04/10/2011 BBC Wales Today

Welcome to Wales Today live from Cardiff Bay. The Welsh Government

has published its draft budget of more than �14 billion. Virtually

all public services face financial cuts after inflation is taken into

account. And the Welsh Government will need help to get it passed.

these difficult economic times, this is a budget for growth and

jobs. Health and education see slight increases in their budgets,

but business and enterprise see a cut. I'll be speaking to the

Finance minister live and finding out whether the other parties will

support Labour on the final budget on 6th December. Also tonight:

Uncertainty for students around the world and dismay at home as the

University of Wales plans to stop validating degree courses. I think

it has been a poor example of governors in Wales. This is no way

to run a higher education system. The New Zealand earthquake claimed

the lives of 180 people. Seven months on, we meet a Cardiff man

helping with the re-building Good evening. How would you spend

�14 billion? That's what the Welsh Government has been announcing here.

If it sounds like deep economics, it's about our schools, our

hospitals and creating jobs wherever you live. The government

says this is a budget for growth and jobs.

Let's take a closer look at the figures: There will be an extra �51

million for health in Wales, that's up by just less than 1%.

Education gets an extra �9 million, that's up by 0.5%.

The budget for housing falls by �28 million, that's down by 4.9%.

More money will be spent on health and education next year, inflation

will soon eat away those increases and other departments face

significant cuts. If that sounds straightforward, the

Welsh Government has got two big problems. One, they have less cash

to play with than last year, and two, Labour only have 30 of the 60

seats. No majority, so they need to talk nicely to the other parties

and do deals. Here's our political reporter Mark Hannaby on how the

budget battle ahead might be hard to swallow.

The Welsh government is hailing a budget for growth and jobs,

offering a brighter future for our young. Emphasising this, Jane Hutt

visited a �40 million development. However tasty the future may be,

this year, few were goodies public sector parts. The government can

spend over �14 billion, and the slightly less than last year, but

the difference is greater in real terms. Which services will receive

plenty? Who will be left shaking the jar? We have a clear vision for

Wales. We want a more prosperous economy. We want better, more

efficient public services that equip people to fulfil their

potential and maximise their contribution to society and the

economy. Health sees a cash prize of �51 million next year. The

Conservatives have long argued that health should be given enough money

to meet rises in inflation, whatever the cost to the rest of

the budget. They are far from sold on the government's plans. It is

clear from today's draft budget that health spending will be cut in

real terms. Therefore, does the minister regret that Wales will be

the any part of the United Kingdom in which health spending is being

kept in Actual real terms? education budget will rise by just

�9 million, compared to this year's budget of �1.8 billion. For the

Liberal Democrats who have made education a top pay she, the

government's proposal is hard to swallow. The first impression of

this budget is that effectively, you have given us nothing much

different to last year's budget. The question therefore is that as

last year's budget did not have other jobs or growth, while this

budget be any different? Funding economic development is difficult

against a background of Whitehall cats of around 40% to budget for a

large business projects. The but -- the business and enterprise but it

sees a cut of almost �9 million. Lack of money to build new schools,

prepare -- repair roads, is becoming a big issue. When it comes

to backing the budget, applied country survey will not buy it

without improved funding. -- Plaid Cymru. There is a real issue about

people losing their jobs. I see no signs that this budget recognises

the scale of that problem. biggest cut in the budget is to

housing, which will fall by �28 million. Lacking in overall

majority, the government will need to build compromises to get the

budget through. Expect deals and possibly some changes to keep

opponents suite before the budget is finalised.

Let's talk to the finance minister Jane Hutt. You have described this

as a draft budget for growth and jobs. I do not understand. You have

cut the budget for the business department. How can it be a budget

for growth and jobs? You know this is a tough budget. Particularly a

21% cut in capital. We also know that it is a budget where we have

to look to our young people to make sure they do not have the scourge

of youth unemployment. When you talk to employers, the want us to

see investing in skills, the infrastructure in times of capital,

they want to make sure we can get good procurement, they want to make

sure that planning is not getting in the way. It is not just about

what goes into economic development, but �90 million is going into

support for businesses, which helps projects. It helps our college.

