6. Debate on the Economy, Infrastructure and Skills Committee report: Industry 4.0 — The Future of Wales

Part of the debate – in the Senedd at 4:07 pm on 17 October 2018.

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Photo of Russell George Russell George Conservative 4:07, 17 October 2018

Thank you, Deputy Presiding Officer. I move the motion in my name. 

Now, all the inquiries that we do as a committee are interesting in their own way, but of all the inquiries that we've done on the committee since I've been the Chair of the Economy, Infrastructure and Skills Committee, I have to say this is the one where I have had my eyes the most opened—this is the work in regard to automation. We've heard some witnesses telling us of research showing that tens of thousands of jobs are going to be lost due to automation, and we also heard a study showing us that tens of thousands of jobs are going to be created as a result of automation. Now, I think I'm someone who is optimistic by nature, so I'm embracing the fourth industrial revolution, but there's a single takeaway from our work—it's that a government that fails to prepare for automation is preparing to fail. Of course, it's not just Government that this challenge is for; this is for business and service providers across the country. Automation is coming and we all need to think about what that means for us.

I was disappointed by aspects of the Welsh Government's response to our report, which might strike you as a bit odd because the Government accepted 11 of our 12 recommendations. There were no recommendations accepted in principle, which I was pleased to note, and we did have just one rejected. But as a committee, we're clear that our aim and purpose is to drive change. Our recommendations are intended to change and improve Government policy. So, when our recommendations are accepted but the accompanying text makes it clear that our concerns are not changing behaviour, then I'm concerned. 

Recommendation 1 is a case in point: the committee calls for work

'to ensure Wales is the provider, not just the consumer of emerging technologies.'

But the response lists what the Government has done and it talks about the work already under way by Professor Phil Brown. It is not clear that we are in agreement here, so perhaps the Cabinet Secretary could respond to that in his closing remarks. In fairness, the Brown review may indeed cover the issues, and I will eagerly await publication to see what recommendations he makes. I'm fairly sure that Professor Brown's work won't be the end piece of work that needs to be done, and I hope that the Government stands ready to respond to any gaps or next steps he identifies.

Recommendation 11 follows a similar pattern of acceptance without fresh action. The recommendation is clear that we want to see more of the highest level researchers doing their work here in Wales and retaining those skills for the Welsh economy. The financial implications listed in the Government's response say that there would only be additional costs

'Should we launch a fund'.

Well, that's what the recommendation is calling for, Cabinet Secretary. So, I hope that the current budget round gives you the ability to do that.

I will look at recommendation 4, which is the only one that was rejected. This recommendation came from a suggestion by Professor Calvin Jones of Cardiff University that there might be real benefits for Wales in creating a model community to test emerging technologies in a Welsh context. It was an idea that received enthusiasm from others we talked to during the course of the inquiry, and the Government's response says it is working on a number of proposals rather than one specific location. Now, I do have sympathy for the idea that there may be benefits in testing in a number of locations rather than one single community. The important thing is less whether there is one or 10 sites; what matters is that there are sites in Wales that allow cutting-edge technology to be tested and developed to suit Wales's needs. I hope that these opportunities will be pursued. We won't get a second chance to be at the forefront of these emerging technologies.

I am pleased that recommendation 12 has seen immediate action. It was, I think, quite bizarre to learn that just one of the three regional skills partnerships had identified automation and artificial intelligence in their plans for future requirements, so I look forward to seeing the fruits of the Cabinet Secretary's letter in that regard.

The committee intended this report to be the beginning rather than an end to discussion, and the stakes could not be higher, but I'm particularly interested in Members' comments this afternoon and I'm looking forward to the Cabinet Secretary's response, particularly in regards to—. Perhaps he could outline in more detail some of the comments I've made about the recommendations I've put forward today and discussed.