3. Statement by the Minister for Economy: Regional Economic Development

Part of the debate – in the Senedd at 3:05 pm on 4 October 2022.

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Photo of Vaughan Gething Vaughan Gething Labour 3:05, 4 October 2022

Thank you for the questions. On energy projects, I think you will find that there are green energy projects that are being proposed in every single one of the four regions. Mid Wales isn't just a home to the Centre for Alternative Technology in Machynlleth; there's more to be done there. And actually, the UK Government have recently confirmed that they're interested in more onshore wind generation as well. It's relatively cheap compared to other forms of power generation, but you'll also see offshore wind generation in significant quantities in north Wales and also around Swansea bay with the Celtic sea. So, there's lots of opportunity and, of course, the capital region have purchased Aberthaw as a landing point for green energy generation. And the point for me isn't just to decarbonise our supply of energy; it's the economic activity and benefit that goes with it.

I regularly think about Denmark, not just because my elder brother and his family live there, but, actually, they managed to get to a point with onshore wind in particular, where they got in early, they got first-mover advantage, they got lots and lots of economic benefit, not just the power generation, and I'm keen that we don't lose sight of the economic opportunities. I don't just want us to construct lots of energy projects near to them being deployed and then maintain them, I think there's a real opportunity to do much more. And again, it's another example of where if there was a willing approach from the UK Government, we could do more on investment, because some of the investment around HyNet in north-west England and north Wales could and should be extended; we could also see more across the industrial cluster right across east, west and south Wales as well, and that would be to all of our benefit. 

When it comes to your point about the just transition, that's a key part of our Net Zero Wales plan. We're looking for a just transition, not to simply abandon areas and not to have a plan for a transition from one form of employment to another. And that's not necessarily easy, but there is a real opportunity to do so. Many of the skills that are unlikely to be—. Many of the jobs that are unlikely to be needed in 20 to 30 years will still have skills that will transfer into newer jobs, and part of our challenge is how we reskill people already in the world of work. And that's part of the reason why this Government is investing in personal learning accounts, for example—so, learning in work. And I regularly make this point, and I had a conversation just this morning about this: the workforce of the future is here in very large part. People in work in 10 years' time, most of those people are already in the workforce. So, yes, we need new entrants coming in—we should never apologise for focusing on those new entrants who will learn new skills, coming in today, tomorrow and in the next few years—but we also need to make sure that we take our current workforce with us and provide them with opportunities to acquire new skills. 

On many of your questions around free ports, I will just say there's no need for the Government not to have a focus on community wealth building, and that is very much part of our everyday economy and the foundational economy approach as well: how we try to keep wealth within communities; what that means for local procurement, not just in the bids, but then in the way that people then behave once they've secured procurement contracts as well—that they keep to what they said they'd do. That is very much part of what we'll need to see in the free ports programme as well.

Look, this was a UK Government initiative, and the Welsh Government has negotiated to a position where we can agree to the deployment of a free port on terms that we have inserted. And there's similarity in what we have agreed and what the Scottish Government has agreed as well. So, we do have conditions around fair work in the prospectus, and you'd expect me, not just as a former trade unionist and Welsh Labour Member, but you'd expect me, as a Minister in a Government that has a commitment to Wales being a fair work nation, to see free ports must be part of that and not separate from it. So, that's what's in the prospectus, and I'm not going to agree to any bid that comes forward on the basis of diminishing terms and conditions, on diminishing environmental regulations, on diminishing labour rights. And that is a genuine decision, where we will make the decision, as well as the UK Government. I'm prepared to say 'no' to bids that don't meet that standard.

As well as seeing what's in the bid, I also want to see how that's going to be monitored and managed. That's why we set up some of the architecture on what's being called essentially a workers committee. There'll be people who recognise this a joint union committee in other workplaces, where you do have a way for trade unions to be part of what takes place on a work site, on a multi-employer site as well. It's not that unusual in power, steel and other places as well.

So, I look forward to bids, but also to activity. For me, the test will be not whether within that area you see more economic activity, but whether you overall see more activity, rather than activity that has been displaced. That's part of the challenge of previous examples of this sort of intervention: can we genuinely grow overall economic activity and not simply shift it from one part of the country to another?