There will be �40 million coming from the UK Treasury. The

Chancellor and the Prime Minister have suggested that goes towards

reducing community charge. Where will that go? That money, for �2

million, could go on growth and jobs. One-off money this year. Yes,

a strong feeling came across from the Chamber that we should be

looking to education, training, the economy in terms of that funding.

Local government has had a fair settlement. Just to be clear, that

�40 million and that is coming from the UK Treasury, he was saying is

going to go towards growth and jobs rather than anywhere else? I am

saying this is a strong view that came over in the Chamber. Really

got the news yesterday that we have got this money and we are now

making a decision on where it should go. It is very clear is that

the priority is to ensure we can have that recovery in the economy

and we can also invest in as public services like health and education.

We have used so much about cuts. The impression I get is that next

year perhaps will be even worse. Is that what you are trying to tell

us? We are in for the long haul. We're all looking at economic

renewal and social justice. Obviously, we have got to work with

our partners to make sure we listen and learn and get this budget

through. So the health budget in Wales got

more money. An extra �51 million next year. But in a health budget

of over �6 billion every year, it's not a huge increase once you take

inflation into account. So plenty of challenges for our health

service, as our correspondent, Arwyn Jones reports. Today, the

Welsh government pledged an extra �239 billion for the NHS over the

next three years. More cash, but if we consider inflation, it is still

a cat. It means that for hospitals and GPs, the next few years will be

financially difficult. It is not just an issue discussed here. Today,

at the Conservative conference, the Health Secretary for England had

this to say about the NHS here. not listen to the absurd inventions

by the Labour Party on the NHS when you can actually look and see what

a Labour in power means to the NHS in Wales. In Wales, NHS budgets

have been cut by more than 8% over the next three years. In England,

we are increase in the NHS budget each year. In England, the NHS

treats over nine out of 10 patients within 18 weeks. It was, it is

barely seven out of 10. The Welsh government has said there are fewer

people in Wales waiting over a year for an operation than in England.

They accuse the government in England of trying to privatise the

NHS. Today, the Welsh government said there will be millions of

pounds in addition for areas like orthopaedic surgery. The money will

go up to help people like this lady. Until recently, she still enjoyed

going out dancing several times a week. Now she is awaiting a new hip.

Like thousands of others, she is on a waiting list. I am in constant

pain all the time. To be honest, I would say the week that I left the

hospital, I was better then than I am now. It is all down to funding.

There is no doubt there are some tough choices to be made within the

health service. Our largest health board gives an indication of the

challenges faced. In an internal message to staff, it says there are

facing unprecedented financial and performance pressures. The saving

requirement for this year amounts to over �87 million. The average

couple in Wales will need to find about an extra �1 million per week

to balance its books at the end of the next few years. That is a

massive sum of money. We have never seen this scale of challenge in the

health service before. The jury is out as to whether the savings can

be achieved without the service suffering. More money is always

welcome. For thousands of patients, it could mean getting operations

more quickly in the future. Today's extra cash will not solve all the

problems facing our health service. The leaders of the other political

parties were watching avidly today and have been crunching the numbers.

They all joined me now. Let me start with the Conservatives. It is

a difficult day for you because essentially, what has gone on here

is the result of your party in London imposing these cuts on Wales.

Not at all. We want to be constructive. People facing a

challenge do not want to see politicians are Quinn. I regret

that the government will be cutting NHS funding. We propose providing

Biggs -- business rate relief. would you cat? If you had been in

charge, what would you cut question that we provided a detailed budget

last year which it and fed if you spend more in schools, you would

save �102 million. There are opportunities within the budget,

but it is challenging. We have got to be constructive. Let us speak to

Ieuan Wyn Jones from Plaid Cymru. Labour need you or the Liberal

Democrats on side. They do not have a majority. What are they have due

to get your support? We made it clear that we saw the economy as

the major challenge. We are facing another recession. People will lose

their jobs. The private sector is not growing at a rate that will

take up the slack from the public sector. Occult of 6% in cash terms

over the next three years in the business budget is simply

unacceptable. Let us speak to Kirsty Williams. �40 million is

coming to Wales from the UK Treasury. George Osborne has

suggested this should be spent on a freezing council tax bills. Usually

agree with them, don't you? No, I do not. By have been very clear

that the priorities for us a new budget are creating jobs will be

people suffering the scourge of unemployment and insuring a best

possible future for our children are by investing in medication.

