6. What assessment has the Cabinet Secretary made of the current economic state of the construction sector? OAQ51500

The construction sector makes a critically important contribution to the Welsh economy, sustaining as it does something in the region of 13,000 businesses and employing around 112,000 individuals. The Construction Skills Network in their latest forecast predict that Wales will see unprecedented growth in construction up until 2021.

And to add a further statistic, it's 10 per cent of our GDP. It has declined in the last month. Commercial building and civil engineering in particular are weaker, and this has caused more reliance on house building. I just wonder what vision you have for the revival and extension of the construction sector in the next four or five years, as you've indicated in your projection there. What part will be played by more ambitious house building targets in Wales?

We're continuing, I think, a positive trend in house building in Wales, despite the latest quarterly figures that showed, as the Member indicated, a 12 per cent decrease in completed dwellings in July to September last year. There was actually a 27 per cent increase in the previous quarter. And in addition, the number of social housing homes completed in the first quarter of last year was up by 56 per cent on the same quarter of the previous year.

Our intention is to work together across Government to identify land where small and medium-sized enterprises are able to construct homes. At the moment, too many small businesses are not able to bid for land masses and development sites because they're not able to necessarily compete. But through innovative housing support, we believe that we can continue to support the growth of small and medium-sized Welsh enterprises.

I think it's also very important to note the good work that's taking place at a local authority level. I highlight in particular Flintshire County Council who are building council houses for the first time in quite some time. Their work and their commitment is paying dividends already and I'd like to congratulate other local authorities that are considering doing the same.