7. Member Debate under Standing Order 11.21(iv): Basic Income and the transition to a zero-carbon economy

Part of the debate – in the Senedd at 4:00 pm on 13 July 2022.

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Photo of Jane Hutt Jane Hutt Labour 4:00, 13 July 2022

These are challenging times for businesses and individuals, with costs of energy and raw materials increasing significantly. And it is against this background that we need to develop a more resilient economy in Wales whilst at the same time achieving our carbon reduction goals. Achieving a just transition to net zero is essential and has been at the forefront of the Minister for Climate Change's objectives. We must take every Welsh citizen with us and leave no-one behind as we move to a greener, fairer future. And this is why the first policy in our Net Zero Wales plan is focused on a just transition, as Members have called for today. 

We need to ensure that the transition to a cleaner, fairer future in Wales and the world is carefully managed. And thank you, Jane Dodds, for drawing attention to the impact of climate change on Africa. The changes driven by the need to decarbonise our economy here and in the world will, of course, have impacts on industries, sectors of the workforce and socioeconomic groups in different ways, depending on the pathways, policies and actions that we choose. As a Government, we have a strong commitment to fair working conditions for the Welsh workforce, and this is central to our transition to a zero-carbon economy, as we move to a cleaner, stronger, fairer Wales. Employee voice and collective representation is an essential characteristic of fair work, so it's important that workers in the sectors affected have a strong voice and are effectively represented in the transition to net zero. It's vital that we engage with the workforce and businesses to develop a full understanding of the impact of the transition on the workforce in the sectors affected.

We have committed to making the transition to a zero-carbon economy in the social partnership approach led by my Deputy Minister for Social Partnership, Hannah Blythyn, bringing together Government, trade unions and employers, recognising the importance of early engagement. In creating the industries and jobs of the future, we will review the skills required for a transition to net zero and look to provide opportunities to redeploy employees from traditional industrial sectors. We will engage with the workforce and industry as part of these plans. But we've also agreed to work with the Scottish Government, through their just transition policy forum, so that we can collectively share and learn from one another.

As Jack Sargeant rightly says, we have to make the transition from a fossil fuel-based economy to one based on electricity and hydrogen, generated to a large extent from renewables—and thank you, again, Jack, for your leadership and lived work experience and expertise on these issues. Creating new infrastructure based on electricity will create many new opportunities, including in traditional manufacturing areas, and you make excellent points about the impact of the transition on the current workforce. We're committed, as I've said, to ensuring that the voice of workers is heard—those with that lived experience and understanding and skills—and that they're listened to as part of this transition.

Turning to the basic income pilot, as Members will know, on 28 June, I gave a statement announcing the start of the basic income for young care leavers in Wales pilot. The pilot is a radical and innovative project, offering financial stability to over 500 people leaving care in Wales, and many of you across this Chamber will have heard the moving statements from young people who are embarking on that pilot. It is an incredibly exciting project, giving financial stability to a generation of young people. Too many people leaving care face huge barriers to achieving their hopes and ambitions, such as problems with getting a safe and stable home to securing a job and building a fulfilling career, and this scheme will help people live a life free of such barriers and limitations. But we will carefully evaluate the lessons learnt from the pilot. Listening to everyone who takes part will be crucial in determining the success of this globally ambitious project, and we will examine whether basic income is an efficient way to support society's most vulnerable and not only benefits the individual but wider society too.

The evaluation will consider the impact of the pilot in terms of improvements in the experiences of individual care and how being part of the pilot has affected young people's lives, with regular feedback from recipients who will ensure an evaluation actually is based on their experiences and supports improvement to the pilot as it's rolled out. But, of course, it is intended that the pilot will also provide valuable information to test the stated benefits of basic income, such as addressing poverty and unemployment and improving health and financial well-being. So, it's likely to provide that valuable information and insight for the future about how the concept of basic income could apply to other groups more widely. As Members have highlighted today, it's the design and implementation testing some of the principles of basic income.

Now, acting Deputy Presiding Officer, I support this Member's motion today. It's very much in line with the Welsh Government. We've heard from the Welsh Conservatives today, echoing, I fear, many of the statements we're hearing from leadership candidates: free market, small state, deregulation, cutting taxes, cutting public services. We believe in a state that intervenes for a just transition and that we should explore every opportunity to make that work. Diolch yn fawr.