5. Will the First Minister make a statement on the progress being made to attract investment into the enterprise zone in Port Talbot? OAQ(5)0571(FM)

Yes. We know the enterprise zone is a powerful marketing lever. We know that its proximity to the new Swansea bay campus, in terms of the area’s assisted area status, is hugely important, and we know the zone is a compelling proposition for investment.

Thank you for that answer, First Minister. As you know, the enterprise zone in Port Talbot was established due to the real threat of closure of the steelworks following Tata’s original decision to sell off its UK operations. That threat is not going away, and it’s important that we now diversify our manufacturing and other industries within Port Talbot. However, this proposed new site for a new prison in Port Talbot is actually believed to be within the Port Talbot enterprise zone. What analysis has the Welsh Government undertaken to actually consider the impact that building a prison in that enterprise zone will have on attracting new businesses and supporting economic growth in existing businesses, to build a stronger economy based upon skills available in manufacturing and high tech that are in Port Talbot? And on the basis of the analysis result giving a negative outcome, will the Welsh Government fail to sell or lease the land to the Ministry of Justice?

Well, we haven’t conducted that analysis as yet. What I can say, however, to the Member, just to reassure him, is that I have a prison in my constituency. In fact, it was built when I was the ward councillor in my ward. Indeed, people were concerned and they were worried about what the impact of the prison might be. The reality is it hasn’t had a negative impact at all. In fact, it employs a large number of people locally and it’s provided work for a large number of contractors. So, whilst I can well understand some of his constituents being concerned—and he has represented the views of those constituents this afternoon—the experience that we have in Bridgend is that the prison itself—. In fact, there’s a housing estate being built next to it as we speak. So, the prison quickly becomes integrated into the life of the community and it can, in fact, be a job creator.

The Swansea bay city region deal, which you and Theresa May, of course, both signed recently in Swansea, is set to trigger £1.3 billion worth of investment in the region, and the proximity of the university that you’ve mentioned already, and the emphasis on the steel-based supply chain within the enterprise zone, fits very well with a number of projects in that deal. The enterprise zone board also hopes to create opportunities and promote innovation and entrepreneurship in advanced manufacturing and materials. So, what kind of help can we expect from Welsh Government to help the local steel sector take advantage of research and development and commercialisation in those other two sectors in order to improve the local economy?

We have been working with Swansea University in terms of R&D. We’ve been working with Tata to move R&D into south Wales. We want to be manufacturers, but we want to make sure that as much R&D as possible takes place in Wales as well. There are great opportunities there for Tata. We believe there are great opportunities with the lagoon—the lagoon is widely supported in this Chamber; I don’t make that point in any political sense. I do hope that whatever happens after 8 June we will have a decision that is positive about the lagoon to create 1,000 jobs in the area, which will be a huge catalyst in terms of job creation within the enterprise zone.

First Minister, I heard your response to David Rees, but I didn’t hear whether you as First Minister and as a Government here would be supporting the prison in Port Talbot. I recognise what you say about Bridgend, but you will understand that the prison in Port Talbot, if it is built, will be significantly over capacity, and is not something that we think will add benefit to the local economy. I’ve had concerns from local people with regards to the fact that many of them are trying to rent out space of over 10,000 sq ft in Port Talbot; small businesses wanting to develop, who are now moving to your area—I’m sure you’re pleased to hear that—but they can’t stay in Port Talbot. So, could you not be focusing on the real everyday issues our small businesses are facing, as opposed to imposing a super-prison on Port Talbot?

Well, the decision to build the prison is not ours. Prisons are not devolved. We’ll examine, of course, any and all the consequences of building a prison. Bridgend already has a prison, of course, so if people are moving to Bridgend then the prison hasn’t affected their decision in that regard, but it is important that all these things are considered very, very carefully. It’s important that the UK Government makes very clear what it believes the prison can deliver, not just in terms of prison capacity, but also in terms of the local economy, and for them to make the case for the prison, and we’ll examine carefully what their case is.