WELSH ASSEMBLY COMMITTEE LOOKS TO BORROWING POWERS.

WELSH ASSEMBLY COMMITTEE LOOKS TO BORROWING POWERS. FIXED BUDGET DEVOLUTION NO ANSWER TO ECONOMIC SITUATION CASE OF SCOTTISH BORROWING POWERS OVERWHELMING SNP MSP Joe FitzPatrick - a member of the Scottish Parliament's Finance Committee - has welcomed a report from the Finance Committee of the Welsh National Assembly which calls for the extension of the power to borrow for capital investment to the Welsh Assembly Government in Cardiff. Mr FitzPatrick said it was yet another powerful indication that the fixed budget devolution system was an untenable system, particularly in the current economic circumstances, and that the power to borrow money for devolved bodies was essential to tackle the financial situation. Commenting Mr FitzPatrick said: “This report is welcome and highlights how the fixed budget system for devolution is untenable – particularly in these economic times. "The case for greater fiscal autonomy for the Scottish Parliament is now compelling with overwhelming cross-party support. What opposition there is to borrowing powers has little to no grounds to stand on. At Welsh Questions in Westminster today the Secretary of State for Wales was looking isolated on the issue. "As we face Labour's recession and the threat of billion pound spending cuts, having the responsibility to manage our own budget is vital in ensuring we are able to respond swiftly and effectively to changes in economic circumstances. "The case for more borrowing powers is now overwhelming and there is little reason for further delay in extending this responsibility to Scotland in these troubled economic times. "With those powers the Scottish Government can take the right decisions to reflate the economy according to our own distinct circumstances.”