4. Will the Minister make a statement on economic prosperity levels in Wales? OAQ(5)0043(EI)

Yes. ‘Taking Wales Forward’ sets out how we will deliver a more prosperous and secure Wales, underpinned by more and better jobs.

Thank you. Referring to the Welsh economy, academics at Cardiff Business School reported two weeks ago that Welsh output or gross value added is most sensitive to changes in higher rate tax, any cut in which will always raise tax receipts and any rise will always, quote, ‘reduce tax revenue’. Given that Wales has had the lowest prosperity levels per head amongst the 12 UK nations and regions since 1998, how will you be working with the Cabinet Secretary for Finance and Local Government to ensure that devolved tax levers coming this way will drive economic prosperity levels in Wales and therefore maximise tax revenues to fund key public services?

Well, the Cabinet Secretary for Finance and Local Government and I will be working very closely to ensure that the levers available to us in terms of tax devolution are used primarily to grow the economy and to grow opportunities to create wealth in all parts of Wales. I don’t think GVA is necessarily the best or only measure of prosperity, and I think that view is shared by the chief economist and chief statistician. What we do know is that employment figures are produced on the most regular basis and, again, we have a very proud story to tell in terms of increases in employment and driving down unemployment. That said, we do need to address GVA, I accept that, and we will do that through a number of means, including increasing productivity, which is why I and the Cabinet Secretary for Finance and Local Government will utilise available resources to make sure that R&D and research that will contribute to improving productivity is rolled out wherever and whenever possible.

In 2015, more than one in four adults in employment in Wales were paid less than the living wage, and the Bevan Foundation have identified that nearly half of part-time workers, predominantly women, were also paid below the living wage. What steps will the Welsh Government take to encourage the living wage across the Welsh economy?

I think it’s essential that we see the living wage—and that’s the proper living wage—rolled out right across the economy. As a Government, we’re taking action to promote the living wage in the private sector. Material is being produced on the benefits of adopting the living wage, and that’s shared with businesses, using existing business support mechanisms, and we’ll continue to work with the private sector on this agenda. Presiding Officer, we recognise the role as well that procurement can play in supporting the wider adoption of the living wage, and we’ve recently been consulting on the development of a code of practice on ethical employment within the supply chain, which explores how contracting authorities can consider fair work packages, including the living wage, as part of procurement.

In his non-answer to the question from Adam Price earlier on, the Cabinet Secretary made great play of the fact that more people are in work today in Wales than ever before, which isn’t surprising as the population has gone up. But he said nothing about what the people in work are actually earning. Fifteen years ago, Wales was second from bottom in the league tables of the nations and English regions. Today, it is bottom; it’s been overtaken by Northern Ireland. Scotland was just ahead of Wales 15 years ago; it’s now drawn even further ahead. The south-west of England was just ahead of Wales 15 years ago, and has drawn even further ahead. Isn’t the record of this Labour Government one of unrelieved failure?

I think it requires a brass neck to ask about levels of income when you actually take an opportunity in a different place to vote against national minimum wage. And the Member may be able to confirm whether or not—[Interruption.] Well, does the Member support a national minimum wage? Did he, when the national minimum wage was voted upon in the UK Government, back it or oppose it? It’s a very simple question. [Interruption.] Even if he had been—

I’d been liberated by the electorate by then.

There’s a question there: did you support the national minimum wage? Did your party support the national minimum wage? Because we all know the answer is that UKIP did not and do not support efforts to raise the living standards of lowest income families. The fact is that it was the Labour movement that introduced the national minimum wage. It’s the Labour movement that’s rolling out the living wage across the economy. And in terms of the economy here in Wales, I’ve already said that since devolution Wales has had the fifth highest increase in GVA per head compared to the 12 UK countries and English regions. And in terms of GVA again, people’s material living standards are determined by their wealth, and in this regard Wales is performing much better on measures of wealth.