3. Statement by the Cabinet Secretary for Economy and Transport: The Economic Action Plan

Part of the debate – in the Senedd at 3:06 pm on 12 December 2017.

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Photo of Ken Skates Ken Skates Labour 3:06, 12 December 2017

Can I thank the Member for those compliments that he's given to the plan—the elements of the plan that he has welcomed, the change that he has welcomed? And insofar as the criticisms that he also raises, I'll try to address them.

First of all, I think in his final words he presented what he believes is a way forward for Wales, which is to create more bodies, whether that be in terms of international trade or new mini WDAs across the regions of Wales. What we have been clear of is that there is a need to simplify and enhance what we're doing well. We have achieved record levels of employment, we have driven down unemployment to the lowest level in a generation, but we recognise that to deal with the stubborn structural problems, we now need to change direction, and that direction must be to the future. 

I know that it's very difficult for some Members to appreciate that the move from nine priority sectors to three thematic national sectors is a radical departure, but one that will mean that wherever a business sat in the traditional silos, provided they are operating in a way that will futureproof them, provided that they are operating in a way that aligns with the calls to action, they will be able to get the appropriate support from Government and support with Government in order to become more productive and more competitive in the future. The industries of the future align with those thematic areas and align with—and, indeed, have to embrace; if they're going to survive, they're going to have to embrace—the principles of the calls to action.

Now, I agree; I agree with the point the Member made at the outset that any economy, to be successful, has to contain three key factors. Actually, those three key factors also relate to businesses themselves, and I think, actually, they were contained in the analysis by Jim Collins in his book Good to Great. He framed it in a slightly different way. He said that you need to face the brutal facts, you need a hedgehog—what you do best, what your unique offer is—and also you have to have the right people on the bus. 

In terms of the brutal facts, we know that our productivity is lagging because we need to improve our skills base. We're going to deliver that through the new employability plan. We also know that we need to improve our infrastructure. We're going to do that by building as never before. We also know that we need to improve leadership skills within business, and, again, the calls to action are designed to do that: to offer that financial support, to offer that incentive to improve leadership skills. And, of course, with the focus being in particular—and I know Members in the Chamber have already raised it today—on mental health and well-being in the workplace, if we have a focus on that, by virtue of focusing on that, if we're successful, if businesses are successful, then they will have also achieved improvement, discernible improvement, in terms of leadership practices. 

In terms of the other areas that you could constitute as brutal facts—those factors that are holding us back, the barriers—as I said to Russell George, you have to have the right regional economic development vehicle in order to support businesses, and I think it's absolutely right that we do have the regions acting as key influencers with one chief regional officer. But not one office; a whole range of offices across the regions, working, as well, with those officers in local government and with the regional skills partnerships who are able to, in turn, influence Government policy and, in turn, also work with, where necessary, cross-border partners. This will be a new feature of our objective in empowering and growing the regional economies of Wales.

In terms of getting the right people on the bus, Wales is a very, very small country, and when I came into this job, I was somewhat surprised, given the small size of our country, by the number of advisory boards, groups and panels that currently exist—more than 40. I think, by any measure, anybody reasonably minded would suggest that that is too many. Consolidating much of the expertise into a ministerial advisory board, I believe, is the right thing to do in order to not waste people's time, but also in order to bring together experts from across the sectors and from across the regions to work together to be able to share ideas and innovation.

Speaking of innovation, the Member also raised this as a crucial factor in the development of sustainable and resilient economies—highly productive economies. Well, our call to action has innovation running through its veins. The challenge proposals are designed to extract the best innovation and the best calls for innovation from across the business community. In terms of the actors, well, the actors are our partners with us: in business, in trade unions, in social enterprise. We must work together—we are all actors. And in terms of what our unique offer is, it has to be our people, our human capital.

That's why I am determined, through the economic contract, to ensure that people in Wales don't wake up each working day dreading the working day ahead of them, but get up looking forward to work, being productive in the workplace. Caroline Jones was right; £15 billion is lost in productivity as a consequence of people turning up at work and not being able to operate to the best of their ability. I want Wales to be known as a place where people want to work, where they don't just deliver enough during the working day, but where they excel, where they have unique skills—all of them—and they are able to utilise their skills, where they have transferable skills, where they have secure employment, but also know, and have the security of mind knowing, that they have the skills that can easily be transferred to other occupations should they lose their place of employment. And I want another additional unique prospect for Wales being a fair-work country. We have to set our ambitions high insofar as the country and the values and the principles of Wales are concerned, and this action plan sets out to do just that.