4. Will the First Minister make a statement on the Welsh Government's economic development plans? OAQ(5)0423(FM)

We plan to continue to support businesses in their growth, to invest in high-quality infrastructure, and improve economic development conditions.

The First Minister will be aware that, last week, I brought a group of individuals together who have a track record of delivery in rural Wales to make the case for developing a specific economic development strategy for rural Wales. While the city-region model is a model that may work for many parts of the country, does the First Minister agree that it’s not necessarily a model that is relevant or appropriate for rural Wales? Do you agree that there’s an urgency to develop such a plan, in particular in the wake of the Brexit vote, as the impact of withdrawal is likely to be greater in rural Wales than elsewhere in the country? Will you make a commitment to take seriously the suggestions that will be submitted by this group and use them as the basis for developing a comprehensive economic strategy for rural Wales?

Yes, I will. Of course, Carmarthenshire and Pembrokeshire are part of the Swansea bay city region, and it is important that this is not seen as an urban and rural divide. I thank the Member for the work that she’s done and the passion that she shows for rural Wales. The city region is not a one size fits all. There will be other footprints that will need to be used in the future to develop the economies of rural Wales, but it’s right to say there are challenges. Beyond 2020, we will see £260 million disappear, at this moment in time, from the Welsh economy as farming subsidies go. There is no certainty in that regard so, yes, now is certainly the time to start planning for a rural economy in Wales that will lose substantial amounts of money unless the UK Government steps up to the mark and makes sure the money is there.

First Minister, one of the key elements of economic development plans of the Welsh Government were the enterprise zones, including the creation of the Haven Waterway enterprise zone in my constituency. Now, given that these enterprise zones are crucial to your plans, can you give us the latest news on the development of the Haven Waterway enterprise zone, including the progress made towards a centre of excellence for the energy, engineering and marine sectors, and also the development opportunities identified specifically by your Government for the enterprise park in concentrating not only on energy, but also on tourism?

Well, 65 businesses have benefited. They’ve received in excess of £2 million of financial support as regards the rate relief scheme. A group has been established in the enterprise zone itself, which has a programme of work to support businesses to secure new contracts. We’ve seen investments in the zone as well, such as Consort Equipment Products, which has invested £1 million in Milford Haven itself, and now Valero has submitted a planning application to create a new energy generation site in Pembrokeshire worth £100 million. So, many things have happened in the enterprise zone.

Welsh income per capita in 2014 was 70.5 per cent of the UK average, the lowest ever recorded since records began in 1954 for Wales—indeed the lowest ever for any UK nation or region. It bounced back to 71 per cent in 2015, but that was one of the lowest figures ever as well. Is the First Minister prepared to commit the Welsh Government that we will not see this income per capita figure fall even further, but, if it does, after eight years as First Minister, would he be prepared to take personal responsibility?

Bear in mind, of course, that it was his party that was in charge of economic development for four years, so it is not as if his party have no role in this. We saw GDP go down then, and it shows—[Interruption.] It shows—[Interruption.] Well, I know; that’s easily forgotten, that, isn’t it, but there we are. It does show the challenges that exist in terms of raising GDP. The key to it all, for me, is skills. The more skills people have, the more they can earn, the higher their GDP actually goes. We have shown that we can deliver. As I say, employment 4.1 per cent—lower than England, Scotland and Northern Ireland—the best figures for foreign direct investment for 30 years, and GDP is now the challenge. Unemployment is not as much of an issue as GDP. It’s going in the right direction, and we’ll continue to equip our people with the skills that they need in order to increase their productivity, that much is true, but also, of course, to increase GDP per head as well.