Questions now from the party spokespeople. First, the Plaid Cymru spokesperson, Adam Price.

Diolch, Lywydd. As the Cabinet Secretary will be aware, I and my party colleagues were roundly condemned for expressing our sincere belief, echoed by many steelworkers, that the current package of proposals on offer from Tata needed to be radically improved to make it fair and acceptable for workers. It was therefore gratifying to see as a headline in the ‘Llanelli Star’ earlier this week this picture of the AM for Llanelli and the MP for Llanelli, under the headline, ‘Leading Llanelli politicians tell Tata Steel: ‘"Re-think pension deal"‘. Now, the Labour MP for Llanelli said of Tata’s proposals that steelworkers have every right to be angry and expressed her hope that even now, just days before the vote, it is not too late for Tata to look again and offer a better deal, even though we’ve heard, of course, from some of the Labour benches the argument that there’s no alternative. Does the Cabinet Secretary agree with the Shadow Secretary of State for Defence that workers are right to be angry and that Tata urgently needs to rethink its proposals?

I think the Member is right to say that workers should be concerned about the future of the steel industry, but it does nobody any favours to politicise what is an incredibly sensitive matter. It’s not often that I would agree with the leader of the opposition, but I do think that he was right to tweet that there was no place for political posturing in what is an incredibly important debate about pensions, which could then determine the long-term sustainability of the steel industry. I think what the Member for Llanelli has said reflects the concern not just within this Chamber, but in the wider communities where steel is so important, that there should be the best possible deal for steelworkers on the table for their pensions, but this is the only deal that’s there at the moment, and the First Minister and I have been very clear in our views that the debate should be conducted without any political interference whatsoever.

I gave the Cabinet Secretary the opportunity there to support his own members—members of his own party—who are simply doing their job, actually, and I actually support them in what they’ve said. We’ve said the same—this deal is not good enough, and, really, he should be using his position and that of the Welsh Government to actually get a revised proposal. Now, earlier this week, the UK Government published its own industrial strategy, the Green Paper. Was he as surprised as me to see that steel only had a single passing reference in a 132-page document?

To be fair, there were some areas that present opportunities for Wales, so will he be proposing steel as one of the areas for a sector deal? Will the Welsh Government take up the offer of a joint ministerial forum on industrial strategy? Does he welcome the commitment to move cultural institutions and Government bodies, including research bodies, outside of London to support economic development? Does he welcome the long-overdue commitment by the UK Government to take into account the current regional imbalance in investment in infrastructure in making future investment decisions?

I was pleased to be able to speak with Greg Clark at length on Monday ahead of the publication of the strategy. I agreed with the Secretary of State that joint chairmanship of the forum would be something that I would desire. I also spoke with him about a specific steel sector deal—this is something that we’re going to be discussing in the coming weeks.

I was surprised how little reference there was to steel within the strategy. However, I have made it clear that I wish to see steel become a major component of the industrial strategy’s work moving forward. I’m also keen—the Member is aware that I am keen—to decentralise wherever possible. So, whether it concerns investment or innovation, I would like to see more opportunities given to companies outside the intensely urbanised areas where, traditionally, financial institutions and innovation bodies are based.

Of course, it’s often all too easy to attack the UK Government, and sometimes they make it too easy for us, but there are some things we can learn here, surely. At least they’ve got a strategy. It’s taken the new administration just six months to produce an industrial strategy. Where is our Welsh Government economic strategy that we were promised in June? Has research been commissioned? When can we see a draft? Will the Welsh Government commit to equalising infrastructure investment between the regions? There’s a 5:1 gap between the south-east of England and Wales; there’s a 3:1 gap between the south-east of Wales and my own region. Will it commit to locating the Welsh Revenue Authority outside the south-east? It’s good to see the decision imminent on the Circuit of Wales, but will other investment projects outside the south-east that have been languishing in his ministerial in-tray, like the Egin in west Wales, finally see a decision so that we can get on and create investment and jobs outside of one corner of Wales?

I think the Member should reflect on what his colleague said yesterday about ensuring that due diligence is followed and thoroughly pursued—it’s absolutely essential. So, whether it’s Yr Egin or any other project, we do pursue due diligence rather than rush hastily into an investment that may not offer best value for money for the taxpayer.

In terms of the UK Government’s strategy, although the Member may wish to ignore the fact that a UK Government exists, we will not ignore that fact. One of the messages that came across clearly from businesses the length and breadth of Wales whilst I was consulting with them over the contents and the vision within our strategy is that we need to take account of what the UK industrial strategy presents for Wales. We could not have produced a strategy that did not take account of the key elements of the vision of the UK Government, whether we like that or not.

The Welsh Conservatives’ spokesperson, Russell George.

Diolch, Presiding Officer. I do have no doubt that the Cabinet Secretary will agree with me that small businesses are vitally important, of course, to the Welsh economy. But I have to say that small businesses haven’t been afforded the stability I think they need from past and this Welsh Governments. Business rates have been devolved for some time, and businesses are still at a significant disadvantage to their counterparts in England—indeed, they’re crying out for support. Given that there has been a 26 per cent drop in new business start-ups since 2011, do you think that the Welsh Government should give potential entrepreneurs and businesses the security that they need by raising the rateable value for small business rate relief from 1 April this year?

