4. How is the Welsh Government encouraging economic development in North Wales? OAQ(5)0023(EI)

We are taking several wide-ranging actions to encourage economic development across all parts of Wales. In north Wales, we are exploiting the significant opportunities that will arise from investment projects such as Wylfa Newydd, providing support through our dedicated business support service and investing in various transport schemes.

Thank you. Well, as you know, in this morning’s Economy, Infrastructure and Skills Committee you made reference to mainline electrification, to proposals for a north Wales metro, and to investment in the A55. You also said a growth deal bid for north Wales needs to be submitted by end of this month. Given my understanding that the UK Government is offering additional funding, and that line improvement and signalling improvement are seen as building blocks to electrification, which will be accelerated by the growth deal, are you able to tell us what dialogue you have had thus far with UK Government? I know, or I believe, you’ve been speaking at least to the Under-Secretary of State to this end—to what extent that might involve the devolution of economic and growth levers. It was my understanding that that was something sought by the UK Government.

Yes, I’ve discussed this matter not just with the Under-Secretary of State, but I was actually discussing it as well with the Secretary of State himself on Sunday. We very much hope that the growth deal bid will be submitted in full as a proposal to the Chancellor of the Exchequer by the end of this month. I would also hope that the business case for electrification of the main line in the next control period will be approved. It’s essential in the development of a growth deal for north Wales that we are able to work locally with local authorities, with the Mersey Dee Alliance, with the North Wales Economic Ambition Board, with the UK Government Ministers, and also to look at—and I’m on record as saying this—the potential of a cross-border economic strategy, with a cross-border economic unit to ensure that we deliver maximum growth in that area of Wales.

Tourism is a vital sector in the economic development of north Wales, and with that I welcome this Government’s commitment to create an A55 culture corridor linking attractions across the region. Flint castle was certainly a major attraction this last weekend, as a dragon descended on the outer bailey of the castle drawing in visitor numbers in their thousands. It was really brilliant to see just how many people went down there to see the dragon, to take the odd selfie and, for the more intrepid wannabe dragon tamers amongst us, actually scale the dragon’s back. I look forward to building on that buzz now with the further investment into ‘Shakespeare’s castle’, but Cabinet Secretary, do you agree with me on the value of the visitor economy to Delyn and across north-east Wales, and will you work to continue to invest in innovative ideas at visitor attractions that boost our communities and also draw tourists to north-east Wales?

Can I thank the Member for her question? I’m delighted that the dragon, the Caerphilly dragon, was received so well in Delyn and at Flint castle. The pictures that I’ve seen show that many, many visitors, particularly young visitors, thoroughly enjoyed seeing the red dragon there. At this time of the year, when we’re celebrating an incredible performance by our national football squad, it’s a particularly appropriate time for the dragon to visit Flint last weekend.

I’m pleased to be able to say that we will be investing in a new visitor centre at Flint castle, and Flint castle will benefit from a world-class installation, which is part and parcel of a national competition that’s taking place as part of the Year of Legends.

Do you recognise, Secretary, the need to develop north Wales as an economic powerhouse in its own right? Clearly, it’s important that we get every possible economic benefit from neighbouring developments such as the Northern Powerhouse by the UK Government, but of course there is concern with the city region developments in south Wales, and the Northern Powerhouse in England, that north Wales could fall between two stools. So, my question is essentially this: how do we ensure growth for the indigenous economic powerhouse of north Wales, rather than just relying on other areas?

Well, it’s my view that we in north Wales—and I speak as someone who was born there, grew up there and who lives there—has as much to offer the Northern Powerhouse as the Northern Powerhouse has to offer north Wales. We have a good deal to contribute. It’s predicted that up to 70,000 jobs can be created in the next two decades in north Wales. I’m confident that that can be achieved through a greater degree of cross-border collaboration. I do not see cross-border collaboration in any way, shape or form as a threat to the culture or the language of Wales. Particularly for north Wales, I think that by being closer together, by working closer together, we can create more jobs, more opportunities.

At the moment, the region contributes something in the region of £35 billion to the UK economy. The growth potential is enormous, but we also should recognise that if we are not part of a cross-border alliance then there is a risk that with the city deals, with the momentum that is behind the Liverpool city region, Manchester city region and the Cheshire and Warrington local enterprise partnership, that we could end up in competition with those cities and those county areas. We would not wish that to happen if, instead, we can collaborate and offer a regional economy where we are all offering something that’s complementary.

Twenty thousand people each day cross the border from Wales into England. Twenty thousand people cross the border from England into Wales. As far as people who are accessing jobs are concerned, the border doesn’t exist. So, what we need to do is ensure that growth on both sides of the border benefits both sides in terms of the people who live there.

Wales has the opportunity at the moment to attract investment from England by providing a more favourable place to set up a business, which would bring desperately needed jobs into Wales. I’m sure everybody will agree with me that the more businesses we can attract here and the more jobs that are created the better. The present business rates regime hampers the creation of new businesses since it saddles a business with a large payment right at the beginning, before even that business has dealt with a single customer. Does the Welsh Government have any proposals to support new and small businesses via, perhaps, restructuring the business rates regime so that businesses are charged on the basis of profit or turnover, as opposed to the nominal value of the property they occupy?

This is a point of ongoing consideration by the Cabinet Secretary for Finance and Local Government, but the Member is right, we should use every lever at our disposal to attract investors to Wales. Last year, we recorded the second highest level of inward investment here. That’s something that, again, we want to make sure that we maintain. In terms of financial support to businesses, we have the Wales microbusiness loan fund, which amounts to £6 million. We have got the Wales technology venture investment fund and we also have £21 million of new finance to help small and medium-term enterprises grow in Wales, which can be accessed through two Finance Wales funds. We also, of course, have the £5 million repayable fund for SMEs. We’re keen to attract not just inward investment, but to ensure that our existing companies grow and prosper in Wales, and to ensure that we have entrepreneurs who have access to the resources, the advice and the opportunities to set up business here in Wales in the communities in which they’ve grown up so that they don’t need to leave Wales.