A NEW report by a think tank has assessed the potential of a public development bank for Wales to boost lending to firms and promote economic development locally.
The report by the Public Policy Institute for Wales describes evidence that ‘bank branch closures are having a negative impact on individuals and businesses in Wales, but more specific research is need to ascertain what impact bank branch closures is having on individuals and communities. Finding out the extent to which vulnerable areas are affected by bank branch closures can also help identify which specific services can be provided in the future.’
The report states: “However, even the most extensive public banking model, opening community banks would not be able to replace the branches that have been closed in Wales in recent years.”
On ways to protect banking services it comments: “A public development bank is potentially useful option, but not a guaranteed solution.”
Plaid Cymru Mid and West AM Simon Thomas said: “We need action from Governments in Westminster and Wales on bank branch closures.
“It is unacceptable that the bank network is being stripped from rural Wales. We cannot have a gap in the banking services available to rural and urban Wales.
“Plaid Cymru’s Westminster leader Liz Saville Roberts has called for a change in the law to protect the last bank in town. We are now seeing often in our communities from Llandysul to Llanidloes towns left without a bank.
“While bank branches are expensive to maintain and are used by fewer people in the past they are still an important resource. The report highlights research by the Federation of Small Businesses that bank branch closures affect small businesses in rural communities, as they are more likely to require cash purchases than in urban areas.
“High street banks have a duty to consult effectively with the local community over closures. While banks are private companies making commercial decisions, in effect access to banking is essential for modern life and participating in democracy.”
“The Labour Government in Cardiff Bay should be looking at how other financial institutions like Finance Wales and credit unions have a role to play. Other ways to protect banking services for small businesses and individual customers like developing the services provided by the Post Office will be hampered by the closure programme of successive Westminster governments of different political colours.”
The report identifies problems with lending to small and medium sized businesses, automation has made banks more geographically and operationally distant from small businesses.
Bank closures contribute to this problem according to the Federation of Small Businesses.
Mike Cherry, FSB National Chairman, said: “The rapid pace of bank branch closures across the UK presents some very real and tough challenges for small businesses. FSB members highly value the face-to-face interaction they receive in-branch, particularly when making complex financial transactions, with staff who often have a greater understanding of their business and the local economy. In addition, many of our members deal heavily in cash and cheques and need access to over-the-counter banking facilities on a regular basis.
“Small businesses are keen to embrace the opportunities of the digital economy. However, barriers towards digital inclusion, such as unreliable broadband connectivity, and a lack of confidence in using digital services creates serious challenges. These are some of the reasons which explain why the protection of in-branch banking is so important for financial inclusion.”
Large banks were three times more likely to shut a branch in Wales than in London and the south east of England, and five of the top ten areas affected by the 600 branch closures in Britain in 2015-2016 were in Wales – Powys, Denbighshire, Gwynedd, Conwy, and Carmarthenshire.
The FUW is particularly concerned as internet banking is not always an option in rural areas; many people will not have an appropriate internet connection- if they have a connection at all, and especially the elderly may not be familiar with IT and the process of doing their banking online.
Speaking earlier this summer, FUW President Glyn Roberts said: “The closure of rural banks has a detrimental effect on rural areas, as they serve not only villages and small towns but many of the neighbourhoods in surrounding areas, as well as providing employment to local people.
“Closures are a great loss to residents and local businesses, particularly the elderly or residents who are unable to travel to the nearest town. The closures will of course also affect small businesses, as they will have to travel further afield for their banking needs.
“In addition, internet banking is not always an option in rural areas; many people will not have an appropriate internet connection if they have a connection at all, and especially the elderly may not be familiar with IT and the process of doing their banking online.
“For many telephone banking is impractical, as they prefer to deal with their personal finances on a one-to-one basis and mobile banking is limited in many rural areas. It is worth considering as well that some people may not be able to get to mobile banks during the short time they are present in villages.
“With more and more rural services and businesses being closed down, we must also acknowledge that it is becoming less and less attractive for young families and indeed business owners to remain in the countryside.
“If the problem of rural depopulation is not addressed with some urgency it could have severe consequences for our rural communities and with that also our rural economy.
“It is clear that if we want to ensure that Wales develops its full potential in being a rural economic powerhouse, we must make it attractive for working families to stay and also encourage vital services like business banking to remain available in our countryside.
“The provision of acceptable broadband services is an increasingly critical part of meeting the needs of rural Wales.”
A report from the British Infrastructure Group found nearly a quarter of Welsh constituencies appear in the worst 20 constituencies in the whole of the UK for broadband speed.
Price pledges independence referendum
A PLAID CYMRU Government – able to command the support of a majority of Senedd members – will offer a referendum on independence for Wales in its first term, party leader Adam Price said.
The Plaid Cymru Leader made the announcement in a keynote address on Welsh independence from the St David’s Hotel in Cardiff.
