The next item is the statement by the Minister for Economy on stronger regional economies. I call on the Minister to make his statement. Vaughan Gething.

Thank you, Llywydd. I'm pleased to provide Members with an update today on the progress that this Government has made with partners to help build stronger regional economies across Wales. As part of my statement I will reflect on the challenges that we continue to face, particularly in light of the impact of leaving the European Union and the absence of UK Government plans to date for replacing EU funding and reducing inequalities across the UK.

Last month I published the regional economic frameworks for each of the four regions of Wales. These are integral to our commitment to a place-based model of economic development where we build on and work with the distinctive strengths of our regions. The frameworks have been shaped with partners in each of the regions, including local authorities and regional bodies. They are based on evidence and agreement, with clear priorities that are aligned with our framework for regional investment, the economic mission and, of course, the programme for government. This mature approach is essential to the creation of a shared vision with common objectives to deliver a fairer, greener and more prosperous Wales. This work, though, is still sorely lacking at the UK level. We remain concerned that the UK Government has simply not provided a meaningful approach to date for how, where and why EU successor funds will be used.

Central to the effective delivery of the frameworks’ priorities are our city and growth deals—the three-way investment agreements between the Welsh Government, the UK Government and local authorities that are designed to deliver lasting, regional economic growth. All four regional deals are now under way. I was pleased to take part in the signing of the final deal agreement for mid Wales alongside the UK Government and Ceredigion and Powys local authorities. I am particularly pleased that these deals represent closer partnership working at all levels of government, and they should help to improve services, boost skills, and create well-paid employment opportunities.

The Mersey Dee Alliance in north Wales is also demonstrating how genuine collaboration is possible on a cross-border basis, bringing authorities in north Wales together with partners over the border. It also demonstrates that a successful partnership can support strategic economic growth. The Mersey Dee Alliance should be able to complement and add to rather than compete with or duplicate the work being taken by all six north Wales local authorities in the north Wales growth deal arrangement.

My officials continue to support the corporate joint committees as we scope their economic well-being delivery functions, further strengthening our bold, place-based model. Work with the Organisation for Economic Co-operation and Development is also under way, who will provide us with further advice as we progress our multi-level governance structures for national and regional economic development within Wales.

It is now two years since the UK left the EU, yet the UK Government has failed to honour its repeated promises that Wales would not be a penny worse off, at the same time as choosing to deliberately override Welsh devolution, voted for twice in referenda by the people of Wales. We're still no clearer as to how the UK Government plans to reduce regional inequalities across the UK, how the reduced level of replacement EU funding will be delivered, and what the role of devolved Governments will be.

The loss of hundreds of millions of pounds of former EU funding through UK Government plans for the shared prosperity fund are a direct and unambiguous broken promise. The UK Government had a clear manifesto pledge in the 2019 election to replace and, at a minimum, match the size of former EU funding in each nation of the UK. Plans to spend £2.6 billion across the UK over the next three financial years simply do not match the £375 million that Wales would have received each year had those promises been kept.

The impact of Wales having less say over less money is already beginning to show. Many partners, including the Wales Council for Voluntary Action, the Federation of Small Businesses Wales, the Confederation of British Industry Wales, Universities Wales and CollegesWales, are raising their concerns about the UK Government’s lack of clarity and the funding gaps that they now face. The Welsh Government, of course, also faces a funding cut that poses a real threat to Wales-wide schemes including Business Wales, the Development Bank of Wales, SMARTCymru business innovation and apprenticeships.

While all partners remain in the dark about the details of the successor fund, it is still clear that the UK Government is continuing to exclude the Welsh Government from decisions on what are and have been plainly devolved matters for more than two decades. We remain concerned that we will once more see small amounts of money allocated to small, localised projects, leading to duplication and poor value for money. It will also mean the UK Government will be taking slices out of this fund to support their chosen broader initiatives, such as the adult numeracy scheme, Multiply. The announcement of this scheme last year without our input is yet another ill-conceived, confused and deliberate attempt to undermine Welsh devolution.

Forcing councils to compete with each other rather than using needs-based funding will also mean more losers than winners in Wales, as the first round of the levelling-up fund has already shown. We simply do not know what, if any, objective criteria were used in the pilot phase. Only six local authorities were successful, with the majority of funding—surprisingly, given the needs that were recognised in Wales—going to Conservative-held constituencies.

We have not been given sight of the UK Government's draft levelling-up White Paper, let alone the opportunity to contribute. This paper could at least be a starting point for dialogue, and we hope that will be the case. This White Paper should maximise opportunities for strategic investment, not small-scale investments that will fail to reduce regional inequalities right across the UK, and indeed here in Wales. As many Members here today will know, in Wales we moved away from piecemeal investments well over a decade ago, after listening to robust evidence from partners and experts, including, of course, Assembly committees, a number of which were chaired by members of the official opposition.

