The next item, therefore, is the statement by the Minister for Economy on moving the Welsh economy forward. I call on the Minister to make his statement—Vaughan Gething.

Thank you, Llywydd. Yesterday I held an economic summit to outline my ambitions for moving our economy forward as we strive for a stronger, fairer and greener Wales. I was pleased to be joined by the Confederation of British Industry, the Wales Trades Union Congress, the Federation of Small Businesses and the Welsh Local Government Association to start a conversation about how we can work together for a team Wales recovery that is built by us all. A strong Welsh recovery that is fit for the long term must be based on the principles of fair work and sustainability, with investment in the industries and services of the future. Since my appointment in May this year, I've visited a range of businesses across Wales to get a sense of their hopes and concerns as we face what we hope will be the tail end of this pandemic.

From the everyday economy that got us through the crisis to the world-leading innovation that powers our advanced manufacturing, I've seen that there is much to be optimistic about. However, the headwinds of Brexit reality, a volatile recovery, and the absence of a UK plan for EU replacement funding present major challenges for businesses and workers across Wales. As we move forward with our programme for government, I'm determined that we will offer as much certainty as possible to help businesses plan ahead. Our social partnership approach has demanded difficult conversations and trade-offs, which have often been driven by a lack of resources and the need to move quickly with imperfect information through the pandemic itself. Nevertheless, this dialogue has improved decision making and no doubt helped to save lives and livelihoods.

As we move our economy forward, there will of course be more tough decisions that do not please all of our partners, but we must be clear that a return to austerity in all but name at the UK level would restrict our ability to act and cause real economic and social harm. Llywydd, these are challenges that make dialogue more necessary than ever. We will all benefit from working as trusted partners, sharing our thinking as we move forward in a spirit of partnership. I was delighted to hear social partners commit to this team Wales model as a major contribution to our recovery during yesterday's summit. Our plans will see the Welsh Government take forward the economic resilience and reconstruction mission published in February this year, with action focused on our communities in the new programme for government.

I recently updated Members about the Jobs Growth Wales+ programme, which will help to create life-changing opportunities for those who are not in education, employment or training, and this is a major feature of our young person's guarantee and builds on the strength of pre-existing schemes. We will offer workers on low pay quality, flexible courses with personal learning accounts designed to boost their earnings potential, and we will build on our proven record on apprenticeships, delivering a further 125,000 places within this Senedd term. Our upcoming employability and skills strategy will build on our record of narrowing the skills divide, with a focus on support for those furthest from the labour market. I will also support the growth of green union representatives to help ensure that our transition to net zero is fair to working people. And we will go on developing our something-for-something approach and strengthen the economic contact. If we are serious about building a stronger Welsh economy, Welsh public money has to support fair work, action on climate change and the skills that will unlock talent across Wales.

We will also launch the backing local firms fund to support more dynamic local economies. I will have more to say next month about how our foundational economy delivery plan will help to shorten supply chains, lower emissions and turn our plans across housing, health, transport and energy into better jobs, closer to home. I will also go further to support the co-operative economy, which has sustainability hard-wired into its DNA. That includes supporting more employee buy-outs to protect jobs and retain viable Welsh businesses.

Llywydd, Wales is proudly home to world-leading manufacturing sectors, such as automotive, steel and aerospace. We will partner with them to help them move to a low-carbon future that sustains jobs. That task is now urgent in our steel sector. We do not have all the levers within this Government, and the time for the UK Government to act is now. I am keen for a constructive plan where our support from the Welsh Government complements action from the UK Government, but that will only be possible when decisions are finally taken in Westminster. My message to the UK Government is clear: bring forward your deal and let’s get working on a joint plan for a thriving steel sector in a secure, low-carbon economy.

Our plans will also mean new ways of working across the Government. I am working closely with the Minister for Climate Change, Julie James, to explore how Wales can win the green jobs dividend that comes with futureproofing our economy. With new technologies making work locations less relevant and new investment in decarbonisation, Wales is perfectly positioned to develop innovations with global impact. In this context, the upcoming spending review is an important opportunity for the UK Government to demonstrate its commitment and ambition for Wales. Positive signs would include the full replacement of the EU funding that Wales has been repeatedly promised, support for major renewable energy and a plan for energy-intensive industries, funding to remediate our coal tips, allowing Wales to invest in the tech, jobs and skills that this would offer, and for Wales to gain a fair share of research and development investment across the UK. However, the signs are that the spending review could spell even tougher decisions for us when taking this work forward. That would mean a hard look at priorities if the UK Government goes on refusing to allow Wales to make decisions about how our EU replacement funds are spent.

