Technology Industries

1. Questions to the Minister for Economy – in the Senedd on 3 November 2021.

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Photo of John Griffiths John Griffiths Labour

(Translated)

1. What progress has the Welsh Government made in developing policies to create sustainable highly skilled, well-paid jobs in technology industries in south-east Wales? OQ57091

Photo of Vaughan Gething Vaughan Gething Labour 1:30, 3 November 2021

Thank you for the question. We are doing everything possible to retain and create highly skilled and well-paid jobs across Wales. On 21 October, I held an economic summit to discuss with stakeholders how we can work together to pursue a progressive economic policy that focuses on better jobs, narrowing the skills divide and tackling poverty.

Photo of John Griffiths John Griffiths Labour 1:31, 3 November 2021

Minister, I think it's fair to say that the world-over experience shows that it's very difficult and a lengthy process to transition from an economy characterised by heavy industry to one that's highly skilled and well paid in terms of new technologies and new opportunities. But thankfully, I think in south-east Wales we have many examples now of those new industries, whether it's cyber security or the microchip industry or more generally. And I was very pleased to visit, with you, recently Indigo Telecom Group in Magor, where I think we saw an example of a company that's grown impressively in terms of those new jobs and has ambitious plans for further expansion. 

I recently visited Newport market, which is undergoing a complete refurbishment to create offices, a work hub, as well as a food and drink quarter, and they have cyber security tenants for their new offices and work hub as well as other new industries. So, I think we are seeing very encouraging signs, Minister, and I wonder if you could just offer assurances, as I'm sure you will, that Welsh Government will continue to support these new industries with all the help and assistance that's necessary to establish them, develop and grow them, and make sure that they provide these first-class opportunities for local people.

Photo of Vaughan Gething Vaughan Gething Labour 1:32, 3 November 2021

Yes, I think this is an area where there is room for informed optimism. Of course, on 18 October, I set out the new approach to taking forward the mission. On 21 October, I visited Indigo with you. And actually, Indigo Telecom are a good example of exactly that sort of business. But you're right to point out the compound semiconductor cluster in south-east Wales as well. You're also right to point to the work in Newport market—a significant redevelopment. And I had the opportunity to visit that with the two Janes—Jane Mudd, the leader of Newport City Council, and your neighbour, Jayne Bryant, as well—to see how exactly we're doing that and taking it forward. That's a good example of working together with local authorities as key partners in economic development, together with higher education, which is involved in all of the industry we just talked about, and, of course, further education and the importance of the skills agenda. So, you can expect to see us doing all we can with the budgets we have to further the skills of people to make sure that those jobs don't just come here, but they stay and grow in Wales too.

Photo of Natasha Asghar Natasha Asghar Conservative 1:33, 3 November 2021

Minister, I'd just like to echo what my honourable colleague John Griffiths has just said, that south-east Wales has got a lot of potential, particularly in technology. I recently visited Forth in Chepstow, which is an innovative biomarking tracking platform, which helps people navigate their way to better health. This company is one of a number of technology businesses—another is Creo Medical—based in south-east Wales, attracted to the region by pleasant surroundings and good motorway and rail links to the midlands and the south-west of England. We all know that Silicon Valley in California is a global hub for technological innovation and is one of the wealthiest regions in the world. What consideration would you, Minister, now having done the visit to Newport East, across the region, and I'm sure to many parts of Wales, given the current situation—? What would you feel about creating a technology hub in south-east Wales that can be marketed as a base for innovation and skills, providing a vibrant community for enterprise and helping, ultimately, to transform the Welsh economy?

Photo of Vaughan Gething Vaughan Gething Labour 1:34, 3 November 2021

Well, of course, we do have clusters of advanced technology and advanced manufacturing in different parts of Wales, and in the south-east we've already got a cluster that is based around compound semiconductors, and I mentioned that in response to John Griffiths. We've also got an emerging fintech cluster in the southern part of Wales as well, recognised by the UK Government as well as a potential significant growth area. And it does point out what we can do if the Welsh Government works alongside businesses, as we have done, and works alongside further and higher education, to provide the skills that people will need as well. And life science is, again, another area where we're seeing significant growth—you mentioned examples in your own contribution. That is partly because there is excellent opportunity available within the UK, but, in particular in Wales, the design of our healthcare system is something that is very attractive, in having whole-health organisations, primary and secondary care, in the same organisation. That's been a really important factor in people choosing to invest here, together with the way we have design decisions that bring partners together, much more in co-operation and collaboration than in competition. So, I look forward to seeing that realised in the way that we've deliberately constructed a system to take advantage of that, with consistent policies over the last 20 years.