Jobs and Economic Development in Ogmore

1. Questions to the First Minister – in the Senedd on 24 September 2019.

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Photo of Huw Irranca-Davies Huw Irranca-Davies Labour

(Translated)

1. Will the First Minister make a statement on how the Welsh Government is helping to support jobs and economic development in Ogmore? OAQ54381

Photo of Mark Drakeford Mark Drakeford Labour 2:01, 24 September 2019

Llywydd, I thank Huw Irranca-Davies for that question. The Welsh Government helps to support jobs and economic development across Wales, including in Ogmore, through our economic action plan. Between 2011 and 2019, the unemployment rate in Ogmore fell by 52 per cent, and that exceeded the fall in the rest of Wales and the fall across the United Kingdom.

Photo of Huw Irranca-Davies Huw Irranca-Davies Labour

That is welcome news, First Minister. Last week's announcement—confirmation of the investment of Ineos in my neighbour's seat in Bridgend—was welcomed throughout Bridgend and Ogmore and the whole region, showing once again that the Welsh Government has indeed stepped up to the mark to support our manufacturing base and jobs. Whilst this can't replace in its entirety the 1,700 jobs, it shows a confidence in the area and in the skills of the workforce that is hugely reassuring.

But could I ask the First Minister about the wider and sustained investment and support by the Welsh Government and its agencies in the Ogmore constituency over the last three years of this Assembly term: how many jobs and training places created and sustained, how many business start-ups, how many business support grants and loans and advice provided? If the Minister could give me a flavour in his response today, I'd be grateful, though I'm happy to have chapter and verse in a more detailed answer afterwards. And would he confirm that the Bridgend and Ogmore M4 belt is still home to some of the largest concentrations of manufacturing in Wales and some of the most highly skilled workers?

Photo of Mark Drakeford Mark Drakeford Labour 2:02, 24 September 2019

I thank the Member for that question. I thank him for what he said at the start about Ineos—the culmination of long and intense negotiations carried out by officials in the Welsh Government, led by my colleague, Ken Skates. We were delighted to be able to bring those jobs to people in the Bridgend and Ogmore area, given what has happened there earlier this year.

Of course, Huw Irranca-Davies is right that the Bridgend and Ogmore M4 belt is still home to a large concentration of manufacturing in Wales—Invacare, Sony, for example—and they're there because of the benefits of having a highly skilled and motivated workforce.

The Member asked me, Llywydd, about chapter and verse of the things that have been done to support the economy and manufacturing industry in that part of Wales. Here are just three examples: since 2015, Business Wales has helped in the creation of over 200 new enterprises in the area that is represented by Huw Irranca-Davies and by the Member for Bridgend. Since 2016, the Development Bank of Wales has invested over £9 million in businesses in Bridgend alone. And, since 2018, the economy futures fund has approved projects in the Bridgend and Ogmore area that are valued at over £8 million.

All of that shows the determination of this Government to go on investing in those places and those people that have created such success in manufacturing in the M4 belt around Bridgend and Ogmore in recent times.

Photo of Suzy Davies Suzy Davies Conservative 2:04, 24 September 2019

I'd like to acknowledge the work of both our Governments in bringing Ineos to just outside my region, but for the benefit of the whole of the region and beyond. The economic development that Huw Irranca-Davies referred to, of course, needs a well-prepared workforce who've had the best out of their school and college experience. I wonder if one of the greatest risks to that sustained economic development that he was talking about, including Ogmore, will be cross-sector employer loss of confidence in the robustness and accountability of the education system. Do you share Jeremy Corbyn's views that an independent school inspectorate is unnecessary? 

Photo of Mark Drakeford Mark Drakeford Labour 2:05, 24 September 2019

Well, Llywydd, there were some imaginative leaps in that question; I congratulate the Member. If there was an academic qualification in that, she'd be well advanced. Look, the reason why employers go to Bridgend is because of the qualifications and skills that the workforce already have. The proportion of working age adults in Bridgend with at least two A-levels or the equivalent has been increasing year on year, and last year, 2018, reached the highest it had ever seen. And our investment in education, in apprenticeships here in Wales, in skills and employability, gives us confidence and gives employers confidence to invest in that area because they know that they will have a workforce there ready and willing to do the jobs that can be attracted to it. 

We have a very different education system here in Wales. Education is devolved—I remind Members of that. Decisions that other people make about what is right in their areas have no direct read-off for us. We think we have an inspection regime and system here in Wales that works for schools, that works for students, that works for parents, and we're very happy that we have that in place and can continue with it. 

Photo of Caroline Jones Caroline Jones UKIP 2:06, 24 September 2019

First Minister, the news that Ineos will be producing project Grenadier in the region will be welcome relief for my constituents in Ogmore and the wider South Wales West region. However, we must diversify and futureproof our jobs market if we are to change the economic fortunes of Ogmore and the wider region. First Minister, how will your Government equip the current and future workforce with the necessary skills to compete in industry 4.0? Thank you.  

Photo of Mark Drakeford Mark Drakeford Labour 2:07, 24 September 2019

Llywydd, I thank the Member for what she said about Ineos, and I agree with what she said, that the future of the Welsh economy does rely on diversification, responding to the challenges that we know will be there for jobs in the future, including automation. We have agreements with employers in all parts of Wales. Our economic contract approach means that we see this as a shared responsibility, a responsibility that is shared between Government, between employers and between employees as well, and the work the trade unions in Wales have done in mapping out some of the opportunities that will come to jobs in Wales through automation is amongst the best contributions that you will see to the response to diversification that Caroline Jones has suggested that we need. But it isn't the responsibility of any one partner—it is the responsibility of everyone; that's why we have a social partnership approach here in Wales. And, by working together in that way, we can have confidence that we are able to face the challenges and the opportunities that will come the way of the Welsh economy as a result of changes that we all know are happening in the world around us.