It is my hope that, by taking bold action, we will create a future where more young people feel that they don’t need to get out to get on. Supporting stronger local economies will be essential to the job of tackling poverty as well as sustaining the Welsh language among young people in rural Wales in particular. At the same time, if more people positively choose to come to work and live in Wales, we can address the risks that come with the decline in our working-age population. We will develop a coherent and compelling offer and explore further graduate retention opportunities and support for start-ups to encourage the growth of more firms that are grounded in Wales.

I am excited about the opportunity that we have to create that stronger, fairer and greener Welsh economy. I look forward to hearing ideas from Members and insights on how we can make this a reality. Thank you, Llywydd.

Can I thank the Minister for his statement today? I'm pleased the Minister has confirmed that he's starting a conversation about how the Welsh Government can work together for a team Wales recovery. However, this should have been the Minister's primary objective since he was appointed economy Minister almost six months ago. 

Now, as we move forward, the Welsh Government has an opportunity to inject some real impetus by bringing forward much-needed change to support businesses and create conditions for growth post pandemic. It's absolutely crucial that the Welsh Government uses its levers to make Wales a more attractive place to do business, and, to do this, it must actively help develop sustainable supply chains, create more accessible public procurement, and review the planning system to make it more responsive to meeting the challenges of the future. So, I hope the Minister will confirm today that discussions are taking place with colleagues to reform procurement practices and the planning system, and perhaps he can update us on the specific action that will now be taken.

Now, I've previously pressed the Minister on the need to create a stronger investment environment in Wales, highlighting the 2021 UK prosperity index report, which says that the Welsh economy is weak and is undermined by insufficient infrastructure and poor conditions for enterprise. Today's statement refers to supporting start-ups and supporting new businesses, and I, of course, welcome that. However, more needs to be done to genuinely improve Wales's investment environment, and so I'll ask the Minister again today how the Welsh Government is increasing capital supply, and how it will specifically improve access to finance and deliver enterprise support to help new businesses.

Now, in the conversations that I've had with businesses across Wales and business organisations, infrastructure improvement and investment still remains a priority. A report by the FSB pre pandemic showed that 63 per cent of small businesses in Wales have been affected by infrastructure issues. Therefore, it's disappointing that there's no reference or commitment to infrastructure improvement or any detail relating to infrastructure investment in Wales in today's statement. The National Infrastructure Commission for Wales has failed so far to provide a long-term plan of pipeline infrastructure work, and so perhaps the Minister can tell us exactly what the commission is doing and when we'll see some plans from them in relation to infrastructure work over the next few years, which will, undoubtedly, have an enormous impact on our economy going forward.

Now, another key aspect of moving the Welsh economy forward is ensuring that Wales's skill shortage is properly addressed. We need to see more clarity on how the Welsh Government intends to address skill gaps in Wales, and we need to know what discussions are taking place with businesses and education providers. Indeed, as today's statement recognises, Wales continues to advocate a greener economy and ensures that the transition to net zero is fair to working people. Therefore, I hope the Minister will be able to confirm if a net-zero skills audit and plan is in the pipeline, and when it will be published. Indeed, perhaps he can also tell us more about some of the short-term actions that the Welsh Government will be taking in the coming months to address skills shortages here in Wales.

Now, along with addressing skills shortages, there's a clear need to better connect businesses and industries with education and training providers, and I hope the Minister is working to bring stakeholders together. I'm pleased that today's statement recognises the need to encourage innovation and invest in Welsh research and development. The Reid review helpfully provided spending commitments if Welsh Government had direct control over replacement EU funds, and if it did not, and so there's no excuse for a lack of communication from the Welsh Government on its research and innovation priorities. Indeed, given that the Welsh Government has already accepted the calls of both the Diamond and Reid reviews, I hope the Minister will provide an update on the implementation of all the outstanding recommendations of those specific reviews.

Llywydd, the Minister has previously confirmed a young person's guarantee, and today's statement also confirms that the Welsh Government will be offering more workers on low pay quality, flexible courses, with personal learning accounts designed to boost their earnings potential. However, I've spoken to countless business organisations, further education providers and, indeed, third sector organisations who have all confirmed that they know very little about the scheme, have had no input into it and have no idea how the guarantee is being progressed and measured. Therefore, perhaps the Minister can confirm today exactly how the Welsh Government is engaging with businesses on this agenda, and how it will ensure that the scheme reaches out to as many people as possible.

