The Future of the Welsh Economy

From Past to Present – a look at the future direction for the Welsh Economy

By Mike Hedges AM – Labour Assembly Member for Swansea East

Historically, the Welsh economy was built on the coal mining, the metal industries (especially steel), along with agriculture. We saw a gradual shift in the main source of employment in the post-war period with the boom in the number of inward investment manufacturing factories setting up shop in Wales; this included the establishment of Hoover in Merthyr (1948), Ford in Swansea (1965) and Sony in Bridgend (1973), with all subsequently closing

In more recent time, the Welsh economy has also relied on the public sector, with a number of government services being relocated to Wales, such as the Royal Mint in Llantrisant, the DVLA in Swansea, Companies House in Cardiff, and the National Statistics Office in Newport.

If Wales is to have a successful, vibrant and thriving economy, we need to concentre on key growth areas and support those industries with grants, incentives and other government help. Although everyone will have different ideas on which sectors to support, it’s my belief that we must concentrate on supporting and nurturing the life sciences, ICT, creative industries, advanced manufacturing and professional services.

With around 10,000 people in Wales in over 300 companies employed within the life science sector.  The £100m Wales Life Sciences Investment Fund, supported by the Welsh Government, is a key element in the drive to boost our economy. We’ve already seen the fund play an integral role in business growth by attracting new companies to Wales, along with supporting job creation, encouraging graduates to enter into employment in the pharmaceutical and healthcare sectors.

The evidence also tells us that businesses in the life sciences sector can grow very quickly in a global market, with the rewards for success being huge. This means that a small number of successful businesses in the life sciences industry - compared to other sectors – have the power and potential to generate economic value for Wales and creating well-paid jobs.

In the Welsh creative industries sector, we have the BBC studios in Cardiff Bay, a vibrant animation sector particularly for children, with notable programmes produced in the form of Super Ted and Fireman Sam. More recently in my home town of Swansea, we have seen the opening of the Swansea Bay Studios, on the site of the former Ford plant on Fabian Way, where the internationally acclaimed Da Vinci’s Demons was filmed and produced.

In addition, Pinewood Studios – the film company responsible for the James Bond franchise – also has a home in Wales, with an impressive studio complex.

Professional and financial services are however sectors where Wales, particularly outside Cardiff, remains weak. We need to develop our professional services and use the flourishing university sector to generate employment in this area. In the 1970s and 1980s, Swansea University was at the forefront of finite element analysis, yet Wales generated very little benefit from it. Professional services in finance and engineering can generate high salaries and also produce clusters of related activity. We have a major and well-respected insurance company in Admiral (one of the biggest private sector employers in Wales), but we desperately need to attract and support more high value and high-wage employment in the financial sector. One initiative to boost the finance sector is the finance enterprise zone in central Cardiff.

Despite the decline in manufacturing Wales has seen over the last fifty years, our economy still has a number of advanced manufacturing industries. This includes the Airbus plant at Broughton, the Toyota plant in Deeside and the Ford engine plant in Bridgend. We have also seen Welsh Government investment into the sector with the Materials Manufacturing and Learning scheme, led by Swansea University, which aims to increase the number of people gaining technical skills throughout Wales..

One key industry that is not geographically constrained and has the ability to generate huge wealth is ICT. There is a tendency for ICT companies to cluster together, not just in Silicon Valley in California, but also around Cambridge University. In Wales, medium sized enterprises in the sector have performed strongly with a 92.8% increase in turnover between 2005 and 2013. There is a need to turn some of the medium sized ICT companies into large ICT companies. We know that ICT is a high paying sector and that superfast broadband rollout across Wales is making it possible for ICT companies to develop across Wales.

With the quality of ICT graduates being produced in the Welsh universities, it has to be a severe disappointment that Wales has a lower proportion of its population working in ICT companies than the rest of the UK. If we are to make Wales an obvious home for such ICT companies, then we need to look at providing the same support that has been available for the life sciences sector.

Developing an economy is about developing and promoting high-value economic sectors. We will not develop a successful economy and high GVA on low pay and seasonal work. We therefore need a national strategy for each of these targeted growth sectors. Thanks to the Welsh Government, a strong level of progress has already been made in these growth sectors, but the level of commitment and investment needs to continue if we are to really realise our ambition of producing a high wage and high skill economy

 

 

Press Release on New Autism Service for Wales

MIKE HEDGES AM WELCOMES New autism service for Wales to be established

 

Mike Hedges AM welcomes the new national autism service for Wales, which will provide lifetime support for children and adults that is being set up in Wales

 

Mike said… ‘I am pleased with this new announcement of further support for people with, and carers of people who have Autism. Over my years of Public Service,  I have met many people who would have benefited from this type of service. It will represent a sea change in the way that services can be accessed. It will also provide support for people with Autism and their carers and reduce isolation people often feel when dealing with this condition on their own.’