This Senedd and our partners are right to be concerned about the use of the financial assistance powers in the United Kingdom Internal Market Act 2020 through these funds and the related threats they pose to Welsh finances and devolution. The people of Wales have not provided a mandate for the UK Government to hijack money and decisions out of Wales. Funding certainty would allow us to support the reconstruction of our Welsh economy, and tailor that support to Wales’s needs. The UK Government plans to date are a direct threat to this work.

I hope that Michael Gove, in his new role as Secretary of State for levelling up, recognises the gravity of the situation and will discuss these concerns with us in a meaningful way. The positive collaboration we see on city and growth deals demonstrates that this is entirely possible, but it requires an honest and constructive approach to working together. If the UK Government does not change course, real economic opportunities for our regions, and thousands of jobs and skills, will be put at risk.

We are clear that the Welsh Government’s approach to economic well-being is grounded on the principle that people and places matter. We want to realise our ambition of delivering better jobs closer to home and ensuring that the benefits of economic growth are felt fairly across all parts of Wales. We co-design with our partners, and we will work to support the distinctive strengths of our regions while supporting inclusive and sustainable economic growth. We continue to make progress in creating the conditions where more people, particularly those disadvantaged, and our young people, feel confident about planning their futures in Wales. Stronger, dynamic regions are at the heart of our commitment to creating a stronger, fairer and greener Welsh economy. Thank you.

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

I have nine Members wishing to speak, so with your help, and with the well-known ability of the Minister to be succinct in his answers, I hope to call you all.

Conservative spokesperson, Paul Davies.

Diolch, Dirprwy Lywydd. Can I thank his Minister for his statement this afternoon? I welcome the opportunity to scrutinise the Minister on the Welsh Government's progress in strengthening regional economies, but I am disappointed that today's statement is very light on detail. It doesn't tell us anything new. And if the Minister believes it does tell us something new, then perhaps he'd be kind enough to point us to that part of the statement. 

Of course, the statement refers to the creation of regional economic frameworks, which were published last month, which are important in driving forward further collaboration with stakeholders and forming closer working relationships with local authorities to develop place-based approaches to economic development. Whilst that engagement is very welcome, we need to see genuine improvements, and so perhaps the Minister will confirm the key performance indicators or criteria that are being used to rate how effective this collaboration has been in practice. Does the Minister know, for each regional economy, how many new businesses have been developed as a result of this new engagement and how many jobs have been provided as a result of the Welsh Government's approach to regional economic development? These questions and more are the way in which we can determine the effectiveness of the Welsh Government's plans.

It's vital that each of the regions receives the right level of funding and that that expenditure is fairly allocated so that all parts of Wales can benefit from the Welsh Government's regional economic development plans. Therefore, perhaps the Minister can outline how the budgets are decided for each region and how the Welsh Government is ensuring that all regions are receiving sufficient funding. The Welsh Government's economic action plan talks about developing regional tools, such as community benefits, to help improve the resilience of local businesses and ensure the economic benefits from our public sector procurement spend remain here in Wales. Therefore, can the Minister tell us more about how the development of regional tools, like community benefits, is progressing and how he's monitoring the effectiveness of the tools that have already been developed?

An important part of regional economic development is, of course, skills, and it's disappointing to see that this hasn't been mentioned in the Minister's statement at all today. Not only should the Welsh Government be continually auditing the provision of skills in each region, it needs to ensure that the provision meets the need of the business community in those regions and that businesses have a genuine say in developing the skills landscape. Can the Minister therefore tell us exactly how the Welsh Government is analysing the provision of skills in each region, how it is ensuring that provision is relevant, and how it meets the needs of the local communities in each region?

In creating regional economic frameworks, the previous Minister made it explicitly clear that they would tackle our inherent structural challenges but be responsive by turning them into opportunities for dynamic and distinct regions that demonstrate inclusive, fair and sustainable economic growth by designing solutions for the future. So, perhaps the Minister will tell us what new solutions have been developed as a direct result of regional economic frameworks and how those solutions are tackling inherent structural challenges, like wage poverty and job insecurity. The Welsh Government must show how its regional economic plans are not only improving prosperity in each region, but also how it is tackling those deep, structural issues that have plagued some communities for far too long. 

Of course, moving forward, the Welsh Government and the chief regional officers must ensure their plans to strengthen regional economies are forward looking and are preparing our communities for the future. Today's statement says that the Welsh Government's approach to economic well-being is grounded on the principle that people and places matter, but there's no detail in this statement to justify that. Building resilience is crucial as we emerge from the pandemic, and the future generations commissioner is absolutely right to say that the Welsh Government must show how its programme will prepare Wales for future shocks and long-term challenges, and seize future opportunities. For example, can the Minister tell us exactly how the Welsh Government's regional economic plans are addressing the nature and climate emergencies and helping to address the economic and social justice fall-out of the pandemic? 

It wouldn't be a Welsh Government statement without an attack on the UK Government, and of course today's statement is no exception. Positive collaboration has been demonstrated through the progress made on city and growth deals, and I agree with the Minister that an honest and constructive approach to working together is needed going forward, not party-political point scoring. The Minister would do well to remember that. 