Moving the Welsh economy forward requires leadership and a serious commitment to creating conditions for businesses to grow and develop by making Wales an attractive place to do business. I agree with the Minister that supporting stronger local economies will be essential to the job of tackling poverty, as well as sustaining the Welsh language among young people in rural Wales. And perhaps he can tell us a bit more about the specific work being done to give young people opportunities in rural communities and through the medium of Welsh.

Therefore, Llywydd, can I thank the Minister for his statement and say that we on this side of the Chamber will do what we can to constructively engage on this agenda to best support and develop our economy for the future? Thank you.  

I thank the Member for his series of questions, and I'll try to run through as many of them as I can in the time available. I can say that I've had regular contact with business groups, businesses, local government and trade unions since my appointment. So, this is the next stage in the conversation that is happening with them. I think it's knowingly inaccurate to suggest that I haven't had a conversation with them up to this point in time. It's hardly been a secret that I've been having that regular contact.

On your point about the review of procurement, we have actually made progress in terms of procurement spend over the course of devolution, including within the last term, and the challenge now is to look at how far we've got and to see what more we can do, because the Government isn't levelling off our ambition to see even greater benefit for local firms from the way in which we procure goods and services here in Wales.

It's one of the levers that we do have within our control, and, as you'll know, the lead Minister on procurement is the finance Minister, Rebecca Evans, but it's an area where lots of us have a direct interest from our different portfolio perspectives. So, you can expect to hear more about what we're looking to do in terms of valuing Welsh procurement—not just about the spend and the amount of money when it comes to procurement contracts, but the wider value that that procurement delivers. And actually, on that, we're not just finding that there's agreement across the Government on taking that approach, but actually within business groups as well.

And when you talked about infrastructure and access to finance, of course in First Minister's questions we highlighted again some of the challenges on what we consider to be modern infrastructure in a range of settings, including those areas that are not devolved; so, on rail infrastructure, where this Government has invested because the UK Government has not, and on broadband, which is not a devolved responsibility, that infrastructure, but this Government has invested because of the lack of pace and willingness from the UK Government to do so. So, there are areas already where we invest in areas we're not directly responsible for but we recognise there's a need to, to improve people's ability to work and to move around. And actually, that's accelerating, because, when we talk about the ability to work in a different way—in particular, remote working—actually our broadband infrastructure is absolutely essential to do that, and that would be an area where, again, there could be a fruitful conversation between this Government and the UK Government if there was a real willingness to commit to a plan to increase investment. 

I was interested in your point on access to finance, because, actually, we already have some finance we provide and make available. There are traditional sources, but of course the development bank has been a significant asset during the course of the pandemic and beyond, in investing in Welsh businesses to give them the opportunity to grow and grow further. But, more than that, in the British Business Bank, which has a whole remit across Britain, actually when you look at its investment choices thus far, they are skewed to certain parts of the UK, and it's an issue of regional disparity within England itself, let alone the rest of the UK. They've recently announced they're going to have equity investment funds to look at vehicles in some parts of the UK, including the south-west of England. They have not to date looked at a specific investment fund to prioritise and increase the equity investments they are prepared to make in Welsh businesses. That is something that I want to have a conversation with them about, because I do think that if you're not prepared to say you will invest in different parts of the UK, including in Wales, you shouldn't be surprised if businesses here don't access the capital that is available where there are more usual and regular relationships in different parts of business in the UK.

And on the skills shortage, again this is a point that follows on from the DBW. It's a point I've made many times, and I'll keep on making it until we get some recognition of the reality of it. Skills are essential to the future of the Welsh economy. We need to invest in people, as well as places, to make use of the talent we have and to attract and keep talent here in Wales. But, actually, when you look at apprenticeships, which every party in this place supports and wants to see more of, a third of the apprenticeships that we provide are funded by former European structural funds. And without a plan—and there is no plan at present—for what would happen to those former funds, we face not just a point of uncertainty, but the pilot years, with the £10 million that hasn't been funded yet and hasn't gone to any single pilot project, not just in Wales but across the UK, they exclude projects that are of regional or national significance.

So, actually, it's a way to atomise the lessons we have learned and will take money away from investing in skills. It would be a disaster, not just here in Wales, but right across the UK. If you think about the level of expenditure we're talking about, if the pilot money is finally provided and if, amazingly, we're able to spend it all within this year, the deficit will still be extraordinary. To give you an example of just how big it is, the money we won't have within this one year is equivalent to more than double the size of Monmouthshire County Council's annual budget. That's the money that Wales is not going to get this year, and, if there isn't a plan for the future, that will be the deficit next year, for money that should be coming to Wales. And it really is extraordinary to have Conservative politicians talking here and saying, 'Thank God for the UK Government', which isn't providing this funding to Wales. You need to decide whether you're in favour of your constituents, their jobs and the businesses that rely on that money, or whether you're here to be cheerleaders for a UK Government that is taking hundreds of millions of pounds out of Wales as we speak. 

