149 contributions on record. Newest first, by sitting day. Page 2 of 4. Counted by Siambr
The Welsh Government’s national energy strategy will take a whole-systems approach, replacing the previous renewable electricity generation target with an emissions-based energy target. This will help identify where action delivers the greatest contribution to our ambition of achieving net zero by 2040.
I just would point out to the Member that I think the context is key here, isn't it? So, the situation in Wales where we have unique assets—latent potential in many cases in terms of green energy—is that, actually, green energy is the means for our reindustrialisation, not our deindustrialisation. I'm specifically referring to, for example, our globally significant potential in terms of floating offshore wind, and the well-known, unique natural advantages we have in terms of tidal technologies, for example. We could, therefore, not just generate the electricity through those technologies, but also capture the supply chain and build up a manufacturing base on that level.
In relation to his point about nuclear, I would just point out that, actually, the move towards an emissions-based target includes not just renewable sectors, but also other low-carbon technologies that include nuclear, alongside carbon capture and storage.
Rwy'n ddiolchgar i'r Aelod am ei gwestiwn. Mae yna nifer o elfennau yn fanna, ond, wrth gwrs, mae popeth yn gysylltiedig ar ddiwedd y dydd, onid ydy?
Gyda'r strategaeth ynni genedlaethol, wrth gwrs, un o'r elfennau mawr fydd gosod mas y gwahanol gyfraniadau fydd yn cael eu gwneud fesul technoleg, a wedyn, wrth gwrs, ar lefel gofodol—so, bydd hwnna’n elfen—a gosod mas beth mae’r gwahanol elfennau yn cyfrannu. Mae’r penderfyniad gyda Gwyndod, i bob pwrpas, wedi’i wneud, a dyna’r sail y mae’r holl randdeiliaid ynni ar draws Prydain nawr yn cynllunio arni.
Felly, mae’r elfen yna, wrth gwrs, yn gorfod bod yn rhan ohono fe, ond, yn sicr, rŷn ni’n derbyn bod cyfraniad gydag ynni gwyrdd ar y tir, ac mae yna oblygiadau wedyn o ran sicrhau bod y seilwaith o ran cysylltiadau grid yno i helpu hynny i ddigwydd yn y ffordd fwyaf effeithlon o ran ein systemau ni, a hefyd o ran ein economi, gan, wrth gwrs, gydnabod bod yna angen gydag unrhyw fframwaith cynllunio i gael y balans yn iawn o ran y llais a'r buddiannau cymunedol hefyd.
I'm grateful to the Member for his question. There are a number of elements to that question, but, of course, everything is connected at the end of the day, isn't it?
With the national energy strategy, one of the major elements will be setting out the different contributions that will be made by each form of technology, and then, of course, at a spatial level—so, that's one aspect—and setting out what the different elements will contribute. The decision with regard to Gwyndod, to all intents and purposes, has already been made, and that's the basis on which all of the energy stakeholders across Britain are planning.
That element has to be a part of the mix, but, certainly, we do accept that there is a contribution to be made by onshore green energy, and there are implications in terms of ensuring that the infrastructure with regard to grid connection is there to facilitate that to happen in the most efficient way with regard to our systems and our economy, recognising, of course, that there is a need in any planning framework to strike the right balance in terms of the interests and voice of the community.
I'm grateful to the Member for her question, and she is absolutely right, of course, that our national energy strategy will be looking particularly at those technologies where Wales is well placed, in terms of its natural assets, in the way that I described, to develop. But we need to be mindful, of course, of nascent technologies, which are at different stages of maturity at any point. So, this area never stands still, and we need to be building the capacity for Wales to be a test bed for some of those technologies that are on the horizon as well.
In relation to grid infrastructure, can I take the opportunity as well to say—I should be able to recite this without looking at my notes—that we are clearly committed to delivering our manifesto commitment in relation to the distribution network of 132 kV and below, which is in favour of undergrounding, with only exceptions in terms of overhead, through low wooden poles, or other similar, equally unintrusive infrastructure?