Dirprwy Lywydd, as we emerge from the COVID-19 pandemic, we have an opportunity to do things differently, and strengthening the regional economies is one way forward, providing that these proposals actually deliver improvements rather than creating more bureaucracy. Therefore, in closing, I ask the Minister to commit to providing regular updates to Members on the outcomes that have been delivered from each of the regional frameworks and provide cast-iron guarantees that communities right across Wales will see the benefit of the actions outlined in today's statement. Thank you. 

Thank you for the series of comments and questions within those. I'll take on board what the Deputy Llywydd asked.

In terms of the broad sweep of what the Member has been saying, I think there's a bit of a misunderstanding about the regional economic frameworks. That helps us to define a vision for the future of each region, with a common set of priorities for economic development. They go hand in hand with the work that's taking place within the growth deals, where we have committed sums of money. The same money has gone in from the UK Government and the Welsh Government, and then our public sector partners, led by local authorities, who are key to regional economic development. It's then about being able to lever in additional investment and jobs. That's actually about trying to understand, within each region, where the opportunities for growth are, and the fact that each region will be different. Rather than the Welsh Government determining for those regions what their plans should look like, it's actually about working alongside them as genuine partners to produce those frameworks. It's really important for all the things that are moving together in the same place to have a shared vision. It's why it's so disappointing that we do have a UK Government that is prepared to simply ignore all of that work that is taking place. 

When we talk about the constructive partnership that could exist between the Welsh Government and the UK Government, it is, of course, typical that Conservative politicians demand that there is no criticism of the UK Government. I've never once heard a Welsh Conservative express any concern about the cut in our budgets, about the reduction in money from the shared prosperity fund. I've never heard a single point of concern either in this place or outside it, and that is just extraordinary. When we're talking about skills and about listening to businesses and working with them, we have the architecture to do that already. The regional skills partnerships that now exist in each part of Wales that some Members in this place were part of helping to draw up and wanted to see—they tell us where we want to try and invest more in skills to support each part of the economy, even more important now with a tightening labour market with people having left it at one end, as well as those people that have returned to European countries and are unlikely to return to the UK. 

Our ability to invest in skills, though, is directly affected by the broken manifesto promise on replacing EU structural funds. We are talking about hundreds of millions of pounds, Paul. That's the undeniable truth. Having sucked that out of the money we would have used to support the economy and to invest in skills, it just isn't good enough for Conservative politicians to claim that they're desperately concerned about everything apart from the damage the UK Government is doing.

We'll have more to say as we move forward, not just about where we go with regional economic frameworks and the work that we'll do alongside regions in co-producing those investment priorities, but also the work that we have got the OECD to do to make sure that we're continuing to look at how we further improve regional economic development. We'll publish the work we get from the OECD and the action plan that we'll look to develop alongside our regional partners. It's also going in line with other work we have in train as well. I expect to come back in the coming weeks and months to talk about the future employability strategy for Wales, where, again, we have been able to work constructively along with some parts of the Department for Work and Pensions, as they are more active in some parts of employability support. We need to ensure that our support is properly tailored to people who are furthest away from the labour market, where the DWP are least active.

It is about refining where we are to make sure that we're pointing, as far as possible, in the same direction. Goodwill on both sides, between the UK Government and the Welsh Government, will allow us to do much, much more, but I won't make any apologies for standing up and being clear that a failure to adopt even a modestly constructive approach from some parts of the UK Government affects our ability to do so. The refusal to replace former EU funds will continue to be a challenge for the future of the Welsh economy, regardless of the Welsh Conservatives' silence on the matter.   

Plaid Cymru spokesperson, Luke Fletcher.

Diolch, Dirprwy Lywydd. I share the Minister's concerns over the UK Government making spending decisions in devolved areas, in particular the fact that the spend seems to happen in particular seats held by a particular party. It's another example to add to the mounting evidence that the UK Government's rampant unionism threatens the autonomy of the Senedd. 

Moving to the statement, we know that there is an ongoing problem in Wales with keeping people in our communities—the brain drain, as it's referred to. Of course, this isn't just an issue of young people moving from Wales to England or to other countries; it's also an issue on a regional level as well, for example rural to urban migration. The brain drain very clearly makes it an uphill struggle for areas to recover economically. It also threatens the access regions have to skills and talents to fulfil the plans within the regional economic framework. Using mid Wales as an example, there are concerns with demographic changes in the region, specifically to do with an ageing population, brain drain and net migration. We know that there has been a projected decline in the working-age population in the region of 16 per cent between 2018 and 2019, and, at the same time, there's expected to be a 3.45 per cent decline in the economy in the region compared to a 7.4 per cent increase in the UK economy as a whole. Could the Minister outline how regional economic partnerships and regional projects will work in tandem with the young person's guarantee, and other projects, to address the brain drain? I'm sure the Minister would agree that access to skills for those regions in Wales that have been affected by the brain drain will be vital to their economic prosperity in the long term.