And when it comes to our employability and skills plan, of course this, again, is part of our challenge. So, this is going to be a way in which we are going to be able to look at how we get people closer to the labour market and into work again. The Department for Work and Pensions vacated some of this space in the past and have now come back into more of the employability space with programmes that they run. But most of those programmes are for people who are already near the labour market itself—so people already, essentially, work-ready. What we have to do is both get those people into work, but also people who aren't active, aren't in work and aren't close to being in work. And that's the work that we're looking to do and to prioritise, as I set out in my statement. Because, if we can't get more of those people back into work, then, actually, in the future of the Welsh economy, we'll have a significant drag upon our ability to genuinely raise the income of the whole country. So, that's a really big challenge. You won't see the same return per person as you would with those programmes that are about job-ready people, but you will see a real impact on the future of the economy. You can expect to hear more about that when it comes to the future on renewables, and more about what we do to take advantage of the green potential in Wales, when Julie James sets out the second low-carbon delivery plan before the end of this month.

And, on the Reid review, again, I won't repeat all of the points I've made before about funding, but, of course, higher education is excluded from the current pilots for replacement European funds. And I spoke to the Wales innovation network of Welsh universities, looking at innovation, together with the Learned Society of Wales, and they're genuinely anxious about there not being a plan about how they can continue to be funded for the work they do—not just the academic value of acquiring knowledge, but its ability to be applied and to generate further economic growth. And they recognise that the headline from the Reid review is going to need to be pared back if we don't get that certainty on funding. But we certainly want to be able to take that forward and to meet the commitments we've given if the funding certainty is provided for us.

And on the young person's guarantee, I will have a further statement to make before we get to the end of this calendar year, but we've already taken forward, as I said in my statement, the Jobs Growth Wales+—that's a key part of helping people who are not in education, employment or training back into work, building on successful schemes. And the work we've already done with young people shows that most people who aren't in employment, education or training want to find work. So, more of our support is being shifted to see what we can do to help those people re-enter the labour market, or enter the labour market for the first time, and to find meaningful, decent-paid work. After all, that should be what all of us in the Chamber want to see for our young people and beyond.

I thank the Minister for his statement.

Firstly, I would like to welcome the statement. I've said a number of times in the Chamber that we need to have a long-term vision and strategy for the Welsh economy, and I'm particularly pleased to see that there is a focus on the brain drain.

I would say, however, that I don't feel like this is starting the conversation. The conversation on the brain drain has been going on for what feels like a decade or more. 'A Strategy for Rural Wales', written by the Welsh Council 50 years ago in 1971, for example, discussed the need to address the outmigration of young people from rural Wales. In 2017, Adam Price brought up his concerns with the brain drain occurring in Wales, noting how Wales was tenth out of the 12 UK regions in terms of the extent of graduate loss, and I remember my predecessor Bethan Sayed asking several questions around it. I hope the Minister would forgive me for saying that it would seem like the Welsh Government is playing catch-up on this topic.

I would like to ask the Minister to what extent he has already looked at this issue and whether or not he has looked at the example set by Scotland. And would he be supportive of making alterations to the student finance system to create incentives for talent to stay in Wales? I have to say as well that I always worry when I see loose terminology in statements. For example, 

'exploring how we retain our graduates and talent...by building strong linkages with universities, and between universities and businesses'.

It's admirable, but there's no real commitment here from the Welsh Government at all. So, I would hope that we will see some meat on the bones sooner rather than later. My party, in this field, committed in our manifesto in the last election to establishing a pilot project to test the feasibility of tracking and keeping in touch with young people who leave Wales for higher education or initial employment to ensure that they are kept abreast with ongoing opportunities at home and to create a database of diaspora talent. Would the Minister commit to implementing this policy?

Point 7 in the Welsh Government's approach to moving the Welsh economy forward includes ensuring that

'we have firms...in Wales who can provide future opportunities'.

I'm glad that the Government recognises that, if they really want to provide future opportunities for all in Wales, they would need to ensure that the firms providing these opportunities are those whose structure rewards workers and the local community more than the traditionally structured firm would. The current system of greed, opportunity and profiteering for the few will not eradicate poverty in Wales or move the economy forward. If we change nothing, we do not move; we remain stagnant.

