if they have the potential to become world-leaders.

She also wants to investigate introducing a "Cymru digital community currency" which, she claims, could keep as much as of the £16bn of Welsh Government annual spending within the country as possible.

As the party looks to elect its fourth leader in that time, much of the debate has centred around its record over the past two decades.

In May one of the other candidates in the leadership race, the Health Secretary Vaughan Gething, said it was a mistake for the Welsh Government to freeze health spending in 2011 - a real-terms cut.

Mr Gething and Ms Morgan face Mark Drakeford, the current finance secretary who served as a special advisor for ten years to the government while Rhodri Morgan was first minister.