Local Control Over Cornwall’s Economic Future

This really follows on from an earlier blog exploring a new economic model for Cornwall. We have written a response to cllr Tim Dwelly’s letter – see below.

Our letter critiques a reliance on foreign and private sector investment, noting that dividends often flow out of Cornwall and that external ownership reduces local democratic control over economic strategy.

We also challenge the narrative of “scarce government money”. on the grounds that the British government is the monopoly issuer of its own currency, the pound. It is not reliant on tax revenue and can issue any amount of money. The real constraints on investment are ecological limits and productive capacity, not the availability of currency. This is lost on the wider public and we desperately need an informed public debate on government finance and public investment.

Proposed action

the letter sets two actions

• Sovereign Wealth Fund: the creation of a Cornish Sovereign Wealth Fund.
• Equity Transfer: that Cornwall Council and local MPs lobby the government to transfer a share of National Wealth Fund equity investments in local mining projects to a Cornish fund, such as an “Evergreen Fund,” with strengthened democratic oversight. This would provide direct community ownership and a sustainable local income source.