8. Welsh Conservatives Debate: The Economy

Part of the debate – in the Senedd at 4:15 pm on 22 May 2019.

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Photo of Russell George Russell George Conservative 4:15, 22 May 2019

But we agree that there is a necessity to end regional inequality across Wales. In turn, of course, that will boost living standards and properly planned and funded health, education and local government services in all parts of Wales.

Last week, Presiding Officer, we celebrated 20 years of devolution, of our Parliament here. Devolution was intended to significantly improve the economic performance of Wales, but, by any measure, the economic data, without question, indicates that the Welsh economy has underperformed over the past two decades, and has comprehensively failed to catch up to the UK economy as a whole. That said, the Welsh Government's latest economic action plan marks a shift away from a failed approach, which I think is welcome, and perhaps the Deputy Minister and the Labour benches will be surprised by what I'm going to say next, but there is much to be applauded, I think, about this plan. So, my opening remarks are not intended to be a party political attack on the Government this afternoon, but I genuinely believe that the plan lacks detail, which is why we are calling for more ambition in improving the Welsh economy so that we deliver a better deal for Welsh businesses, their employees and the country's taxpayer. I'm sure we can all agree that we want to see the true potential of devolution realised in Wales, which we need to achieve through an ambitious policy programme, in order to shake off the place that we're currently at, at the bottom of the UK league tables.

Now, of the three economic plans that have been launched since devolution, not one—not one—has succeeded in improving earnings or economic output, and the Welsh economy is still the weakest economy in the UK. It has the lowest productivity levels across the UK and, of course, those stagnant pay packets are holding us back. And regarding those stagnant wage packages, it's disappointing that when we do have those tweets, as was listed on the trade and investment tweet—'Come to Wales, we've got 30 per cent lower salary costs than some other parts of the UK'—this kind of culture needs to end within Government and the civil service. This is the wrong approach.

Now, the Welsh Government's economic strategy over the past 20 years has largely focused on attracting foreign direct investment, and while I would, and we on these benches would, welcome countries from across the world investing in Wales, the raw economic data shows us that the Welsh Government hasn't made the most of this opportunity. We would like to see new overseas offices and dedicated trade envoys to boost Welsh trade and connect a strong Welsh economy with the world. Now, of course we have a UK industrial strategy, and I firmly believe this plan will ensure that we have jobs and opportunities spread across the whole of Wales, and this is helping the whole country get ready for the economic change by investing in our infrastructure, driving up research spending and boosting the skills of our workforce. I'm sure that the Deputy Minister will agree with me—that it's important that the Welsh Government's policy is aligned with the UK Government's industrial strategy.

Data on the performance of the economic action plan has been incredibly hard to get hold of. I put in written questions at the back end of last year, but didn't get substantive answers to those questions. We've had very few, if not no, statements at all in regard to performance when it comes to the economic action plan.

Reforming public procurement to support small and medium-sized enterprises is also an important strand of an effective Welsh economic action plan. For example, when we look at the way public procurement has been handled in Wales: in 2018, 22 per cent—22 per cent—of procurement spend by the Welsh Government on construction contracts, worth over £0.5 million, went to firms based outside of Wales. So, this represents a lost opportunity for investment in the Welsh supply chain and, consequently, opportunities to further strengthen the economy of Wales.

Next, a strong, forward-thinking and diverse economy is built by a strong workforce, so I certainly believe that there is a need there to focus on adult learning, upskilling and reskilling, and this provides the workforce with the ability not only to gain new skills and knowledge within their sector, but also the added, indirect benefits of improving the social capital and integration, integrating our health behaviours, skills and employment outcomes. So, it's therefore imperative, I think, that adults are encouraged to participate in learning at any stage of their career, whether it's through work-based learning or personal study.

Improving our infrastructure is also important. It's essential to see the consequences of that to improve our economy. It's high time, I think, that the Welsh Government turns its sights on the delivery of a robust and futureproofed transport network. There are good infrastructure projects that have been delivered, and delivered on time right across Wales, but still we have too many transport projects that are delivered late and over budget. And the stalling of the delivery of major schemes, such as the M4 relief road—that is a problem to our economy. Without addressing the congestion on that stretch of the motorway, the Welsh economy will continue to be hampered by chronic levels of congestion and the delays that it creates.

Finally, it's crucial that we also strengthen the country's growth deals as well. We've got some really good growth deals across the country with a regional focus, a good partnership between local authorities as well. This is an area where I think the Welsh Government has got it right, as has the UK Government as well, making sure that the growth deals are measured and that proposals are coming forward from the ground upwards—that we don't have either the UK Government or the Welsh Government imposing projects on the regions of Wales, but that these projects are coming from the very communities that they come from.

So, we've got to get, I think, that right, and I think that we look at—. Obviously, there's a Swansea bay deal as well, which perhaps other colleagues will talk to later, and there are the recent Government reviews into that. So, I think we do need to implement the outcomes of those reviews. We've got the Cardiff growth deal, we've got the mid Wales growth deal, which is on its way as well, and also, of course, the north Wales growth deal, which is expected to create more than 5,000 new jobs and almost double the value of the north Wales economy by 2035.

So, to conclude, Presiding Officer, we on this side look to the economic action plan and we see the merits in it, but there needs to more action, and there needs to be more detail on that plan, and we need to see performance come forward and see what the performance is as we go forward as well. I very much look forward to the debate this afternoon and look forward to Members contributing.