 

The service is a key part of the Welsh Government’s refreshed Autistic Spectrum Disorder Strategic Action Plan, which has been launched for consultation. The Welsh Government published its original strategic action plan in 2008, which was the first of its kind in the UK.  

 

The refreshed Autistic Spectrum Disorder Strategic Action Plan focuses on raising awareness of autistic spectrum disorder (ASD); ensuring information, advice and training is available to all; improving assessment, diagnosis and support for people with ASD; addressing support needs and ensuring people have access to a good education and career advice and support.

 

Backed by £6m from the Welsh Labour Government over the next three years, the new integrated autism service, which will be launched this year and will be rolled out across Wales by 2019, will improve support services for children, young people and adults. The new service will be based on the National Institute for Health and Care Excellence’s best practice standards and will include a focus on multi-agency and multi-disciplinary working, ensuring people with autism receive joined up services and support.  

 

The new integrated autism service will:

• Bring together existing children’s autistic spectrum disorder neurodevelopmental teams within health boards to provide diagnostic, assessment and specialist interventions (therapies) for children with ASD
• Develop new specialist adult teams, which will offer diagnostic provision
• Develop new community support teams in health board areas, providing behavioural advice, low-level support, access to community services, support programmes and sign-posting. This service will also provide training for parents and carers across the age range
• Build on existing services by developing professional capacity and enhancing skills, to improve diagnostic assessment and post-diagnostic support.
• Continue to support the ASD national lead role to provide expert advice and guidance about autism to the Welsh Government, professional groups and stakeholders.
• Support and develop the ASDinfowales website to provide an authoritative source of information and advice about autism in Wales.
• Deliver awareness-raising and training in the priority areas identified by stakeholders, to include schools, nurses, leisure services and employers.

 

Press release on Solar Enegy Initiative

Mike Hedges AM welcomes £26m investment for solar energy initiative centred in Wales

 

A £26 million EU-backed investment to drive forward the solar energy industry has been announced by Welsh Labour’s Finance and Government Business Minister Jane Hutt.

 

Mike said… ‘I welcome the news of this new investment in renewable energy; we ought to be making every use of green energy opportunities. This investment shows how partnerships between Europe Union, the Welsh Government, Universities and other partners can develop new technologies. It also shows how valuable to the Local Economy being part of the European Union is.

 

The funding is made up of £15m of EU funds, £4m from the Engineering and Physical Research Council (EPSRC) and Innovate UK, and £7m investment from Swansea and Cardiff Universities, coupled with crucial investment from industry partners. The funding will support a new phase of research and commercialisation of technology being developed at Port Talbot-based SPECIFIC Innovation and Knowledge Centre.  

 

The EU-backed investment will help SPECIFIC to progress the commercialisation of technologies to transform “buildings into power stations” by enabling them to generate, store and release their own solar energy.

 

The five-year initiative will support SPECIFIC’s innovative ambitions for the commercialisation of research within the renewable energy sector through demonstration of integrated technologies in buildings across residential and commercial sectors.

 

 

Oral Question to the First Minister RE building Council Houses

ORAL ASSEMBLY QUESTION

TABLED ON 25 FEBRUARY 2016

FOR ANSWER BY THE FIRST MINISTER

ON 01 MARCH 2016

 

 

MIKE HEDGES AGREES WITH FIRST MINISTER WHO WELCOMES NEWS THAT CITY AND COUNTY OF SWANSEA COUNCIL IS BUILDING COUNCIL HOUSES.

Mike said…. ‘I agree with the First Minister and welcome the news that Swansea Council is building Council Houses. It is exciting to see local authorities building council houses again, especially as both proposed sites are in Swansea East.  I look forward to seeing the completed Houses.

14 Mike Hedges (Swansea East): Will the First Minister make a statement on council house building in Wales? OAQ(4)2740(FM)

 

 

First Minister:

It is exciting to see Councils start building again. They are at different stages of the process and proposals vary in scale. I am pleased to see Swansea is running a pilot scheme to build around 30 homes on two sites as part of their longer term strategy.

 

Mke Hedges AM welcomes projects aimned at reducing the number of motor cycle casualties

Mike Hedges AM welcomes Funding for projects to reduce motorcyclist casualties

 

Two projects which aim to improve road safety and reduce the number of motorcyclist casualties will share up to £450,000 of research funding from the Welsh Labour Government to develop their products, Economy and Transport Minister, Edwina Hart has announced.

 

Mike Hedges AM said…. ‘I welcome this news that funding is to be made available to provide research aimed at reducing Motor Cycle accidents. I am aware of the statistics relating to motor bike accidents and anything that can be done to reduce these figures is to be welcomed.’

