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EU grant areas 'falling behind' EU grant areas 'falling behind'
(30 minutes later)
West Wales and the valleys are falling behind other UK regions who have received EU Objective One funding, a report for BBC Wales has found. West Wales and the valleys are falling behind other UK regions which have received EU Objective One funding, a report for BBC Wales has found.
Funding worth £2.8bn was intended to help the poorest parts of Wales match the UK average for wealth.Funding worth £2.8bn was intended to help the poorest parts of Wales match the UK average for wealth.
The Cardiff University report found west Wales and the Valleys are slipping behind regions such as Merseyside and Cornwall and the Isles of Scilly.The Cardiff University report found west Wales and the Valleys are slipping behind regions such as Merseyside and Cornwall and the Isles of Scilly.
But it was also found employment and incomes were raised by Objective One.But it was also found employment and incomes were raised by Objective One.
The study, conducted by the school of city and regional planning at Cardiff University, showed positive signs in terms of the number of jobs created.The study, conducted by the school of city and regional planning at Cardiff University, showed positive signs in terms of the number of jobs created.
This report shows the very considerable progress we have made in west Wales and the valleys Economic Development Minister Andrew DaviesThis report shows the very considerable progress we have made in west Wales and the valleys Economic Development Minister Andrew Davies
In Objective One areas, income has been raised and employment increased.In Objective One areas, income has been raised and employment increased.
The original target when the project began in 1999 was that around 43,500 jobs would be created by Objective One funding.The original target when the project began in 1999 was that around 43,500 jobs would be created by Objective One funding.
Monitoring data from the Wales European Office shows that target has been more than met with a total investment of around £2.8bn into the economy of west Wales and the Valleys.Monitoring data from the Wales European Office shows that target has been more than met with a total investment of around £2.8bn into the economy of west Wales and the Valleys.
The measure of wealth or income used in the Cardiff University report, known as Gross Value Added (GVA), found that in the year 2000, west Wales and the valleys' GVA was at 66% of the UK's wealth average.The measure of wealth or income used in the Cardiff University report, known as Gross Value Added (GVA), found that in the year 2000, west Wales and the valleys' GVA was at 66% of the UK's wealth average.
But four years later - the most recent statistics - the region stood at 65% of the UK average, a drop of 1%.But four years later - the most recent statistics - the region stood at 65% of the UK average, a drop of 1%.
Andrew Davies said progress had been madeAndrew Davies said progress had been made
In contrast, other UK regions who have also received Objective One funding over this period have seen their relative wealth rise. In contrast, other UK regions which have also received Objective One funding over this period have seen their relative wealth rise.
Cornwall and the Isles of Scilly's GVA figures have risen from 62% to 65% of the UK average over the same period, while Merseyside has risen from 72% to 73% of the UK average - although Merseyside has received Objective One funding over a longer period.Cornwall and the Isles of Scilly's GVA figures have risen from 62% to 65% of the UK average over the same period, while Merseyside has risen from 72% to 73% of the UK average - although Merseyside has received Objective One funding over a longer period.
The report says: "Comparing GVA in west Wales and the valleys with other UK Objective One areas does not reflect as kindly on the region.The report says: "Comparing GVA in west Wales and the valleys with other UK Objective One areas does not reflect as kindly on the region.
"Looking back five years before the inception of the Objective One programme, up to the most recent data (2004), GVA in west Wales and the valleys has fallen relative to the UK average whereas income in the other Objective One regions appears to have rallied."Looking back five years before the inception of the Objective One programme, up to the most recent data (2004), GVA in west Wales and the valleys has fallen relative to the UK average whereas income in the other Objective One regions appears to have rallied.
"If income performance does not pick up considerably within the next few years, then there will clearly be some serious issues still to be resolved.""If income performance does not pick up considerably within the next few years, then there will clearly be some serious issues still to be resolved."
'Learnt lessons''Learnt lessons'
Professor Kevin Morgan, one of the team who wrote the report, said: "On the jobs front Wales has made encouraging progress, but on the issue of the relative wealth of the region it is a much more worrying picture. Professor Kevin Morgan, one of the team who wrote the report, said: "On the jobs front, Wales has made encouraging progress, but on the issue of the relative wealth of the region it is a much more worrying picture.
"We are not doing as well as Cornwall or Merseyside. We need to improve our performance.""We are not doing as well as Cornwall or Merseyside. We need to improve our performance."
The report also shows that the average weekly wage in west Wales and the valleys has risen between 2000 and 2006 by 26.5% to £456.50.The report also shows that the average weekly wage in west Wales and the valleys has risen between 2000 and 2006 by 26.5% to £456.50.
But the gap has increased between the wage in the region and the UK average from £64 in 2000 to £80 in 2006.But the gap has increased between the wage in the region and the UK average from £64 in 2000 to £80 in 2006.
Welsh Economic Development Minister Andrew Davies said:Welsh Economic Development Minister Andrew Davies said:
"This report shows the very considerable progress we have made in west Wales and the valleys."This report shows the very considerable progress we have made in west Wales and the valleys.
"We have achieved a big fall in unemployment and the fall in economic inactivity has been faster in west Wales and the valleys."We have achieved a big fall in unemployment and the fall in economic inactivity has been faster in west Wales and the valleys.
"We have learnt a lot of lessons but this BBC report says there has been very substantial progress in bridging the gap between Wales and the rest of the UK.""We have learnt a lot of lessons but this BBC report says there has been very substantial progress in bridging the gap between Wales and the rest of the UK."
'High growth''High growth'
Plaid Cymru AM Helen Mary Jones said: "There is some good news, but the main target was around the GVA figures and we are concerned it has not been met.Plaid Cymru AM Helen Mary Jones said: "There is some good news, but the main target was around the GVA figures and we are concerned it has not been met.
"There is a lot of complacency with the assembly government.""There is a lot of complacency with the assembly government."
The report highlights techniums - specialist facilities for hi-tech, creative and knowledge-based businesses - which are promoting hi-tech jobs around Wales using Objective One money.The report highlights techniums - specialist facilities for hi-tech, creative and knowledge-based businesses - which are promoting hi-tech jobs around Wales using Objective One money.
So far, around 500 jobs have been created by the techniums at a cost of £84,000 per job.So far, around 500 jobs have been created by the techniums at a cost of £84,000 per job.
But Simon Bowen, chairman of the Technium Steering Group in Wales, says the techniums have proved to be good value for money.But Simon Bowen, chairman of the Technium Steering Group in Wales, says the techniums have proved to be good value for money.
He said: "Techniums are crucial to the knowledge-based economy in Wales - providing small businesses with high growth and supported by business and academics."He said: "Techniums are crucial to the knowledge-based economy in Wales - providing small businesses with high growth and supported by business and academics."
The Cardiff University report concludes that Objective One has not had a major impact on levels of prosperity in west Wales and the valleys, but may well have helped towards getting people back into the labour market.The Cardiff University report concludes that Objective One has not had a major impact on levels of prosperity in west Wales and the valleys, but may well have helped towards getting people back into the labour market.
There will be more on the report on Dragon's Eye on 20.30 GMT on 22 February, BBC 2W and 22.35 on BBC One Wales.There will be more on the report on Dragon's Eye on 20.30 GMT on 22 February, BBC 2W and 22.35 on BBC One Wales.