1 February, 2012
A Land Value Tax for Wales?
Mark Drakeford AM has called for the Silk Commission to consider the case for a Land Value Tax as part of its deliberations on whether tax raising powers should be devolved to Wales.
Leading a short debate in Plenary this week on ‘A Land Value Tax for Wales’, Mr Drakeford said that a tax based on land value has many merits and is worthy of detailed investigation into its pros and cons.
Land Value Tax (LVT) is levied on the annual rental value of specific pieces of land where the where the value is determined by different usages, for example, agricultural and industrial land. At its most radical, it could allow for the abolition of Council Tax, Business Rates and Stamp Duty Land Tax, by introducing a levy on the annual rental value of every site in the UK including all residential, commercial and farming land, as well as privately owned estates.
Supporters of LVT say that one of the main advantages of LVT is that it is difficult to avoid because it’s hard to hide land or move it offshore to avoide getting taxed. Economists such as the OECD’s argue that LVT also increases long-term stability and growth by fostering more productive use of capital and also stablises government finances by bringing in revenue efficiently and quickly. It is also a progressive tax which imposes a lower burden on the poor than the rich.
Other advantages are that LVT is relatively cheap to collect as well as difficult to evade. It discourages speculative land holding and encourages active use of land, creating more job opportunities and wealth.
LTV is already used in some countries. In Australia, LTV exists in some form in every state while Russia has used a form of LTV in the post-communist period. In the UK there is detailed work already carried out on the applicability of a LTV in particular contexts. Oxford unitary authority has a report already prepared on its utilisation; Scotland has a Land Reform Policy Group and Glasgow City Council has, over the past two years, been actively considering such a tax
An LVT could also pay for many other much-needed infrastructure schemes.
Research into the practical application of LVT has calculated that the Jubilee Line extension to Stratford raised property values around the stations by £10 billion. If only a small part of this windfall had been taxed, it would have paid for the extension very easily. Similarly, those whose sites have declined in value, if blighted by other development for example, would pay less.
Mr Drakeford said: “The whole future of responsibility for taxation is very much a matter of current debate and we must not underestimate the problems of tackling taxation, especially in an economic downturn.
“Nevertheless, an LVT has an impressive economic and political pedigree with supporters across political parties including some UK Government Ministers. It is the official policy of the Green Party in Scotland where research carried out, late in 2010 suggested that a land value tax of 3.16p per pound would generate enough cash to replace council tax and the uniform business rate, while leaving 75% of Scottish households better off in the process.
“LVT is also an idea with a strong Welsh pedigree. The idea was first seriously advanced by Keir Hardy in his 1906 election manifesto and then a key part of Lloyd George’s original ‘People’s Budget’ of 1909. Now, in the era of devolution, there may be chance for their uncompleted work to be brought to a conclusion in Wales.”
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27 December, 2012
TIME TO GET TOUGH ON PAYDAY LOAN COMPANIES
All four parties at the Assembly this week were united in their condemnation of high-interest loan companies who offer quick loans at eye-watering interest rates – sometimes in excess of 4000%.
It is one of the issues raised at the weekly surgeries which Kevin Brennan and I hold, where constituents have been enticed into taking a small loan to make ends meet and then struggle to meet their repayments.
New research by insolvency trade body R3 reveals that 3.5 million adults are considering taking out a payday loan over the next six months. The same research also shows that of those sampled who had taken a payday loan, 60% regret the decision and 48% believe the loan has made their financial situation worse. Only 13% believe their payday loan had a positive impact on their finances.
Frances Coulson, R3 President commented: “Payday loans are not the best way to resolve debt struggles. We know that many who take them out find them to be a negative experience, often escalating financial troubles.”
Some 60% of those surveyed worried about their level of debt, and 45% struggled to make their money last till payday, rising to 62% for 24-44 year olds, R3 said.
R3 says the survey reveals money worries at the highest level it has ever recorded, and consumer bodies have called for tougher regulation around payday loans. One in six are so-called “zombie debtors”, who are only able to service the interest on their debts.
The payday loan companies like Wonga and QuickQuid are now a £2bn-a-year business. If the money is paid back promptly on the next pay day, this type of lending can be cheaper than paying an unauthorised overdraft or a credit card charge. But if the loans – some charging interest rates of more than 4000% – are rolled over, debts can quickly escalate.
