4. Statement by the Minister for Economy: Stronger Regional Economies

Part of the debate – in the Senedd at 3:45 pm on 18 January 2022.

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Photo of Vaughan Gething Vaughan Gething Labour 3:45, 18 January 2022

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.