5. What discussions has the Welsh Government had with the construction industry on the decarbonisation of all Welsh homes? OQ58799

Llywydd, we remain in close contact with the industry in Wales, for example, through the construction forum and through key actions, such as the optimised retrofit programme. In this way, we maintain a regular discussion with the industry on a range of decarbonisation issues.

I recognise the excellent work that's been done through the optimised retrofit programme, which has certainly improved a lot of our social housing. I look forward to hearing the detail of next year’s net-zero skills plan, because that is going to be crucial in enabling the construction industry to plan for having the skills they need to decarbonise all our homes.

I appreciate the Welsh Government’s ambition is tempered by at least a £1 billion cut in its budget next year. Nevertheless, there are many ways in which the cause of decarbonising the private sector can be advanced, particularly when 40 per cent of all Welsh homes are owned outright with no mortgage attached. Whether it's individual building passports or fiscal incentives through a reduction in stamp duties or land value tax, how can we galvanise people who have the resources to invest in reducing their heating bills and do the right thing by the environment?

Well, Llywydd, I thank Jenny Rathbone. She makes a really important point here that public investment will carry us so far on this agenda, but it will have to be co-financed by people who have resources that they themselves can make available. Providing a building passport for each home is something that was recommended by the UK Climate Change Committee, and will be fundamental because, as we've discussed in the Chamber before, every building has its own history and every building will need its own solution when it comes to decarbonisation. We work with the Development Bank of Wales to try to develop products that can be used to help people who have assets that they themselves can put to work, so that privately owned properties can themselves play a part in that decarbonisation journey. Alongside that, we go on investing significant sums of money. In the public sphere, new Welsh quality housing standards, which are being consulted upon, will improve the standards of energy efficiency of publicly owned properties here in Wales.

I just make this one broader point, to put the Member's question in context, the Welsh net-zero skills plan is very important. The things that we can do to encourage private investment in this area are very important. The industry faces enormous headwinds, which a plan by itself will not put right. We know that there are labour shortages as a result of Brexit. We know that there are barriers to the importation of materials, again made worse because we don't have the same trading relationship we had with our most important neighbours, and that creates bottlenecks in the system as well. There are some global issues, and that includes the impact of the war in Ukraine on some essential materials for house construction and for retrofitting work that, even with plans by the Welsh Government and investment, public and private, means that there are real challenges that are going to be faced in the sector over the years ahead.