If I could draw the Minister's attention to energy, specifically to net zero and fuel poverty. While all of the regional economic frameworks raise issues of climate change, green energy and net zero within them, there's no real tangible commitment or assurance that economic development resulting from regional partnerships will help achieve the Welsh Government's net-zero target. I was wondering how the Minister will monitor future developments in the region to ensure that this supports green economic growth, and prevents economic growth damaging the environment as it has been doing for so long, and to ensure projects in the regions are working towards our climate change targets.

I also wanted to raise the issue of imbalance between green energy projects within the regions. For example, the north Wales economic framework—there's a huge focus on green projects that could help boost development in the region, and rightly so. However, coming back to the example of mid Wales, despite the mid Wales framework, the growing mid Wales report, and the final deal agreement noting that natural resources in mid Wales are well placed to produce green renewable forms of energy, the growth deal in mid Wales has not identified any energy projects in the region at this stage, nor do net-zero targets appear in the investment objectives.

It's also further disheartening to hear that no energy projects have been identified in the region in light of the cost-of-living crisis and the prevalent fuel poverty that exists in the mid Wales region. Seventeen per cent and 14 per cent of households in Ceredigion and Powys respectively live in fuel poverty. Meanwhile, in my own region of South Wales West, it's estimated that 8 per cent live in fuel poverty in Bridgend, 10 per cent in Swansea, and 11 per cent in Neath Port Talbot. We know that the rises in energy prices expected in April 2022, this year, and previous increases, disproportionately affect certain regions in Wales, such as rural, less connected areas more than others. Given this, I'd be keen to know from the Minister: how will the Welsh Government ensure that all regions of Wales can benefit from more green energy project developments, with the aim of making energy bills cheaper, especially as we face a cost-of-living crisis, a crisis that fuel poverty is playing a significant role in driving? 

Thank you for the series of questions. On your starting point, I believe there is a strong and progressive case to be made for the future of the union, but it won't be made by the sort of attempts to centralise and hijack powers and money away from devolved national Governments that people have voted for in more than one referenda in Wales, Scotland and elsewhere. The Member may of course disagree on that particular point. 

In terms of the challenges you mentioned about young people, on the young person's guarantee, it's deliberately designed to try to ensure that young people do have a future they can plan for in both rural and urban Wales. So, we're looking at how the apprenticeships work, but also the advice and support we're looking to wrap around young people to make sure they get into the world of work in a meaningful way in the future. And it's why the ability to invest in skills and progression are so very important. So, the issue about levelling up funding or replacing EU funding isn't simply a dry academic debate or political rock throwing between different parties; it really matters about our ability to deliver on our objectives. And I'd say, actually, all parties within the Senedd would agree we do want to provide greater investment into skills for the future, to make sure our young people have real choices to make within their local economies.

I'll be providing further updates on the work the young person's guarantee is doing, and I think we have a genuine opportunity to live up to the rhetoric and in making sure we don't see a lost generation here in Wales. And, of course, the challenges in the labour market are different to what we would have expected a couple of years ago, post pandemic. We haven't seen very high levels of unemployment. We're actually seeing quite a tight labour market, and in today's unemployment figures, the UK average unemployment is 4.1 per cent; it's 3.4 per cent in Wales. But we do still have a challenge with the economic inactivity in Wales being higher than the UK average, and we've seen that while some people have left the labour market altogether, one of the big challenges is that older workers who have left are unlikely to return. Now, that's a challenge in terms of experience. But it does mean, I think, there's an even greater imperative to invest in the workforce we do have, and the future workforce as well, alongside the points that you make, which are also in the economic mission update that I published in October, about the need to take account for a decline in the working-age population, and the fact we will need to be more productive if we're going to be able to have a strong, well-functioning economy for the future.

On your point about net zero and regional economic development, and the decarbonisation challenge, it's a challenge both for energy generation, but much more broadly for economic activity. And actually, I think the point you make about the difference between the north Wales economic framework and the growth deal that they've agreed, with a real focus on greener energy, which I think does a great deal of credit to all six local authorities in north Wales—the fact they've been able to work together. And I see we have a former north Wales leader in the virtual Chamber today. But it does real credit that six different authorities, six different leaderships—. They've all agreed on a broad vision for north Wales and their transparent potential for greater energy generation and economic benefit for communities across the north as a result. And that's one of our big challenges—it's to make sure we don't just produce greener energy, but we actually get the jobs dividend that should come with that. There's no guarantee we do that.

The mid Wales headline growth deal isn't quite as far as advanced as other deals around the country. And interestingly, Ellen ap Gwynn, in particular, was very interested in the potential for greater green energy investment and jobs return, but they know that they're still identifying a more thematic approach at this point—they don't have the portfolio of areas in the same level of detail that other growth deals do. And that's one of the things that we need to accept—in having power that we share with regions, and regions making lots of their own choices for them, they'll move at slightly different speeds in different places, they'll have slightly different priorities. But actually, I'm confident that we will see proper opportunities for green energy generation and regional economic development going hand in hand in mid Wales, just as in the rest of Wales. And it was actually part of the discussion we had when we signed the final growth deal documents. I hope that gives the Member some comfort that this isn't simply a broader approach, without detail being worked through it, but that will come at different speeds in different regions of Wales.

