Thank you, Presiding Officer. It gives me great pleasure to open this debate today on recognising the importance of further education in developing the skills of the Welsh workforce. The Welsh economy is failing to meet its full potential. It faces a number of fundamental challenges. These include a skills gap in advanced technologies, and the requirement of a workforce with the flexibility to adapt to the ever-changing economy of the world. 

The importance of ensuring that Wales has a sufficiently skilled, flexible workforce to help create a resilient economy and to meet the demands of employers is clear. The Welsh Government itself states that:

'Every person should be equipped with the skills they need to get a job and the opportunity to develop new skills through their working life.'

Quote closed. However, a skills gap has developed in Wales that is costing businesses approximately £155 million.

In 2019, the 'Open University Business Barometer' found that 67 per cent of senior business leaders reported that their organisation is currently experiencing a skills shortage; 54 per cent of employers said that they could not recruit enough staff with the skills they need, particularly in the field of engineering. A recent Barclays LifeSkills report found that more than half of Welsh over-16s are failing to demonstrate all the employability skills needed in the future workplace. The figures regarding digital skills are also a matter of concern. According to the Office for National Statistics, Wales has the lowest proportion of internet users who possess the five basic digital skills. Only 66 per cent of internet users in Wales have these basic five skills, compared to a UK average of 79 per cent.

The importance of further education in tackling these problems cannot be overstated. However, ColegauCymru pointed out that there is a need for longer term funding arrangements to be put in place. The current one-year funding cycle hinders long-term thinking and planning. Overall grant funding for the FE sector has fallen in real terms by 13 per cent between 2011-12 and 2016-17. Funding for part-time provision and specific programmes fell over 70 per cent in real terms. The Welsh Conservatives believe this funding uncertainty must end to enable further education colleges to continue to deliver leading skills training and encourage more people into FE and lifelong learning.

Not everyone is able to take time out of work to participate in full-time education. The Open University in Wales says that education should not be a one-off for young people; it should be lifelong, throughout a person's career. We need a comprehensive adult education, skills and employment funding plan to grow our own resident workforce. Whilst the Welsh Government provides a grant for those aged 19 and above studying in FE, both the numbers of applications and the number of successful applicants has decreased. We would introduce an adult learning allowance to use for a degree course, technical training or specific courses. This would make the skills, courses and training more accessible for people, regardless of their financial position.

Wales is behind the curve in rolling out degree apprenticeships. [Interruption.] Wales is behind the curve in rolling out degree apprenticeships. In response to increasing employers' demands for higher level skills and work-based learning routes to a degree, degree apprenticeships have become an increasingly desirable mode of delivery. In Wales, the number of degree apprenticeship routes is limited. In England, there are currently 70 degree apprenticeship standards approved for delivery. We need to significantly expand the number of degree apprenticeships available, particularly in the new sectors. We also need to level up opportunity across Wales, by ensuring that everyone can fulfil their potential, irrespective of where they live or where they come from.

Wales has around 14 further education colleges, but only two are located in north Wales. We believe the potential of north Wales should be enhanced and nurtured to make the most of the opportunities that will be created by the north Wales growth deal. We would address this imbalance in the provision by developing an institute of technology in north Wales, focused on STEM subjects—science, technology, engineering and mathematics.

Presiding Officer, to meet the goal of strengthening the Welsh economy, we must focus on some of the key issues facing us. These include the skills gap that threatens to leave Welsh workers behind the rest of the United Kingdom. Only then can we take advantage of the opportunities created by technological advancement. We must take the action required to help people meet the needs of the ever-changing economy of Wales, United Kingdom and the world. We can play a great part to make sure our lives are better. Thank you.