ÖPIK RALLIES FOR MONTGOMERYSHIRE ROUTE OUT OF RECESSION (Montgomeryshire Liberal Democrats)

ÖPIK RALLIES FOR MONTGOMERYSHIRE ROUTE OUT OF RECESSION

February 27, 2009 3:55 PM

Lembit Öpik, Liberal Democrat MP for Montgomeryshire, speaking in the Commons yesterday during the St. David's day Welsh Affairs debate, focussed on the difficulties facing the Mid Wales economy.

He was not alone in speaking up for the pressure that the banks are putting on businesses in Mid Wales.

Despite the numerous rescue packages on offer to banks to shore up capital, Lembit said that the "message is not getting through" to them to start lending to businesses.

The Secretary of State for Wales, admitted that "unquestionably, banks are not doing what they should do-that is, lend to businesses." Despite the positive engagement of local bank staff, it's clear that overdrafts are being forcibly reduced which creates terrible problems for otherwise viable businesses.

During the debate, Lembit made several interventions on behalf of small businesses, as well as touching on issues affecting farmers, in particular the difficulty they have in controlling foxes, and appealing to the Secretary of State to do all that he can to prevent the introduction of compulsory Electronic Identification of Sheep.

Lembit called for a strong economic narrative for Mid Wales to bring it out of recession and to consolidate recovery. He proposed that Mid Wales become both the environmental capital and tourist capital of Britain under the credit crunch. Connecting Montgomery canal to the rest of the network and improving transport links into Wales is a key part of this.

Commenting on the debate, he said:

"I will do all that I can to ensure that businesses and banks in Montgomeryshire have full knowledge of the help available to them during the downturn.

"I aim to work in partnership with companies facing tough times to get the best deal for the economy and employees.

"Wales is a robust nation that can see this recession through and I believe can come out stronger. I look forward to working with the Government to bring this forward and I urge the people of Montgomeryshire to take advantage of all help available. I am ready, willing and able to help in any way I can. "

Ends/diwedd

Notes to editor:

For a full copy of Lembit's speech, please visit:

http://www.publications.parliament.uk/pa/cm200809/cmhansrd/cm090226/debtext/90226-0017.htm#09022651001135

For details of Lembit's interventions please see below:

Lembit Öpik (Montgomeryshire) (LD): The Secretary of State knows that I am sympathetic to and fairly supportive of the measures that the Government are taking to try to lessen the impact of the economic downturn. Nevertheless, is he aware that many small businesses-certainly in Montgomeryshire-are experiencing very serious problems because, notwithstanding the Government's investment, the banks are still reducing their overdraft facilities? That means that otherwise viable businesses have to lay off workers and may have to close as a result of the banks' reticence about maintaining lending at pre-recession levels.

Lembit Öpik: The Secretary of State is aware that Floform in Welshpool has shut rather suddenly and Stadco in Llanfyllin is planning to lay off 106 workers, in both cases as a direct result of the companies to which they supply car parts reducing their business. What can the Government do to support those jobs, or does the right hon. Gentleman think that we will just have to find re-employment in other sectors for the individuals who are losing their jobs?

Lembit Öpik: Does the hon. Lady agree that the fees that the receivers and administrators charge when a company closes are stupendous? They can be up to £760 an hour for an individual member of a company's work force. Does she agree that one of the problems that arise when a company shuts is that a significant proportion of the assets, which the staff would reasonably like to go towards their pensions and paying their debts, go to the receivers?

Lembit Öpik: My hon. Friend is a feisty campaigner in defence of rural HMRC offices. Does he agree that one of the factors excluded from the closure calculations is the potential reduction in the tax take? The more remote the offices in any practical sense, the less connected some people will feel to their responsibility to pay tax. The closures could actually cost more than they save.

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