3. Will the Minister make a statement on the role of cities in economic development in Wales? OAQ53172

Yes. Our 'Prosperity for All' strategy and the economic action plan set out actions for all parts of Wales to contribute to and benefit from economic growth, and this includes enabling our cities to be engines of growth that benefit their wider regions.

Minister, already today, in answering questions, you and the Deputy Minister have spoken about regional development, some of the new organisation for that and the new drive that you wish to see behind it.

Newport, Cardiff and Bristol have been talking and working together for some time in terms of development across that area. The abolition of the tolls on the Severn crossings, I think, gives new impetus in terms of the possibility and the potential, and at the same time we know that there is critical mass across the area in terms of people, businesses, organisations right across the sectors. So, given that potential, given those advantages and the new structures, the new drive that Welsh Government seeks, the role of the Organisation for Economic Co-operation and Development, could you tell me how that area of Wales will feature in the early action that you expect to see?

Well, I'm very pleased to answer the Member's question. John Griffiths raises an important point about the functional economic area that is Cardiff, Newport and Bristol, and just as we're seeing now closer collaboration on an economic basis, we have for many years experienced collaboration across that border within that area on an academic front with the GW4 group of universities often working very closely together on joint projects. I'm looking forward to the OECD taking a close view of the economic action plan and regional development in Wales. The OECD will directly inform the regional approach, and it will ensure that we've got the right structures and governance in place in order to create and maintain cross-border links.

The other important point to make, I think, is that, as we move forward with regionalisation on economic development, I think it will enable the regions to be able to collaborate on a cross-border basis on their own terms. This is very important in the context of a post-Brexit Britain because, if we've learned anything, it's that we have to ensure that communities and local areas and regions feel empowered to do what they can for their own people and for themselves and that they do not see central Government and a centralist approach as doing things for and to people. It enables a greater degree of co-production and collaboration and I think, whether it's in the south-east or whether it's in the north-east, or whether it's between the north-west and Ireland, we have to encourage cross-border activity and collaboration if we are to become a more competitive nation.

Minister, I hope you and your very promising deputy have had a chance to read the Conservative group's strategy on liveable cities. Indeed, if you and your wider team want us to run a seminar for you, we'd be delighted to inform you of our thoughts.

I think one thing that we were struck by is that some cities around the UK have really been key for economic development in their regions and nations. Sheffield, Manchester, Birmingham and Edinburgh clearly have had this at the heart of their development, and I think now, with the Cardiff and Swansea city deals, there's a real chance that we can start to think this way—that our cities have to do more than just what they do for their immediate populations. They belong to the regions and, in fact, the whole nation of Wales. And, in driving greater economic ambition, they really have a role that cannot be played by any other economic actor at the moment, and we must see them as a great resource, and they've all got great potential as well.

Well, I'd agree very much with David Melding. His assessment is absolutely right. I'd also add that, alongside cities, the importance of satellite towns cannot be understated. It's absolutely vital that, just as we support cities in developing strong identities, it's also important that we encourage our satellite towns to better link with the cities that they are dependent on, but also to ensure that they carve out distinct identities, not just for the people that they serve but also for the businesses that operate there.

I've been struck often by the success of—and I know the Member mentioned a number of cities; I've been struck by the success of Manchester in this regard, the way that the centre of Manchester has grown so rapidly since the 1980s, based on a number of factors. But, at the same time, satellite areas and satellite towns around Manchester and the greater Manchester region have also begun to thrive without losing their own distinct identities. So, I see the development of cities as being very significant indeed, but I also see cities as serving the growth and the development of the satellite towns and rural areas in the hinterland that are so dependent on the growth that often takes place at a faster rate within the centre of cities.