Part of the debate – in the Senedd at 3:50 pm on 21 November 2018.
It's notable that every area of Wales is below the UK average in terms of productivity, but the UK average in itself is below many other advanced economies'. But how will the demand placed upon the sector as a result of the employability plan be met when the resources are simply not there?
I note today that £8 million has been committed by the Welsh Government to ensure some pay parity between FE lecturers and teachers. A strong FE sector needs the best talent available to teach and that must come with a salary that's reflective of their importance. It is interesting, in fact, that the details of this announcement have been made today in time for this debate. Coincidental or not, it is to be welcomed. I think it's also worth pointing out here that the further education joint trade union in Wales has said in the past that any increase has to be above the retail price index and that the Welsh Government recognises 10 years of pay restraint. I hope that's what's being announced today and that that will be able to cover those concerns. But we also need to understand that part of the complaint that led to a vote for strike action was not only about raw numbers but also about a workload that has risen, is rising and set to rise further, with pay and resources not being reflective of that.
Our final point urges what I think all of us in this Chamber, regardless of party, recognise: that FE has not been given the prominence in policy making it requires and deserves and that this country needs if we're going to have an economy that succeeds. The frustrating thing for many of us is that I think the Welsh Government knows this. I believe the Minister was right on the money when, as part of her campaign to be Labour leader in Wales, she said that upskilling and the wider skills agenda have to be a focus of the Welsh Government. I don't believe that it is currently, and I don't think that she thinks that it is currently, judging by her comments to the BBC. I think that this statement yesterday regarding further education funding also proves this. Another missed opportunity, another piecemeal bit of reform.
The Welsh Government's own employability plan shows they're aware of the scale of the challenge, because it says, and I quote,
'The Governor of the Bank of England has calculated that more than 15 million jobs in the UK are at risk as a result of automation, this translates to around 700,000 jobs in Wales over the next two decades. The Centre of Cities think tank suggests that we will need to replace 110,000 jobs in Wales by 2030 as a result of automation.'
When we look at the reviews that have taken place in recent years into financing, the Hazelkorn review into the long-term funding future, reports on innovation, we see a road map that has been laid out reasonably well for the Welsh Government. What is lacking is the strategic initiative to gather these separate pieces together and make them whole. And we cannot continue to wait any longer. Other countries are recognising the importance of FE and lifelong learning and have structures in place that place the sector at the forefront of their economic strategies. It's noticeable, for example, in the Basque Country; it's one of the highest per-capita regions of Europe, but it got there because of the importance it placed on education. It has focused investment on innovation and research and skills in the round, with skills plans—its fourth skills plan, which ties the education system together as one with planning, guidance and funding running through from pupils aged 14 onwards.
In Wales, as I noted earlier—. And yesterday, we've had announcements around the FE sector being more engaged with regional skills partnerships, which the Welsh Government seemed to acknowledge were not up to the task of playing the central role they need because of the fact that they announced that they needed to have an independent adviser to be appointed to help with the way forward. The contrast is truly striking. The education Secretary has said that she hopes that a major overhaul of further education can take place before the end of this Assembly term. I don't hope that it can be realised, I think it must be realised. This is necessary to plan strategically for the way forward.
Now, as I said, we are in a catch-22 situation in the Welsh economy. At some point, we're going to need to make a decision on how we make real economic progress, because our citizens are not going to put up with another two decades of managed decline. I've said in this Chamber in the past that, at the outset of devolution, our gross domestic product was comparable to that of the Republic of Ireland; now, we're not even in that country's rearview mirror any more.
There is such a thing as damaging through doing nothing. I think what we would like to see is a commitment to bring in the strategic vision the sector wants and needs; to protect funding and prioritise for real-terms increases; to plan education and skills so that they're intertwined with our economic needs; to increase investment in innovation; and to decide where we want to go as a nation—what is our unique selling point, where do we want to invest our skills for the future and what do we want to achieve? How can we make our businesses more commercially viable, create more entrepreneurs and keep the people and their ideas here in Wales, promoting Wales and working in Wales? We are willing to work with the Welsh Government, but they now need to step up to the plate and deliver in this sector.