4. Statement by the Minister for Economy: Developing Technological Clusters in Wales — Medical radioisotope production and nuclear medicine expertise

Part of the debate – in the Senedd at 4:15 pm on 10 January 2023.

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Photo of Vaughan Gething Vaughan Gething Labour 4:15, 10 January 2023

There are a couple of specific questions. On the £18 million by the end of this Senedd term, we've yet to pass the budget we've just laid in draft form, and of course that's got to go through scrutiny and a final vote. We then have other budgets, and of course we'll look to the future of research funding in those future budgets. It all depends on not just the overall settlement the Welsh Government gets but the priorities we set within it. In our draft budget, we've set out health and local government, including education within that, as our big priorities, and that has consequences for the way we allocate the budget not just to those departments, but to all others as well.

I recognise the point you're making about Horizon. I will be able to announce shortly what is happening, so there'll be clarity on that. I've just been checking with my colleague the finance Minister, but we do expect to be able to make an announcement on that in the very near future, so there won't be much longer to wait. There'll be clarity on the money that is happening, what we've got, and how it's going to be used post Horizon. I hope that the broadly positive conversations that appear to have taken place on data sharing between the EU and the UK will be helpful for unlocking more for the future. Horizon is but one aspect of that, tied up with the Northern Ireland protocol and broader relations between the UK and the European Union. We continue to want to be constructive in that and making clear Wales has a very direct interest in the outcome of those discussions.

As I said in the statement, there's the undeniable reality that the replacement for structural funds is not going to reach the quantum that we previously had, and we've previously used a significant amount of that in research, development and innovation funding. The way that the shared prosperity fund in particular has been set up has essentially excluded higher and further education research. That's a significant problem. You and other Members will no doubt have heard directly from Universities Wales about the very direct problems that is going to cause, and the fact that when those funding streams come to an end, I'm afraid that we expect some people will find their employment and the research projects will come to an end. That's not an outcome that I think anyone in this Chamber campaigned for, but it's the direct reality of choices that are being made. It's within that backdrop that we're looking to develop not just this project, as the proposal I think does have significant economic potential in a discrete area that I hope will maximise support around it, but the broader points around the innovation strategy that we are developing.

Part of that is—and it's one of the challenges we need to set ourselves for the future landscape—we get just over 3 per cent of competitive UK funding calls coming to Wales, so we're underachieving in actually acquiring from those UK-wide funding pots. That's a big challenge for us to address. At the same time, one of the positive things the UK Government has been doing is saying it's going to put more money into the future of research, development and innovation spend. We need to make sure that Wales gets its share of that. I think that's a separate question compared to whether we can find the capital funding to see this project through with what I think that will then do in attracting a particular level and a particular type of research funding and economic activity to Wales. I think ARTHUR is slightly different, but there is a much broader point that I recognise on what we're going to be able to do with the future of innovation funding as well as the strategy that I look forward to being able to launch in the not-too-distant future, following what I hope will be constructive conversations with our co-operation agreement partners.