And finally, on your point about bills and the transition and the cost-of-living crisis, one of my big concerns is that we know that there could be real economic benefit in moving to a decarbonised, lower carbon economy in the future and our pathway to net zero. The challenge is the transition could knock over people in the interim. So, we're going to need to deal with the transition to get there in the net-zero plan that the Minister for Climate Change outlined, with a significant chapter on the industrial decarbonisation that needs to take place. And I do think we will ultimately be able to gain benefit from that. The challenge, of course, is that won't happen just because we say it will; we've got to have work between partners, including the private sector, as well as those people responsible for the broader vision.

And finally, finally, Deputy Llywydd, I'd just like to pass on my good wishes for this particular young person, Mr Fletcher, who is planning his future in Wales and his marriage ceremony for later in the year. Best wishes to you, and I can tell you all about my first joyful 11 years myself.

I very much welcome the statement. The four regions of Wales, as well as being similar to the ancient kingdoms, have the opportunity to develop regional policy in Wales. I support the framework's priorities and the city and growth deals, the three-way investment agreements, designed to deliver lasting regional economic growth, including the region I live in. I strongly support the creation of stronger and dynamic regions at the heart of creating a stronger, fairer, greener Welsh economy. I am very pleased that the four city and regional deals are now under way.

The Minister and I have recently engaged in correspondence regarding life sciences. I have three questions. How do we turn the world-class life science research at Welsh universities into greater high-quality employment? Some economic sectors, such as information and communications technology and computer games, are not constrained by geography. How do we further develop these? And the third one is: how can the universities in each region help drive economic prosperity in their regions?

Okay, I'll take them in reverse order. On higher education, actually, one of our challenges is, and has always been, ever since I've been a Member—I'd like to think that higher education has got better at this as well—about the research and the excellence they produce and how that gets applied into the economy. So, the difference between research, development, innovation and application to improve businesses as well. We know it's a key factor. And actually, to be fair to—. Look, for all the differences we have with the UK Government that we advertise regularly, the headline pledge to put more money into research, development and innovation is a very good thing and we would want to see that done. The challenge is making sure that it's not just that the money goes and it doesn't simply ends up in the golden triangle around Oxbridge and London. The danger there is that's a bad thing for England, never mind the rest of the UK. And actually, as our own chief scientific adviser has shown, the quality of Welsh research and our science base is actually really good. So, it isn't even as if you could say that it's an investment that is driven solely by quality. So, there is a real need to ensure that, in funds that are supposedly whole-UK funds, Wales gets a proper share of those as well, as well as what we need to do with our own higher education sector and the constant challenge we have there about ensuring that, regardless of UK activity, we demand and expect more from our higher education sectors. And actually, I think around Swansea, there are good examples of a university that, over time, has definitely shifted its mission into greater output. If you look at the steel sector, they're very pleased with the work they get to do with Swansea University and its advanced metals research as well.

I think the same about IT and, more broadly, digital ways of working. We've got lots of opportunities to benefit every region of Wales. It's not just about enabling people to work in different ways, it is about wholly redesigning systems. And I agree with you, we do have particular strengths in Wales. I had a very interesting meeting about opportunities around Newport and what that might mean and about data centres and other activity that could lead to even greater economic development opportunity. So, I definitely think it's something you would expect to see in each region, and for us then to understand where our greatest opportunities exist in Wales.

And finally, on life sciences, I think we already punch above our weight in Wales when it comes to life sciences, when you look at the research that takes place and the jobs and the activity. This is a sector where most of the jobs are well-paid jobs with good terms and conditions. And the life sciences hub that we have near the Senedd building that—. Hopefully, when times return to be more normal, people will have opportunities to go in and see and meet people there. Actually, it's been I think one of the smartest investment choices we've made, in designing and bringing people together, and it's given a real focus to what life sciences can do. Not just in developing better uses for deployment across health and care, but the real economic return that goes alongside. I should just, with a look backwards—. The way that the life sciences hub has operated, to have a gate for us to get through for new technologies and new ways of working through the pandemic, has really reinforced the value of what we've put together there. When we had a meeting with Irish Ministers from the Republic, they were particularly interested in what we had chosen to do and the value from it. So, we may not always recognise it ourselves in Wales, but we do already have something that I think we can be really proud of, and I look forward to expecting more in the future.

I should say though, Deputy Llywydd, I wasn't quite aware that our regions matched so neatly to ancient kingdoms. It's not something that appears in my ministerial speaking notes, but I'm grateful to Mr Hedges for pointing that out.

Thank you, Minister, for your statement.

Can I thank Luke as well for highlighting issues relating to the region I represent, Mid and West Wales? You've highlighted some very salient points. Diolch yn fawr iawn. 