Otherwise, we will see a generation after generation of Welsh people

not making the most of their skills and their potential. For me, the

priority will be spending in schools. Also, more spending that

the private sector to get people back to work. That is what the

priorities are for the Welsh Let's pick get some of these points

with our business correspondent. The context of today's Welsh

Assembly draft budget is how do you reduce unemployment in Wales. Is it

going to work? As look at youth unemployment. A fifth of unemployed

people in Wales are between 16 and 24. We don't know the exact details

of a project but we expected to be along the lines of the future jobs

fund which was introduced by Gordon Brown when he was Prime Minister.

It was promptly scrapped by the coalition government. It was in

effect will offer temporary placements to young people and try

to do with this issue of the threat of a lost generation of young

people in the workplace. It was scrapped because the Conservatives

thought it was not dealing with the underlying problems in the private

sector. It will be interesting to see if the private sector in Wales

take part in this scheme. It is a bit cheeky to call it a draft

budget for jobs and growth as ghastly business department.

they have been talking for a while about using the best use of the

money and try not to please everyone. They are picking sectors.

The economic development was introduced when Ieuan Wyn Jones

looked after the economy. It will put more pressure on the economic

Development officials working throughout Wales to get it right.

There are fewer resources and they have to pick those companies and

those sectors that are right for growth. The tax payer in Wales get

the best use of the many. Those companies that are supported other

ones that are genuinely creating jobs. Thank you very much. That is

the business context. We will have political analysis from our

political editor late in the programme. Back to the studio. Good

evening. 70,000 students around the world face an uncertain future

after the University of Wales said it would scrap validating degree

courses. One institution here says it's astonished and has been

treated badly by the University of Wales. Here's Kate Scott-Williams.

It's the end of the University of Wales as we know it. Without notice,

the historic institution, founded in 1983 has pulled the plug on

partner institutions all around the world, including some in Wales

which still bear its name. The move means the University goes from

being the second biggest in the UK to one of the smallest in Wales.

Instead of five Welsh member institutions it will now consist of

just Trinity Saint David and Swansea Metropolitan Universities.

The announcement came as a shock to some universities here.

It has been a poor or example of governance in Wales. This is

certainly no way to run a high education system. But for those

remaining in the University of Wales they say it was inevitable.

It is only in the last decade that it has increased in Wales to the

size that it is. It may be getting smaller but there will be more

than... Around 20,000 students in Wales with University of Wales

degrees. There's been pressure on the way the University of Wales

does business globally since BBC Wales exposed a pop star with bogus

degrees running a college offering its courses in Malaysia and another

in Thailand operating illegally. Today some students in Wales

weren't too worried about the changes.

As long it is a good degree I don't care where it comes from. You have

to do well and what you do. As long as it is recognised by potential

employers, that is what matters. have put in three years' hard work

and they have got my qualification, I do think it matters that much.

The vice chancellor of the University of Wales says the move

is in response to high education policy changes. They remain

committed to students as well as institute's that are affected such

as the University of Wales Institute in Cardiff.

Tomorrow night we will bring you news of a BBC Wales investigation

that lists of the lead on a scam that helps students abroad to get a

University of Wales degree. Seven months after an earthquake hit New

Zealand's second largest city, a father from Cardiff who emigrated

to Christchurch has been speaking about their efforts to rebuild part

of the city. Gareth Morgan moved there 11 years ago and helped

On 22nd February this year an earthquake struck Christchurch. One

of a series of powerful earthquakes. This one hates office hours. 181

people lost their lives. Slowly and with determination the city is

picking itself back up Bettws is quite a task. When you get into the

sense of Christchurch this is the scene that means you. This was

Christchurch Cathedral. Buildings have been boarded up, they are not

a fit for purpose and will have to be poured down. The local

authorities and hope for the city centre will be up and running the

business again in April. It is hard to convey the scale of destruction,

an area the size of 90 football pitches is a no-go zone. Broken

buildings, abandoned shops, report. It allows the timber to jump around.

