5. What is the Welsh Government doing to increase the number of people in Wales employed in higher paid sectors of the economy? OQ57262

Thank you. As the Member will know, on 18 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. A prime example is the Swansea bay city deal, which aims to create over 9,000 skilled jobs and increase gross value added by £1.8 million.

Can I thank the Minister for that response? Anyone listening to discussion in the Senedd would think that the two key economic sectors were agriculture and tourism and, therefore, our ambition was to emulate the economic success of Greece. I would like to see more done to support three of the high-paid sectors, namely ICT, life science and highly skilled professional services. What is the Welsh Government doing to work with the Welsh universities to develop these economic sectors?

Thank you for the supplementary. I don’t think I’d share the Member’s characterisation of debates within the Senedd and the priorities of the Government. Today, we have, of course, heard about tourism from a number of questions, but it’s a significant part of our economy. We think it can grow sustainably in the future, year round. But, also, we've talked about other sectors too. We’ve heard a question about legal professional services today, and I myself have recently had a follow-up meeting in my role as the lead Minister for science in the Government with the life sciences hub around the corner from the Senedd. So, I am certainly interested in how we deliver high skills and good wages here within Wales. It’s been a key part of what I’ve discussed and, indeed, my predecessor has made clear during his time as the economy Minister as well.

I am optimistic about our ability to generate greater growth within these areas. We know digital innovation is key for small, medium and large businesses in the future. We know that, in life sciences, we already punch above our weight. The way that the health service is organised within Wales is a real benefit for generating more investment in that sector, as well as the excellence in research terms within the university sector. The Member will, of course, be aware that his local university, Swansea, have Pfizer, for example, where they chose to come to Swansea because of the excellence in the university and because of what the healthcare system offers in terms of having a whole-system analysis on improvement.

So, yes, we are already working with universities. They’re concerned about the loss of some of the research funding that European funds used to give them, but I am confident that we will continue to see greater return from what universities do in research, development and innovation to improve our economy, not just in the three areas the Member outlines, but in other areas too, and I look forward to working with the Member to do just that.

Minister, the question about more people in higher paid sectors is vital. There are some parts of Wales where people have not had the opportunity to be employed in those higher paid sectors because we have not seen the required growth. What is your ambition, and what proportion of jobs in Wales will be higher paid by the end of the parliamentary term? Thank you.

We don’t have a definition of what you mean by higher paid. We certainly think that our tax base in Wales is in the wrong shape. We need more people who are higher rate taxpayers. That’s both by growing the economy here in Wales, investing in skills and people, as well as understanding what we can do in some of those sectors where we have particular expertise in different regions within Wales. It’s why we've invested so much time and effort as a Government in having a proper framework for regional investment, because we think that will make a real difference. It’s why we’ve been proper and constructive partners in city and regional growth deals. There’s been a real response from businesses, local authorities and, indeed, trade unions on the mission that we have within the Government.

It’s why I’m interested in what we do to make sure that young people don’t need to leave the country—'You don’t need to get out to get on' has to be a reality, not just a slogan—and also why we’re interested in seeing if we can persuade more people to actually found themselves and their businesses here in Wales. There are real opportunities to do so. I’m not going to have a hostage to fortune in having a particular percentage indicator on growth. It’s about how successful we can be in doing what the mission of the Government sets out—to have a fairer, more prosperous and more sustainable Wales. I’m confident that, by the end of this term, we will have done just that.  

Minister, the aerospace industry is a source of well-paid employment in my constituency, in particular Airbus and its surrounding supply chain, but the benefits do go a lot further than just Alyn and Deeside—they stretch across every part of Wales. These skill sets based within this industry will stand us in good stead for the future, and I think we saw the very best of that skill set last year when we saw the workers turn their hands to ventilator production at a time of desperate need. It is my view that it's important now that we do send a clear signal that we support the aerospace sector and that there is political will to do so. Minister, do you agree with me about the importance of this clear message, and will you meet with me to discuss this topic further?

I've been really consistent since I've taken on this post, but even beforehand. My interest in the economy as health Minister was the reality that people who are in better-paid work are much more likely to have better health outcomes. It's not just about the taxes they pay to fund public services, but they are less likely to need healthcare as well. I had a number of conversations with Ken Skates in that former role about our joint interest in life sciences, our joint interest in helping employers to become better employers. Because the improvement of well-being in the workplace is a really important factor for the health service as well. When it comes to well-paid jobs in advanced manufacturing, aerospace is a good example, and I'm really keen that we don't see jobs leave Wales; I want to see this sector continue to have a good future and, indeed, a growing future in Wales. Part of that is the work that those companies are already engaged in, in looking at how they decarbonise the industry, how they take advantage of new methods of construction that can improve the products they provide, and, crucially, I think, the transition to new fuel technologies as well. Net-zero flight is likely to be a generation away, but between that time, there is a real imperative to reduce the carbon not just in the production process but in the way that aerospace operates, and we have a range of those examples within Wales. So, I'd be happy to meet with the Member to discuss that in more detail, because I am confident and positive about the future of the aerospace industry here in Wales.