Questions from party spokespeople now and, first this week, Plaid Cymru spokesperson, Adam Price.

Diolch, Lywydd. I think, Cabinet Secretary, we’ve seen again overnight, haven’t we, the way in which political consequences flow from an economic agenda that has failed to deliver change for the majority of people. So, would he agree that now is the time really for bold, big ideas that have the potential to deliver transformational change for our country and our people? In this spirit, I note that Greater Manchester has announced it is bidding to for the World Expo, the Olympics for business, if you like, which hasn’t been to mainland Britain since the first one, the Great Exhibition of 1851. They’re competing, in the case of the 2025 expo against Paris and Osaka, and it’s by no means certain that they’ll succeed. So, could we explore the possibility of Wales bidding for the next available slot, which will be in 2027-28? What more exciting, compelling idea than bringing the expo home to the birthplace of the industrial revolution here in Wales?

Can I thank the Member for his question, and say that he is right—events overnight have certainly led to us needing to focus more attention on economic growth being relevant to all people in all communities? And this follows considerations, which I know the Member has had, since the referendum as well. And in part of the development of the new economic strategy, I think it’s essential that we do refocus our attention on areas of high unemployment and where there are opportunities, not just to access jobs and to access wealth, to also experience opportunities create more wealth within their own boundaries. That economic strategy will be presented in the new year to the First Minister, but I think the Member is also right that we do need to offer big, bold ideas, such as the Newport convention centre, which is a facility—the first time that we will experience a facility of its type in Wales—that could offer opportunities for hosting major events such as the expo, such as the World Travel Market, which I was at this week in London, such as the sports personality of the year awards. And not just cultural events, but business events and sporting events as well.

On this theme of big ideas, the Bevan Foundation yesterday launched a powerful report that made the case for designating the whole of the south Wales Valleys as an enterprise zone. Is there an opportunity to go even further here and actually seek permission from the UK Government for the whole of Wales to be made an enterprise zone, and for us to have the corporation tax powers that are being offered to Northern Ireland, for us to have research and development tax break powers, and the powers to have holidays for national insurance employer contributions, particularly in those areas like the south Wales Valleys, where there are particular economic challenges, giving thus to Wales the kind of competitive advantage that we need if we’re to close this historic economic gap that we’ve faced for generations?

Yes. I read the report from the Joseph Rowntree Foundation with great interest, and whilst I think the idea of an enterprise zone for the whole of the Valleys has merit, I do not think that that would offer a silver bullet solution to Valleys communities. And I think more needs to be done over and above such a suggestion to actually address some of the structural problems that continue to affect not just Valleys communities, but many parts of Wales that experienced a decline after the loss of significant jobs in the 1980s that were associated with manufacturing, with the mines, with the steel industry for example. We’ve got a good story to tell thus far, in terms of our economic performance. We supported and created 140,000 jobs in the last Assembly term. We also ensured that we avoided the sort of blight on communities that was experienced in other former industrial areas of the UK, insofar as youth unemployment was concerned. Here we created 15,000 jobs for young unemployed people. As we move forward, I want to place the focus more on the quality of jobs that we create and also have a more sensitive economic strategy to recognise some of the problems that exist—some of the more idiosyncratic problems and unique problems that exist in many communities that have not benefitted equally from the economic growth that we have experienced as a nation. This is a big challenge and that’s why I’m consulting as widely as possible on what the new economic strategy should contain. I’d welcome the Members’ views on the economic strategy and I’d also welcome input from all parties and stakeholders.

As I say, that will be produced in the new year and will be presented to the First Minister. But it will be building on what is a proud, good record for Wales in recent years, but it will aim to address, as I say, some of the more structural problems. Meanwhile, the work of the Valleys taskforce continues. I know that the idea of designating the whole of Wales an enterprise zone was touted, first, I think, by Matthew Parris. I think we need to consider all levers at our disposal and all opportunities that the Wales Bill, and whatever devolved powers in the future, could present to us.

