Ministers examine Wales funding

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Chancellor Alastair Darling says the UK government is looking into recent reports recommending changes in the way that Wales receives public funding.

He was speaking during a tour of Bridgend's Ford engine plant before a meeting of the UK cabinet in Cardiff.

The Holtham committee has recommended that the Barnett formula, which is used to allocate money to devolved nations, is altered so it is based on need.

He said the recommendations were being examined alongside other reviews.

"We are looking at the Holtham report along with the other studies that have been produced," he said.

"We need to look at these things in the round then we will decide how best to respond to them."

'Massive opportunities'

Other reviews being examined by the government include the Calman report on funding for Scotland and a recent House of Lords report which described the present Barnett system of funding as "arbitrary" and "unfair".

The chancellor was also asked whether jobs were safe at the Ford plant.

He said: "Provided we can make the products that people want and provided we make sure that governments act together, the prospects must be good, because what is being produced in Bridgend is high quality engines and that's what we want to encourage."

On the recession, Mr Darling stressed it was important that governments around the world continued to take action to support economies.

"Provided we stick to the course we have set there are massive opportunities and we will come through this," he said.