6. What action is the Welsh Government taking to support economic growth in Cynon Valley? OAQ52157

The 'Prosperity for All' national strategy and the economic action plan sets out the actions we're taking to support economic growth in the Cynon valley and across Wales. Just some examples, of course: our Vibrant and Viable Places town centre loans fund is helping to support town-centre regeneration across Wales. Aberdare, in particular, is seeing the benefit of that. If we look, for example, at the Cynon valley, the Cynon valley has attracted four investments from foreign-owned companies and two investments from elsewhere in the UK over the past five years. And, of course, there are examples of home-grown businesses in the valley that are doing well, such as Ashwood Designs.

Thank you, First Minister, and I agree with everything you said there. I recently visited Pontus Research, which is an award-winning aquaculture research and development business in my constituency, with a global client list. The company has done incredibly well, but they've now reached capacity and they need to grow. They've applied for funding from the European maritime and fisheries fund, but have been told that their application could take at least 120 days—that's 120 working days—just to process. This is preventing them from developing, from possibly securing match funding, from taking on new staff and thereby contributing to economic growth even further in my constituency. First Minister, will you look at how the EMFF is working in Wales to see whether improvements can be made to timescales so that other businesses like Pontus don't lose out?

Well, first of all, the appraisal process should take up to 120 working days, not at least 120 working days. What I can say, though, in relation to Pontus is that the application is currently being appraised. The company has received a letter confirming that it can start work, at their own risk, from the point the application is submitted, and that was in January 2018, in order for that work to begin. I can also say that the company has been able to benefit as well from funding made available by the Welsh Government through the fisheries business development advisors scheme to help to pay a consultant to develop the business idea. If your constituent has been told that it's at least 120 days, let me give the assurance that it is 'up to', with the objective, of course, that the appraisal process is finished long before that.

David Melding. 

Diolch yn fawr, Llywydd. I'm obviously in your good books this afternoon, and long may it continue. [Laughter.] First Minister, Cynon Valley is the third least economically active constituency in Wales, and we know the association between economic activity and prosperity. The main reason that people remain economically inactive, when they could, actually, for health reasons, be fit enough for work, is that they don't have the basic skills to enter the job market, as it changes rapidly. Therefore, investment in basic skills is as important as driving towards the great knowledge-based economy, which, of course, we also want to see in Wales. These programmes are what we really need in areas like Cynon Valley.

I agree. The reason why, of course, productivity is historically low, not just in Wales but in the rest of the UK, is that over many years, there was a lack of investment in skills development. We know that the more skilled people are, the more productive they are and the more they can earn. I've said this before in the Chamber: why is it that, if we give a German worker a particular machine, we get far more out of it than a worker in the UK? Why? Training. That's the reason for it, and that's the lesson we must learn. How are we doing it? Working with higher education bodies, who are working hard in their communities. Further education colleges—we have new colleges that have been built across Wales, offering fantastic facilities for local people. The Valleys taskforce has, at its very heart, the desire to ensure that people can have better jobs closer to home, and that means, of course, making sure that they have access to the skills that they need. But it is hugely important as well to make sure that jobs don't leave Valleys communities, and that's why I was so disappointed to see that the Department for Work and Pensions have decided to centralise lots of jobs that have come from other valleys in Treforest. They're not new jobs; they're jobs that have simply been moved around. Unfortunately, for many people, that will mean that they will now find they have to travel further in order to keep the jobs that they have. That is the wrong direction.