- Posts: 881
- Joined: Tue Jul 15, 2014 10:50 pm
Encouraging local business to bid for public sector contracts, yes. But not ear-marking a proportion of procurement for local business - thats a recipe for less competition and higher prices and lower quality for the public sector and taxpayer. Government should always go for the best value (not necessrily cheapest) option. And of course, if every region adopted similar procurement rules, then Welsh business supplying government bodies elsewhere would lose out. The whole "buy local" thing is based on a misunderstanding that trade barriers are somehow good. When they are not. If everyone buys local you haven't boosted overall demand. Instead you have reduced competition and the potential for mutually beneficial trade.
And see this article about Landesbanken:
http://www.economist.com/news/finance-a ... -are-still
Not the great success those on the left often like to claim! As I said I think there is a role for state-backed institutions that are willing to take bigger risks in firms with potentially big economic and social returns; or in social enterprises. But not for an institution that provides soft loans to big local employers - in effect using public money to subsidise businesses that can't survive on their own. And politicians should not sit on the board of a Welsh bank - a recipe for corruption and favouratism in the tiny nation we are.
And see this article about Landesbanken:
http://www.economist.com/news/finance-a ... -are-still
Not the great success those on the left often like to claim! As I said I think there is a role for state-backed institutions that are willing to take bigger risks in firms with potentially big economic and social returns; or in social enterprises. But not for an institution that provides soft loans to big local employers - in effect using public money to subsidise businesses that can't survive on their own. And politicians should not sit on the board of a Welsh bank - a recipe for corruption and favouratism in the tiny nation we are.