2. Will the Minister make a statement on the budget allocated to the economy and infrastructure portfolio in relation to business support in each of the past 3 years? OAQ(5)0024(FLG)

I thank the Member for that question. In response to the economic downturn, our focus on growth and jobs, including supporting the business sector, has underpinned the budget allocations to the economy and infrastructure portfolio over this period.

Cabinet Secretary, you’ll be aware of my keen interest in monetary reform, having been an attendee of the cross-party group on monetary reform in the previous Assembly. I was very pleased to see you picking up on a Welsh Conservative idea of establishing a development bank here in Wales, in the announcement that was made yesterday. It’s something that I’ve long advocated, and I’m pleased that Plaid Cymru also picked up on that idea in their previous manifesto. Can you tell us precisely what support will be available through the development bank and how you will ensure that the investments that it makes are available in all parts of Wales and not confined to the south?

I thank the Member for that. He’ll be familiar, I’m sure, with the view of the Roman historian, Tacitus, that victory has many fathers—defeat is in orphan, but victory has many fathers. So, the Cabinet Secretary for Economy and Infrastructure has made an announcement in relation to the investment bank. It will be supported by finance that I will make available through my portfolio. It will operate right across Wales. It is very important—I agree with the Member—that we have to demonstrate that we go ahead over the whole of Wales. In north Wales, our plans currently include investment of over 240 schemes, with the total Welsh Government capital investment value of over £1.3 billion, and I have no doubt that the investment bank will allow us to continue to carry out that development further and faster.

Cabinet Secretary, in the last financial year, we saw circumstances arise, such as in my constituency when Tata made the announcements in January, which required instant action by the Welsh Government. Obviously, the business support to the businesses that feed into Tata was critical in that aspect. Will there be planning in the future to ensure that there are sufficient funds within that portfolio to cover any future opportunities that might arise as a consequence of actions such as Tata’s last January?

I thank the Member for that question. He’ll be aware that discussions continue with Tata itself, involving the Welsh Government and the UK Government. Only in recent days, I see that the Minister has asked for any further applications that wish to be put forward for business rate relief in the enterprise zone that’s been created in the Member’s constituency. I can say this to him: that in preparing for the Welsh Government’s budget, I remain very alert to the need to make sure that we are in a position to respond to the needs of that community and to work closely with the company to ensure the continuation of steel making here in Wales.

As Plaid Cymru’s been calling for a development bank since the 1970s, we’re very grateful to see that it’s finally happening. But the question to the Cabinet Secretary is this, really: from the Government statement, the annual lending that’s aimed at eventually is around £80 million. That’s less than a fifth of the £500 million funding gap that the Government’s own feasibility study quoted, which was the basis for the creation of the bank. Why the gap between the funding gap and what the Government’s proposing to do?

Well, I think there are a number of answers to that question, Llywydd. First of all, there is more than one way in which we are able to address the funding gap. This is one, but there are others, and we’re taking other actions in this area. And, secondly, in these very hard times, we have to act within the means that we have available to us. We have made a significant investment in the new investment bank, and, I think, rather than regretting what it can’t do, I hope we will focus on the many good things that it will be able to achieve.