Last month the Citizens’ Advice Bureau warned the number of people running into debt through payday loans has quadrupled in two years. It says it is too easy to obtain such credit and it is calling for tighter regulation, along with Consumer Focus, the UK’s official consumer watchdog.
We need to look beyond the symptoms of pay-day loans to look at their causes as well. There is the declining share of national income that goes to workers, the impact of unemployment and the failure of regulation to meet the challenges that pay-day loans companies create. Financial exclusion is very real and people in the poorest households often rely on credit to meet their basic needs. Many people do not have access to financial services – not even a bank account.
Predictably in this harsh economic climate, illegal loan sharks have flourished but shockingly, so have legal loan sharks. It is the predatory nature of these companies that is so worrying. They offer quick and easy access to finance – often to the poorest and most vulnerable people and those least able to manage their debt. Interest is charged on interest until borrowers are forced to do without essentials just to service their debt. Remarkably, in this unregulated market these payday loan companies or legal loan sharks are able to proliferate, They are allowed to advertise their services unchecked in the mainstream media• I have heard examples of homeless young people being targeted by legal loan sharks while Wonga quickly withdrew a promotion on its website recently targeting students with easy access loans after a national outcry. Wonga, for example, has even launched an iPhone application which allows a borrower to have a short-term loan directly transferred into their account within the space of a few minutes - this comes with a whopping APR of 2689%!
Stella Creasy MP is waging a high profile campaign calling on the UK Government to regulate the activities of legal loan sharks. She said: “We know that there has been a fourfold increase in payday lending since the recession began, and that due to a lack of regulation in the market in the UK, The Money Shop, Wonga, Provident, BrightHouse and other companies are expanding across the country at an alarming rate. Indeed, they have already pointed to the government’s policies as increasing their customer base.”
February 13th will see the launch of the first ever television advertising campaign by credit unions in Wales. It will run for a month. It will go head to head with pay-day loan companies at the time of day when they use advertising to promote their pernicious products. Credit Unions offer easier and cheaper ways of borrowing and provide a great service to the many individuals and communities who would otherwise have no access to affordable credit. I hope that everyone will look out for those adverts and spread the word that Credit Unions are the best defence against exploitation of some of our most vulnerable people .
1 December, 2011
MARK DRAKEFORD BACKS CALLS FOR INVESTMENT IN VALLEYS METRO
Mark Drakeford, AM is backing calls for investment in a Metro rail system which is key to the economic regeneration of the South Wales area.
He has added his name to a motion for debate in the National Assembly welcoming support for an integrated rapid transit system based on the valleys rail network and calling for a partnership approach to secure the massive investment needed.
The Metro was proposed in a recent study commissioned by the Cardiff Business Partnership which set out an ambitious transport plan with Cardiff as the hub of a Cardiff City Region with fast transport links to Newport, the Vale of Glamorgan, Bridgend and the South Wales Valleys. More than 100,000 people commute to Cardiff every day from these areas and the increasing level of commuting depends on the region’s transport infrastructure. The report says a 21st century transport system including the development of the Metro, links to the Bristol, Birmingham and Swansea City regions and a major upgrade of the current rail links to London and Heathrow are key to the economic renaissance of South Wales.
Major investment in the Metro system would be needed to transform the existing rail network into a 21st Century urban transit system including comprehensive electrification; improved track and signalling; faster, higher capacity and more efficient rolling stock and some extensions to the existing rail network. The rail network would be augmented by new tram or tram-train routes with new stations to widen access and reduce car dependency.
Mark Drakeford is chairing a meeting of the European Programmes Partnerships Forum in Swansea today (Thursday 1 December, 2011) to look at the impacts on the economy of the current round of European Convergence Funding and to plan for any 3rd round of funding for which Wales might qualify.
Mr Drakeford said: “Investment in major transport improvements like the Metro which help people to live and work in South Wales are very much part of what the European Funding Forums are discussing. If the ambitious plans for a 21st century transport system for the Cardiff City Region go ahead it will be with funding from the next round of European Convergence Funding. We must make sure that we use future funding for projects which take jobs to people and people to jobs.”
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28 November, 2011
Heritage Lottery Grant for Insole Court welcomed
The award of a Heritage Lottery grant that will secure the future of one of Cardiff’s landmark buildings has been warmly welcomed by Cardiff West’s AM Mark Drakeford and MP Kevin Brennan.
