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Democratiaid Rhyddfrydol Cymru


Lib Dems say Welsh public Service future hangs on fate of stricken banks

2009 Awst 5 10:16 AM

Welsh Liberal Democrats believe Government should outline a best and worst case scenario for future public spending in light of the losses made by those banks in which the public has bought large shares. Kirsty Williams said: "Lloyds and Northern Rock are both struggling to turn a profit. Bogged down by bad debt and propped up by billions of taxpayers money, the fate of these banks will shape public budgets for years to come. You can't expect recovery overnight so we shouldn't rely on the Government's over-optimistic forecasting. We want Labour to come clean and tell taxpayers what the best and worst case scenarios are - otherwise we've all gambled without knowing the odds." Commenting on the likely impact of further banking losses on public spending Mrs Williams said: "The best case scenario looks bleak, the Tories are talking about 10% cuts but it's more complicated than that in Wales. Assembly Government budgets are already shrinking and with Labour and Plaid refusing to review the One Wales programme, we're concerned that public service managers will face impossible choices from 2011 onwards. Now is the time for honesty, debate and planning for these turbulent years ahead."