In his response to our report, the Cabinet Secretary states that city and growth deals have a strong role to play in our regionally focused approach to economic development. He accepts our recommendations 5 and 9 regarding the north Wales growth deal, the bid for which was formally submitted to both himself and the UK  Secretary of State for Wales by the six north Wales county councils and their partners last month. These stated,

'The North Wales Growth Deal negotiators should continue to work constructively with partners and neighbouring authorities both within Wales and across the border', and that,

'The Welsh Government should continue to support plans for a North Wales Growth Deal and use the influence it has to accelerate this process.'

The UK Government announced it was opening the door to a growth deal for north Wales in its March 2016 budget, and announced, as we heard, its continued commitment to this in its 2017 autumn budget. Although the UK's unemployment rate stands at a four-decade low, and new UK figures today show a further fall in unemployment in a faster-than-predicted pace of job creation, Wales, sadly, has rising unemployment and the highest unemployment rate amongst UK nations. After two decades of a Labour-led Welsh Government and billions spent on regeneration, Wales remains the poorest part of the UK, producing the lowest value of goods and services per head amongst the 12 UK nations and regions.

In the context of north Wales, the figure per head of population in the west Wales and Valleys sub-region, including four north Wales counties, is still bottom across the UK, at just 64 per cent of UK average, and Anglesey still sits bottom in the UK, at just 52 per cent of UK average. Even Flintshire and Wrexham have seen their combined GVA fall from almost 100 per cent of the UK level at the time of devolution, to stand at 89 per cent in 2016. 

The growth deal bid, therefore, seeks both to maximise the cross-border opportunities presented by England's Northern Powerhouse, and, clearly, to spread prosperity westwards. Our report states that, in north Wales, the provisional plan is to establish a board of local authority representatives, but also with co-opted representatives of higher and further education and the business community. Well, the north Wales growth board has now been established to finalise the growth deal and manage its delivery, once agreed with the two Governments.

Negotiations with both Governments are due to commence early this year, and we therefore need clarity from Mr Skates on the Welsh Government's position. Does it support the proposals and how will it be responding as negotiations over the growth bid now go forward?