THE WELSH OFFICE                                     14 July 1998
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SECRETARY OF STATE ANNOUNCES REFORM AGENDA FOR WALES

Announcing the CSR outcome, the Secretary of State for Wales, the
Rt Hon Ron Davies MP said
today:

      'This is an excellent outcome for Wales and the best possible
      start for the new Welsh Assembly. In allocating these
      resources I shall be looking for the maximum impact in terms
      of finding solutions to the particular needs of Wales. The 
      problems we face are inter-related: poor health,. low incomes,
      low skills and qualifications.  The CSR reforms will deliver 
      an integrated, cross cutting approach that will deliver real 
      improvements for the people of Wales. The key issue is how to 
      invest effectively to achieve results across Welsh Office 
      programmes and I shall be consulting on this in September'.

The CSR White Paper sets out key targets to be delivered by the end
of the Parliament. These include

 - to raise educational achievement by increasing the percentage of
15 year olds with 5 GCSEs (A-C) to 54%;

 - to improve health by delivering 15 health gain targets set out
in Better Health Better Wales;

 - to tackle social exclusion by reducing absenteeism from school
to below eight per cent and percentage of pupils leaving school with
no qualifications to below nine per cent

Headline changes and reforms;

   New outcome driven approach to spending on all Welsh Office
programmes: investment linked to cross cutting strategies to
improve health, raise qualifications and skill levels, tackle
social exclusion and spread economic prosperity.

   Consultation on detailed allocations to ensure new investment is
targeted effectively to achieve results;

   New emphasis on public health and tackling the causes of poor
health in partnership with local authorities, as well as drive to
reform NHS, raise quality and cut waiting lists;

   Stronger focus on quality and standards in schools, colleges and
training to deliver key targets for attainment at all levels of
ability;

   Co-ordinated action at local level to tackle social exclusion by
addressing low achievement, supporting vulnerable children and
their families and tackling poor housing;

   Implementing the new economic agenda to address poverty and
inactivity and spread economic prosperity across Wales.


Key numbers     budget                              #' million
                1998-1999   1999-2000   2000-2001   2001-2002

Total plans     6 675       7 036       7 406       7 781
- Current       5 823       6 146       6 466       6 769
- Capital         852         889         940       1 012

Notes for editors

1. The Chief Secretary to the Treasury announced the start of the
Comprehensive Spending Review in a statement to the House of Commons
on 11 June 1997. The Review had been promised in the 1997 Labour
Election Manifesto.

2. Consultation on block allocations follows last year's precedent
(consultation document issued in October in 1997 which was widely
welcomed in Wales). Consultation is even more important this year
because these allocations will provide the starting point for the new
Assembly.

Press enquiries:           Telephone 01222 825648
Non-media enquiries    Dr Emyr Roberts, Welsh Office, Cardiff.
Telephone 01222 823765 If you have access to the Internet, you can
also find this news release at http://www.hm-treasury.gov.uk



# = pounds sterling