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

Part of the debate – in the Senedd at 4:12 pm on 17 January 2023.

Alert me about debates like this

Photo of Vaughan Gething Vaughan Gething Labour 4:12, 17 January 2023

Thank you for the questions. As the Member knows, we're developing our net zero skills plan. There are some statements due to be made by the Office for National Statistics and others later in the spring, but I'm interested in how we are able to close the circle. I have actually had further conversations in the last week about the response from a variety of stakeholders, both providers of skills acquisition, further education and others, but also businesses—and business awareness—themselves, and it varies in different sectors. There's a challenge here about raising awareness of the journey to net zero, and the fact that businesses in all sectors will need to change some of the ways they look to work. It's why there's going to need to be not just an approach on what the policy is, but raising awareness, and how we equip people who will come into the world of work for the first time, or who are near the start of their career, as well as those of us who have been at work for a longer of period of time, and how you equip and re-equip the current generation of people already in work. And you'll see that as we take forward the net zero skills plan, but also the work we'll then do in more detail in different sectors. So, I'll have more to say in the coming months, when we actually launch the plan, and you'll see some of that engagement. And I'm sure that, with your other hat on, not of being the Conservative spokesperson but of being the committee Chair, you'll be interested in some of the engagement. And I look forward to the evidence and the examination that I'm sure the committee will give. 

On the Development Bank of Wales's green business loans, you won't have to wait much longer; I think Luke Fletcher has asked this as well. In the coming weeks, that launch will take place to set out how the development bank will be able to support businesses to both reduce costs to save the bottom line, and to do so on a sustained basis, to decarbonise their production, and the advice function will be part of that scheme as well. So, not much longer to wait. But, that does show that we're using the powers and the ability that we have to make a practical difference. 

And when it comes to inter-governmental relations, it requires the UK Government to be a willing partner in a conversation. The meeting that I had today with a Minister within the Department for Business, Energy and Industrial Strategy in the UK Government, a Scottish Government Minister and a civil servant from Northern Ireland was the first one in nine or 10 months. That isn't because we decided not to have the meetings; it was a choice by the UK Government for a variety of reasons for those not to happen. We have always been prepared to engage constructively. It was the same in the meeting that I had earlier this week with Michael Gove on a range of other issues as well. We know that we won't always agree, but we'd much rather have a conversation and to do that at an early enough stage to make a difference. What we have found at various points in the last couple of years is that we have been engaged at a point where we are being told what the decision is, or there is a demand that we agree to a policy and a perspective that we know we will not find agreement on. It's why I pointed out in my statement areas where agreement has been possible, like the fact that we compromised and had agreed a position on free ports, to contrast that with the approach taken on shared prosperity and the shared prosperity fund, for example.

On an innovation strategy, I think I've been as clear as I can be: it's a commitment in the co-operation agreement. We expect to launch that before the end of February, so, again, not much longer to go. When it comes to steel, I welcome what the Members had to say about needing clarity on our future for the sector. That can only come if there is a proper road map from the UK Government on what shared investment looks like and the sort of priorities it wants to set. And that's really important right across the whole sector, not just for the steel sector itself, but then what's going to happen in procurement in a range of other areas where we could and should be having a positive impact from seeing more British-manufactured steel used in a range of products. That would also, I think, require a different approach on infrastructure investment as well.

And when it comes to floating offshore wind, again, an area where steel could and should be used, we have been really clear in our conversations with the Crown Estate. Myself and Julie James, the climate change Minister, have met with the Crown Estate several times, and we've been clear about what we want to see with the future pipeline of leasing rounds, so not just something where there's an opportunity for a period of months and a shorter period of years, but a longer term round of leasing, so you can get longer term investment. And that, I think, would underpin significant investment in port infrastructure in north and south Wales, to allow opportunities to be taken up properly.

And also we've been very clear with the Crown Estate that we want to see a positive advantage and a requirement made in the next leasing round on localised supply chain, and that, actually, the bids would then have to be seen through in practice. There would need to be a contract mechanism to make sure that a bid can't read fantastically well on paper and that something entirely different takes place in reality over the coming years. And I would have thought that the Member and others would be supportive of that, because making sure we generate greater economic value in those supply chains should be a common objective right across the Chamber.

And finally, on your point, you mentioned skills at the end; it's one of the areas we have invested in consistently. We have a good record on investing in skills and apprenticeships through the lifetime of devolution. It's one of the levers we do have and make a difference with. It's also one of the levers where it's harder to do more because of the lack of a proper settlement on post-EU funds. That £1 billion we're going to lose makes a real difference in how we support the economy, how we equip people with skills for today, and for tomorrow, and I really would welcome Welsh Conservatives joining with voices from across the Chamber and wider society and other sectors in calling on the UK Government to revisit what it's done, revisit its broken manifesto promises, and give Wales what it promised it would have, full replacement for former EU structural funds, and that would make a difference to our economic future.