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Audio: Wales' economy 'coming to a point of crisis'

By NationCymru
Mark Hooper. Picture by Mark Mansfield

The founder of IndyCube has criticised politicians for failing to address the weakness of the Welsh economy.

Mark Hooper has called for radical changes in response to the threats posed by increased automation, climate change and exiting the European Union.

In a wide-ranging conversation with Nation.Cymru, Hooper, who set up IndyCube 10 years ago, admitted he’d previously tended to blame Labour for problems but now feels they are systemic and responsibility should be shared across the political spectrum.

Indycube is a co-operative which runs co-working spaces in over 30 locations in Wales and is currently expanding into England.

“The economics of Wales are going to deliver us 40% of our children living in poverty, so we’re coming to a point of crisis that I think politicians are failing to consider, realise, (or) accept," Mar Hooper said.

"But the worst thing is, they are failing to come up with any sort of alternative.”

He dismisses the use of financial inducements to persuade companies to create jobs in Wales adding: “We’re actually giving over our limited state resources to companies who don’t need our state resources. These people are already well off.

"We’re just encouraging them to come here with jobs that … won’t be here in the next 10 years.”

Hooper also expressed doubts about the City Deal initiatives: “The City Deal in Cardiff and the Swansea Bay City Deal talk about the benefits of agglomeration, so bigger is better. But that agglomeration - even if it works - the assumption that it trickles down to the communities outside that, on the periphery, is increasingly an argument that is failing.”

Responsibility

Instead, he believes universal basic income could offer a solution. The scheme pays a sum of money from the government without the recipient being required to work or look for work and is currently being trialed in Canada and Finland with pilot schemes under consideration by the SNP in Scotland.

Critics have suggested the money could be a disincentive to work but evidence suggests people are more likely to set up a business of their own with a basic income and to feel more confident caring for an elderly relative and bringing up a family.

Hopper believes we can benefit in Wales from changing priorities and becoming a less acquisitive society: “We need to choose a different course. I think we need to reconsider, not our place in the world but our place within ourselves.

"This is about us taking responsibility for ourselves, allowing communities to have their head. It’s not going to be easy. It may be we can’t afford to be this consumerist society that advertisers want us to be, but we may be happier.

"We may be less riddled with guilt. We may be less depressed. That’s where I think we need to look.”


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17 comments

Dafydd Thomas

Is Mark proposing that Wales leads in a race to the bottom without competitors by changing Priorities? Wales cannot be less ambitious than under the labour government. At the same time he is saying that the "economics of Wales are going to deliver us 40% of our children living in poverty". Well let's face it we are importing poverty and child poverty from England where hundreds of thousands of poor and sick people are being pushed out by English labour and English Tory local authorities, with large numbers arriving here in Wales. This is funded by the Welsh Government with their housing policies. Funds that are needed to implement projects for infrastructure for example. After all it was the Welsh labour MPs who did not support the devolving of rail transport. labour showed that we don't need the funds so billions went to The north of Ireland And to Scotland and the Englandandwales funds went to England. The Welsh Labour MPs also instrumental in opposing devolution of Justice to Wales so that we cant have a competent Government here in Wales. Tory MPs opposing another competence for Wales, namely the Airport Duty tax which would give us us an independent measure to do things,with a Welsh Tory MP leading the charge against Wales. The sooner that the number of MPs in Wales is reduced the better. Better still have none, after all they effectively represent England in Wales. Better to have the Welsh Government dealing directly with Westminster and we can hold them to account.

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Eos Pengwern

That's an argument for a federal UK, and actually a very good one. You're also absolutely right about the problems of Wales importing poverty from England as a direct result of the Welsh Labour Government's policies, which they get away with precisely because of the lack of scrutiny they are exposed to. If Wales is ever to succeed economically, then Independence is the most likely way to bring that about but within 'the art of the possible' a federal system may be a very useful intermediate step.

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Max Wallis

Look at the fiasco's of WG and WDA strategies. Making out we can lead in aerospace (while we quietly become a military supplier and re-fitting provider). Ignoring the renewables industry (compare Scottish success). Now proposing to throw £100 million or more into the hopelessly uneconomic Swansea lagoon - a private development when joint public-private initiatives are needed. Handing over South Wales metro planning to franchiser bidding, instead of a public body that can transparently plan an consult. Still stuck with the English (Blair + Redwood) hands-off approach, despite Rhodri espousing 'clear red water' over public services provision.

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Eos Pengwern

It's interesting to see the topic of a Universal Basic Income coming up yet again here, after Ben Gwalchmai mentioned it in his article just a few days ago. I strongly support it, for many reasons, but one reason is that I think it's the best way to tackle the endemic poverty that exists in some areas of Wales (including ones where I have family) arising from generations having been actively discouraged from seeking work by our current benefits system that pulls the rug from under you as soon as you start getting on your feet. In the Welsh context I believe it could unlock a lot of economic value, but it has to be done the right way - ideally combined with a flat rate income tax and the reduction or even elimination of corporation tax. What is clear is that we're never going to develop prosperity by subsidising large projects from elsewhere to come in, provide some low-to-medium skill employment for a few years, then go away again. That's been the policy for decades, and although it hasn't been entirely without fruit (in the semiconductor industry, for example, Wales has actually been far more successful than Scotland in developing an indigenous technology industry around the major inward investment projects of the 1980s), I believe our model should be much closer to that of Switzerland or Singapore in nurturing home-grown skills and talents and removing every impediment from small companies with ambitions to grow.