The announcement of £165,900 for Insole Court in Llandaff, will enable restoration plans to proceed which, if approved, will unlock £1.9 million of further Heritage Lottery funding to restore the Gothic mansion to its former glory.
Mark Drakeford and Kevin Brennan backed the funding bid sending letters of support for the restoration plans to the Big Lottery Fund.
The £165,900 grant announced today (Monday, 28 November) will allow architects to prepare detailed restoration plans to be submitted by the end of January. If approved, the restoration could be given the green light by the end of 2012.
Mark Drakeford AM said today : “Insole Court is an architectural treasure which now looks certain to be preserved for future generations. I am delighted that the plans provide for a strong element of community use including a café, nursery and centre for older people. The fate of Insole Court has been kept in the public eye for many years by an active local committee and they are to be congratulated for their commitment and dedication to this project.”
Kevin Brennan MP said : “Local people have campaigned tirelessly over the years to secure the future of Insole Court and today’s announcement represents a huge step forward for the project. It is local people who have refused to allow the building to slide into further decline and decay and it is entirely fitting that that the local community should benefit most from its restoration.”
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26th November 2011
LEGAL AID CHANGES THREATEN MANY FAMILIES WITH HOMELESSNESS SAYS MARK DRAKEFORD AMThe UK Government’s proposed changes to the Legal Aid system will lead to more people in Wales becoming homeless Cardiff West AM Mark Drakeford said in Plenary today (Tuesday, 22 November).
Mr Drakeford said he feared many people would lose out on access to the debt and welfare benefit advice under changes to Legal Aid proposed by the Ministry of Justice and the homelessness crisis in Wales will get much worse as a result.
The Government is proposing a number of changes which will lead to whole areas of law being taken out of scope for Legal Aid including debt and welfare benefit advice.
Under new Government proposals, funding of legal advice and assistance would not be available to people until they were on the brink of being made homeless.
Mark Drakeford said: “Many people’s housing problems are complex which means they need a range of debt, benefits and other advice where they can currently access legal aid. It is a fact that early advice and intervention is the best way to prevent people reaching that crisis point where losing their home becomes inevitable.
“These changes could not have come at a worse time as significant changes to housing benefit and wider welfare reform proposals will leave many more people in difficulty with debt and at real risk of losing their home. In our weekly surgeries, housing problems brought to us by constituents outnumber all the other problems put together – and they are always the most desperate. “
Mr Drakeford raised the issue of Legal Aid changes with the First Minister in Plenary today and called upon his Assembly colleagues to condemn the proposals which are certain to plunge many more people in Wales into poverty.
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MARK DRAKEFORD SAYS NURSING INNOVATION KEY PART OF NHS FUTURE
Mark Drakeford, Chair of the National Assembly’s Health and Social Care Committee, will host the launch of the Royal College of Nursing’s new Time to Care campaign this week. The campaign offers a range of policy ideas for service improvement based on examples of best nursing practice, innovation and best standards of care.
Mark Drakeford said : “For more than 20 years, nurses have demonstrated an ability to take on an expanded range of activities improving services to patients as a result. There are some truly inspirational examples of best practice within this campaign. Over the next 5 years, when money will be much tighter, it is more important than ever to ensure that innovation and new ideas are the driving force for service improvement and that Government takes the lead in making this happen. “
The launch of Time to Care takes place in The Senedd, Cardiff Bay at 12 noon on Wednesday, 23rd November, 2011.
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16th November, 2011
Campaign to Save Public Toilets to be taken up
by Health and Social Care Committee
The National Assembly’s Health and Social Care Committee is to investigate the public health implications of public toilet closures across Wales it was announced today (Wednesday, 16 November, 2011).
Campaigners are bringing their fight to save Wales’s public toilets to the Senate today calling on the Welsh Government to work with local authorities to keep public toilets open.
The campaign is led by the Welsh Senate for Older People who say that it is those they represent along with pregnant women and parents with young children who are hardest hit when public conveniences disappear from our communities.
The National Assembly received a petition on public toilet provision earlier this year and has asked the Health and Social Services Committee to conduct an investigation.
Mark Drakeford, Chair of the Health and Social Care Committee, said today : “Access to clean and accessible public toilet facilities is essential for everyone but even more so for older people, people with disabilities and young children. The Welsh Government has introduced schemes such as the public facilities scheme to encourage businesses to open their toilets to the public but there is still widespread concern that so many facilities have closed. The Health and Social Care Committee has been asked to investigate the public health implications of the closures and this will take place early in the New Year.”
