4. Statement by the Minister for Economy, Transport and North Wales: Economic Resilience and Reconstruction Mission

Part of the debate – in the Senedd at 3:50 pm on 23 February 2021.

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Photo of Ken Skates Ken Skates Labour 3:50, 23 February 2021

Can I thank Russell George for his comments and his questions? As always, Russell has been incredibly constructive, not just today, in terms of the critique that he's offered and the questions that he poses, but also in the many weeks and months prior to the announcement of this mission today when he was able to offer, during a series of discussions, very constructive points to me and my officials. And we're very grateful to him and other Members across the entire Chamber for their contributions to the work that we have concluded today with the publication of the mission.

Dirprwy Lywydd, first of all, in terms of additional support, obviously the £270 million additional investment for the Development Bank of Wales brings the total fund for the Wales flexible investment fund to £500 million, which in turn will lever in a significant sum in private investment, taking the total fund to around about £1 billion of investment in businesses, which is a huge sum of money to be seeing invested in Welsh businesses in the years to come, and it will support and create tens of thousands of jobs. And, of course, I've already announced that there will be the further £30 million of support for hospitality and tourism, and during the course of my statement I also confirmed that we are awaiting word from the Chancellor regarding the business rates holiday in England, which would enable us, then, to progress such a scheme here in Wales with the consequentials that would follow.

I have to say that, in terms of the road map, the First Minister earlier confirmed that the control plan that was produced in December is still our guiding document, and that it was updated, obviously, last week. The First Minister has given a very clear signal for what's being considered as part of the regular three-week review period, and prior to this statement, the health Minister, I think, gave a very convincing argument as to why setting dates at this stage for all forms of activity is very dangerous indeed. We know that new variants are incredibly disruptive in terms of time frames for how we would wish to reopen the economy, and so promising dates that can't necessarily be delivered against, I think, could be very damaging for the economy and for businesses that would expect to be able to reopen, but which, at a very, very short notice, as the health Minister has already said today, perhaps would be left very disappointed indeed. 

I think productivity and entrepreneurship actually run right through the mission. I think, within the document, there are various beacons, as we have called them, that would lead to productivity and entrepreneurship improving. In terms of productivity, obviously, the focus is on skills and on magnetising investment and a design to drive up productivity. And in terms of entrepreneurship, the COVID commitment contains direct support for individuals wishing to start their own business—in particular, the barriers fund, which provides grants for people who are furthest from the employment market to start up their business, and to do so with the support, obviously, and the guidance of Business Wales.

I don't think we can use productivity alone as the measure of success or failure of an economy. An economy must serve the purpose of enhancing the well-being of its citizens, and the measure of productivity does not do that in isolation, and that's why we are keen to ensure that the national indicators are used as the measure of success for the economy. But, obviously, today's labour market statistics demonstrate just how valuable a devolved administration can be in keeping a cap on joblessness, and today we saw the unemployment figures published, and in Wales, during the latest period, unemployment has fallen; in the UK it has risen. There is now a gap of around 0.7 per cent between Wales and the UK average. Now, there is a long, long journey ahead of us, but that gap does demonstrate just how valuable our support for businesses has been. We've been able to secure something in the region of, according to the very latest data that I've had through today, about 145,000 jobs in Wales, which would explain, therefore, the gap in unemployment. And we will go on ensuring that support is available for businesses in Wales as we move through this pandemic. We've already completed the fourth round of the economic resilience fund and we intend to use any commitment made to date wherever possible to maximise support for businesses that offer value for money.

Of course, in regard to some of the other points that Russell George made in terms of town centres and city centres and the relationship between our transforming towns initiative and retail, well, retail is really very much at the heart of the transforming towns initiative, because unless town are transformed into more vibrant environments, then retail will continue to struggle. People must want to access their town centres, and in so doing, they will then utilise services that are contained within them. So, retail does, without a doubt, have a bright future within town centres, but that bright future will only be delivered if town centres are attractive places for people to visit, to live in and to work in. That's why the transforming towns initiative is so vitally important in delivering vibrant environments within urban areas.