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 4:44 pm on 17 October 2018.

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Photo of Ken Skates Ken Skates Labour 4:44, 17 October 2018

Diolch, Dirprwy Lywydd. Again, it's been a very thoughtful debate and I am very grateful to the committee for its work. Russell George at the outset said that if you fail to prepare, you should prepare to fail. This is something that was often said when I was in the officers' training corps. It's something that equally applies to economic development and many other areas of service provision. I firmly believe that our challenge in this regard is to futureproof the Welsh economy, and we have to get ahead of change in order to equip, not just our people and places but also our businesses to face the future with confidence. Our economic action plan is the main focus in futureproofing the economy of Wales.

It's worth saying that all previous industrial revolutions have led to the creation of more jobs than they have destroyed—the key difference being that the jobs created have often more advanced than those that have been lost, and so it's absolutely vital that our efforts should be placed most firmly on equipping people with the skills to take advantage of the jobs that will be created as a consequence of the fourth industrial revolution.

The economic action plan embodies three main strands of our approach to automation—firstly, the investment that's required in developing automation for its many benefits. Secondly, we need to educate and train the people for the jobs of the future, and, thirdly, we need to support workers in what will be, in many parts of the country, a difficult transition. We also need to empower workers to ensure broadly shared growth—again, reflecting back on the earlier debate that our focus must be on driving inclusive growth. The fourth industrial revolution should be utilised as a means of driving fairer growth and a fairer distribution of high-quality jobs across the country.

Automation and digitalisation is one of the five calls to action contained within the economic action plan. We engage very regularly with businesses and stakeholders to discuss the potential impact and opportunities of automation and digital technologies. I was particularly pleased, just this morning, to meet with CAF, who are building more than half of the trains that will be used in the coming 15 years and beyond. They'll be built at the Newport facility, and I was pleased to learn that the Newport facility will be the very first fully digitalised manufacturing facility in the CAF family—that as a consequence of working with Welsh Government to place very firmly the fourth industrial revolution at the forefront of their considerations in designing the facility, and in ensuring that the people who will be working there have the skills to take advantage of new and emerging digital technology. 

In addition, Wales's innovative tech community, I think, is already considering the opportunities of artificial intelligence. M7 Managed Services, in partnership with IBM, recently opened an AI centre of competence. Through our Be The Spark programme, we're also helping to create the environment for tech start-ups to compete effectively and efficiently by stimulating and engaging everybody in the Welsh ecosystem to support innovation-driven entrepreneurship right across the length and breadth of the country. The Centre of Excellence in Mobile and Emerging Technologies, based at the University of South Wales, is supporting Welsh businesses to develop services through the adoption of artificial intelligence and other emerging technologies.

I think that harnessing the benefits from automation requires an infrastructure that supports the interconnectivity of devices in an automated environment. The economic action plan sets out our commitment to deliver fast, reliable broadband across Wales and to enable the market to roll out fifth-generation mobile networks.

Now, the need for highly competent and innovative Welsh businesses is higher than ever before. Our strengths already include compound semiconductors, nuclear and advanced manufacturing, and we're working to leverage funding from the UK industrial strategy challenge fund and EU funding to support these strengths. We have invested considerable sums in these areas of activity, and we will continue to do so, because—