6. Debate: Draft Budget 2022-23

Part of the debate – in the Senedd at 5:57 pm on 8 February 2022.

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Photo of Paul Davies Paul Davies Conservative 5:57, 8 February 2022

I'm pleased to take part in this important debate. I'd like to focus on the Welsh Government's budget for the economy. The pandemic has had an enormous impact on businesses and livelihoods across Wales, and this budget is an opportunity to inject much-needed resources and support to businesses and set them on the right track post pandemic. However, there are a number of concerns with the draft budget, including concerns around the package of support for businesses affected by the recent restrictions, as well as concerns over the allocations of funding for the visitor economy, research and innovation, skills and several other programme areas. Therefore, if there's one message or statement that is taken from my contribution this afternoon, it's that the allocations of funding must be more explicitly explained, and that the level of detail surrounding Government programmes must be better explained. 

Now, the Economy, Trade and Rural Affairs Committee has taken evidence from the economy Minister, and I'm grateful to him for his time, and for the evidence he provided to the committee. In our evidence session, the committee questioned the Minister specifically around the level of support for businesses affected by the recent restrictions, and Members will see from our report that we've recommended that the Welsh Government consider developing a package of targeted assistance to support economic recovery in those sectors most affected by the recent restrictions. Work by the Night Time Industries Association Wales commission reveals that, on average, during the pandemic, businesses are subject to current debt levels of around £184,000, and that one third of businesses fear closure or failure within a month without urgent proportionate Government support. Members will remember the comments of REKOM UK, which has three nightclubs in Wales; they felt that the sector was being singled out again after the Welsh Government's decision to close the sector. Therefore, I sincerely hope that Ministers will reflect on the recommendations highlighted in the committee's report and work with the sector to protect its sustainability for the future and provide it with the resources that it needs to get back on its feet.

Now, the committee also considered the impact of the draft budget on the visitor economy, and I want to reiterate the Wales Tourism Alliance calls for a comprehensive breakdown of both direct and indirect spend by the Welsh Government on the visitor economy and an accurate assessment of that spend on actual growth. They also made it clear that, unlike the British Tourist Authority, VisitScotland and Tourism Ireland, which are arm's-length national tourism bodies, Visit Wales does not produce a standard, publicly available annual report and set of accounts, and so understanding its budget is extremely difficult for stakeholders. Therefore, perhaps in responding to this debate the finance Minister will tell us what discussions have taken place to make Government funding on tourism more transparent so that we can all better understand its impact and ensure there's some proper accountability, in the way that organisations like Natural Resources Wales already do.

Now, as we rebuild, post pandemic, we have an opportunity to do things differently, and at the heart of the Welsh Government's plans should be a commitment to the skills agenda. In October, Audit Wales published a very serious report on higher and further education, and I want to draw Members' attention to the conclusion that it will be challenging for the Welsh Government to deliver 125,000 all-age apprenticeships and the young person's guarantee in a difficult economic context. I echo the view of Audit Wales, and it's something I've raised with the economy Minister myself: it's crucial that we can see exactly how the degree apprenticeships and young person's guarantee will be financed, and I hope the finance Minister will commit to providing that level of transparency. The Economy, Trade and Rural Affairs Committee's report specifically recommends that the Welsh Government sets out how it intends the allocation for degree apprenticeships to be spent and its plans for expanding the courses and increasing diversity of degree apprentices, in line with the Economy, Infrastructure and Skills Committee's 2020 report. And I hope the Welsh Government responds positively to that specific recommendation. 

Finally, Llywydd, I want to briefly touch on research and innovation and reiterate my previous calls to implement the unfulfilled recommendations of the Diamond and Reid reviews. Professor Reid provided two sets of spending recommendations, one if the Welsh Government had full control of replacement funding, and one without. And so there's no reason why the latter cannot now be implemented. The First Minister has issued a written statement regarding the Welsh Government's five priorities for research, development and innovation, but those priorities will not be realised without those recommendations being implemented. Therefore, once again, I urge the Welsh Government to implement those recommendations, particularly given that the comprehensive spending review provides the Welsh Government with resources to fulfil those recommendations.

And therefore in closing, Llywydd, I believe the biggest ask of the Welsh Government in this draft budget is transparency. In most programme areas, there are vague details but no clear indications of how funding is being allocated, and because of that, scrutiny is limited and it's difficult to accurately determine effectiveness and value for money. And so I urge the Minister to provide that detail and ensure all Government departments are providing information as openly and transparently as possible. Diolch yn fawr.