Preseli Pembrokeshire AM Paul Davies has highlighted the flaws in a business rescue plan that's supposed to be helping the Welsh economy get back on its feet. Mr Davies, who was a business manager for a high street bank before becoming an AM, is keenly aware of the importance of helping businesses survive the credit crunch.

"It is vital that we help businesses, especially small businesses, during the recession," he told the Senedd.

However Mr Davies is disappointed that the UK Government's Enterprise Finance Guarantee Scheme is not more widely available.

Under the scheme, the Government guarantees lending to viable businesses to ensure that they can get the working capital and investment that the need.

Twenty six lenders are operating the scheme, including those banks like the Royal Bank of Scotland which have been nationalised. But Mr Davies would like to see the Scheme rolled out more widely.

"I am pleased that the Enterprise Finance Guarantee Scheme is available to businesses," added Mr Davies.

"However, recently I have come across businesses that are concerned about the fact that they are unable to access this scheme because some banks are unwilling to lend them the money."