Welsh further education colleges are critical players in the economy of Wales. As ColegauCymru have reminded us, their annual economic impact on the local business community is no less than £4 billion. And in addition to this contribution, they undoubtedly have a crucial strategic role to play in futureproofing the economy in Wales.

In 'Prosperity for All', the Welsh Government sets out how it will build an economy based on strong foundations, focusing on the industries of the future and empowered regions, and how inclusive growth will be used to narrow ingrained inequalities as our wealth and well-being improves. But, as the Minister for Welsh Language and Lifelong Learning reminded us just yesterday, for the Welsh Government to build an economy that works for everyone, the FE sector must be at the heart of this agenda. And it's easy to see that in terms of a whole range of challenges Wales faces, the FE sector provides the answers and solutions.

For example, around a month ago we debated the economy committee’s report on the future of the Welsh economy. During this inquiry, we took evidence that low-skilled workers, and women in particular, are likely to be at risk from automation and artificial intelligence. In consequence, we recommended that retraining and upskilling should be at the heart of the Government’s lifelong learning policy.

This is an area where the FE sector is well placed to make that central contribution and, moreover, one where it can help shape what the nature of that future should be. As Professor Richard Davies suggested, we need to develop a triangular system of exchange between FE, employers and HE. This could involve the sector having to make some difficult decisions. They may not be popular ones. For example, colleges may have to decide to focus on the ICT skills that we desperately need for the future, and the expansion of areas of teaching like Coleg y Cymoedd's really exciting work around sustainable construction. These could be at the expense of other popular teaching areas, but in choosing which courses to focus upon and prioritise, we really must bear in mind the best interests of the economy and of our country. So, I welcome the Minister’s comments yesterday that her officials have been working to better align provision with regional skills partnerships. This is key to clear employment progression, escaping low-paid work and ensuring that provision meets the needs of local employers.

Adult community learning is another area where the FE sector has an important part to play. Much good work is already taking place, but I would like to see more partnership working with adult community education, more outreach to the most challenging communities, and more liaising at the coal face to ensure the hardest to reach are brought into the learning environment. I know that the Minister spoke about changes in terms of part-time provision, which may be especially important here.

Of course, achieving these goals relies on FE being properly funded. In the new twenty-first century Coleg y Cymoedd campus in Aberdare, there is a very visible symbol of the Welsh Government’s commitment to this. The Minister referred yesterday to additional money being made available to the sector. Of course, none of this can be delivered without a supportive workforce who, in turn, feel supported and valued. From this perspective, I welcome the announcement from the Welsh Government yesterday on pay. It's an important step forward and welcome news that funding will be provided so that FE lecturers will receive a pay award equivalent to school teachers. Importantly, this will also be extended to those crucial supporting staff, like technicians and instructor demonstrators too. This is a crucial intervention, I think, from Welsh Government. Along with my colleagues Mick Antoniw and Hefin David, I have been in discussions with University and College Union members at Coleg y Cymoedd and I would hope this action would go some way to showing staff involved just how much they are valued; how respected their work and contribution is.

Of course, we cannot undo the impact on the sector of the austerity obsession of the UK Government. Wales is effectively £4 billion worse off as a result of the UK Government's austerity agenda and there's no doubt that funding for FE has suffered as a result. But we can work together with the sector to achieve our shared goals, and we can only achieve prosperity for all if we continue investing in FE.