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 4:49 pm on 17 October 2018.

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Photo of Ken Skates Ken Skates Labour 4:49, 17 October 2018

Indeed. I think the Member is absolutely right—there is considerable market failure in Wales, and this also applies to other areas of technological service provision. The reason that we've had to intervene so deeply in terms of superfast broadband is because of the market failure that we've had to tackle.

I think the Member makes a very important point about the automotive sector. We recently announced how the £2 million fund will be used to install electric charging points. We're hoping that we can use that as an incentive to develop more charging points that will enable cars to be charged at superfast speeds. I think it's absolutely essential that we use a limited resource in the best possible way, and that means futureproofing the provision of the charging points; it means investing in those charging points that are going to be able to supply power to cars more quickly. I'm particularly pleased that new technologies within the automotive sector are being developed right here and now in Wales. I'm delighted that Aston Martin Lagonda's new Lagonda electric powertrain will be amongst the most advanced on the planet, and that we will see it developed here. 

Now, in March, we announced a review into the implications of digital innovation on the future of work and the Welsh economy, as Members have identified, and that work is now under way and being led by Professor Phil Brown of Cardiff University school of social sciences. We're looking forward to the outcome of the review in March, which, I can assure Russell George, will be addressing recommendation 1, and, if not fully, then I can assure him that further complementary work will be undertaken. We need to be very much alive at all times during the fourth industrial revolution to disruptive technologies that could be utilised by the Welsh economy, and within the Welsh economy, to give us a competitive edge. It will require, therefore, a constant degree of monitoring, evaluation, study and research. And I can also assure Russell and other Members of the Siambr that we will continue to develop strategic, mutually supportive and beneficial relationships with business, with academia and with communities to prepare our economy for the future. 

Changes to the way that we work and the implications of automation mean that we need to rethink our approach to lifelong learning and to adapt our training and skills provision accordingly. Our employability plan sets out a range of measures to support individuals to develop and to adapt their skills to the changing needs of the labour market. Furthermore, technology and innovation, including the use of data, will help, as Members have identified, the farming industry to modernise and become more resilient and competitive and address its climate change and environmental responsibilities. Precision farming I don't think should be considered in isolation; instead, it should be considered as part of a broader agricultural and land use strategy post Brexit, and precision agriculture will doubtless help the sector address climate change and environmental responsibilities in line with the economic action plan.

Dirprwy Lywydd, I am conscious of time. Just reflecting back on the previous debate, it's often anchor companies, as large investors with the ability to be able to harness innovation and expertise from around the globe, that drive technological change, and I think it's a very dangerous assertion to make that we should cease support for innovation in companies such as Airbus UK, Ford, Calsonic Kansei, Tata and others in order solely to support the development of the foundational economy. Instead, we should see the foundational economy as the bedrock of the Welsh economy, driving inclusive growth, and the industries of tomorrow, which include those anchors that we have supported, as the drivers of the fourth industrial revolution that we need to work in partnership with.