Well, in terms of business rate relief, this is obviously something that’s in the hands of my colleague, the Cabinet Secretary for Finance and Local Government, but what I am pleased with is that the scheme is to be extended for 2017-18, and that a new permanent scheme will exist from 2018 onwards. We’re already providing something in the region of £98 million in rate relief to businesses in 2016-17. I think it’s worth noting, because you made the direct comparison with England, that around 70 per cent of businesses qualify for relief, and around half of all eligible businesses pay no rates whatsoever.

Well, Welsh businesses are already losing out to their competitors in England and Scotland. England and Scotland have already raised the levels of small business rate relief there. Furthermore, the development bank you are proposing is a hybrid model of Finance Wales—indeed, it provided the business case. Now, I had an example last week where I went to visit a business. Their rateable value had gone up. They would have received rate relief if they were in England—they don’t because they’re in Wales. Furthermore, they applied to Finance Wales for funding—indeed, Finance Wales sat around the table and helped them complete the application form—yet it was rejected. So, what I’ll say is: how is your Government going to provide the certainty and security to those businesses? Your White Paper, while concerned about the potential of the UK departing from the single market, offered no suitable plan for small businesses in particular during negotiations to leave the EU. Now, you’ve been asked this once today, but I will ask it again: where is your industrial strategy in this regard?

The prosperous and secure strategy, which forms part of four cross-cutting strategies for Welsh Government, will be presented to the First Minister, along with the other three strategies, this spring. They will be published together, and through all four I think Members will be able to see that themes and interventions can be woven right across not just the economy, but the public sector, through education and through health. We live in a society, and we live in an environment, where economic priorities often align perfectly with the priorities of other areas of Government, and it’s therefore essential that we don’t just devise a strategy for the economy that’s in isolation from other strategies, but that we do it together. And that is something that I am keen to pursue. So, by spring, we will have presented to the First Minister our respective strategies—we are already meeting as Cabinet colleagues to agree the contents. I can’t possibly comment on the individual matter the Member raised on Finance Wales. I would however say that I’d be glad to take this up on behalf of him if he writes to me. I’ll take it up directly with Finance Wales as well.

Thank you, Cabinet Secretary, I’ll do that and I’m grateful for that. The Prime Minister’s industrial strategy has indicated that significant investment will be made towards research and development, and to training, so that our workforce is ready to deal with the challenges innovation will bring. Indeed, it states that we should be

‘creating the right conditions for new and growing enterprise to thrive, not protecting the position of incumbents.’

Now, in Wales, we have to consider also the implications of the Northern Powerhouse, which has been given an additional £4.7 billion by 2020-21 in R&D funding through its investment fund. And I would say, Cabinet Secretary, to my last question you did answer regarding having a joined-up strategy, and I agree with that position. But I would ask: would it not have been better to have a strategy to accompany the White Paper that you delivered this week?

I think it’s absolutely essential, with regard to the Northern Powerhouse, that the growth deal in north Wales dovetails perfectly with the aspirations and the vision that local authorities and the local enterprise partnerships have across the border. For that reason, I’ve been quite clear in saying that, ultimately, I would envisage a joint committee structure that perhaps crosses the border. That would be the ultimate objective of what is, essentially, an east-west economy in the north. I think it’s absolutely essential that local authorities as they move from the North Wales Economic Ambition Board to a joint committee structure, recognise that doing business with partners across the board, not just in terms of growing the economy, but also in terms of delivering better public services and improving public transport, is absolutely essential.

UKIP spokesperson, David Rowlands.

Diolch, Lywydd. As the Cabinet Secretary knows, I’m very enthusiastic about the metro plans and look forward to its implementation. However, can he outline exactly what specific structural improvements the metro will make to one of my constituencies, namely Torfaen?

Well, we’ll be investing more than £700 million in the metro, and this will see vast improvements to infrastructure and to the travelling experience of many, many commuters across south-east Wales. I was very grateful that the Member was able to attend last week’s briefing session on the next rail franchise, which, of course, included a briefing on the metro as it’s going to be rolled out and, with new services commencing in 2023, I think it’s absolutely essential that all parts of south-east Wales that have felt cut off, isolated and marginalised within the context of economic growth in recent years feel empowered through new stations and infrastructure, and that includes in Torfaen, where I am looking very carefully at what infrastructure improvements, both to existing infrastructure and to new infrastructure, can be delivered as part of the metro vision.

I thank the Cabinet Secretary for his answer, but I understand that Torfaen County Borough Council has pledged some £11 million to the project. Does he honestly feel this level of investment gives good value for money, given what he’s just outlined?

Well, Torfaen is a small local authority; I think we need to recognise that. And therefore £11 million, whilst, in the greater scheme of things, when we talk about more than £700 million, might appear a small sum, actually, to a small local authority, to a relatively small council, £11 million is a significant investment and demonstrates, I feel, a commitment to a vision that I think, right across the Chamber, we all buy into.

Again, I thank the Cabinet Secretary for his answer, but can I urge him, perhaps, to make some improvements to the infrastructure in Torfaen? For instance, the Pontypool Road railway station is particularly uninviting: it’s cold, it’s dark and, actually, it’s well outside the town. So, would he consider at least upgrading the facilities on Pontypool Road or, indeed, consider moving it closer to the conurbation of Pontypool?

I’ll consider any project as part of a wider investment by Network Rail that delivers better value for money and a better experience for passengers. I think the Member may be aware of this statistic—it’s quite startling—that Welsh Government have invested more in the current control period in rail infrastructure than those who are actually responsible for rail infrastructure, and I think that speaks volumes about the commitment of this Government to improving the rail network and to ensuring that Wales becomes a more united and connected country.