3. Statement by the Minister for Economy: Moving the Welsh Economy Forward

Part of the debate – in the Senedd at 2:53 pm on 19 October 2021.

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Photo of Paul Davies Paul Davies Conservative 2:53, 19 October 2021

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.