I'm really grateful to the Member, not just for writing to me, as she's described, but also for raising this subject here in the Siambr, which gives me an opportunity to address some of the issues that are relevant to this area. As she's aware, we have commissioned work that is ongoing in this area. It's important to acknowledge that with the huge growth of data centres, related digital infrastructure and the wider context, of course, of AI, edge computing and related technologies, we do need to have a robust policy framework that is futureproofed and that also recognises the need to enable us to have the advantages that can flow from the investments that are happening in digital infrastructure across the world but to do so in a way that balances those with the legitimate concerns that people have at a community level and more broadly in terms of energy use, in terms of water, in terms of land use et cetera. So, we will be setting this out as soon as we can so that we can have that discussion across the Siambr and more widely across civil society in Wales.
I'm grateful to the Member for that question as well. We were wondering whether we could do a little bit of choreography. But I think that the key here, and obviously we're aware of that specific opportunity, is we're keen to see investment in our railway infrastructure the length and breadth of Wales, including in Cardiff. The one thing that we need, and maybe we can work together on this, is to turn that £14 billion promise that, you know—. The promise was very welcome, but what we need now is to turn that into an action plan with budgetary commitments and a timetable. And then we'll not only be able to deliver Cardiff parkway and wider investment across Cardiff and south-east Wales, but the length and breadth of Wales. So, let's work together on that.
I'm grateful; thank you for your birthday wishes. In relation to the specifics on GCRE, there were some specific questions, and, if the Member is happy, I would prefer to take those back so we can ensure that, whatever information we can, we provide accurately, because I don't have all of that at my fingertips here.
But what I can say is that we as a Government reviewed the situation, we commissioned specialist advice in terms of where we are now, as the First Minister was saying, in terms of the opportunity. We've received that specialist advice, and we are now in the process of reviewing and discussing with other potential investors what the potential is. There is an incredibly important employment site here, and we're looking both at the Global Centre of Rail Excellence option, but looking at it in the round as well.
Thank you for that further question in this area. There's not much, really, I can add usefully at this stage. I'm sure the Member will be mindful of the fact that we need to actually drill down into the detail, look at the potential interest that has been expressed by an investor, and then make a decision in the full possession of all of that information that delivers the best public value that we can, both in economic and employment terms, in a very, very important region of Wales, which is deserving of our support to the full extent that is possible. And once we have that information, we will make a decision and we will bring that decision, of course, back to the Siambr.
Bydd ein strategaeth ynni genedlaethol yn cydnabod rôl hanfodol ynni cymunedol wrth gyflawni sero net. Bydd cwmni ynni cyhoeddus Cymru yn helpu i gyflawni’r uchelgais honno, gan gynyddu nifer y prosiectau ynni cymunedol, gosod systemau ynni adnewyddadwy a chyfleusterau storio a'u defnyddio i ddarparu pŵer a gwres am gost is i bobl.
Our national energy strategy will recognise the vital role of community energy in achieving net zero. The Welsh public energy company will help unlock that ambition, scaling up the number of community energy projects, installing renewables and storage and using them to provide lower cost power and heat to people.
Dwi'n ddiolchgar i'r Aelod am y cwestiwn atodol. Rydych chi'n mynd, dwi'n credu, at hanfod egwyddorion ein polisi economaidd, hynny yw, fod datblygiadau o ran ein heconomi ni neu o ran ein system ynni ni yn gorfod cael eu cynllunio er budd pobl Cymru. Rydyn ni wedi gweld yn ein gorffennol fel cenedl, wrth gwrs, y gwrthwyneb yn digwydd, a datblygiadau'n digwydd ar draul buddiannau pobl leol. Dydyn ni ddim yn barod i weld yr un camgymeriad yn digwydd eto. Felly, dyna pam rydyn ni'n rhoi pwyslais ar ynni cymunedol. Rydyn ni'n rhoi ymrwymiad o ran sicrhau isafswm, o leiaf, mewn prosiectau mawr o ran perchnogaeth leol, ac yn y cyd-destun penodol y gwnaethoch chi gyfeirio ato fe o ran canolfannau data, os caf i ategu'r hyn a ddywedais i'n gynharach, mi fyddwn ni fel Llywodraeth yn dod â fframwaith polisi gerbron sy'n mynd i'r afael â'r ofnau digon dealladwy ar draws Cymru lle mae yna argymhellion o ran canolfannau data sydd ddim yn rhoi'r priod ystyriaeth i fuddiannau pobl leol na'r amgylchedd lleol.
