10. 8. Plaid Cymru Debate: The North Wales Economy

Part of the debate – in the Senedd at 6:08 pm on 18 October 2017.

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Photo of Ken Skates Ken Skates Labour 6:08, 18 October 2017

Thank you, Deputy Presiding Officer. I’d like to thank Members for their respective contributions to today’s debate. I am incredibly proud of north Wales and the dynamic, forward-looking economy that it has: advanced manufacturing hubs in north Wales, a flourishing tourism sector, a booming food and drink sector, outstanding skills providers; they all contribute to a hugely prosperous part of Wales, one that we wish to see develop in the coming years, but one that is built on existing strength and capabilities.

Incidentally, I think I should draw attention to the fact that right now in the middle east, WorldSkills is taking place. There are approximately 30 competitors from the UK there and I’m pleased to say that two are from Wales: two are from Coleg Cambria in north Wales. Both represent occupations in the advanced manufacturing sector. One lives in Manchester, one lives in Wales and both work in north Wales, contributing to that sector and to the regional economy. I’m pleased to say as well that both economic output and household incomes in north Wales are higher than the average in Wales. This shows that the economy of the region is buoyant, is strong, but we do not wish to rest on our laurels and we will be investing heavily in the region in the years to come.

From Wylfa to Airbus, from Zip World to Chetwood Financial, we’ve some of the best skilled workers, we’ve some of the biggest attractions and brightest prospects in the UK. And I say all of this because I do think it’s too easy in debates such as this to focus on the negatives. We rightly focus on what we can do better, but rarely do we take a moment to actually reflect on what we’re doing very well. And so I’d like to start my contribution by talking about the positives, and I do think that the fundamentals of the north Wales economy are strong. Our task now is to look forward and to build on the strengths of the region, to promote north Wales and to strengthen its confidence, not to turn north Wales against other parts of our country.

I’m proud of what the Welsh Government has done to support the success of north Wales in recent years. Our programme for government investment portfolio in north Wales is hugely ambitious—far, far more ambitious than during the period in which a Plaid Cymru Member held the economy and infrastructure levers. Across the region, we have plans for investment in 78 schemes, totalling a capital investment of more than £1 billion for north Wales. That certainly is no small fry. We’re investing £0.25 billion in the Deeside corridor, or Flintshire corridor as my colleague Hannah Blythyn rightly calls it, to address the chronic congestion—chronic congestion that I’m afraid was only worsened when a previous Minister decided to cancel the project. We’re creating an advanced manufacturing and research institute to deliver game-changing support to key manufacturing companies, which will potentially grow the regional economy by £4 billion pounds. And we’re investing £50 million to take forward the first phase of the north-east Wales metro. We are creating, as Members are aware, M-SParc in the north-west, we are locating the headquarters of the Development Bank of Wales in the north-east, and the Welsh Government has led the way in pressing the UK Government to ensure that High Speed 2 has regular and accessible links into north Wales to support the economy, and I would ask opposition Members whether they have done as we have, which is to urge the UK Government to support scenario 3.

As I outlined in March, we are progressing with developing a third crossing of the Menai straits, and I do think, as Hannah Blythyn said, there is a need to take a mature view of the position of the north Wales economy and develop a strategic agenda for the region that develops the significant cross-border opportunities we have to ensure that the region plays a bigger role in the Midlands Engine and the Northern Powerhouse. It’s a fact that the GVA of the north Wales and Mersey-Dee region is more than half of the entire Welsh economy. Hannah Blythyn was right to state that it’s difficult to travel from Delyn to Cardiff in less time than it is to travel from Delyn to London, but the reality is that it takes less than an hour now to travel from Delyn to Liverpool, Delyn to Manchester, or Delyn to Chester, and so cross-border collaboration is a necessity, and it is surely desirable for our improved economic well-being. For that reason, the Welsh Government has played a leading role, with our partners in north Wales and on both sides of the border, to develop proposals for a north Wales growth deal. It gets added benefit from deals that are being formed across the border in the north-west and the midlands of England. And I’ve been very clear that any growth deal must be used to bring together the UK Government and the Welsh Government with a shared purpose to capitalise on the strategic potential of the region, with a relentless focus on improving productivity, raising skills and improving infrastructure, with Growth Track 360 asks at the very heart of any deal. As constructive as Mark Isherwood’s contribution today might have been, I do think that getting his political masters in London to address the shameful—shameful—underfunding of our railways would be far more beneficial to north Wales.

As great as north Wales is, though, there are challenges that we have faced in recent times. Last year, we intervened to support our steel industry, including the important site at Shotton, by making available over £60 million of support to Tata to keep steel jobs and steel production here in Wales. Our investment is helping the Shotton plant develop a sustainable future and, in turn, is helping that community to make a vital and vibrant contribution to the local economy.

But, of course, the most significant investment in north Wales—indeed, the whole of Wales—in the years to come will be the £14 billion Wylfa Newydd project. This is the largest private sector investment since the dawn of devolution, and we are absolutely committed to ensuring that this project—of course, subject to necessary consents—delivers a lasting legacy for Ynys Môn, and to ensure that this development is reflected fully and wholly in the growth deal.

Deputy Presiding Officer, you’ll be pleased to learn that last week appointments were made to our new regionally focused economic development units, with Gwenllian Roberts appointed as deputy director to the north Wales region. Our model of regionally focused economic development will build on the work that we have been undertaking with our partners in north Wales to develop new structures of co-operation. And so, to conclude, we are committed to doing everything possible to support jobs and growth across north Wales, from Cemaes Bay to Saltney Ferry, and indeed to all parts of Wales.