Thank you, Deputy Presiding Officer, and I’d like to thank all Members today for their contributions, especially Lee Waters for bringing forward this debate, to Dai Lloyd, Vikki Howells, Jeremy Miles and David Rowlands, and also David Melding and Rhianon Passmore who both offered, I think, a wider political and social context for the challenges and the risks that we face. David Melding’s reference to the central organising force of labour reminded me of studies of Max Weber’s work on the Protestant work ethic, but the specific point that was being made about the nature of a prescriptive working week perhaps offers another subject for an individual Member’s debate, following on from what has been a clear and strong theme of late, which is the nature of work in the twenty-first century—the blue economy, the foundational economy, and today the fourth industrial revolution.

This debate also overlaps with many of the conversations that I’ve been having over the last few months in relation to our current approach to economic development and how that has to change in the years to come.

The motion refers to the Bank of England estimate of the 700,000 jobs that, over the next two decades, could be at risk as a result of automation. Now, the figures quoted are not indicative of job losses, but of employment impacted. In terms of manufacturing, we know that many assembly jobs may be replaced by automation and by robots. However, new jobs will be created in functions such as procurement, such as programming, data analysis, and maintenance, amongst others. But the key for us, as policymakers, is in ensuring that there are sufficient opportunities emerging in the new economy to replace those that could be lost in the old economy and to ensure that people across Wales in all communities are equipped with the skills to exploit them.

But, of course, the impact goes much wider than just manufacturing. The impact is being seen in many sectors, not least the service sector, and, as an example, the recent news of the closure of a number of bank branches, which are being impacted on by the growing number of customers who are now using internet banking. The speed of current technological breakthroughs makes an assessment of the impact on jobs in Wales difficult.

And there are other factors to consider as well, such as the impact that the fourth industrial revolution, with automation, robotics, and digitalisation, will have on productivity and how that will subsequently impact on employment. Now, Lee Waters talked of the potential increase in productivity that could result in companies being more competitive and therefore winning more business and growing market share. As competitiveness rises and costs fall, this has the impact of a long-term employment rise, although there may be jobs lost in the short term, but it does depend entirely on our determination to fully embrace and exploit new and emerging digital technologies and to arm people with the skills to do so, such as Vikki Howells and Rhianon Passmore outlined.

Now, I’ve been receiving reports on the impact of industry 4.0 from Industry Wales, an overarching organisation for the aerospace, automotive and technology industries in Wales. Industry Wales commissioned an independent report on the impact and the possible opportunities of the next generation manufacturing sector and how the Welsh manufacturing industry community needs to prepare. It’s produced the 2016 next generation manufacturing report, which addresses these issues with an in-Wales focus, and the risks and opportunities are very real indeed.

We’re addressing these with the help of expertise provided by Industry Wales, academia and industry bodies to establish a manufacturing vision for Wales. The economic benefits arising from digital technology are increasingly being recognised by industry, with a recent Confederation of British Industry report stating that 94 per cent of businesses agree that digital technologies are a critical driver of increased productivity, economic growth, and job creation. Jobs are becoming centred on digital technology, and embracing this will ensure a prosperous Wales for future generations.

Digital fabrication technologies are already interacting with the biological world. Colleagues, it’s not going to be long before we have 3D printer-produced jelly sweets, and it’s not unreasonable to believe that, during our lifetimes, we could see 3D-printed body organs. So, the need for highly competent and innovative Welsh businesses is higher than ever before. Our innovation strategy, ‘Innovation Wales’, is helping Wales to explore cutting-edge business opportunities in terms of product development, diversification, and new paths to market, and it’s helping to ensure that innovation is a major enabler for Wales. But, given the nature of innovation, as has been outlined by many Members today, inevitably, the strategy needs to evolve rapidly and has been designed to be as flexible as possible, as we move forward.

I’d agree with David Rowlands and Dai Lloyd, who said that, essentially, the innovators must overcome the luddites and that those who are looking to the future must overcome those who cling to the past. But I would also say that we need those who are suspicious about new and emerging digital technologies to be given comfort that they are there to be embraced and to utilise, rather than to fear.

Now, the final point of the motion refers to developing the economic strategy, and, in our economy, we still face major challenges. With lower productivity than the rest of the UK and higher economic inactivity, we face important structural questions of how to get more people into work, as well as the skills to progress into better paid jobs, which will, of course, be essential in avoiding net job losses during industry 4.0. One of the biggest challenges that we face is addressing the regional differences of our economy and ensuring that the benefits of growth fall more fairly across Wales. Another is in futureproofing our economy and our workforce; both will be needed to reduce wealth and well-being inequalities across Wales, whilst also improving both in the aggregate. I do think that achieving both of these objectives will require difficult decisions by Government, and a concerted effort, which will challenge, in many respects, the way that people are used to doing and seeing things. But, as I said yesterday, Governments do have a duty to challenge convention where convention risks undermining the wealth and the well-being of people, and I think Jeremy Miles outlined in his contribution how we need to begin considering different ways of working, different working practices, not only for economic benefits, but also to deliver improvements in our well-being.

I’m keen, as part of the emerging economic strategy, to look at a smaller number of national foundational economic sectors, such as health, care and energy, which the Welsh Government can take the lead on in supporting. And, below them, I’d like to look at our regional economies by empowering each to develop specialised sectors and more distinct economic identities, but, at both levels, there will need to be demonstrable proof that our interventions and our investment are focused on areas of activity in the economy that are or can be futureproofed. We face major economic challenges, which will only be intensified when we exit the EU, with increased global instability, welfare cuts and UK Government austerity, and, of course, the main topic of today’s debate, the fourth revolution. In solving future challenges and adapting to an ever-changing world, it’s essential that we build bridges between people so that we can develop knowledge and solutions for the future. So, yes, there are challenges, but let’s be in no doubt whatsoever that we want to harness the opportunities presented by the fourth revolution. So, I very much welcome the contributions of all Members to that discussion today.