6. Will the Cabinet Secretary outline how the Welsh Government is working to improve prosperity in the south Wales valleys? OAQ(5)0207(EI)

Yes. Tomorrow, we will publish ‘Our Valleys, Our Future’, building on the work of the Valleys taskforce chaired by my colleague Alun Davies. In addition to this, we’ll continue to invest in skills, in infrastructure and in the right business environment for companies to flourish.

Cabinet Secretary, the proposals put forward by the Department for Work and Pensions over the future of their estate in Wales will see a relocation of some 200 skilled staff out of Cwmbran town centre. Not only would this have a devastating impact on the local economy in Cwmbran, but would pose enormous difficulties for staff with caring responsibilities who are unable to travel to the location that’s been proposed, which is the Treforest area. The fact that that location has been chosen suggests that the DWP have little or no understanding of the geography of Wales. I know that the Minister for Skills and Science, Julie James, who’s been incredibly helpful, was meeting with the UK Minister last Thursday, and I’d be grateful if, as a Government, you could provide an update to Members. But can I also ask you for your assurances, Cabinet Secretary, that you will do all you can personally to work with Julie James to represent the staff affected by these proposals, which will have a devastating impact on one of the poorest parts of Wales?

The Member is absolutely right, and I’ll just reiterate our strong disappointment that the DWP did not consult with Welsh Government ahead of the decision being made, without any alternative solutions being considered. And I know that the Minister has now met with the UK Government Minister, and I’m sure will be providing a written update to Members in the coming days on the discussions that took place and the further activity that will now be undertaken. And I can assure the Member as well that if any workers take redundancy, then we will offer ReAct as a means of ensuring that people can get back into work without a lengthy period of unemployment. It’s absolutely crucial that anyone affected by this who is left without work does not stay in unemployment for a long period of time, and we will help in every way possible.

Minister, you just said that the strategy will be unveiled tomorrow. The Minister, Alun Davies, made a statement last week. I did press him on his statement to try and explain what the hubs economically are going to achieve. He talked that there would be six hubs. One of those six is the automotive enterprise park—call it what you will—in Blaenau Gwent that has been allocated £100 million over 10 years. He was unable to give any information at all; I’m not sure whether that was because he didn’t know what they were going to do, or whether he was just being guarded because, obviously, there was so much focus on the Circuit of Wales concept that, obviously, sits in his constituency. I’d be grateful from your perspective if you could enlighten me as to exactly how these hubs will operate. Will they be merely just small enterprise zones? Will they be themed? Geographically, where will they be located? And what budget lines are going to be allocated to them? Given that we know £100 million has been allocated to the one in Blaenau Gwent, are we talking similar sorts of moneys for the other hubs that will be dotted around the rest of the Valleys as part of the strategy?

Can I thank Andrew R.T. Davies for his questions? Very important points were raised—the need to ensure that hubs operate in a way that generates sustainable growth. I envisage the hubs developing as opportunities for clustering and agglomeration in certain specialisms. So, it may be, for example, in Ebbw Vale, automotive. It may be, in another hub, based on house building. So, my view is that the hubs have the potential to become recognisable clusters of specialisms that, again, can enable skills partnerships across the Valleys region to home in on opportunities that are emerging through the pipeline of interests that we already have, and the pipeline of interests that we already have will lead funding to be delivered on an on-demand basis. So, any funding requirements will be drawn down from my department, and potentially other departments, if it crosses subject boundaries.

In terms of the further detail that the Member requests, this is something that Alun Davies will be revealing tomorrow, but the aim of the clusters, the aim of the hubs, is to make sure that there is a concentration of activity in certain areas based on emerging economic and manufacturing trends and to take advantage of the theme of better jobs closer to home, offering people access into work and then career progression in areas of economic activity where we know there is a sustainable future.