4. Statement by the Minister for Economy: Stronger, Fairer, Greener Wales: A Plan for Employability and Skills

Part of the debate – in the Senedd at 3:45 pm on 8 March 2022.

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Photo of Vaughan Gething Vaughan Gething Labour 3:45, 8 March 2022

Thank you for the questions and the comments. I recognise that work, and in particular good work, is often a protective factor for people's mental health. It isn't a guarantee, but I also know that poor work can have a really detrimental impact on people's mental health. I know from my former time as an employment lawyer, when I've seen people who worked in a poor workplace having difficult experiences at work affecting not just their work, but their whole life around them as well, and the people they love and care for. And that's particularly the case when people are in poorly paid work as well. So, fair work is one of our five key aspects in the plan.

There are some things we can do ourselves rather more directly. So, the NHS, for example, is a living wage employer, a real living wage employer. We're doing more on the social care system in terms of making sure that people have decent and better wages. We're looking to try to make sure we build on the social partnership we have created through the last few years, which has been accelerated and deepened during the pandemic, to try to make sure that we really do deliver Wales as a fair work nation.

Our staff are paid in a certain way; we know that in the private sector we can't influence every single employer. Where we do need to be clear, though, is in the examples of what we're prepared to reward and stand by and say, 'This is what good looks like.' I've seen more of that in the way the economic contract works and is being deepened. So, I expect to have more on that in what we're doing with people in the private sector where most pay, of course, choices are made. And at the same time I think we'll be able to do more in the field of procurement, and that's a matter that the finance Minister leads on and Ministers right across the Government have a real interest in. So, I think you're going to find, not just in this plan, but more generally in what the Government does, that we're genuinely committed to that, as well as individual interventions like Healthy Working Wales and Time to Change Wales, which my department jointly funds, together with the Deputy Minister for Mental Health and Well-being as the lead Minister.

When it comes to the comments you made about Putin's war and the invasion of Ukraine, I fully recognise that there are challenges in rising prices that will be exacerbated by the war. The cost-of-living crisis was with us already before the invasion of Ukraine. It will be made worse because there will be reduced supply of oil and gas from Russia. One of the things we have to accept is that if we think it's wrong for there to be Russian oil and gas helping to fund that war, then that means there'll be challenges in energy supply within this country as well. It reinforces the point about energy security and our ability to generate more of our own energy and be less reliant on the supply of oil and gas from other parts of the world. It's one of the things that, even before the dreadful crisis in Ukraine, Ministers were already clear about and keen to make the most of our assets.

Within that, there are of course challenges in terms of investing in skills and in the infrastructure we need. We know that we already have a position where, I think, over half of our power needs are regularly provided by renewable sources. The challenge then is how much more can we do, how much more reliable will that need to be, how we'll get the investment from the private sector as well as the public sector that will be required to further exploit offshore wind, marine and tidal power as well, and then the skills that go alongside that. That is a bit of a circular conversation because we need to understand what is going to happen with investment in the whole supply chain for those industries that are going be created when new rounds are auctioned off by the Crown Estate for offshore wind. How do we then make sure we understand what those companies are going to do and when we can actually invest alongside them to make sure we have the skills supply for people?

An example of where that can go wrong, of course, is Wylfa Newydd, the former Hitachi project. We did invest in lots of skills, and actually what we were doing there would have made sense if the project had gone forward. When it didn't, we'd essentially taken a community of people together with us on a journey that wasn't then completed. It does, though, show I think that where we have some certainty on those very large investment choices, we can make sure that  the levers we have are available to help people into what should be good jobs for the future. We're already doing some of that work as we know we're going to need to do even more to accelerate the transition to a zero-carbon economy, and in particular how we get the most gain from renewable sources of power.

I'll finish with your points about women and the pay gap. I've been very lucky in my working life to work with a number of women, to be led and managed by women in the workplace, and I'm very proud of my own wife who is a women of real achievement in her business. She's a much better leader and manager than I ever was in the workplace. But, actually, we know that we still have significant gender inequalities, not just in money, but in the way that leadership positions are undertaken and the culture of workforces and workplaces in the private and the public sector. It's why the Government continues to invest in promoting opportunities for women and girls to seek careers in areas where they have not been in the past, whether that's construction, whether that's STEM or, indeed, in tech and in fintech. And I have to say, when I was recently away and looking at some of the promotion we're doing in the United Arab Emirates around the World Expo in Dubai, I was really proud to see Welsh women in fintech as leading figures, running those companies and making a pitch about how they are doing something not just for themselves, but for a whole sector where their skills could and should be recognised. I think we're going to see more of that in the future, so that everyone can see there is someone you can see and someone you can be, and there's a Government that is on your side to make sure you get what you're worth, which is exactly the same as the person next to you, whether a man or a woman.