I'm grateful to the Member for that supplementary question. I think that you get to the core of the principles of our economic policy, namely that developments in terms of our economy or our energy system have to be planned for the benefit of the people of Wales. We have seen in our past as a nation, of course, the opposite of that happening, and developments taking place at the expense of local interests. We're not willing to see the same mistakes being made again. So, that's why we put an emphasis on community energy. We have made a commitment in terms of ensuring a minimum, at least, in terms of the local ownership of major projects, and in the particular context you referred to in terms of data centres, if I could echo what I said earlier, we as a Government will be bringing a policy framework forward that will address the quite understandable fears that exist across Wales where there are recommendations made in terms of data centres that don't give due consideration to the interests of local people or the local environment.
I'm grateful to the Member for his question. As I said a moment ago, I think that building, financing and facilitating community energy that is 100 per cent community owned is an important element of our policy. For larger schemes, we have said that we are committed to mandating a minimum level of community ownership of those schemes. I would say, more broadly, as well, a key principle of our national energy strategy will be taking an approach that I would characterise as more planned in relation to the spatial development of energy, rather than what we've had previously, which is, essentially, a market-led approach, which has led to concerns in communities, legitimate questions, like whether cumulative impact is properly being addressed. So, I think, by taking a planned approach, and getting the balance right between the necessity for decarbonising our energy system, recognising the range of technologies, including onshore renewables and their role in that, but giving confidence to communities as well that this is being done in a planned way, with them, and is not being imposed upon them with little benefit accruing to communities and to the people of Wales.
Improving economic outcomes in Ceredigion Penfro means backing local businesses, strengthening rural economies, and creating better paid jobs. We're delivering our commitment to support Welsh firms, align skills with employer needs, invest in infrastructure and procurement, and ensure communities across west Wales share in economic growth.
I'm grateful to the Member for his question. I think I set it out clearly yesterday that we, obviously, are working at pace on the framework. The framework, actually, is a solid foundation for us to work with the sector in Wales, and we'll be working with companies in the sector as part of the process of developing it. Where there are decisions that—. We are trying—. Obviously, where it's possible to defer, partly out of respect for this Senedd, really—. But where it's not possible, in situations where decisions, for practical reasons, have to be made before the framework is finalised, we have allowed that exceptional flexibility, partly for the reasons that the Member describes, that we do not want to lose opportunities in cases that, actually, would be well within the framework. So, we have that flexibility, and I can assure him, as the economy Minister, I will be mindful of the need to use that flexibility where necessary.
We are determined that the communities hosting energy developments are genuine beneficiaries. The national energy strategy will identify the clean energy that Wales needs and how more of this can be owned through minimum community ownership requirements and investment from the new Welsh public energy company.
I'm really grateful for the question—part of an emerging theme this afternoon. It's such an important opportunity for us nationally and locally to make sure that we create an energy system where we benefit from the energy resources that we have. We can do that at different scales; we can do it through the Welsh public energy company at a larger scale, publicly owned, delivering benefit across the whole of Wales, for the people of Wales; we can do it through supporting community ownership, of which there are some good examples in the Member's constituency already. One of the reasons for doing that is precisely to get to grips with the energy costs problem that we face. Wales has some of the highest energy costs relatively compared to other parts of the UK. The UK has some of the highest energy costs in Europe. There's good evidence that community ownership actually is a means by which you can begin to deliver lower costs to households. And similarly, a publicly owned energy company, which is free not to follow the market price in energy, but to say, 'Let's actually engage in contracts with large-scale industrial users in Wales to create a Welsh energy advantage using our renewable energy resources, but for the benefit of our economy', that's precisely why we're creating a Welsh public energy company, and we're supporting public ownership and local ownership in a variety of ways at different scales.
