Rick Newnham, writing in the Morning Star warns of a real and present danger to the people of Wales. Visit the CP in Wales website.

True, Wales has a large public services sector, employing 33 per cent of the country's workforce compared with 27 per cent in Britain overall. And this is where we will be hit by the first whammy.

But the Welsh economy is also "over-dependent" on employment in the production and construction industries. These account for 19 per cent of the Welsh workforce, compared with 16 per cent in the British economy as a whole. Wales also has a slightly larger agricultural sector.

The legacy left by heavy industry in terms of ill-health together with long-term industrial decline, has therefore hit the people of Wales particularly hard, producing higher levels of welfare spending.

So the second whammy is the Con-Dem attack on unemployment and incapacity-related benefits, which again will hit Wales disproportionately hard.

The Welsh economy has a much smaller private-services sector (46 per cent compared with 56 per cent), notably in financial and property services.

These create plenty of debt, credit, fictitious capital, profits and bonuses. But they do not add as much to society's real wealth as energy production, manufacturing, agriculture and such public services as health and education.

Yet it is the financial sector of the British economy which largely dictates the priorities and policies of successive British governments.

This is also the sector bailed out with £1,350 billion in public financial support, while cheering on Labour and Tory cuts that will devastate public services and the welfare state to save £300bn.

These will include cuts in the central government's annual block grant to the National Assembly of Wales and its government.

This third whammy will see that grant slashed by more than 11 per cent in real terms over the next four years, a bigger reduction than those being imposed on the Scottish Parliament and the Northern Ireland Assembly.

A pre-election pledge by David Cameron to review the Barnett formula by which the block grant is calculated - based on population and geography but not on social need - remains unredeemed.

The Welsh Assembly's revenue spending is set to fall by 7.5 per cent and its capital programme by a whopping 41 per cent.

The latter comes on top of the cancellation or cold storage of major central government capital projects in Wales.

The £14bn Severn Barrage scheme has been dropped for cost reasons, although its real flaws relate to questions of political jurisdiction and the environment.

But massive investment in underwater turbines and tidal lagoons could avoid such problems - and would be less costly and dangerous than six new nuclear power stations.

However, dumping the £14bn plan for a privatised military training academy at St Athan is no loss. The bill, to be met by taxpayers, was escalating by the month.

Labour and Plaid Cymru had both supported further integration of the Welsh economy into the British state's military-industrial complex.

More serious is the likely delay in the long-promised electrification of the south Wales-London railway line. While upgrading the east and west coast main lines in England has cut journey times substantially, Wales lags behind to the detriment of jobs and investment prospects.

Finally, the Welsh-language S4C television channel will lose 24 per cent of its budget in real terms over the next four years.

Handing it over to the BBC in 2013 could mean further cuts afterwards.

Yet the continuing increase in Welsh-medium education, which in turn is driving up both the number and proportion of Welsh speakers, underlines the need for a well-funded Welsh broadcasting authority to provide a full home-made service in both main languages.

The Wales TUC and its affiliated unions are organising a special conference on November 26 to co-ordinate a broad-based campaign against the cuts.

They must also play a major role in the battle to win primary law-making powers for the National Assembly in the referendum next March.

The people of Wales urgently need a Welsh Parliament with legislative and financial powers, which could become a rallying point in the struggle for a civilised society against the power of monopoly capital.

People's power can defeat big business and its Con-Dem government.