I have three really brief issues to raise. Firstly, I'm encouraged to see developments such as Banc Cambria coming to fruition. As I said during your recent statement on Banc Cambria, the whole gamut of local services—banks, post offices, building societies, digital and physical infrastructure—are all essential in supporting local economies, particularly rural economies where those essential services have been chipped away over the years. So, could I ask the Minister for some insight into where your statement today sits in relation to wider Government plans to support thriving rural towns and villages?

Secondly, could you say a few words about how we traditionally measure economic growth and performance and what steps are being taken to test how we may adopt new measures of economic performance like those introduced in New Zealand? I ask because this week I met with the housing association Barcud, and I heard about their plans and ambitions for the next five years, including their plans to invest £60 million in house building and to establish a training academy. There is a huge economic benefit there, but also a huge social benefit too, as I'm sure you would agree. I'd be interested in your views.

Finally, Minister, whilst I welcome the mid Wales growth deal recently being agreed, I do have concerns about how long it has taken. This is just the beginning of the work, and I'm hopeful that the goals outlined will continue at pace. Could I ask you what lessons have been learnt from that process to ensure that any future potential initiatives are more quickly realised, to the benefit of local communities? Diolch yn fawr iawn.

Thank you for the questions and comments. On your starting point about local services and what it means for rural economies, I recognise that the point is well made, both in the previous debate around Banc Cambria and your consistent interest in this area. I actually think that our growth deals do show that there are real opportunities to develop a successful future economy in mid Wales.

We regularly talk about things that come from the land, but it isn't just about the opportunities that really do exist in the future of food manufacturing and production; actually, there are lots of people that are choosing to live in rural parts of Wales and the rest of the UK, and there are real opportunities for jobs, and good jobs, to move in a way that doesn't require a daily commute to a large population centre. That, in itself, is a potential opportunity for mid Wales as well.

There are challenges about making sure that you still have the essentials of successful life that would need to exist—and I say this as someone who grew up in a rural village as well—and about having services that make sense, that mean that there's real life in the village or the small town in which you live. But having opportunities for people of different wage brackets and different job opportunities to live and work in that area, with the rest of the quality of life that you can get from living in rural Wales, I think is still an untapped opportunity for us.

On your point about new measures and how we measure traditional growth, we've long recognised that GDP isn't necessarily telling all of the story. There is an active conversation about how we could have a different range of measures to try to understand what a successful economy looks like and how you measure that in a way that's meaningful.

I'm really interested in some of the work that others have done and are doing—including my predecessor, Ken Skates, thinking about conversations that we have had previously—about what a well-being economy looks like and how you could measure that in a way that is meaningful. So, we're interested in developments along those lines, not just in New Zealand but further afield in the rest of the world.

We certainly do want to think about—. I know that you mentioned housing, and not just the fact that you can build good quality houses, but the sorts of jobs that come from it and what that means about a sustainable industry. That's a regular topic of conversation between myself and Julie James.

Finally, on your point about mid Wales growth and the time that it has taken, I think that every one of our city and growth deal areas would have liked to have got to where it has ended up now faster than it has done. But the necessary time to invest in trusting each other and partners is not something, I think, that can be short-circuited.

What we are seeing, though, is the mid Wales growth deal now being completed. We don't yet have a completed map across Wales, but I think that there is some real ambition to get things moving and to catch up in a way that a competitor can sometimes be helpful in getting regions who want to demonstrate that they are making real and tangible progress. I think that it was particularly helpful to get this landed and off the ground before local authorities go into purdah and there is a potential freeze in the progress that would otherwise be made. So, it does mean that the two local authorities can work individually, and together, in line with what they have agreed in the growth deal, without there being an even longer interruption.

So, I think that's really good news, and I can honestly say that the differing politics of a UK Minister, a Welsh Minister and two council leaders haven't got in the way of us doing the right thing, and that does show that collaboration really is possible if we're all prepared to do the right thing.

Thank you, Minister, for your statement today. You did mention 11 years of marriage. I am at 13, and I'm sure that the significance of that number is not as unlucky as some might suggest.

But, just going back to your statement, I was really pleased to hear you reference the Mersey Dee Alliance. There has never been a better time in my opinion for Welsh Government to work collaboratively with the UK Government and local authorities to benefit the people of Wales and create those stronger economies in the regions, the Mersey Dee Alliance being a really good example of this cross-working.

As you mentioned, Minister—and I agree with you—another great example of this is the collaboration in the north Wales growth deal, which of course sits in the North Wales Economic Ambition Board, again, working across government to deliver positive benefits to the people of north Wales, including working with local authorities, creating those jobs and allowing businesses to flourish.

And as you mentioned, Minister, and I'm sure you agree, local authorities have a huge role to play in supporting stronger regional economies. In your statement, you referred to the role of corporate joint committees in strengthening the ability of regional collaboration. In my eyes, and in the eyes of many councillors and council leaders, corporate joint committees would seem to take powers away from locally elected councils, not strengthen them, as you seem to suggest. So, what assessment have you made of the future role that local authorities will play in supporting these stronger regional economies? And what discussions have you had with the Minister for Finance and Local Government regarding the possible negative risks that these CJCs may have on local authorities supporting strong regional economies? Thanks.

