Diolch, Llywydd. Can I start by expressing my appreciation to Members for the opportunity to respond to this debate today and also put on record my thanks to committee members in particular for their insightful report, including the Chair of the committee, Russell George, who I agree has shown an admirable degree of balance and objectivity in leading this inquiry?

I welcome both the committee's inquiry and their recognition that city and growth deals offer Wales and our regions an important opportunity to unlock additional UK Government funding to support interventions that can deliver inclusive economic growth. I'm pleased that we have been able to accept the vast majority of the committee's recommendations. I also welcome the acknowledgement in the report that city and growth deals are not merely about funding. They are not simply another funding stream through which to pursue individual, stand-alone projects that are unable to secure support in any other way. They are, together with our economic action plan, a way in which collectively we can develop a stronger and more strategic economic agenda that can support the communities, businesses and individuals in that area.

Now, as a Government, we have recognised the importance of a regional approach and we're proud of our record on jobs, with over 185,000 supported in the last six years. Over the last year, the employment rate in Wales has been at or close to record levels with more people in employment than ever before. As I've said on numerous occasions now, the benefits of economic growth have not fallen evenly. There are still large differences between different parts of Wales. We recognise that not every part of Wales has had its fair share of growth and we recognise that Wales is composed of regions that have their own distinct opportunities, their distinct identities and, of course, their distinct and unique challenges.

So, by introducing a regional dimension to economic development through the economic action plan, I believe that we can develop the distinctive strengths of each region in Wales, working in partnership with city and growth deal areas. Each region of Wales will therefore have a specific focus in this new model of regional economic development. Chief regional officers have been appointed and are already engaging with stakeholders across the regions and, of course, with one another, to ensure that activities across the regions are complementary and co-ordinated. This will help us shape Welsh Government delivery, so that we can better respond to the specific opportunities in each region.

Llywydd, both city deals in Wales have solid foundations already and a strong basis to achieve their economic ambitions, and within each region, progress is clearly being made. The £1.2 billion Cardiff city region city deal has the south Wales metro at its very heart, and that is our major contribution to that particular deal. Led by Welsh Government, the procurement process is well under way, with a memorandum of understanding agreed between the Welsh Government and the city deal joint cabinet. But as Vikki Howells said, city deal should not lead to growth in some areas and to no growth or, indeed, to decline in other areas. City deal should and must lead to inclusive growth, delivering wealth-creating opportunities across regions, and I do think that the metro is designed to do just this—to bring new life to dormant communities. I do think that our approach to the development of Merthyr in recent years can act as a blueprint for the regeneration of many, many more communities across south-east Wales.

We've welcomed the plans to invest £37 million to create a world-leading technology cluster in Newport as the first project to be supported by this £1.2 billion deal. This is expected to create more than 2,000 jobs and is backed by £12 million from Welsh Government. Following the signing of the £1.3 billion Swansea bay city region deal, detailed business cases are being developed for 11 projects. Governance arrangements are also being agreed to provide strong leadership and accountability for the deal's successful delivery, and we are continuing, of course, to work with the north Wales region and the North Wales Economic Ambition Board to consider how a north Wales growth deal can best support their aspirations to bring further economic growth—further economic growth to build on the success that we have driven in north Wales.

We only need to look at the investment that Welsh Government is making in north Wales to realise the potential of that region if the UK Government opens its pockets and invests in north Wales as well. There is £600 million ready from Welsh Government to invest in infrastructure, such as the A494, a third Menai crossing, the Bontnewydd to Caernarfon bypass, the A55, the Welsh advanced manufacturing institute, the Development Bank of Wales's headquarters, the Business Wales hub, M-SParc. I'm looking forward to fully scrutinising and supporting proposals contained within the north Wales bid.

But, of course, the big ticket item in north Wales that people constantly speak to me about is transport. I'm responsible, in many respects, for transport, but there is a huge ask on the UK Government to uplift the spending on rail infrastructure, which has lagged behind the UK average. It's lagged behind for far too long. We've only enjoyed approximately 1 to 1.5 per cent of rail infrastructure spend in the last five years. That is simply unacceptable, given that we have 5 per cent of rail infrastructure in Wales.

Now, in mid Wales, Powys and Ceredigion are developing Growing Mid Wales—