Tuition Fees and Coalition Government:

When Labour and Plaid agreed to share power in Wales in 2007 they made a series of agreements and pledges that formed the basis of coalition government. We all know that agreement as One Wales. On the subject of tuition fees here is what One Wales has to say:"

"We will provide extra assistance with student debt and maintain existing fee levels in Wales up to and including 2009/10. We will maintain the current level of resource throughout the four year Assembly term, doing whatever is possible to mitigate the effects on Welsh-domiciled students if the Westminster government lifts the cap on fees in 2009."

Unfortunatley Labour's interpretation of "whatever is possible", at this juncture, is to follow the lead from Westminster, and saddle Welsh students with additiontal burdens of debt come 2011. Labour's proposals may follow the letter of One Wales, but they certainly abandon the spirit of the agreement. Disappointingly Plaid leaders in Welsh government seem all to ready to temporarily suspend principle in this instance, and try to reshape Plaid's policy to suit Labour's planned public spending cuts. In the process of doing this they wish to ride roughshod over Plaid's election promises not to introduce tuition fees if in power.

Ieuan Wyn Jones (Plaid's affable, diplomatic, and somewhat inert leader, in case you missed him) may well point to pragmatism. He can also talk of the limits on ambiton that come with coalition governement. In this he has a point. The purpose of government is to slice the pie as fairly as possible, and as we are dependent on Gordon Brown the portions tend to be stingey- cuts to higher education spending are part of this process, arguably, brought to a head by recession. Ieuan fails to note however the other aspect of government. Which involves campaigning and standing by what you profess to believe in- and doing what you said you would do. It is a sign of the cynicism of the times that this seems naive- but pragmitism must be wedded to idealism if politicians, and democracy, are to serve any purpose. The career of most politicians, the average ones that is, are determined by the ability to compromise. The career of remarkable politicians is shaped by their refusal to do so. In this sense, by trying to alter a key Plaid policy mid-term- Ieuan Wyn Jones reveals himself as an unremarkable politician- closer to his colleagues in government than he is to the wishes of his own party.

All this points to a much wider problem at the heart of coalition governement. I know as a party activist I am not alone is asking what Plaid are attaining, and how are Wales benefitting, through our presence in government. Key policies cannot be introduced through the loathsome cumbersome LCO process, as there is constant interference from disgruntled MPs. Wales stands to lose a mammoth £500 million in future spending. The All Wales Convention is grinding slowly to the already suspected conclusion that a referedum on further powers is both winable and loseable. Devolution could even potentially be deferred rather than progressed even with Plaid in power.

This is hugely frustrating as in Europe, Assemby, and Westminster, Plaid have so much to offer. In government however we begin to risk being seen as New Labour's lackeys with added patriotism. There seems little point in supporting a party that will, when push comes to shove, endorse, however reluctantly, key policies they opposed when in opposition. Plaid are better than this split on tuition fees. The cost of power should never be the abandonment of key principles- not unless that Tony Blair and his ilke were right all along?! And that can't be right.

Glenrothes result

A few years back I had the pleasure of watching the England and Wales cricket team contest an Ashes cricket series which was eventually won by England (as they are usually called, somewhat erroneously if for convenience's sake).

At some point, maybe the third test, Australia started celebrating a drawn match. I was stunned, the win at all costs and win easily mentality of the Australians had been transformed. They had taken to celebrating results which would have once been seen as disappointing, or at least expected. Change was afoot. England (and Wales!) went on to win the Ashes.

It is this air of unmerited triumphalism that figures in today's headlines. As New Labour celebrate holding on to Glenrothes, Gordon Brown's neighbouring constituency. A new constituency created mostly from Central Fife this was, until the SNP resurgence, safe territory. Don't be fooled by the spin, the song, and the dance. If they are not to be reduced to a rump in Scotland, as the tories now are, New Labour have to hold some seats like Glenrothes. And the SNP increased their share of the vote by 3%, with a 4.6% swing form Labour to SNP. So while the SNP may be a bit disappointed at failing to get another scalp, this is no time for New Labour to bask in glory.

The headline -LABOUR CELEBRATE HOLDING SAFE SEAT- would have an all together different feel to it. One that points accurately to their current decline.

Mortgage Relief and the economy

In a fanfare, together with billions of squid being doled out to the banks, interest rates were cut last week. All part and parcel of the taxpayer rescuing the failed private sector.

It seems the model made so popular by Thatcher and Reagan, and subsequently deregulated further by Bush, has failed. It was a bad idea to take Adam Smith's enlightenment era advice of 'let the market alone' literally after all. As many of us knew before the credit crunch. The official line of 'no-one could have seen this coming' simply is not true.

Ideology aside the immediate evidence for now is that banks are not passing on the interest rate cut to those struggling with mortgage payments. In fact mortgage rates remain, at best, static. With massive support from the taxpayer to bail out banks in their hour of need the least we should expect in return are mortgage rate reductions, so that ordinary families can live free from the fear of repossesion.

With the limited powers and resources available to us the Plaid deputy housing minister Jocelyn Davies has already taken crucial steps to protect homeowners caught up in the current crisis. But the banks should be caring less about profit and more about their consumers until this crisis has passed. One would hope for an immediate half a percent reduction in mortgage rates. With greater powers Wales could add this string to any bail-out actioned.

Unfortunately this rate cut does not seem to be on the cards and the most we can hope for in the short term is that the gloom mongering news is abated for a day or two and that the economy can take a breath and begin to recover.

The upshot of the entire rescue package is that New Labour, through effectively nationalising so many banks, inadvertently, and in a very roundabout way, end up fulfilling one of their key 1993 manifesto pledges. It is all very much the accidental death of New Labour economics.

Anyone hankering for a socialist utopia on the back of all this nationalisation should not get their hopes up though. It seems most unlikely that either the Tories or New Labour would allow for a similar nationalisation deal to be permitted for any part of the Welsh transport or energy sector. It is one rule for the bankers and another one for the rest of us. This incumbent government in Westminster are the same crew who were until recently declaring an end to boom and bust and asking the FSA to back off the banks. New Labour economics have failed-and in Wales only Plaid have a convincing programme to begin to replace it.