I've had a number of very constructive conversations with my ministerial colleague Rebecca Evans about the role of regional economic development and CJCs and making sure that the legislation that the Senedd passed in the last term is realised.

I think there's a real danger that we keep on arguing about the past rather than actually trying to remake the future, and I think there has been a real sense of positive pragmatism from local authorities about regional arrangements, to want to make them work. Because all local authority leaders, regardless of background, will have some comments about what they think would be ideal. But, given the structure that already exists, our challenge now is how we make it work best, and I do think the North Wales Economic Ambition Board is a really good example of how people have done that very practically, as I've said. You'll know this, as a former leader of a north Wales authority. Differing politics between the six leaderships have not got in the way, necessarily, of people agreeing a vision for a much better, stronger north Wales economy, with better jobs within it.

We continue to see local authorities as key partners in economic development. It's why we're keen, as I said in my statement and in some earlier questions, to make sure that powers are shared so that, within reason, local authority-led organisations can make decisions of and for themselves. There'll be other areas where there'll be decisions jointly made with the Welsh Government, and others too where the Welsh Government may make decisions. But this is actually about providing more power and more influence for local authorities to influence and direct wider regional economies, and I think it's a really good time to be doing this and taking it forward, with the trust that we've invested in each other.

I agree, Minister, that we don't want to be looking to and living in the past, but I hope we're going to learn from the past. I've been a Member of four Senedds, and I've seen four different Governments adopting four different approaches to these matters, and I'm yet to be convinced that any of them have succeeded. When I look at some of the corporate joint ventures that I'm hearing described in the conversation this afternoon, I'm listening to debates I heard a decade ago, if I'm quite honest with you, and still my constituents are waiting to see the benefits of those conversations. So, I would like to ask you, Minister: where does the Heads of the Valleys focus on this? Because we've had very little focus on the Valleys, the most deprived part of our country, 20 years after devolution, and we haven't seen the focus that I would have wanted to have seen since this Government was re-elected in May.

I want to know how you expect to deliver your policies. Where are the delivery mechanisms? Because if there's one thread of failure, frankly, that I have seen throughout my time as a Member here, it's been a lack of delivery. We have had strategies coming out of our ears, but what we haven't had is delivery on the ground. Why are you different? Why is your strategy different? And how will you know when you've achieved your objectives? What are your objectives for the Heads of the Valleys? What did you want to achieve? When I was one of this sad line of Ministers, some time ago, setting out my ambitions for the Valleys, I set out some very clear targets and objectives—

Alun, you need to conclude, because we need time.

I would like to see a report from the Government on how far they went in delivering on those objectives and those targets at the end of the last Senedd. So, what's going to be different this time, Minister?

What I think will be different this time is that I think we'll want to be able to come back to point out the improvement in the regional economy and what it means not just for jobs, but in terms of pay and conditions as well, because we're looking to see real change made. And I genuinely think that there is going to be a focus on the Heads of Valleys, not just because of the works that are being completed around some of the physical infrastructure that's there, but, actually, we've reached out and we're having conversations with the five local authorities in that area, as part of the city region around the capital, to understand how we get a deliberate focus on the Heads of the Valleys itself. And there are also choices about how Welsh Government can use some of the levers and influence we have too, because I do recognise that across the Heads of the Valleys we've not been able to see a significant shift forward in the economic prospects of communities across there. So, it's something that we have chosen to go out of our way to want to do. And actually, again, it builds a bit on the point I was making with Sam Rowlands, and, actually, local authorities have now been really constructive leaders, not just partners, in this area in the last few months, about looking to try to plot out a series of objectives where local authorities and the Welsh Government and the capital region could work together. Because I want things that are intensely practical, where you can demonstrate that jobs and opportunities are being created where they're needed, as opposed to—to use your phrase—more strategy. I'm much more interested in practical delivery with the resources we have.

And I do recognise, Deputy Llywydd, that I owe the Member a more detailed conversation about this. He's asked for one; I'd be very happy to have that conversation with him, because I recognise he'll keep on asking the same sorts of questions, and I think he's entitled to, because the constituency he represents needs an active Government on its side at the Welsh Government, UK level, and indeed his local authority too.

We've reached the end of our time allocation, but I have three speakers left. I want to call them all, so, please, can everybody remaining make sure that they are succinct in their contributions? Mabon ap Gwynfor.

Thank you very much. In his book, An Inquiry into the Nature and Causes of the Wealth of Nations, Adam Smith said that a successful economy is dependent on:

'the erection and maintenance of the public works which facilitate the commerce of any country, such as good roads, bridges, navigable canals, harbours, etc'.

