7. Statement by the Deputy Minister for Economy and Transport: The Foundational Economy

Part of the debate – in the Senedd at 5:41 pm on 23 February 2021.

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Photo of Mike Hedges Mike Hedges Labour 5:41, 23 February 2021

Can I first of all thank the Deputy Minister for his statement? Can I also say the post-COVID economy is going to be very different to February 2020? It's not a return to the past. 

Of course, there is a difference between the foundation economy and the foundational economy—although people sometimes confuse them. The foundation of Swansea's economy was coal and metal; it is now Government services, insurance, universities and small-scale but highly-skilled manufacturing and services provision. Within Swansea, the foundational economy is mainly the sport economy; the difference between provision of services and goods outside and inside the city's boundaries. 

I agree with the Minister that COVID has underlined the critical roles played by key workers—some of these people were not really considered key workers until COVID came in, and now we realise just how much we need them—and the importance of everyday goods and services to the well-being of our communities and our economy. But does the Minister agree that for procurement to work for small companies, or smaller companies, the size of the contract needs to reduce to a size where local companies can bid? And an example has been some road schemes where the size of the contract has been such that only four or five very big, multinational companies were able to bid, where, if they split it down into one and two-mile sections, local companies can bid. And the key is that the bigger the contract you set, the fewer and fewer companies who can bid, and you've got rules that a contract cannot be more than 10 or 20 per cent of the total turnover of the company. So, if you make the bid for the contracts too big, then only a few companies can bid, and the local companies end up sub-contracting, and the property goes elsewhere.