A team Wales approach, built by all of us, must take priority, and the Government should look at focusing on co-operatives and employee ownership. As I said, I'm glad that the Minister recognises this. It is widely acknowledged that co-operative models have a critical role to play, in not only combating poverty but sustaining economic growth. Would the Welsh Government consider working on an economic development Bill for Wales, with co-operatives and small and medium-sized enterprises at its core, in light of this?

Finally, Llywydd, we welcome point 8 in the Welsh Government's approach to moving the Welsh economy forward, through highlighting the opportunities available through remote working and flexible commuting. Wales should strive to foster inclusive economic growth, and the Welsh Government should support employers to continue offering remote and flexible working, as this is one way to tackle the disability employment gap. In 2020, the employment rate for disabled people was only 53.7 per cent, compared to 82 per cent for non-disabled people. This is not only detrimental on an individual level, but also detrimental to society. When the economy is inclusive, there is a greater productivity and a more diverse exchange of ideas and innovation.

For years prior to the pandemic, disability activists had been pushing and advocating for greater flexibility and remote working, and they were often met with pushback. Yet lockdown has shown that these changes can be made, and very quickly too. Therefore, could I ask the Minister to outline how exactly he will look to help encourage continued remote and flexible working? And I would hope that we will see a commitment to a four-day work week, for example, in the near future. As I have already said, I'm glad for the Minister and his engagement on this, but we have a long way to go still if we are to take the Welsh economy to a more sustainable and equitable level.

The Deputy Presiding Officer (David Rees) took the Chair.

Thank you to the Member for his comments and questions. I'll start with the point that he makes about talent and how we provide young people with a real future in Wales, and also the linked point about diaspora—those people who have moved either for university or for other work opportunities, and the opportunities for those people to be part of the future of Wales within Wales as well. It's part of the challenge that we know that we have, and it's particularly in sharp focus now because of the demographic challenge that we have. We could have fewer than six in 10 people of a working age in the whole Welsh population by the time that we get to the 2040s, and that's a really big challenge for us.

Previously, the success story of more of us expecting to live longer would have been a challenge that I'd have considered in the role now occupied by Eluned Morgan—on the challenges for the future of health and social care, when more of us can expect to live for longer. And that really did drive the parliamentary review that we had on the future of health and social care at the start of the last Senedd term. But it is also, of course, a really significant economic challenge for us too. It's both about how we secure a future for people who are already here, as well as wanting to invest in having their whole future here in Wales at some point as well.

So, graduates are part of what we are looking at, and, yes, we are looking at what has happened in Scotland. I've already had conversations with the Minister for education about the potential for graduate incentives to stay here, both people who graduate from a Welsh university—. And we have an oversupply of graduates that we produce in Wales; we are a net exporter of graduates. For some of those people who have lived and studied in Wales, for normally at least three years and more, to want them to stay—. We've had that conversation a bit when it comes to medical and healthcare-related graduates. Actually, we need to have a broader conversation about the sorts of incentives that we could sustainably introduce here in Wales to encourage people to stay, but also for people to come from outside Wales to be part of our story as well. I think that's quite exciting as an opportunity—to have a broader and strategic commitment to do so, as well as helping people to start up their own businesses.

Now, I wouldn't say that it's fair to characterise this as something that the Welsh Government has only just woken up to. We have had a range of different interventions to help get people in employment, education and training in the past. This recognises how acute the phase is now, with the demographic challenge that we have and, of course, the recovery that we need to see as we, hopefully, come towards the end of this pandemic in the months ahead.

There'll be more work for us to do, though, with our partners, once we do have the outcome of the spending review. So, more certainty on a range of spending areas, not just the successor funds from the European Union, but also the ability to then have a conversation with our partners. So, business groups, businesses, local government and trade unions will be coming back with the Government, we’ll be talking over this next period of time, and looking to then agree on some more detail in our plan for the future. So, you can expect more after that event, but more as we learn about what will work. So, yes, there’s more policy intervention to be finalised—you’re right to point that out from the statement—but I wouldn’t take the pessimistic view that because there isn’t a 100-page detailed document worked out now, that means that nothing can happen or will happen. I’d be more than happy to talk with him about that and, indeed, with the spokesperson for the Conservatives as we’re working through this in the months ahead.

On the point about co-operatives, of course, there is a debate tomorrow. I know that there is a Member slightly to my right and behind me looking to make a case for legislation, but it’s part of what this Government recognises about the opportunity to increase the size of the co-operative economy. We have a manifesto commitment to double the size of the co-operative economy within this Senedd term, and I am serious about doing so.

