September 2008
Much has been written in the press recently about the possibility of a recession in this country. It is acknowledged that the fuel, food and financial crises are global in nature with the credit crunch emanating directly from the U.S. It is also recognised that in recent years, house prices have risen way beyond what is sensible and reasonable.
Whilst I do not underestimate the scale of our problems I do agree with the Government, that unlike in previous recessions under Tory Administrations, our economy today is resilient with low inflation levels and relatively low unemployment.
So what is to be done? There is an expectation that despite the scale of the global problems, the Labour Government needs to make a serious effort to help. And that is exactly what our Prime Minister Gordon Brown is seeking to do, starting with housing. The suspension of stamp duty for a year on homes costing less that £175,000 is a welcome start and so are the interest free loans of up to 30% on new properties for families with incomes of less than £60, 000 per year.
Ministers hope that 10,000 first time buyers will benefit from the 'shared equity' scheme and there will also be help for people facing repossession by extending relief to those who lose their jobs or suffer a loss in income. And there will be a boost to social housing, hopefully this initiative will be also be supported by the Welsh Assembly Government.
On another front I have for some time been calling for a windfall tax on energy companies and supermarkets in order to support more vulnerable families and the elderly. I am pleased to see that a windfall tax is not being ruled out. I believe this is because the Prime Minister is prepared to listen to the hundred or so Labour backbenchers who are campaigning with the TUC to tackle fuel poverty now.
On a local note I was proud to be present on a windswept afternoon recently at an event organised by the Port Talbot Historical Society and Corus to commemorate the bravery of the nineteen sailors who perished on the Amazon and the Mumbles Lifeboat men who tried to rescue them. This occurred when the vessel sank in high gales three miles out of Port Talbot Docks, which it had just left, bound with a cargo of Welsh coal for Chile. The Society and Corus, as well as the RNLI Lifeboat Station, are to be congratulated for organising this important commemoration.
