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

Part of the debate – in the Senedd at 3:23 pm on 12 December 2017.

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Photo of Ken Skates Ken Skates Labour 3:23, 12 December 2017

Can I thank Vikki Howells for her questions and put on record my thanks to her, and to colleagues, for the encouragement that is being given for developing an approach that will support the foundation economy across Wales—an economy that, in many parts of Wales, is the only economy? I think many of the most marginalised communities in Wales are those that have great potential to develop the foundation economy over other parts of the economy, other sectors of the economy. It's going to be incredibly important, as we move forward, to recognise that some big societal challenges that we face—an aging population and the childcare demands that are faced across communities—are also huge opportunities to grow the foundation economy.

But each of the four foundation sectors that we have identified have their own unique challenges, own unique opportunities, and will therefore have different interventions applied to them. For the care sector, for example, there is particular need to address the skills challenge and the need for more sustainable business models. So, we'll be working with the sector to develop—again through short, sharp, task and finish work, aligned to the ministerial advisory board—we'll be looking at solutions that deal with those challenges.

In retail, we know that a major problem facing the retail sector is competition posed by online retail, but also the lack of quality places where people can feel safe, where people can feel good shopping. Therefore, it's absolutely essential that, as part of the intervention to support the retail sector, we look at enhancing the quality of place across communities in Wales.

For tourism—well, tourism has already been invested heavily in by the Welsh Government, but it continues to possess huge potential. In all likelihood, given changes to the way that we work, people will have more leisure time in the years to come, and therefore there is great potential to fill that leisure time with business opportunities within the tourism sector. 

And then with food—well, there is a good story to tell for the Welsh food sector. I think exports in the past few years have risen by approximately 95 per cent. We have carved out a very distinct, high-quality identity as a food-producing nation. We wish to support an improvement and an increase in the quality and availability of food produce, again working with the sector in this regard. 

Each of the approaches will therefore be different, but in order to drive up—and Vikki was absolutely right, some of these areas of economic activity offer, I'm afraid, job opportunities that are currently poorly paid and are not secure. But interventions in the foundation sectors will also be relevant to the economic contract, and dependent on those criteria being met. Where those criteria cannot be met, there will be support offered through other means, and in particular for smaller and medium-sized enterprises—and there are a huge number of those in the foundation economy—there will be the support Business Wales, the development bank, of course, and other services outside of Government.

Our intention is to offer the incentive to become a responsible employer, a fair working place of employment, and that should apply not just to advanced manufacturing and fintech and life sciences, it should also apply, Deputy Presiding Officer, to those sectors in the foundational economy.