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15 November, 2011
Cardiff AMs get Sports Minister’s backing for
Fred Keenor Statue Appeal
Cardiff Assembly Members Julie Morgan and Mark Drakeford have had a ‘very positive meeting’ with the Welsh Government’s Sports Minister Huw Lewis to discuss the proposal to erect a statue to honour Welsh football legend Fred Keenor.
The Minister made it clear to the AMs that he supports the fundraising appeal and that he is very keen to help the Echo-backed campaign.
Cardiff North AM Julie Morgan and Cardiff West AM Mark Drakeford are both backing the statue bid and will be attending a fundraising event at the Cardiff City Stadium on Thursday night where local chef Dilwar Ali of the Nahin Spice Centre in Caerphilly Road will be serving up a delicious supper. Special guest at the event will be Frank Hennessy.
Julie Morgan said: “The Minister was impressed by the successful campaign to honour one of Wales’s greatest sporting legends and we were delighted with his positive response. The Cardiff City Supporters’ Trust has already raised more than half the money needed and is well on course to reach the target.”
Mark Drakeford said: “A statue at the entrance to the new Cardiff City Stadium is a fitting tribute to the man who captained Cardiff City to FA cup victory in 1927 and to the only team outside England ever to win the FA cup.”
Eight AMs have pledged their support to the Fred Keenor Statue appeal – Julie Morgan (Cardiff North), Mark Drakeford (Cardiff West), Vaughan Gething (Cardiff South and Penarth), Jenny Rathbone (Cardiff Central), Jane Hutt (Vale of Glamorgan), Mick Antoniw (Pontypridd), Lindsay Whittle (South Wales East) and Leanne Wood, South Wales Central.
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14 November, 2011
MONEYLINE CYMRU – A GREAT SUCCESS STORY SAYS AM
A money advice and credit service set up two years ago has been praised by Cardiff West Assembly Member Mark Drakeford for its ground breaking work on behalf of people who are financially excluded.
Moneyline Cymru was set up in 2009 and part-funded by 16 housing associations to provide money, advice and credit for people who are usually denied access to these from mainstream outlets like banks. There are five high street Moneyline shops in South Wales including a Cardiff shop in Cowbridge Road East, Canton providing loans, financial advice and basic bank accounts for people who may otherwise be denied these services.
Community Housing Cymru, the umbrella group of housing associations behind Moneyline Cymru, estimates that 70% of those living in council or housing association accommodation are unable to access mainstream credit. Their research shows that financially excluded people often turn to high interest lenders and, in extreme cases, to loan sharks to borrow money.
Moneyline Cymru works closely with the Citizens Advice Bureau and Wales Housing Debt Helpline to help tenants get the right money and debt advice. It was awarded the Groundbreaking Service Team in 2010.
Mark Drakeford said : “Moneyline Cymru is part of a new set of services for people financial difficulty who may otherwise fall prey to doorstep lenders or loan sharks who operate by using fear and intimidation to carry out their business. Together with Credit Unions, they offer money advice and credit to those in greatest need. I am delighted to join Moneyline Cymru in celebrating two years of fair lending in Cardiff.”
Mark Drakeford will join Moneyline Cymru for its second anniversary celebration at Canton Library, Cowbridge Road East, on Thursday, 17 November at 11.30 am.
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Cardiff AMs Send Greetings for Happy Diwali Festival
25th October 2011
Cardiff AMs have sent their good wishes for a Happy Diwali to all their constituents on the eve of the five-day long festival which starts tomorrow (Wednesday, 26 October).
Assembly Members Mark Drakeford (Cardiff West), Julie Morgan (Cardiff North) and Vaughan Gething (Cardiff South and Penarth) have joined together to send their greetings
to all the people in their constituencies celebrating Diwali this week. Diwali is the annual festival of light which is celebrated by communities around the world bringing together
the Hindu, Jain and Sikh religions.
In their message, the AMs said : “The celebration of Diwali brings together the diverse faiths, cultures and communities that make Cardiff such a special place and this is
something we should all celebrate. We wish all our constituents a Happy and Joyful Diwali filled with light, peace and prosperity.”
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Note to Editors : For more information please contact Moira Trezise on 07975 732966.