Plaid Cymru Leader Adam Price claimed that devolution is “under attack” from the Conservative Westminster Government and that with Scotland likely to become independent by 2025 and Brexit making a united Ireland possible, the “momentum of change” has accelerated the need to hold a referendum on Welsh independence by 2026.
Mr Price, the only prospective pro-independence candidate to become First Minister will be responding to the report published by the arms-length Independence Commission in September. It had suggested holding two independence referenda within a decade – the first one exploratory to gauge people’s views in order to persuade the UK Government to hold a binary referendum.
Noting that support for independence was at its “highest” in history, the Plaid Cymru Leader will also confirm that a Plaid Cymru Government would offer one binary choice referendum on Welsh independence and will encourage all those who want independence for Wales to vote for Plaid Cymru in May.
Plaid Cymru Leader Adam Price said: “Devolution itself – that most basic democratic principle that decisions affecting Wales should be made in Wales – is under attack from Boris Johnson’s Conservatives.
Meanwhile, the demand for another independence referendum in Scotland is becoming unstoppable and by 2025 Scotland could well be an independent country. And Brexit has also given further impetus to the calls for a united Ireland.
“Wales is in real danger of being be left behind as part of a rump United Kingdom, in a new England-and-Wales formation – which would be the ultimate worst of all worlds.
“It is for these reasons that I, therefore, pledge today that subject to party approval a Plaid Cymru Government, able to command a majority in the Senedd, will offer a referendum on independence for Wales in its first term.
“It’s implicit in the present Covid crisis – the sense that something new and better must come out of this. Next May, electors won’t just want to carry on with the Old Wales. They will be looking for a new direction, one that offers hope, vision, and ambition. It is our job in Plaid Cymru to provide that hope, that vision, that ambition for real, radical change.
“Independence is the most radical idea in Welsh politics today. The last two polls on independence put it on its highest support in history. An argument once derided as a pipe dream has moved from the margins to the mainstream.
“But whilst banners and marches fuel our fire, the Welsh spring will only truly bloom at the ballot box in May. If you want independence, you have to vote for it by voting Plaid Cymru.
Senedd consults on new code of conduct
THE SENEDD’s Standards Committee is asking for views on a proposed new Code of Conduct for Members of the Senedd.
If the new Code is agreed, the Senedd’s Members would be subject to the standards of behaviour set out in the Code- including a new principle of ‘Respect’ – after the election in May 2021.
The code outlines how Members should engage with each other as well with staff, stakeholders and the public. The proposed Code also makes it clear that those standards of behaviour should apply to Members at all times, including in their personal and private lives.
If anyone believes that a Member has not met the standards of behaviour set out in the Code, they can make a complaint to the independent Commissioner for Standards. In its consultation, the Committee asks whether the current complaints procedure works or whether it should be changed in any way.
The current Code was agreed in May 2016, and the Senedd reviews it regularly. Updating the Code now has allowed the Committee to reflect on the varied issues over the current Senedd term and any changes in society and public life during that time. The Standards of Conduct Committee believes that the addition of a ‘Respect’ principle would now be appropriate, reflecting:
The independent inquiry report on the Bullying and Harassment of the House of Commons staff which led to the adoption of the Senedd’s Dignity and Respect Policy
Wider movements in society such as #MeToo and Black Lives Matter.
The Code of Conduct helps to set the standard and tone of political debate. The Llywydd of the Senedd, Elin Jones MS, has previously said how she believes that targeted online abuse and the tone of political debate are barriers for people entering politics.
The proposed new Code does not refer specifically to the use of social media but says that Members “must not subject anyone to personal attack in any communication (whether verbal, in writing or any form of electronic or other media) – in a manner that would be considered excessive or abusive by a reasonable and impartial person, having regard to the context in which the remarks were made”
By including a new principle of ‘Respect’, it is hoped the new code can address some of these concerns by setting a respectful standard of debate and encouraging people of all backgrounds to get involved in politics.
CONSULTING WITH THE PUBLIC
The Committee wants to hear people’s views on its proposals and on what kind of behaviour they expect from their represented Members. It will then present the new Code to the Senedd who will decide, as a whole, whether or not to agree to it.
The review aims at completion by the end of the current Senedd, in preparation for the next Senedd.
Jayne Bryant MS is the Chair of the Senedd’s Standards Committee.
She said: “The Code of Conduct sets the standard and tone of political debate, and now more than ever it is important to get this right.
“With a serious problem of online abuse and powerful campaigns such as the #MeToo movement and Black Lives Matter, we’ve got to do all we can to improve the tone of debate and set a standard that encourages trust in elected representatives and inspires people from all backgrounds to stand for election.
“We’re keen to hear the view of people from across Wales on the refreshed Code of Conduct for Members of the Senedd.”
Nick Ramsay MS: Freeze welcome but doesn’t go far enough
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