Thank you very much, Llywydd. It is a particular pleasure for me to make my first statement—hopefully not the last—as Minister, on the future of Cadw.

Earlier this year, the Cabinet Secretary for Economy and Transport provided an update on the recommendations of the steering group report, 'Historic Wales—A roadmap towards Success, Resilience and Sustainability for the Heritage of Wales'. The report included a specific recommendation relating to the future governance of Cadw, and that a business case should be taken forward to identify the best options. The business case was received at the end of September, it was presented by the Cabinet Secretary to his Cabinet colleagues in October, and I am happy to implement the Cabinet decision, and to accept its core recommendation that Cadw should remain part of Government.

In the business case, consideration was carefully given to the steering group recommendations that Cadw should become a charitable body or an executive agency outside of Welsh Government. Having considered this carefully, and measured this against the status quo, and undertaking an in-depth analysis of the functions of Cadw and the drivers for change, it was seen that the arguments in favour and against Cadw being inside Government were relatively evenly balanced. However, in the current climate of financial challenges, in terms of legislative time and in issues of HR related to creating a new organisation, we had to look too at the fact that Cadw had been very successful in terms of increasing its income levels within Government, and contributing towards innovative legislation and policy development. One other key issue is the additional costs of creating a separate body. Also, by remaining within Government, Cadw could have made a greater contribution to our central goal of 'Prosperity for All'.

And so, whilst there are potential benefits having been identified of moving the organisation to a more arms-length status, I want to emphasise how exceptionally well Cadw has performed, particularly over recent years within Government—commercial performance driven by major improvements to the Cadw visitor experience. I've had wonderful experiences myself, particularly in north Wales with the work done at our castles. The year 2016-17 was the most successful in Cadw's history, with £6.6 million in generated in income. Following on from this, early indications of visitor figures for this year suggest that Cadw is on course for another successful year. Cadw has run several successful marketing campaigns and has won awards, which encourage visitors to the historic sites in the care of Welsh Government. Cadw has achieved this and has delivered groundbreaking legislation in terms of engagement with the public, and has brought about social and economic benefits for the people of Wales.  

Therefore, in examining the case for retaining Cadw within Government, the business case recommended a series of business improvements that will be an important way of addressing issues identified by previous reviews, in terms of staff and stakeholders. Therefore, this will enable Cadw to function better whilst responding to the issues raised in recent reviews and including the need to generate further income and to work more effectively within public sector governance requirements.

I want see Cadw's success continuing, and these improvements will provide greater clarity for all by ensuring that key strategic decisions will remain with us as Welsh Ministers and the day-to-day operations with officials. It also allows for better planning and provides flexibility on recruitment within budgets. Cadw will also continue to be an active member in its own right in the strategic partnership for the heritage sector. This partnership is taking forward a number of collaborative activities allowing our national heritage organisations to share expertise and become more effective, resilient and commercially astute in the challenging financial climate that we face. The new arrangements for Cadw, in my view, will allow it to build on its current success and maximise the contribution of the partnership and the wider heritage and prosperity of Wales. Thank you very much.