Part of 1. Questions to the Minister for Economy and Transport – in the Senedd at 1:47 pm on 20 March 2019.
I should say, I don't think the Member and I have a difference of view on wage rates: they need to improve, there is no doubt about that. The way that we're going to go about doing it is by rolling out more widely the economic contract as a principle and in practice as a means of driving up the quality of work and remuneration.
Now, the Member identified some vehicles elsewhere that drive the uptake of the living wage. Here in Wales, we've got Business Wales with more than 200,000 businesses within their reach—that's a service that I have personally utilised recently. I've written to all businesses on two occasions regarding Brexit, contacting 200,000, but Business Wales are now acting as the agency for Welsh Government to encourage as many in the private sector as possible to adopt the living wage.
But I do believe, rather than just encouragement, you have to offer something. You have to offer something, and that something is Government funding, and applying the principle of something for something is by far the most effective way of changing behaviours and improving wage rates. And that's what we're seeing in Wales, and that's why household income is up in Wales. But I would accept that more still needs to be done. We started from a terrible base back in the mid-to-late 1990s. We've made huge progress, but through the economic action plan and the economic contract, we will go further still.