As Shadow Minister, I’ll lead the party’s calls today for the Welsh Government to recognise that the attempts it’s made over the past 20 years to boost the economy haven’t worked, and as a result this country’s potential is failing to be realised.
Of the three economic plans that Welsh Labour have launched during their time of unbroken power in our devolved nation, not one has succeeded in improving earnings or economic output.
Instead, we hear of poorly judged and harmful Welsh Government PR campaigns which actually advertise Wales as a place for business to be drawn to thanks to our poorly-paid workforce.
As a result, Welsh Conservatives will today call on Welsh Labour to take fresh action to improve the economy for all. Our motion today asks the Welsh Government to: simplify and improve access to business support; align an effective industrial strategy; reform the failing public procurement strategy to support small and medium size business; upskill the workforce; and reflect this boost with suitably improved infrastructure.
We want to see the true potential of devolution realised in Wales, which we’ll achieve through an ambitious policy programme in order to shake off our place at the bottom of the UK league tables.
The Welsh Government sadly oversees the weakest economy in the UK, the lowest productivity in the UK and of course, those stagnant pay packets holding us back. Despite being level with other nations 20 years ago, we’ve long been left behind and now Welsh workers have the lowest weekly wages in the UK.
I want to set out today how a Welsh Conservative government would create the right conditions for our economy would strive so we could end regional inequality across Wales, and in turn see a boost to living standards as well as properly planned and funded health, education and local government services.
Looking outwards to the rest of the world, we see that Welsh Labour’s economic strategy over the past 20 years has primarily focused on attracting foreign direct investment, and while we really welcome countries from across the country joining Wales, as the economic data shows, the Welsh Government’s handling of this opportunity has failed to create well-paid jobs, has failed to increase productivity and has failed to close the gap between Wales and the rest of the UK. A Welsh Conservative Government would open new overseas offices to boot Welsh trade and connect a strong Welsh economy with the world.
Meanwhile, on home soil, our modern Industrial Strategy will ensure jobs and opportunity are spread across the whole of Wales. This is helping the whole country get ready for economic change by investing in our infrastructure, driving up research spending and boosting the skills of our workforce.
I want to back Welsh business by firstly improving access to business support. The Welsh Labour Government has failed to commit to updated business lending promises from the 2017 New Economic Action Plan, despite being pressed on the matter at the end of last year. Nor has the First Minister been able to comfort businesses seeking financial support through one of the five ‘Calls to Action’.
Despite 18 months of ‘delivery,’ the Welsh Government has made no tangible progress on the roll-out of this aspect of their economic plan. To date, the Minster has made no statement updating the assembly on the “targeted roll-out of that plan” that was meant to have already happened in 2019.
Next, when we look at the way public procurement has been handled in Wales, we note that this section of Welsh Labour’s Economic Acton Plan is intended to improve Wales’ public procurement regime. However, according to a recent Written Assembly Question last December, in 2018 22% of procurement spend by the Welsh Government on construction contracts worth over £500,000 went to firms based outside Wales. That leakage represents lost opportunity for investment in Welsh supply chains and consequently lost opportunities to further strengthen the economy of Wales.
We note that a strong economy is built by a strong workforce, so we intend to focus on adult learning, upskilling and re-skilling key for a forward-thinking, diverse economy. Furthermore, it provides Wales’ workforce with the ability, not only to gain new skills and knowledge within their sector but has added indirect benefits of improving social capital and integration, health behaviours, skills and employment outcomes. It is therefore imperative that adults are encouraged to participate in learning at any stage of their career, whether it be through in-work learning or personal study.
Wales’ economy is facing a skills shortage under Welsh Labour, as 72.5% of Welsh businesses experienced difficulty in recruiting the right staff in 2015. 61% of Welsh businesses in Wales fear they will not be able to recruit enough high skilled workers to meet demand and grow, which has increased by 29% since 2014.
It’s also high time the Welsh Government turns its sites to the delivery of a robust and future-proof transport network. At present, too many transport projects are delivered late and over budget and the Welsh Government is also stalling on the delivery of major schemes such as the much needed M4 relief road.
Traffic analytics firm Inrix has indicated that westbound congestion at Brynglas cost motorists £14m in lost time in 2017 alone. Without the alleviation of congestion on that stretch of motorway, the Welsh economy will continue to be hampered by the chronic levels of congestion and delays it creates.
Finally, it’s crucial we see the strengthening of the country’s growth deals. These deals have a strong regional focus and are centred on building collaboration and partnership between neighbouring local authorities in order to raise regional growth and prosperity.
We’ll make this happen by implementing the findings of the recent government review into the Swansea Bay deal and driving the deal forward.
Welsh Conservatives are also determined to fulfil the Cardiff and Mid Wales deals, while contributing in full to development in North Wales. The North Wales growth deal is expected to create more than 5,000 new jobs and increase the value of the North Wales economy from £13.6 billion in 2016 to £26 billion by 2035.