And when it comes to disabled employment and not just disabled employment, but more so the opportunities for remote working, it is something that we have all seen take off during the pandemic and it’s another opportunity for Wales. We already had at the end of the last Senedd term a commitment to increase the number of people able to work remotely. The pandemic has really accelerated that trend as more people, from necessity, have got used to working in a different location, as more people have changed again their view of the balance between work and life outside of work, and how they want to live and work, in commuting terms, not-commuting terms, but also what that then means about the changing nature of the world of work. And it’s a point where the hubs that we are developing are part of the answer, but businesses themselves, often working together with trade unions who want to see a settlement on this too, recognise they can actually have greater productivity gains for their workforce in working in a different way. But also, for some people, it improves their relationship with the world of work as well.

I was really struck by a conversation I had with a trade union that organises in the private sector, and one of their senior organisers said to me that they’ve seen a significant reduction in bullying and harassment claims through the period of the pandemic. As people return to more normal working but with a hybrid model still in place, for many people it improves their life in work as well as outside it, and the way that people behave with each other. So, there are real opportunities as well as challenges in doing so, but I am optimistic that this period of change can be a really positive one for Wales if we can all agree on what we’re going to do to seize the opportunity.

I have several speakers who wish to again be involved, so if you can all be brief and, Minister, succinct answers as well. Mike Hedges.

Thank you. I welcome this statement and look forward to further economic statements and debate. I very much welcome pursuing a progressive economic policy that focuses on better jobs, narrowing the skills divide and tackling poverty. The greatest economic development tool is education. We need a policy that produces more Admiral Insurances and less LG inward investments. I welcome the backing local firms initiative. Too often we’ve had branch factories for a short time before they leave.

There’s a lot we can learn from the USA, England and Europe in working with universities to develop the economy. We need a high-skill, high-wage economy with opportunities for all. Too many Welsh students at graduation leave Wales, often never to return. For the last 10 years we've promoted ICT, life sciences, financial and professional services sectors. What support is the Welsh Government intending to give to promote and develop these economic sectors, which are high-wage sectors? And what is being done to develop more university-led science parks, like M-SParc on Ynys Môn?

I think there were two questions at the end of that, and on the first, on the life sciences sector, it is a key opportunity for us. Now, the health Minister, Eluned Morgan, and I have had conversations about this in the previous term, in our different roles, and again during this term as well, because we do recognise that this is an area where Wales does punch above its weight, and there are good jobs, high-wage jobs. We’ve already seen some more of those coming into Wales for the future. We think we can get more. It is, of course, linked to innovation spend across the UK, and we’re now dealing with a new innovation Minister, as Lord Bethell in no longer in the Government. It’s Lord Kamall now who’s dealing with this from a UK perspective, and I think there are real opportunities for Wales that Eluned Morgan and I are keen to take up.

And when it comes to university-led science parks, I wouldn't be quite be so doctrinal about there being one model, but I do think, given that part of my responsibility as the science Minister for the Government, in the conversation I had last night with the Wales Innovation Network, there is real opportunity for gains to be made between academic co-operation and businesses, and to apply the knowledge that’s gained, whether it’s an individual project or indeed on clustering those groups together. So, I’m looking for opportunities to make that real, and I think we’re going to see more of those coming in the future, and it’s a real necessity if we are to have the high-skill, high-wage economy that all of us wish to see.

I'm grateful to the Minister for his statement. There are three issues I'd like to briefly raise with you. First of all, productivity. Productivity is the biggest challenge facing the Welsh economy. You haven't discussed that in the statement, and I'd like to understand what the Government's approach is going to be towards productivity.

Secondly, you finish your statement by saying that you want to see a stronger, greener, fairer economy in Wales. What does that mean? Because I think one of the real issues I have with many Government statements is that we don't have the objectives, the targets, the clarity to understand what that does mean for people in Blaenau Gwent. How will we know that it's a stronger economy, a greener economy, a fairer economy?

And finally, Minister, the point I tried to make in my short debate last week was about delivery. The Welsh Government has very effective strategies in place, but they're not often delivered in the way that we would anticipate and hope to see them delivered. And if I look back over my time in this place, delivery has been the weakest part of the Welsh Government's approach. So, how do you intend to ensure that you have the delivery mechanisms in place so that we don't just have a strategy, but we have a real difference in people's lives?

Thank you for those questions. Actually, the productivity challenge is something for every modern economy, and it's part of the reason why investing in talent is so important. Because unless you can change systems of work, or unless you can increase individuals' ability to do their job better or faster, the productivity challenge is there for all of us in virtually every sector. So, that's why we do need to have some stability in investing in skills, research and development, and innovation. If we can't generate more in those areas, then, actually, we're going to have a real struggle to see productivity improved.