That is, economic growth is dependent on investment in infrastructure. Infrastructure is an economic multiplier, after all. In 2015, the OECD said that there was huge regional imbalance within the United Kingdom, and I'm concerned that the weaknesses of the UK could be reflected here in Wales. For example, rural areas continue to suffer from a lack of provision of broadband and mobile phone networks, as well as other infrastructure weaknesses. Does the Minister therefore agree that we need to ensure that there is significant investment in our infrastructure to see balanced economic growth in all parts of Wales? And finally, does the Minister agree that we should encourage the development of co-operative enterprises and community ownership of local resources to lock money into the local economy and to prevent the extractive economy, ensuring local jobs? Thank you.

To answer as briefly as possible, given the Deputy Presiding Officer's instructions: yes, I do believe we need to continue to invest in infrastructure, including digital infrastructure, to enable what are not  so much new ways of working, but standard ways of working that already exist in large parts of Wales, to make sure that access to those opportunities is practically provided in communities right across the country, and—. Sorry, I've forgotten your second question.

Co-operative enterprises under local ownership.

Yes, sorry, yes. And actually, I expect to meet the ambitions we set out to double the size of the co-op economy in Wales. The conversations that I committed to have with Huw Irranca-Davies following a previous debate with him following a legislative proposal have not been concluded. We did have a time arranged that had to be put off for COVID reasons. But, yes, I fully intend to meet the commitments I've made—as you'd expect, given that I am a Welsh Labour and Co-operative Member of the Senedd.

Thank you for your statement, Minister. I have two questions for you today. Firstly, in their recent report, 'Beyond the Pandemic', the Industrial Communities Alliance provided some insightful analysis of what is needed to address the economic imbalance in our older industrial sub-regions, such as the south Wales Valleys. Minister, do you agree with the ICA's findings that what the Valleys need is simply more and better jobs, and can you outline what strategies you plan to implement in order to achieve this?

Secondly, during the fifth Senedd, we saw an ambitious holistic sub-regional approach from Welsh Government through the Valleys taskforce, and I understand that several legacy projects related to this are ongoing under various ministerial portfolios in this sixth Senedd term. Can you update Members on how the progress of these schemes is being tracked and monitored, and whether reports on this progress will be shared with the Senedd in due course, so that Members are able to scrutinise this progress?

Yes, on your second point about progress, yes, I do expect to be able to share reports with the Senedd and with committees on the sort of progress we're making. On your first point, about the Industrial Communities Alliance, more and better jobs closer to home, that's certainly where I want us to be, and it goes a bit into the question that Alun Davies asked, and, bearing in mind where Cynon Valley is, I do expect to not just have a conversation with Valleys representatives around the Heads of the Valleys, but to actually be able to set out what we're looking to do alongside partners in local authorities and in businesses as well, and how we're going to use the levers that we do have. So, that's not just about our responsibilities for skills, but how we make up some of the deficits in former funding. Because I don't think we can just say, 'We're going to disinvest in skills investment in the Heads of the Valleys area', because that means we won't see the sort of progress we made. By investing in people and places, we have to try to make that real, even with the challenges that we have with both the budget settlement and the realities of levelling-up funding not flowing to where it is most needed. What I do expect is not to just have a conversation with you and your fellow representatives, but actually to be able to set out in some more detail what we are actually going to try and do, and then to be able to set out how we expect to measure that progress in real terms.

And finally, James Evans.

Diolch, Deputy Llywydd. Minister, it would have been nice to hear some positivity throughout your speech, but you did lose me after you kept criticising the UK Government for investing in parts of Wales that your Government has forgotten for years. And with all due respect, Welsh Labour's poor record on the economy leaves something to be desired, at one time aided and abetted by Plaid Cymru or the Liberal Democrats. I could go on, but on a positive note, it was really positive to see that the mid Wales growth deal was being signed and bringing that vital money in for rural Wales. But, Minister, infrastructure is crucial for economic growth, so I'd like to know what discussions you've had with the Deputy Minister about his road review and the importance that the road network plays in regional economic growth. And finally, Minister, what discussions are you having with the Minister for Climate Change about the need to address the housing shortage in my constituency and across mid Wales, because if there are no houses for working people to live in, the area will just turn into a retirement home with limited opportunities to develop economic growth? Thank you, Deputy Llywydd.

Well, on the roads review, as you know, the Deputy Minister for Climate Change is more than happy to answer questions about the policy he's leading on behalf of the Government. Also, in terms of housing, I think that the Minister for Climate Change is very clear about the need to build more houses and more houses in the affordable span, which is a real challenge for us, for people to be housed effectively, but also for the economic benefits of creating more housing and the skills that we need to be able to invest in. And when it comes to the tone of where things are, we're being straight about what's happened. We're being honest about the challenges we face. And I know the Member doesn't always agree, but that's the challenge that comes in a democracy, is it not? I know the Member has gone on to broadcast a claim that he doesn't feel he lives in a democracy in Wales anymore, but this is the elected Government for the people of Wales, making choices and being held to account in the Welsh Parliament. It's a pleasure to speak to you as always, Deputy Presiding Officer; I look forward to my next opportunity to do so.

I thank the Minister.