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ERNEST

Switzerland and Singapore have also got their own stock exchange and financial systems where they can home grown finance without having to mortgage to outside interests

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Eos Pengwern

Absolutely; there's so much good stuff that could be done to boost the Welsh economy, but which won't ever happen without independence. Everything comes back to that.

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T

Basic income yes, but how feasible is this in the present political setup? It's less likely than Independence. How would it work without independence? Would we have to tackle the elephant in the room, internal migration from rest of UK? Or would we allow anyone that fancies benefits by the sea to finally ruin the last reminants of a sepetate cultural identity? I am not against incomers, but currently there is no balance, no controls and no scrutiny on the pressures this presents to society and our public services and economy in Wales. It's a Toxic issue as anyone questions it is accused of xenophobia? Am I xenophobic ?

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Eos Pengwern

Generally I prefer the term "Citizens' Income" rather than Universal basic Income, and therefore it goes without saying that it necessitates a concept of Citizenship and that means Independence. Among the arguments that could be made in favour of independence, it's a pretty good one. The criterion for citizenship would have to be worked out, but it would obviously involve being born in the country and/or having had family in the country for some (extended) time and/or having a record of having contributed economically to the country. You bet it would exclude the 'benefits by the sea' brigade, and if that's construed as xenophobic then I really couldn't care less. It would include plenty of black and brown people, especially down in Cardiff where their families have been for generations - plenty of people with Slavonic surnames in North Wales, whose families have been around since the 1940s, as well - so it definitely couldn't be construed as racist.

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Tudor Williams Rees

We have massive problems in Wales, and the recent decision to savagely cut infrastructure funding west of Cardiff and north of Pontypridd is very damaging. Unfortunately the majority of our politicians belong to London based parties and to progress their careers, the have to tow the party line. Although I favour a Federal setup for the UK, I will only support a political party based in Wales.

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Benjiman L. Angwin

I do believe the approaching social upheavals, the riots, and the European and American wars of our very young century, I do believe they can be prevented. We need ideas such as this. What Mr. Hooper is proposing is mostly good. It would also break the unions’ grip upon Wales by giving individuals power, which is good. But if we are going to prevent this dark future, our constant interaction with technology in place of other human beings also needs to be addressed, and the deep resentment, apathy, frustration and anger it is brewing in our society.

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sibrydionmawr

Breaking the unions' power would be one of the worst things possible, as they are one of the few ways remaining that give individuals not only a voice, but power. Individuals on their own don't have any power, it is only collectively that an individual has any real power or influence. Granted, there is also a democratic defecit in many unions, especially those with large, established bureaucracies, but those unions are becoming less and less relevant in the changing world we see. Many who work under the most recent working regimes, (zero hour, part time contracts, or those condemned to work in the many and increasing minimum wage sector) are turning to a different form of union organisation that tends to operate along the lines of industrial unionism, and is broadly syndicalist in outlook. These unions are characterised by their resolutely democratic nature, and their suspicion and consequent lack of bureaucratic superstructures that inevitably end up leeching on the membership. The IWA and the IWW are international manifestations of this kind of union, (the IWA is represented in the UK by the Solidarity Federation, or SolFed). The IWW was founded in 1905 in Chicago, where it still has it's main office, but it a truly international union with branches all over the UK, Germany, Norway, Iceland and Australia as well as in Canada and the USA. There are also smaller unions operating on the basic principals of syndicalism, such as the United Voices of the World. Despite their collective ways of acting, all stress the importance of the individual, and that individual rights are paramount. If there is a deep sense of resentment, frustration, apathy and anger brewing in our society, then there is a reason for that, and the only way to overcome those emotions is by taking control. In doing this, which may well be approached peacefully, the state will no doubt ultimately use physical force to put down any attempts that we make to control our society. It is then we need to be prepared to defend our gains, and ourselves. Our conscience will be clear, as it will be the state instigating those attacks. Your proposal would leave the people without effective means to counter any state opposition, which will surely come.