Over the course of devolution, we have seen productivity gains, but our challenge is whether they have been fast enough and whether they are keeping pace with the rest of the UK, especially with the overheating south-east region in England, let alone the ability to catch up and actually get us to a point where we don't see not just the productivity challenge we have, what that means for wages and prosperity for individual families, but also for communities as well. And I guess it goes into your point on what does stronger, greener, fairer mean.

Well, the danger is that we always—. The way that we campaign, and the way that we then have to implement in Government, you get much more of the nuance and the detail when it comes to taking action. I'd say that a stronger economy will be a more resilient one, where we don't just improve the rates at which wages are paid, but the fairness part also comes in wages, and where those wages are paid, who to, as well, to make sure we don't have some of the structural inequalities we have already.

We also, in the fairer part, need to take account of men and women in the workplace. And our different challenge is the intersectional challenges we face. Somebody who looks like me in this country is likely to earn a lot less than somebody who looks like the Member, and that isn't because someone who looks like me has less talent. So, we need to recognise that in the way that our economy works more broadly and generally.

And if you think about your short debate and your focus on deliverability and making sure that something happens, if we can't see a significant step forward through this term and beyond in the Heads of the Valleys area, we won't meet our ambitions for the future of the country: that stronger, greener and fairer economy that we do want to see.

So, the conversations I've already had with regional partners: the new corporate joint committees, the new regional structures that everyone's signed up to, what will they deliver? Will we see a sharing of where there are choices that those regional areas will make for themselves, without the Welsh Government, areas where there are real partnerships and a clear understanding of who is responsible for what and who will get on and deliver that? And the Member will no doubt come back and say, 'Well, what is happening within my community? What is happening within the Heads of the Valleys area? Am I really seeing my community becoming wealthier? Are the socioeconomic conditions of the people that I represent improving or not?' That's the test I know the Member will make, and I look forward to having that conversation with him.

I'd like to thank the Minister for your statement. The title of this particular statement was 'Moving the Welsh Economy Forward', and it's really refreshing to hear a Welsh Labour Government Minister who wants to move the economy forward. But this does come from a Minister whose party has been in Government here in Wales for the past 20-plus years. Welsh workers have the lowest weekly wages in Great Britain, while businesses in Wales pay the highest rate of business rates in Great Britain, and, to top it off, key infrastructure decisions to drive our economy forward after COVID have been put on ice by the Deputy Minister through his moratorium on road building. However, if we are moving the economy forward, maybe that's all in the past.

In your statement, you mentioned apprenticeships. I think that's a really positive step. You know, the backing local firms fund, I think that's positive. There were some positives in your statement—

Can you ask a question now, please?

Yes, I'm coming now, Deputy Llywydd. I think you could have gone further. So, Minister, will you now look to invest in infrastructure to attract big businesses? Will you support them by cutting business rates and empowering young people by creating more skilled jobs, developing more homes, investing more money in education and training and levelling up the whole of the country outside of Cardiff?

Thank you.

Because that's how you level up the economy, Minister. Do you agree?

Well, it's an interesting series of comments. I'm not sure he's listened to the statement or the previous answers I've given where I've talked about investing in skills and talked about investing in young people. We've talked about the fact the Welsh economy has improved during the course of devolution, and I'm very proud to follow Ken Skates in this role: someone who really did make a difference in the future of the Welsh economy; someone you couldn't accuse of not wanting to take the economy of Wales forward. I believe we're facing in the right direction. If only we had a UK Government on our side that was prepared to work with this Welsh Government to invest in Welsh businesses and in the future, that wasn't taking out of Wales, in one calendar year, more than double the size of the budget of Monmouthshire County Council, we could do even more. And I believe the people of Wales are with us. After all, it's their choice to have elected Welsh Labour-led Governments for the last two decades.

I thank the Minister for his statement, and the previous Ministers for their commitment to moving the Welsh economy forward as well. My community, as the Minister will know, is the heartland of Welsh manufacturing, and it is a challenge for us all as policy makers, and particularly Ministers in all Governments, to ensure that renewable technology of the future is designed and developed in communities like mine, and then manufactured and serviced in communities like mine. And I'm sure lots of Members will know the three bold policies I set out prior to the elections: a universal basic income trial, a four-day working week and a green new deal, and the importance of a green new deal, because it achieves the three wider goals that we are all elected on, of creating jobs, addressing inequality and, most importantly, averting the catastrophic climate change issues we have. So, Minister, do you support my calls for a green new deal, and can you set out further how you will ensure that my community of Alyn and Deeside benefits from the next wave of job creation as we do move the Welsh economy forward?

