Merthyr’s Economic Miracle Challenges Valleys Myths
- DATE: October 31st 2011
- AUTHOR: Victoria Winckler
- THEMES:
For decades, Merthyr Tydfil has been synonymous with deprivation, disadvantage and decline. Politicians and academics have struggled with what to ‘do’ about Merthyr, with ideas ranging from moving everyone away to encouraging everyone to get on the bus or train (pick according to your political persuasion) to Cardiff. Commentators routinely give the example of ‘Merthyr’ to illustrate their discussions about poverty, obesity, crime or anything else bad in life, whether or not is has any foundation.
I have some news for all the nay-sayers – Merthyr Tydfil has achieved an economic miracle. Here is the latest from the Welsh Government’s labour market review of south east Wales:
- Merthyr’s employment – up 15% between 2001-2011 and up 18% between 2010 and 2011, both figures the highest in south east Wales;
- Merthyr’s employment rate – around the south east Wales average, and above the rate for Cardiff
- Merthyr’s unemployment rate – the same as Cardiff’s at 10.1%
- Merthyr’s economic inactivity rate – down by a nearly 10% since 2001, the largest percentage fall in south east Wales
This is clearly NOT a valleys-wide phenomenon, as Blaenau Gwent, for example, emerges as performing particularly badly where Merthyr does well. Something seems to be happening that means that Merthyr is bucking the trend, despite losing jobs in Hoovers and several other major employers. So what is it?
The answer is investment, both public and private. Despite the claims about the valleys getting lots of Government help, it is only the last decade that has seen serious money invested into Merthyr. A new retail park, leisure village, town centre improvements, expenditure on schools and colleges, on help getting people into jobs, on Prince Charles Hospital, and yes, on railways too have all clearly changed the area’s fortunes. You can now shop in Debenhams, do a degree in media production, attend the local business club and enjoy a meal at a good restaurant if you are so inclined and have the means. This is absolutely not to minimise the problems that remain – at 10% unemployment is way too high, wages are below average, and the employment rate is still relatively low.
There are three important conclusions we can draw from this dramatic about-turn. First, many more parts of the Heads of the Valleys need investment – real money, spent on actions that support the economy not claims of cash that are not realised or marketing puff. That Blaenau Gwent’s fortunes are so very different (its major regeneration programme is still a long way to completion) is a powerful benchmark of what happens when there is no investment. Second, if the valleys do have real regeneration potential, as Merthyr shows, then this undermines some of the rationale for the pouring of cash into Cardiff. Why spend money on yet more facilities in the capital if more sustainable – and arguably balanced – development can be achieved by spending in Ebbw Vale, Bargoed, Maesteg or where ever. And third, it’s time for commentators, politicians and policy-makers to stop reaching for Merthyr as the easy example of poverty. It isn’t – the jibes hide a much more complex position.
Of course it remains to be seen whether these massive improvements can be maintained over the next few years and if they translate into improving the lives of the most disadvantaged. Nevertheless, it’s a start and very welcome one at that.
4 Responses to Merthyr’s Economic Miracle Challenges Valleys Myths
I’m glad to see that you mentioned Maesteg. You are entirely right in arguing for a balanced approach. Even with improved transport links development concentrated in Cardiff isn’t the only answer. Anyone travelling across the South Wales valleys can see their potential as places to live and work in digital age. We also ,however, need to have a more flexible approach by some planners in the valleys. Too many have an attitude to planning which doesn’t take into account economic reality and which would not be out of place in the Soviet Union in the 1950s. At the moment there is a large derelict site in the Llynfi Valley which could attract investment which would create at least 400 employment opportunities. There are investors ready to develop the site but they are not prepared to move because of real concerns about the negative attitude of the local authority planners. Who is going to spend thousands trying to bring employment opportunities to na area when the attitude is one of looking for more reasons not to develop rather than one of looking for solutions.
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Sorry to take some of the gloss off the article – but if I’m correct in assuming that you mean % and not percentage points: “Merthyr’s employment – up 15% between 2001-2011 and up 18% between 2010 and 2011, both figures the highest in south east Wales;
That means that employment decreased by 3% or so between 2001-2010. So in fact the economic miracle has taken place entirely within the 12 months 2010-2011. This leads to the suggestion that it could be a short term phenomenon – unless there’s other evidence (the article doesn’t provide it) to support the idea it’s longer term?
Gareth, you are right in that the Welsh Government’s report suggests that all the growth has taken place since 2009. It is no coincidence in my view that this is the period when the new developments came on stream although I cannot prove it. Clearly nobody can tell if these jobs are sustainable long-term employment or not, or if there will be further growth, but they are surely better than no jobs. Even if the improvement in fortunes is short-term it still questions (although I accept doesn’t shatter) the image of Merthyr.