5. Statement by the Minister for Economy: Economic Priorities and UK Government Relations

Part of the debate – in the Senedd at 4:07 pm on 17 January 2023.

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Photo of Paul Davies Paul Davies Conservative 4:07, 17 January 2023

Can I thank the Minister for his statement this afternoon? Now, I agree with the Minister that the UK is beginning 2023 on a very difficult footing, and there is a need for a real focus from him on the Welsh Government's economic policies. I had hoped that we'd hear more from the Government about some of the specific initiatives that the Welsh Government has for tackling some of the challenges facing businesses in Wales, but detail on that front is lacking in today's statement. Nevertheless, I'm pleased to see that today's statement refers to delivering a prosperous, green economic future for Wales, investing in the skills of the future. The Minister knows that I've been calling for a new net-zero skills action plan for a long time now, to make sure that we have the right people and skills available to benefit from green jobs in the future. So, perhaps the Minister could tell us more about how the Government is building a better understanding and evidence base of the future skills needs to support the transition to net zero, and also tell us how he's driving awareness amongst employers to support reskilling and upskilling their workforce.

Today's statement refers to the continuing support for high energy costs that the UK Government announced last week, and I believe that there is room here for the Welsh Government to act to support businesses too. For example, we know that the Development Bank of Wales is developing a scheme that will allow businesses to take on borrowing to fund capital investment that delivers on decarbonisation. Therefore, perhaps there is flexibility here for this scheme to cover businesses needing acute support with energy costs, so that funding can get to businesses as quickly as possible. So, perhaps he could update us on his discussions with the development bank on the support that they can offer Welsh businesses, and tell us when the new green business loan scheme is likely to become operational.

Dirprwy Lywydd, the Minister's statement focuses heavily on inter-governmental relations, and I want to reiterate that, where Governments work together, Wales benefits. Indeed, I want to remind the Minister that the people of Wales are served by both Governments, and it's in the interests of both to work together. Of course, he is right to say that the UK is a proud interwoven union of nations capable of being greater than the sum of its parts, and the partnership with the UK Government on areas like free ports, like city deals, and the future of borders policy, has shown that, when Governments work together, Wales benefits.

There are, of course, genuine concerns over post-EU replacement funds, and I share some of those concerns, as the Minister well knows. But I really don't see how the Minister's statement today goes any way to tell us how he is going to build a more constructive relationship with Westminster, which is essential for the Welsh economy. Now, it's also essential that the Welsh Government prioritises investment in fields like research and innovation, which has huge potential to transform the Welsh economy and put us at the forefront of technological developments. But we are still waiting for an innovation strategy from the Welsh Government, despite repeated calls from the sector. Therefore, perhaps the Minister could take the opportunity to tell us when we will see an innovation strategy from this Government. 

Now, the Minister makes a fair point regarding the long-term future of steel. It is a foundational industry that is the backbone of our manufacturing sector and we need clarity on how a sustainable future will be secured. Therefore, perhaps the Minister could update us on the latest discussions he has had with UK Government Ministers regarding the future of the industry so that we can better understand the level of engagement on this matter. 

The Minister's statement highlights floating offshore wind as an area where dialogue needs to be strengthened, and I'm interested to know more about his views given that, in the discussions that I continue to have with developers, they make it clear that it's the Welsh Government and the resourcing of Natural Resources Wales that are holding up developments here in Wales, especially regarding planning consents. Therefore, perhaps he could take the opportunity to explain exactly what he means in his statement in relation to floating offshore wind, as stakeholders will be at the Senedd later today and next week and will be keen to better understand his views.

In closing, Dirprwy Lywydd, I'd hoped that we'd hear more from the Minister today about the economic priorities of this Government, particularly in light of the report by the National Institute of Economic and Social Research, which argued that, since devolution, Welsh economic policies have lacked coherence and consistency, and ambitions have not been matched by effective implementation. That report was, in fact, co-authored by a former Welsh Government Minister, and so, today's statement could, and in my opinion should, have been an opportunity to tell Members more about how it will support entrepreneurship and innovation, develop a robust skills pipeline and bring together industry and academia for the benefit of the Welsh economy. Members already know that stronger inter-governmental relations benefit the Welsh economy, and whilst the Minister is right to say that we need clarity from the UK Government in some areas, we also need to see greater clarity from the Welsh Government in many areas too.