Our guide was Gareth Morgan, a property manager for the New

Zealand are deaf -- newsy and army. We provide the civil defence

response. That involves being able to house at short notice thousands

of soldiers to go into Christchurch to help with the rescue. We had to

build a temporary mortuary. We coped with a refrigeration

containers and various other materials and we were able to do it

in two hours. I was there when the first bodies arrived. That was the

first sobering moment when you realised this was bake, very big.

The police van pulled up and said they had the first 11 bodies.

February when so many people lost their lives the children realised

how dangerous it could be. I think after that they were a bit nervous,

more nervous in going to sleep at night. No earthquakes in Cardiff.

Ever tempted to go back? Absolutely. It is probably time to think about

going home but this is a great opportunity now, Christchurch has

got a magnificent opportunity to rebuild. Last February's earthquake

is still part of the city's presents. You do pick up on an

enormous sense of optimism. Rather than being a city half destroyed it

is a city half-built. Some breaking football news.

Newport County have appointed Justin Edinburgh as their new

manager. A drop of nine degrees from

yesterday. There is snow on the wait but there is not. It is going

to turn cold on Thursday with a little snow expected on the

mountain tops in Scotland. Tonight in Wales, cloudy and damp at times

with spots of rain. A windy night. Lowest temperatures 13 degrees

Celsius. Tomorrow will bring the odd glimpse of sunshine. She

generally cloudy with some drizzle well be in the afternoon, rain will

spread across the country. Temperatures higher than today. 16

degrees in Pembrokeshire. The south-westerly winds strong with

It will be windy tomorrow with the rain and drizzle at times. Tomorrow

evening will start of wet and windy but the rain will clear away

leaving Thursday brighter but windy and noticeably colder. There is a

mixture of sunshine a blustery showers. It will feel chilly with

strong to gale-force winds. Be on that, Friday less windy and dry if

we fewer showers. The weekend will start of dried but it looks as if

there will be more wind and rain on the way. Call on Friday. Tennis is

recovering over the weekend. Last month, rainfall and sunshine was

average. But it was the warmest September since 2006. Before I go,

we have the 70th wedding anniversary today. Many

That is it from me. Back-to- Cardiff Bay.

Welcome back to Cardiff Bay on an important day. The last government

has unveiled his draft budget of �14 billion of spending. It has to

be divided up between schools, hospitals and the services we all

use. There is extra money for health and education but in

increase set by inflation. The government in Cardiff Bay has two

obstacles. It has less cash to play with and has no majority. It has to

do deals with other political parties. Let's talk to our

political editor. She has been watching the events unfold. What

you make of it? It is a tough Budget. It was going to be because

this is a Labour government that has a shrinking pot of cash. He

does not have a majority in the chamber and does not have tax-

raising powers. It is between a rock and a hard place. They can top

turf about budgets to create growth. But when you look at the figures

for all to see you can see how much of the talent it is going to be.

You have to do you Mystic Meg bed. We know Labour does not have a

majority and they have to do a deal with one of the other political

parties. What is going to happen? The Chancellor gave England a

council tax freeze and so where's get an extra �40 million. -- so

Wales. Cheryl Gillan told Carwyn Jones to spend money on a council

tax freeze in Wales. What will he do with it? Education, training and

the economy is what people want them to spend on. What do Plaid

Cymru want before they do a deal? They want money spent on training,

education and the economy. It will allow them to sort things out bid

for bat deadline. -- before that deadline in December. This is a

draft budget, when will that be rubber-stamped? Up they need

agreement by December. They will lead a group to come over to them.

Jane Moore -- Jane Hutt will be meeting party leaders very soon.

Many thanks. We will have an update for you at 8pm and there will be