Finally, can I urge the Cabinet Secretary to look, not just at the economic gap between Wales and the rest of the UK—indeed, the rest of Europe—but also the economic gap within Wales, absolutely, particularly at a time when many people in the Valleys and rural Wales feel as distant from the centres of power and wealth as the people of the midwest or the rust belt feel from Washington DC? So, will you consider the case for creating powerful new regional development corporations, focusing, particularly, on the needs of those areas of Wales, in the Valleys and rural Wales? It worked here in Cardiff bay, did it not, in microcosm? Should we not extend that same leverage to those areas in Wales that need it so badly? Would he also consider the case for creating regional capitals within Wales, which could be centres of public administration and business services, and, indeed, even the idea that you see in many commonwealth provinces, the idea of a vice capital—we might need to look a little bit at the branding—[Laughter.]—where even this Parliament could actually sit for some of its time as a symbol of our commitment to spreading wealth and power to every part of Wales?

As I say, it’s about making sure that there is relevance to what we do in all parts of Wales. As I’ve spoken on numerous occasions now about the area that I personally represent in Wales, I think sometimes the north-east feels distant from this institution and somewhat removed from the process of devolution. I would agree as well about regional economies and the importance that urban areas have in giving them identity and attracting investment and generating economic wealth as well. It’s important that, within any regional economy, there are centres, towns, that can be identified as capitals of those regions. Insofar as Wales is concerned, we are reaching that point with Cardiff, with Swansea and with Newport. I think it’s central that we identify local authorities and towns elsewhere in Wales that are willing and determined to take on the challenge of becoming regional capitals. I think that’s absolutely central.

I’ve spoken on numerous occasions as well about the fact that, I hope, through the new economic strategy, we can look at using more place-based interventions. In the work that I’m carrying out, under the chairmanship of Alun Davies on the Valleys taskforce, we’ve been open-minded about the interventions that are required within the Valleys. As I said earlier to a previous question, I think we can’t afford to look at an all-Wales strategy, without also looking at some of the nuances of the regions. Therefore, we need to ensure that we don’t approach every region with a one-model-fits-all approach. That’s why I think it’s important that, within the context of the work that’s taking place at the moment on the economic strategy, we also look at the regional economies and what it is that each of the regions require, because it may well be that what’s required in North Wales is different to what’s required in Mid and West Wales and within the city regions of south Wales.

The Welsh Conservatives’ spokesperson, Russell George.

Diolch, Lywydd. Cabinet Secretary, I would be grateful if you could outline the benefits and the costs associated with the decision to locate the headquarters of the Welsh development bank in the north-east of Wales and also to outline what discussions you’ve had on this with Finance Wales.

Well, my latest discussions took place yesterday. The Member will be aware from my committee appearance last week—and this actually relates to the questions and the points that Adam Price has just made—that I do have concerns about ensuring that national institutions such as the National Assembly for Wales and Welsh Government have a presence right across Wales, and that no part of Wales feels excluded. And, in carrying out a mapping exercise, it was found that there are part of Wales where there is less presence, and I think it’s essential that we do what we can to make Government and to make this national institution relevant to all people equally. And for that reason, I think it makes sense that we do decentralise whenever and wherever possible. For the same reason, I’ve said that, with Transport for Wales, my intention for that body is that that will be headquartered in the Valleys as well.

We need to learn from yesterday’s result in the United States and from the referendum that many people in many communities feel that national institutions, national polities, are too far removed from their communities. It’s essential, therefore, that what we do becomes more relevant, more apparent and more accessible to them.

Well, Cabinet Secretary, you won’t have any disagreement from me. I firmly believe that we should be moving out of this place and across to all areas of Wales. Finance Wales was telling the Economy, Infrastructure and Skills Committee this morning that it’s becoming more and more difficult to retain and recruit staff. Now, there is a concern that, as a result of a proposed relocation to north-east Wales, those skills could be lost. There may be some staff from within Finance Wales who do not want to make the move, so clearly there is a potential issue of staff retention in this regard, and I wonder what assessment you’ve made.