Well, I think it's the definition of what we call a 'green new deal'. When you hear Julie James talk about the second low-carbon delivery plan, we hear lots about leading to a green new economy to make sure that we improve our impact—our environmental impact—on our activity today, and make sure we can take advantage of those industries that are here already. We've recently had presentations, which lots of Members attended, about the roll-out of energy offshore, but there are big opportunities, not just in the creation of those, but in the supply chain that goes with them, and there should be jobs right across the sector.

The hydrogen infrastructure that should be developed right across north-west England and through north Wales, and the opportunities for further industries too. And in your own constituency, and you'll know this, the Advanced Manufacturing Research Centre Cymru and Airbus and their desire to see fuels of the future, to decarbonise the way that the air industry works. We have huge opportunities and risks if we're not prepared to take that step forward.

And, of course, our traditional industries will still be important too, including Shotton steel, of course, where I had the opportunity to visit with the Member, and the opportunity to make sure those high-value industries are able to decarbonise, but in a way where the transition is a just one and jobs are not sacrificed.

Diolch, Minister, for today's statement. Against the backdrop of the last five years, Brexit, austerity cuts and, of course, the pandemic, we need an ambitious plan to move the Welsh economy forward. This has to start with local business like Flowtech in Rhondda, a business that the Minister and I visited yesterday, which will be expanding thanks to Welsh Government's economic contract, and, alongside thousands of other Rhondda businesses, will contribute to the wider team Wales effort of creating a stronger, fairer and greener economic future.

Before being elected to this place, I worked in education and ran a charity supporting young people in Rhondda. The message that I've heard from our young people for too long has been, 'To get on, you have to get out.' What will the Minister say to those young people in Rhondda who wish to make a living in Wales, but feel that this isn't possible?

Well, it's our job to make sure those people do have a future where they don't need to get out to get on. And, actually, when we visited Flowtech yesterday, we found that lots of people were within walking distance of that employer as well, so a genuinely local business properly grounded in that community. And, of course, as the Member for the Rhondda has said, they're not just having an economic contract now, they are trialling the next stage of an improved economic contract to look at the commitment they will make to their workforce and their impact on their local community. And I do think that, through the young person's guarantee and the interventions we have, but also a real feeling of optimism around our economic future, we will be able to say directly to people, 'There is a future for you where you live. It is a bright and a positive future, and you really don't need to leave Wales to get on.' Now, that's a message I believe everyone in this Chamber could get behind.

And finally, Rhianon Passmore. 

Diolch. Thank you for the statement. Minister, the good people of Islwyn and Wales returned a Welsh Labour Government in May because of their democratic desire to entrust the Welsh Labour Government with growing back the Welsh economy fairer, stronger and greener. I also welcome the Welsh Government's young person's guarantee, providing everyone under 25 in Wales with the offer of work, education, training, or self-employment.  I also welcome the innovative and radical universal basic income pilot for our young people who are looked after. It is imperative that we invest in our youth and we build a pathway for future generations to learn, live and thrive in the communities in which they live. However, despite the passion, the optimism of our young people now, the vibrant democracy now taking hold, and our unique and innovative Youth Parliament, we also continue to face real, hard, difficult challenges—

Ask your question now, please. 

Minister, the vision for the Welsh economy you have set out clearly under the 'team Wales' umbrella. So, Minister, as we approach and digest the zero-carbon UK strategy approaching COP26, what are the challenges, and what are the obstacles that the Welsh Government face in order to continue to create a fairer, stronger and greener future for all the people who call Islwyn home?

I think it's relevant to people in Islwyn and in every constituency and region across Wales; it's our ability to invest in future industries with the level of certainty we will need. The stability that the Welsh Government can provide needs to be matched by a level of consistency from the UK Government as well, because, actually, if we have a slightly chaotic approach to the future, with all the counter-briefings that take place, it makes all of our jobs much harder. Businesses say that when they're not in front of a camera, but actually, they really do want a more sustainable environment to understand if the promises that are likely to made in the run-up to COP26 by the UK Government will be made real, if we're really going to have an opportunity to invest in those future skills, future industries, because this Government stands ready to do so. And I believe that every Member in this Chamber, when Julie James does set out that second low-carbon delivery plan, will see the scale of ambition this Government has, but also, how difficult some of those choices are going to be. We are going to need to change the way that we live and the way that we work to achieve our ambitions, but I believe in Wales we have a real contribution to make, not just for ourselves, but our impact on the wider world too. Many thanks. 

Thank you, Minister.