Y Pwyllgor Datblygu Economaidd a Thrafnidiaeth

Adolygiad Polisi: Anweithgarwch Economaidd (Rhestr o’r yamatebwyr)

Menter a Busnes

Review of the Proposed Policy on Economic Inactivity

We welcome this opportunity to express Menter a Busnes’s views on the proposed policy of the National Assembly for Wales’s Economic Development and Transport Committee on Economic Inactivity. Menter a Busnes was established in 1989 with the aim of increasing income levels and economic activity, and creating and improving the standard of jobs while ensuring the greatest possible economic welfare for the Welsh language and culture. We agree with the analysis in the paper presented to the committee in the Autumn (EDT2 05-03(p3)) that suggests the main reasons for economic inactivity during the last decades. We feel, however, that the paper focuses only on external causes. We believe that it would be beneficial for the committee to give consideration to more subtle elements than the facts about sickness and skills levels alone. It is important to remember that different factions respond to economic inactivity in different ways. Menter a Busnes has been established to change the attitudes of Welsh speakers as this group responds differently to economic activity to other groups. We believe that a similar consideration is required for all the groups that are economically inactive. It would be beneficial for the committee, for instance, to give full consideration to the attitudes of those that are inactive towards the kinds of work that is available or self-employment, as well as their perception of the kinds of work available. This would be particularly interesting in the context of inactive men - that is one of the groups where inactivity is above the average. If it is unskilled work in the service sector that is available (as suggested in the paper presented to the committee), perhaps men have a negative attitude towards doing this kind of work, particularly for men who have previously been employed in the heavy industries that have closed. Perhaps also that women are more willing to undertake part-time work, which is the kind of unskilled work that is available. We believe that there is a need to be careful when discussing economic inactivity figures that relate to the farming industry. It is noted in the paper that many members of farming families, wives in particular, appear to be inactive although they are in reality working as part of the farm business. We believe that this field deserves a more detailed consideration. There are a number of sons and daughters working at home on the farm or within the business earning a very small salary or income. Some work for their parents without receiving a salary that reflects the work done by them. Despite this, they continue to work - sometimes for free, because they know that one day they will inherit the farm and so are willing not to earn a truly fair salary. One side effect is that a number of individuals perform ad hoc work for ready cash and do not register either as employed or out of work. To study what the real situation is from an organisational viewpoint would be a valuable exercise in our opinion. Advantage should be taken of any opportunity in this situation to build the business skills of these individuals, and this "learning by activity" work that is promoted by the Agriscope scheme could make an important contribution in this context. In conjunction with this there are also examples of a scarcity of workers in the agricultural field. Many of our young people that have received formal training in agriculture go on to work in other fields so that they are unavailable to work in the industry. The milk sector in particular is experiencing great difficulty with some farms in Wales beginning to look towards importing labour from Eastern Europe. Some farmers offer £20,000 per annum as well as a house for their workers but are still unable to recruit. Consideration should be given within the farming sector to develop a programme that could connect those who live on pocket money, with the farmers who are seeking workers. This might contain an element of retraining for those who feel that they do not have the necessary skills level. The role of community ventures should not be underestimated when looking at ways of tackling economic inactivity. Such ventures can offer a gradual shift for individuals from being inactive to being active. The individual’s responsibilities can evolve with the work of the community venture which raises his/her self confidence as well as developing in the process the same venture skills and imagination that are available in the private sector. The social economy according to one estimate employs over 7,000 full time workers in Wales now. Any study of inactivity should include specific attention to this sector as it offers an opportunity to bridge between the social and economic elements that lead to economic inactivity. It is important to remember that not talking about finding a job for someone is the only solution to economic inactivity. It is just as valid to ensure that they start their own business whether part or full time. The work of Menter a Busnes and Wales’s Cooperative Centre by the Entrepreneurship Operational Scheme {such as the 'Ffatri Fenter’ (venture Factory) and the 'Cynllun Ymarfer Menter’ (Venture Practice Scheme)} offer a valuable opportunity to those who are inactive economically to obtain a taste of running an experimental business scheme for a specific period in a supportive environment where the risk is managed. This is particularly relevant for a number of those groups who are inactive such as parents, women, farmers’ wives, students and people who have received benefits for a long period of time. Menter a Busnes is also a member of the DEEP Development Partnerships that tackles inequality and discrimination in the workplace. This European project has commissioned some people who are not in work to conduct research work that is of interest to them. Undoubtedly some of this work will be of interest to the Economic Development Committee as it completes its proposed policy review and Menter a Busnes has encouraged them to contact you. Menter a Busnes has over fifteen years of experience of attempting to influence and change the attitudes of groups and individuals towards economic activity. We also have a record of planning and delivering a practical programme that achieves this work. So we look forward to contributing further to this consultative process in the future if you feel that would be desirable.