2. What progress has the Welsh Government made to improve the economy within the former coalfields of south Wales? OAQ(5)0153(EI)

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

It’s a sad fact that there’s been very little done to replace the old heavy industries that once provided employment, housing and infrastructure throughout the Valleys. Much is promised by the city region, but there’s little detail, and, in those communities that will be affected, there’s much confusion as to exactly what it will deliver. We also then have the Valleys taskforce, which, coincidentally, sprung up shortly after Labour lost a rock solid seat in the Valleys. I wonder whether that was just a coincidence. Can you tell me whether there is any joint working arrangements between the city region and the Valleys taskforce? Is there a regular channel of dialogue between you and the Minister responsible for the taskforce? We need more jobs in the former coalfields, and we need better quality jobs as well, and failure to deliver on this with the city region or the Valleys taskforce is not an option.

Can I thank the Member for her question? I did see her tweet where she asked a very good question. It’s a question that I think many communities could ask, based in the city region area. That particular question was, ‘What’s for Rhondda in the announcement?’ And I think that’s absolutely right, because I’ve been asking recently who has benefited in the recovery since the financial crash. And it’s quite clear that those who have not yet seen any sign of a recovery are those who live outside of more intensely urbanised areas where we’ve seen the greatest economic growth. They are people who, by and large, are younger, and people who don’t own their own homes. They’re the people who have not benefited from the recovery. So, just as I said to David Melding that I expect redistribution of wealth to come through the redistribution of opportunities to create wealth, I think it’s essential that we do more to attract investment into the Valleys, but also to support and grow those companies that are already there.

In terms of inward investment, we estimate that a third of all foreign direct investment that came to Wales in the previous Assembly came to the Valleys areas. So, there’s no doubt that the Valleys have had a good degree of investment, but the structural problems of that particular regional economy require a more concerted and joined-up effort, and, for that reason, the taskforce was convened. The Member asked an important question about who is on the taskforce, how the taskforce is liaising, working with and interfacing with other initiatives. I can assure the Member that I am a member of the taskforce, and so too are representatives of the Cardiff city region. And I think it’s essential that the work of the taskforce is fully reflected in the developing economic strategy for a more prosperous and secure Wales.

Cabinet Secretary, obviously, the city deal concept is going to be the driver of much economic activity and regeneration, both in the Swansea area and the Cardiff area. With the Cardiff city deal, 10 local authorities make up that agreement, many of them in the Valleys areas. The way we measure success, obviously, is via gross value added and economic activity coming out of the Valleys. Where would you see GVA in the Valleys being in the next five to 10 years? What key gateways have you put down to see the increase in GVA?

I should perhaps refer the Member to a speech I gave last Monday at Coleg y Cymoedd—a transformational institution that has been able to improve the pride in the local area, and also improve the skills of people who live there. In that speech, I outlined my vision for a prosperous and secure strategy that will seek to not only grow wealth and well-being in the aggregate, but also reduce the inequalities in both, across regions and across Wales. And, so, it’s my view that not only should GVA be improved, relative to England, and the Valleys relative to the rest of Wales, but that we should also seek to drive up gross disposable household income, because it’s that measure, it’s that money that people have in their pockets, that gives people a sense of control over their own lives. In turn, it’s that power, it’s that ability to have a degree of control over one’s life, that you’re able to judge well-being against. And, so, I would suggest that GVA has to increase as part of the city region approach, but it must increase at a sub-regional level across all communities, because if we see the wealthy getting wealthier, and productivity in areas that are already high in productivity increasing at the expense of the wealth of those who are least well off, and at the expense of productivity in less urbanised areas, then the project will have failed. I think we have to iron out the lumpiness in terms of productivity and in terms of economic growth, and we must find the ways of ensuring that we share opportunities to create wealth right across regions.