5. What discussions has the Cabinet Secretary had with the Leader of the House regarding the economic impact of digital connectivity? OAQ52457

I regularly discuss the importance of digital connectivity throughout Wales with the leader of the house, and we share the same view of its enormous importance to economic growth and sustainability throughout the country.

Thank you, Cabinet Secretary, for that reply and I'm particularly pleased that you are working with the leader of the house on this issue and opportunity, in fact, because, in addition to the community and household benefits of broadband and full fibre and digital connectivity, there are clear economic benefits as well. Statistics clearly show that the country will receive £20 for every £1 investment in broadband, and this is a great return on infrastructure investment. Would the Cabinet Secretary agree with me that we need to do all we can to invest in digital full fibre connectivity, and support the idea of a gigabit hub in and around the Flintshire/Wrexham area like I've previously suggested to the leader of the house?  

Well, I'm delighted that in the summer the next phase of Superfast Cymru will be announced by the leader of the house. The Member is absolutely right to identify the economic benefits of digital connectivity. Indeed, the strong performance of the digital sector has helped to create or safeguard around about 11,000 high-value jobs in the last eight years as a consequence of Welsh Government support, and the sector's performance in the last year is particularly startling, for almost 30 per cent of foreign direct investment projects recorded for Wales came through the digital sector. So, it's a major, major contributor to the wealth of the nation. With regard particularly to north Wales, well, I'm very pleased to say that the six local authorities across north Wales are collaborating to develop a strategy to enhance digital connectivity right across the region. I know that the leaders of the growth deal bid will be very keen to explore every opportunity to exploit the latest digital technology and infrastructure.

When you announced your digital innovation review, Cabinet Secretary, you said that you wanted to develop the potential of our regions so that they would support better jobs closer to home, and this is something that I would agree with you on. You've also been very supportive, like me, of a mid Wales growth deal. Now, in order to ensure that mid Wales is plugged into the wider midlands economy, improvements in high-speed broadband and mobile connectivity should be part of any mid Wales growth deal. I wonder: would you agree with me on that view?

Can I ask what steps are you taking in association with your colleague the leader of the house to ensure that the digital divide between mid Wales and other parts of Wales does not widen further, which is, sadly, the case at the moment?

Well, I'm confident that, with the next phase of Superfast Cymru, we'll see that gap narrowed. The intention of the second phase, the next phase of the project, is to ensure that those harder-to-reach properties are connected, therefore leading to a narrowing of that gap that the Member has identified.

And I would support the Member's call for the growth deal in mid Wales to dovetail with interventions and deals across the border. It's absolutely essential that a good degree of collaboration and co-operation takes place on a cross-border basis. I'm certainly encouraging that. I know that Lord Bourne as well has stated that this should take place, and I'm pleased to be able to tell the Member today that it's my intention to meet with him, subject to his diary availability, on 24 July to meet with a number of businesses in mid Wales to discuss how it is that we can promote economic development in places like Newtown and Welshpool, utilising not just the built infrastructure such as roads and rail networks but also digital infrastructure.

Cabinet Secretary, the Swansea Bay city deal is built around and dependent upon digital connectivity. In the initial business case for the city deal, a new terabit capacity transatlantic cable between New York and Oxwich Bay was proposed but never made it into the final deal. The new link would have put Swansea Bay region at the heart of a digital superhighway, not just delivering higher speeds and greater capacity but also, more importantly, lower latency. So, Cabinet Secretary, what happened to the new transatlantic cable?

Well, I always thought that the vision outlined by Sir Terry Matthews was absolutely compelling, and it's a vision that has been used to shape the Swansea Bay city deal. Now, it's for local authority leaders to construct a city deal that is based upon the existing strengths but also the future opportunities of the region. I know that the Swansea Bay city region leaders are determined to make best use of the levers available to them through the deal, and I am encouraging them to continue to reflect on that vision that was outlined by Sir Terry Matthews and to make sure that the interventions and investments that are made in the region get the maximum value for the people they're designed to serve.