'The message I hear time and time again from small builders is that there’s plenty of work out there, but too often they simply don’t have enough skilled tradespeople to take on those jobs'.

As a result, they are

'Missing out on a golden opportunity for growth in the construction sector and the wider economy.'

More than half of those economically inactive in Wales hold no qualifications whatsoever. This contributes to the skills gap, leading to fewer employment opportunities and a continuous cycle of deprivation. It is a matter of concern, therefore, that the Welsh Government's latest figures show that the number of apprenticeship learning programmes started has fallen by 6 per cent compared with the previous year. But expanding the number of apprenticeships is not enough. We have to make sure that they provide the type of skills training that business needs in Wales. Estyn recently said most providers of higher-level apprenticeships in Wales do not manage them well and many courses are outdated.

If we are to ensure the workforce simply meets the needs of businesses, there has to be greater collaboration between industry and education. Research for the south-east Wales regional skills partnership shows that while some colleges are making great progress in building relationships with employers, others offer training without understanding the needs of local businesses in Wales. One of the great benefits of degree apprenticeships is that they are employer driven and designed to meet the skills need. This will increase engagement between universities and employers.

Universities in Wales are keen to develop a wider range of degree apprenticeships. Initial degree apprenticeships will be in engineering, advanced manufacturing and computing and digital skills. Data from the take-up of degree apprenticeships in England suggests that they are effective at encouraging more women to study STEM subjects. Digital skills are particularly important. They are having a huge impact as new technologies are adopted. But change is moving at a rapid pace. The digital sector is developing at such a rate that education providers find it difficult to keep up. We face a huge challenge in ensuring that digital training is up-to-date. Presiding Officer, this is vital if we are to meet the demand for workers with digital skills, particularly in specialist areas such as cyber security. People's level of digital prowess is fast becoming a key detriment of their earning powers. Barclays bank estimate that having digital skills can add an extra £11,500 a year to someone's potential earning in Wales.

Across Wales, 49 per cent of employers have said the introduction of new technologies and the associated new ways of working are the single most important factor contributing to the skill gaps that they are experiencing. Deputy Presiding Officer, I know the leader of the opposite party has only recently said that he is going to increase lower wages up to £10 an hour for every worker, but I think it's not fair—under the age of 16 or 17 having the same sort of salary as people earn after getting skills and training. I think you are putting horses and donkeys together, which is definitely not the right approach to developing the economy in the country. So, basically, there should be great research. I'm quite happy to understand the people who have acknowledged brain and—. There are two ways of working: brain and hands. When you use those, you can create an economy that benefits the future national interest. But if you're putting it all together without skill, I think you won't go anywhere. Thank you.