5. Member Debate under Standing Order 11.21(iv): Foundational Economy

Part of the debate – in the Senedd at 3:55 pm on 17 October 2018.

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Photo of Ken Skates Ken Skates Labour 3:55, 17 October 2018

I was struck by a number of contributions, including what David Melding said. His thoughtful contribution referred to the fact that there are many social, psychological and political impacts that the health of the foundational economy has. I think the latest publication concerning—or the latest excellent publication concerning—the foundational economy by Manchester University Press captures very well the fact that, when you have the provision of services and goods that vary in quality according to social status, you get societal division as a consequence. When that happens, you then have the sort of political opportunism that David Melding rightly identified, and also, of course, the protectionism that we've seen espoused around the globe on a national and on a regional and on a micro level as well.

I was also delighted and relieved to hear Helen Mary Jones speak in support of what I've stood here for more than two years arguing—that GVA is less important to people's lives than their happiness and their well-being, which can't always be captured by the existing measurements that too many politicians like to refer to when bashing a Government in terms of economic performance. The economic action plan is designed to raise the spirit level of, yes, wealth, but also—in my view, more importantly—of well-being, and to ensure that we drive down inequalities in both.

I think it's right that we, as elected representatives, regardless of party colour, should focus on the foundational economy, because, regardless of which constituency we represent, the foundational economy is relevant to us all and all of the people that we serve. It's at the heart of our communities and of our daily experiences, reliant as we are on the goods and services of the foundational economy.

So, it's not before time, in my view, that what has been referred to in the past as the 'mundane economy' is getting the focus and attention that it so richly deserves. Again, that's why the economic action plan gives a sharper edge to our approach to four particular parts of the foundational economy—those areas that concern food and drink, tourism, care and retail—where we will work across Government with these sectors to address three critical challenges, those, firstly, being to drive up the quality, sustainability and prospects of people employed within the foundational economy. Productivity, leadership and innovation are relevant to all of our economy, but they are no less relevant to the foundational economy.

Secondly, we need to change perceptions of work in the foundational economy—indeed, perceptions of the foundational economy itself. We need to drive up the value that every individual places on the role of the foundational economy in our society, because it's people and their skills and their commitment that make the foundational economy serve society successfully, and so we need to invest more heavily in the people employed within the foundational economy.

Thirdly, I believe that we must maximise the impact of the foundational economy on our places. Businesses and services and goods that form the foundational economy have a critical role in driving up the pride that people have in our places and cohesion in our places as well. So, our focus now is on developing an enabling plan that will have those objectives in mind and which will guide activity right across Government, because building a strong and effective foundational economy is not just about the economy and transport levers at our disposal—it's about joining up and making a collective and unified effort right across Government.

Turning to the specific elements of the motion, I do recognise the call to go further in embracing the foundational economy principles. I believe that there is a strong rationale for selecting the four foundational activities that I have. We have to start somewhere, Dirprwy Lywydd, and, with limited resource, having that sense of purpose and focus is incredibly important. But this does not mean that we cannot embrace wider principles of the foundational economy. Indeed, I've asked my ministerial advisory board to look at best practice and the lessons that we can learn from excellent examples like the Preston model of community wealth building that Members have referred to. I know that we already have applied lessons from Preston in our procurement policies, and learning from others is something that I'm very keen to do. Hefin David rightly said that it is entirely possible to adopt practices from elsewhere, that should be done whenever and wherever desirable, and Jenny Rathbone identified examples of innovation and best practice closer to home that should be rolled out widely across Wales. 

And I very much agree with the emphasis placed in the motion on the well-being of future generations legislation. Embedding the ways of working and the national goals of the well-being Act provides great scope, in my view, for delivering wider value through procurement. I know that procurement resources are made available for use by the Welsh public sector to embed the well-being Act in delivery of procurement. 

Dirprwy Llywydd, I recognise the motion rightly highlights the role of care, and the opportunity that we have to, I think, blaze a trail in looking at new models of delivery across our country. We have seen some really positive developments on this front; some Members have already identified some of those developments. We've engaged with the Wales Co-operative Centre to support the development and expansion of alternative delivery models that are far more sustainable, and serve the communities in which they are rooted. We've also undertaken a business support pilot in the Valleys taskforce area to deliver advice aimed at improving knowledge, confidence and practical skills. And our new approach, I think, provides us with the opportunity to potentially scale up such activities and engage more broadly with social enterprise and others in developing alternative business models.

Can I close by thanking Members once again for their contribution today? I very much hope that we can maintain the positive spirit of today's debate, and the cross-party goodwill, as we develop our approach to the foundational economy, and ensure that it goes from strength to strength.