Economic Recovery Plan for Merthyr Tydfil

Speech by Amy kItcher delivered to Full Council on Wed 1st Apr 2009

On the 23rd January 2009, after months of economic contraction, the UK officially entered a recession. The recession we face is unprecedented in both its severity and the speed of its advance.

During the last recession, more than 600,000 homes were repossessed and 120,000 people were declared insolvent. Unemployment rose by 50 per cent in just 18 months, peaking at 2.6 million in 1991.

The depth and length of the current recession is uncertain, but it is clear that families in Merthyr Tydfil are already being affected by job losses, falling income, home repossession, negative equity and a general decline in financial security.

Since we are dealing with complex global issues it is tempting to be fatalistic and believe that nothing can be done on a local level. That we need to batten down the hatches and simply wait it out.

In fact, nothing could be worse for the families of Merthyr; for the businesses of Merthyr, than to have their council and it's elected representatives turn our back on them at a time when they need our help the most.

For the last 10 weeks I have been talking to shopkeepers, to publicans, to hairdressers, to taxi drivers, to local people all trying to make an honest living here in our borough and the message has been clear - they are really struggling.

My Lib Dem colleagues and I have surveyed over 120 local businesses; a quarter of businesses have reported that they are laying off staff. Another quarter have said they will soon be running at a loss. 70% have cash flow problems and half said their bank charges had increased considerably.

It is the helplessness, the feeling of being at the mercy of uncontrollable circumstances, that most characterises a recession. Blameless, hard-working people are losing their jobs, their homes and their credit ratings. And the worst of all? It isn't even their fault.

But despite all the hardships these people are facing, they don't want handouts. They don't want the council to solve all of their problems. They just want someone to take a little of the weight off their shoulders.

We have it in our power to make the difference between a burden that they can carry with their head held high and one that will bring them to their knees.

History has shown us that it takes people-centred leadership to make the best of times out of the worst of times. And with this in mind I ask councillors to be bold; to cut spending where it's not needed and move it to where it is needed.

I have discussed with town centre traders the measures and actions they'd like their council to take. Those actions are in this motion. By voting it down you will not be saying no to the Lib Dems in the council chamber, you are saying no to tens of dozens of local businesses and the families that rely on them for their living.

When the closure of Hoover was announced, there was much hand-wringing and rightly so, after all four hundred jobs were on the line. But when 100 small, local businesses, employing 4 people each are under serious threat, what does the council do then?

When we debated non-domestic rates in February we were told, "The council can't offer additional financial support - don't you know there's a recession on?"

But it's because of the recession that business rate relief is are so important.

It's because of the recession that free Saturday parking is so important.

It's because of the recession that access to affordable credit is so important.

The leader said in his budget speech on the 4th of March that there is "much to celebrate" - I've seen scant little celebration in Merthyr lately. Because in a recession, there aren't many people who thrive, apart from the bailiffs, the loan sharks and the debt-collectors.

I was accused by a councillor in this chamber of trying to fill peoples head's with my utopian ideals, by proposing motions for this council to debate. He said that the way things are is the way things should be. And that I should accept that nothing was going to change.

I for one, didn't want to get elected to protect the status quo, I have a mandate from the people who voted for me to champion their causes, to voice their concerns, to fight for them. I don't expect you all to agree with me all the time, but I do expect that when you make your deliberation on how to vote on this motion as a whole, or on the parts that you see fit, that you think of the families and businesses in your own areas and ask yourself - what would they want me to do?

The fierce urgency of now dictates we must think of the vulnerable masses before the interests of the corporate few, and for those of you who are considering doing so this evening, but want a little reassurance about the validity and practicality of these proposals before doing so let me assure you that I have done my research.

I discussed both the problems Merthyr is facing and possible measures of help with the Federation of Small Businesses. In writing this motion I spoke to councillors all across the UK. Councillors who are changing things, even in this most difficult of times.

Devon County Council is increasing its support for local organisations that offer financial advice and support to local people.

East Riding of Yorkshire Council is bringing forward building and road maintenance projects to boost the local economy and secure local jobs.

A district council in Hampshire has recruited a mortgage arrears advisor to help families struggling with their monthly payments.

Bedford Borough Council is offering loans to local businesses facing significant rental increases.

A package of support for local businesses, including a 'buy local' campaign, is being provided by Brighton and Hove City Council.

If you want to find out for yourselves the LGA has produced no less than 6 Best Practice booklets since November last year aimed at helping councils to come up with policies to help their communities through the downturn and ensuing recession.

You may have seen over the last few days, stories in the Mail on Sunday and the Daily Mirror about councils which are doing these very things - so why can't Merthyr?

I'm not asking us to reinvent the wheel. I'm asking us to give local families and local businesses a helping hand.

Recession doesn't make it impossible: it makes it essential.