3. Will the Minister make a statement on the Welsh Government’s new economic contract for businesses? OAQ53407

Yes, the economic contract has been very well received since its launch in May. We've agreed over 120 contracts with businesses across Wales and, later this year, we intend to apply the economic contract principles to a wider range of settings, including, I'm pleased to say, our sponsored bodies, and also infrastructure contracts.

Diolch, Minister. Earlier this month, I was very pleased to lead a short debate with cross-party support on a contract for better mental health first aid in the workplace. I know that the Minister is very passionate about this issue, just like I am and many others in this Chamber are. I'm sure he believes that it makes sense, both from a human and financial perspective, to ensure that we protect mental health within the workplace in the same way we do physical health.

Llywydd, most of us spend more time within the workplace than we do in our own homes, and this week, personally for me, I've struggled with my own mental health. I struggle simply to get up and face the world, and I'm sure I'm not alone. We simply must do more to support well-being within the workplace.

Minister, will you agree with me that campaigns such as Where's Your Head At? are vital in ensuring employers look after the well-being of their workforce by aiming to make it compulsory to have mental first aiders in work? Finally, Minister, would you agree to meet with me to see how we could support such initiatives as part of the Welsh Government's economic contract?

Can I thank Jack Sargeant for his question? I'd be delighted to meet with him to discuss how we can further utilise the economic contract for this purpose. This is an issue that he and I share a very keen interest in. It's an issue that causes almost £100 billion of damage to the UK economy in terms of lost output per year—the estimate is between £74 billion and £100 billion. Indeed, Llywydd, for businesses themselves, the cost is incredible. An independent study recently suggested an annual cost of between £33 billion and £42 billion to UK employers, because of poor mental health in the workplace. More than half of that figure can be attributed to people coming in to work but not being able to face a day's work without mental health issues. It was one of the reasons why I thought it was so important to include mental health as one of the four criteria in the economic contract, and I have to say that we are already seeing behavioural change within many businesses. We are seeing examples of very best practice such as at GoCompare and Bluestone and Wockhardt. I don't wish to be prescriptive through the economic contract as to how businesses improve well-being and mental health in the workplace because there are a huge number of businesses already showing great creativity and innovation in this field. I'd like to see their best practice diffused and disseminated across the economy. 

Minister, I was pleased to see the new economic contract, given the hostility to private enterprise displayed by the UK leadership of your party, particularly the shadow chancellor. Minister, will you confirm that the key to economic success in Wales is true partnership between the public and private sectors, and Government providing the best environment for private enterprise to thrive?

I would very much agree with the Member that social partnership is essential in driving inclusive growth in making sure that we do all put our shoulders to the same purpose. That means involving Government. It involves the public sector, it involves business, and, of course, it also involves our colleagues in trade unions. I am delighted that the UK Labour Party have recognised the value of the economic contract in driving inclusive growth, and I do hope that it will be adopted when the Labour Government is formed at Westminster.

Minister, I think that the economic contract is a positive step in terms of broadening the intended impact of Welsh Government support for smaller Welsh businesses. Can you clarify, Minister, what form of financial assistance will be given to Welsh firms, in terms of financial support? Will this assistance be delivered through a loans arrangement, and if so, what is the Welsh Government's strategy in terms of loans, going forward?  

Well, in terms of the support that's available, I think the Member is referring to the support that might be required in order for businesses to reach the point where they've successfully signed the contract. That would be provided through Business Wales, both in terms of potential financial support, but more importantly, I think, probably, the advisory service that can be offered. In terms of loans versus grants, this is something that has occupied minds and debate in this place since the dawn of devolution. I'm still keen to ensure that we move away from a high dependence on grants towards greater utilisation of loans through the Development Bank of Wales and, where we do use grants, we align them more closely with our priorities, making sure that grants are utilised in geographical areas where there are higher instances of unemployment or where there is a greater need to skill up the workforce. In terms of grants generally, we should be applying the economic contract more widely. That includes across Government departments and within local authorities, and also through the procurement process.