 

In July of last year the Minister announced the four successful projects under the first stage of the Welsh Government’s Small Business Research Initiative (SBRI), which required companies to identify pioneering approaches to reduce motorcyclist casualties in Wales – a priority road safety target for the Welsh Government.

 

The funding they received helped them to run feasibility studies as part of the first phase of the challenge. The four projects were then invited to bid for funding for phase 2 of the initiative, which will help develop the products to point where they can be marketed.

 

The successful projects are:

• An advanced helmet liner from Armourgel Ltd, which will incorporate Armourgel material into motorcycle helmets with the aim of protecting motorcyclists from rotational acceleration brain injuries.
•  A junction alert system from Fusion Processing Ltd which will use a combination of radar and cameras to identify when a motorcyclist is approaching.

 

 

Mike Hedges AM welcomes news that GP surgaries to remain open longer

Mike Hedges WELCOMES news that GP surgeries in Wales open for longer

 

Mike said.. I welcome the news that the hours that our GP services are open are lengthening; it is a constant concern for Residents in Swansea East that they have access to GP Surgeries across a range of times; this news confirms that this is occurring and is another example of where the Welsh Labour Government are delivering for the people of Swansea.

 

More GP surgeries in Wales are open for longer, making it easier for people to access health services, new figures published show.

 

Welsh Labour’s Health and Social Services Minister Mark Drakeford said the figures show the Welsh Labour Government is delivering on one of its key Programme for Government commitments.

 

The figures show that in 2015:

• 82% of GP practices were open for daily core hours (8am to 6.30pm Mondays to Fridays) or within one hour of the daily core hours up  from 60% in 2011
• 97% of practices offered appointments at any time between 5pm and 6.30pm on at least two week days, up from 92% in 2011
• 79% of practices offered appointments at any time between 5pm and 6.30pm every day, up from 63% in 2011
• The percentage of practices closed half day on one week day has fallen from 19% in 2011 to 4% in 2015.

The Case for more Assembly Members

We need more Assembly members don’t we

If you missed the demonstrators chanting we want more Assembly members and when do we want them now, so did I. Whilst there is a strong body of opinion calling for more Assembly members with an increase to either 80 or a 100, I do not see a demand by the public to have more members of the National Assembly.

With Government Ministers, the Leader of the two main opposition parties and the presiding officer sitting on no committees and the Deputy Presiding officer only on two specific committees that leaves 42 members to cover all the scrutiny committees.

Having served on three committees for almost five years, there are three things that I have discovered. Firstly that the committees remit for the 10 member committees is far too wide. I have served on the Communities, Equality and Local Government Committee which covers a very wide range of policy areas from the Welsh language to Local Government and Broadcasting. Secondly as most people giving a viewpoint or evidence to a committee appear for one hour then with ten members there is an average of 6 Minutes each to ask questions and receive answers, which is usually insufficient for any in depth questioning. Thirdly that if a committee wants to produce a well researched report then it cannot do it unless it gets a wide range of opinions.

Currently in the Welsh Assembly there are five committees that have 10 members with two committees of 8, two committees have 5 members and two committees have 4. If every committee had 4, 5 or 6 members then seven new committees could be created. Adding another 20 members would create 4 more committees and adding 40 would create another 8 committees based upon a committee size of 10.

If committee size was reduced the advantages would be more time for individuals to ask questions, the ability to specialise in a much smaller area of government activity and the ability for each member of the committee to ask twice as many questions in an hour and also  follow up on questions that are either inadequately answered or answered incorrectly.

If there are these advantages of having smaller committees then why do all the main committees that deal with legislation, except for the finance committees, have a membership of ten. Finance has eight because there is only one Conservative party member whilst there should be two under proportionality. The committees are set up in accordance with two rules, as Labour has 50% of the Assembly membership they are eligible to 50% of the committee seats and each other party has a number proportionate to its membership of the Assembly is rule 1 and rule 2 is that the Liberal Democrats have to have a member on each committee. Whilst rule 1 is consistent with proportionality on council committees and with fairness, the second rule appears, at least to me, bizarre. If this continues and the Liberal Democrats lose a seat then the committee size increases by 3 and if they lose two seats then committee size increases by seven or eight.

In Plenary session’s questions to the first minister and other ministers, with approximately 15 minutes given for party spokespeople, it only leaves half an hour for each minister to be questioned by the rest of the Assembly Members. I make an average of about two questions a week but with additional members it will become more difficult to raise questions relating to the constituency and constituent’s interests unless the question time was increased. The same is true of debates and government statements where more members will dilute even further the opportunity for non government ministers and opposition spokespeople to take part.

I would support trying smaller committees and only if that proved unworkable, which I do not think it will, look to increase the number of Assembly members.