If you look at north-east Wales, you’ll see that many, many people—hundreds of people in north-east Wales—travel across the border into England every day to work in major financial centres. They travel across the border to work at the Bank of America in Chester, they travel across the border to work at Marks & Spencer Financial Services, and to the banks and financial centres in Manchester. I don’t think that skills issues should be used as an excuse to stop the development of economic growth across Wales. If we know that there are skills available in parts of Wales, then they can be utilised for growth within those areas. But in terms of Finance Wales and the development of the development bank for Wales, I am conscious of the need to retain staff, and for that reason I had discussions just yesterday with Giles Thorley about ensuring that the presence in Cardiff for the development bank for Wales is retained, but that there are opportunities also, in the form of a headquarters in north Wales, to make that institution more accessible and more relevant to all parts of the country.

Thank you, Cabinet Secretary. I think there’s probably another question there about what is it that ‘a headquarters’ means. Is it a wholesale move of staff to another part of Wales, or is it just a title as well? So, perhaps you could address that point. But the final point I’d like to make is: in the annual report for 2015-16, Finance Wales confirms that the remuneration of its highest-paid director was £404,000, compared to £216,000 in the previous year. That is a very high figure, and when we asked them about that, they attributed it to the extra pension costs contributed to the pension scheme. I understand that 30 per cent of Finance Wales staff are on the same pension scheme as well. So if, of course, staff do leave the organisation, there is the potential for a huge increase in costs there, so I’d be grateful if you could address that point and also have you addressed that point within the business case?

These are being examined as part of the options, and there are options on the table for the development of the bank and where it should be located. Insofar as what ‘a headquarters’ means, well there are two options: one, the wholesale transfer of staff and functions away from the capital to the new headquarters; or two, the second option would be to have a headquarters and, over a period of time, to grow that headquarters without necessarily losing staff at the current offices. So, we’re going to be considering both options, both the financial implications, but also the implications in terms of the retention of expertise and skills. But I need to be clear again that I wish to see decentralisation wherever and whenever possible, and I will look for opportunities to deliver services in different communities across Wales, so that Welsh Government and, I hope, the National Assembly for Wales and all of us become more relevant to people’s lives.

UKIP spokesperson, David Rowlands.

Diolch, Lywydd. I’m going to bring matters back now to the regional level that we talked about a little earlier on. I believe the Cabinet Secretary is aware of a group called MAGOR—Magor Action Group on Rail—which is campaigning for a station in Magor in Gwent. They have been engaged in this project for a number of years and have been successful in obtaining funding from several organisations. I understand that they are now seeking a Welsh Government grant to match-fund the project to a governance for railway investment project 3 study stage, which I believe is a sum of something like £80,000. They hope to complete this stage over the next few months. Is the Cabinet Secretary in a position to indicate whether he is willing to provide this funding?

Well, I can’t do that on this occasion, because we’re still assessing the merits of the application. I think what the group has done so far has great merit. I think the work that they’ve carried out has been incredibly valuable in terms of informing Welsh Government what it is that the communities need in order to create a more connected environment. And so we will give very sympathetic consideration to that application, but I can’t today say whether it will or will not be approved.

Thank you for that answer, Cabinet Secretary. If you’re still thinking of funding, can I be as impertinent as to ask if he may consider totally funding the GRIP 3 application, which is probably in the region of £160,000? I raise this possibility, Cabinet Secretary, because it can be noted that this station has actually been indicated on the South Wales East metro plan several times, and it has a very real chance of being the first manifestation of the metro project in the South Wales East region.

For the same reason that I’ve already given, I couldn’t give any guarantees about whether I’d be able to fund the full £160,000. I’m sure the Member is sympathetic to the reason why. I can’t do that because the application has not been thoroughly scrutinised yet. But in terms of stations, well, the metro project does have flexibility built into it so that there can be extensions and there can be amendments to the service provision if, for example, new social infrastructure is incorporated into the South East Wales regional area and then the metro map can be amended accordingly. So, I’m sympathetic to the cause. I will look thoroughly at the application, but I’m not in a position to give the go-ahead today.

Thank you for that answer, Cabinet Secretary, but I would have liked to have been able to take back a little bit more of a positive message to these people. Are you in any way able to give me some sort of indication as to the possibility of this happening, or not?

I would very happily meet with the Member and the group that he talks of, because I think they have made a very strong case, as has the Member, for support from Welsh Government. I would happily discuss their aspirations and the application with them.