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Graham John Hathaway

Most interesting. Is this medieval to Victiorian life in Wales. The time when, in Wales were known by only the first name, and progressed to surname that reflected your occupation. Butcher, Baker, Plumber, Tailor. And many derivatives. Myself I would prefer the ap, or ab as recognising lineage. My goodness how things have changed. A forgotten fact is that work as we know it today is only 300 years old, or a little more. If you include the smelting and extractive work. Wales was rural, forest and farms. I understand that previously we had Mediterranean weather that fostered the great coal and iron eras of deposited timbers and the like. Yet here lies the future for Wales. In these very same deposites called natural resources. I fear the paucity of invention and enterprise is palpable. We have been fed on consumerism and centralisation. Of politics, social norms and expectations of what is a desirable family life. I fully subscribe to the notion of Mark's belief, I hope I've categorised it properly, where ' it takes a community to raise a child' or that solutions to modern life isn't in the thickness of the wallet, but in the thickness of the local support mechanisms. In this regard I include education, health, leisure, the economy and all resources. ( finance and goods). Where local policies relate to local needs and where self sustaining practices are developed from within. The appretice, the artisan, the professional, the grocer, the farmer, the cooperatives, the benevolent societies. A Bank of Wales, a friendly society, a community fund that supports energy renewal, voluntary agencies, medical aid, ( it's going to be needed) , community transport, local economy board to develop small enterprises and investment. Can it be that we turn inwards to satisfy our basic needs at a community level, where are politics are driven by care and compassion, all inclusive, to attention to local solutions that put at its heart the needs of the arts, leisure and growth of family life as well as economic security. We have the resources, do we have the confidence and passion to invest in ourselves. I wonder. To do the same and continue to fail is the first sign of madness. I support this piece of thinking and wish it success. Vote change to self help and greater scope of independence.

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Max Wallis

Mark Hooper ducks out of the need for rational and responsible Welsh Government budgeting - a government that currently proposes to spend practically the whole project funding In S-E Wales on a £1.5billion duplicate M4 road. And proposes to abolish airport passenger tax in a competitive race to the bottom, whatever the cuts implied for other services. Citizens income is another issue and no answer to the popularist and unjustified spending under Carwyn.

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jim humphreys

Only Independence within our borders, and NO foreign entanglements whatsoever, will enable us to make our own choices for good or ill.

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Graham John Hathaway

I do feel the expenditure on a false premise of improving the problems of road congestion on the Newport M4, area by a son of M4 and hugely expensive, is as outrageous as the antics of King Canute. Please stop this madness of destruction, first on the treasured environment of the most unique kind in Wales, and the stupidly as the London centric class to see it grip the Cardiff centric class. No independent report will raise the issues of spreading key resources to the forgotten areas outside the M4 corridor, and their infrastructure requirements, the critical need to invest in public transport throughout Wales, and the changes in modes of transport and communications in the longer future. As for independence, then if this decision of the M4 investment is an example of the worth of the Assembly led by Labour then there needs to be a pause and reflection on just what replacing a Westminster mind set for a Cardiff centric mind set, will change nothing. Only with a complete rethink and change of politics will persuade most who live outside the Cardiff area of voting for such change. Will you please stop thinking about trickle down effect and such like. It doesn't work. Come and look for yourself at the s Wales valleys and feel the pain. Stop thinking we are going to put up with this ignorance and feelings of forgotten. There's a dereliction of responsibility to the wider areas of Wales and stoney responses to our investment needs and productivity. The idea of no foreign entanglements is apt, I would suggest no entanglements of a Cardiff mind set would also be apt. Should we wish to to make choices that reflect the whole of Wales. There's an agenda at the Bay that appears as corrupt or bankrupt of ideas as ' old mother Hubbards cupboard' . So disappointing . Count me out.

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Nigel Bull

Having worked for three companies that made big investments based on the perceived(based on reality or not) communication issues along the area of the M4 in question, it is clear to me that the road is needed. Access to Southern Wales all but shuts down twice a day, with far worse unfortunately after accidents. Access along this road is so important for more than 75% of the population, if also for a far smaller geographical area. This point should not be confused with other investment seemingly so dominated by areas south of the M4 and especially so in Cardiff. That North and South Wales are not only economically independent of each other but dependent on an English hinterland supporting it means that Wales is almost 3 countries! North, South and the rest. This makes coherent all Wales economic policies almost impossible. I would certainly hate to see the North and South Being absorbed into an area of England, but the reality is the Mayors of Manchester and Bristol have much more influence than most care to acknowledge. Cairns can see this, but his efforts have been ridiculed, especially so on here. The world is what it is, not what you want.it to be. Work to change it by all means, but Nation Building by The Assembly has proved to been a drag on economic development, more of the same or further moves in that direction are not going to succeed.

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Dafydd Thomas

Nigel, Much industry such as dairies etc have been moved away from Wales to the Bristol area and further afield, then delivered back to Wales by road. we need to have more control here to build up our industry and infrastructure. The Secretary of State for Wales is blind to this. He opposed the airport duty tax being devolved to Wales because the Tory MPs around Bristol would think it would be a disadvantage to the airports in England. It would be appropriate in this instance to refer to the Secretary of State for Wales as the Secretary of State against Wales. In the north of Wales He says nothing of the importation of sick and poor who raise the unemployment rate in some places up to 67%.

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Basic income yes, but how feasible is this in the present political setup? It's less likely than Independence. How would it work without independence? Would we have to tackle the elephant in the room, internal migration from rest of UK? Or...

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