I'm really grateful to the Member for his question. He's absolutely right: I think that private-wire, behind-the-meter opportunities are actually one of the ways in which we can do what I just described, really, which is to create that energy advantage, particularly in the context of businesses. Because it can be done, there is a means to do it, but we've got to get organised to see where we can build that out at scale to facilitate businesses, because if they can avoid the network costs—. Although there's been some movement from the UK Government on network costs to large industrial users, by and large, there's still a huge network cost element. If we can devise different ways, it could be on-site microgeneration in some circumstances; in larger scales, there could be local energy systems, which are behind the wire, which could actually provide low-cost energy for a wide range of businesses. There's some work we've got to do with some of the stakeholders in order to ensure that the arrangement that you just described in terms of connection, maybe with the grid, can be part of it. So, we're working on it. It's absolutely one of the areas where, if we work smart, we could build that Welsh energy advantage, which will be such a critical determinant of our economic success.
The Development Bank of Wales continues to deliver finance and investment support to businesses across Wales. The bank has reported strong performance during the year and remains a key economic development partner. Its 2025-26 annual report will be published later this month, setting out its full performance and economic impact.
I intend to issue the bank's remit letter in the coming weeks, which will set out clear priorities for the bank, supporting this Government's ambitions for investment, productivity and growth. That's a standard approach that every Government uses. There's nothing to see there. It's how every Government relates to arm's-length bodies, setting out the way in which the arm's-length body can deliver to the wider ambitions of the Government, particularly in the economic sphere.
Of course, we would expect the ethical framework that we are setting out in the defence sector to be cross-Government. It's there to govern the use of public money, including by the development bank, and it will also govern the development agency. Again, it's fairly normal. There are policies around fair work, for example. You would expect these to be reflected across the whole range of agencies.
I was at the launch of the development bank's Economic Intelligence Wales 'Productivity Heroes' report, and there's fantastic news here; let's remind ourselves of that. Over 1,700 high-growth firms are delivering higher productivity, higher employment and higher profits for those businesses so that they can continue to reinvest in their future trajectory of growth. I recognise scrutiny is an important part of our work here, but also let's not lose the opportunity to celebrate Welsh economic success. Because there are great things happening in Wales, and some of it is down to the work of the development bank.
Mae Llywodraeth Cymru yn cydweithio'n agos gyda Great British Energy—Nuclear a Rolls-Royce SMR i sicrhau'r manteision mwyaf posibl i'r gymuned leol o Gwyndod. Rydym yn cefnogi busnesau Cymru i ddefnyddio cyfleoedd y gadwyn gyflenwi ac yn gweithio gyda phartneriaid addysg i alluogi pobl leol i ddatblygu'r sgiliau sydd eu hangen ar gyfer y prosiect.
The Welsh Government is working closely with Great British Energy—Nuclear and Rolls-Royce SMR to maximise local benefits from Gwyndod. We are helping Welsh businesses to access supply chain opportunities and working with education partners to enable local people to develop the required skills that will be required for the project.
Yn sicr, mae hwn yn gyfle euraid o ran economi Cymru gyfan, a hefyd yn rhanbarthol ac yn lleol. Rydym ni eisiau gwneud y mwyaf o'r cyfle hwnnw ar draws yr amrediad o ddimensiynau o ran sgiliau. Mae'r Sefydliad Dysgu a Gwaith wedi cael ei gomisiynu i wneud archwiliad sgiliau cenedlaethol ar gyfer Cymru. Yn y cyd-destun yma, mae GBE-N wedi cael ei wahodd i gyfrannu at y galw am dystiolaeth, fel y gall gyfynion y gweithlu penodol ar gyfer Gwyndod fod yn ganolog i'r strategaeth a ddaw yn ei sgil. Mae canolfan sgiliau niwclear Cymru a grŵp llywio wedi'u sefydlu i ddod â diwydiant, Llywodraeth Cymru, llywodraeth leol, darparwyr a chymunedau ynghyd o amgylch dull cydlynol, i sicrhau bod gyda ni y system sydd ei hangen er mwyn sicrhau bod pobl leol yn cael y mwyaf o'r cyfle sydd yno.
O ran y gadwyn gyflenwi ar gyfer busnesau lleol, bydd swyddogion Llywodraeth Cymru yn chwarae rôl ganolog mewn digwyddiad cyflenwyr Gwyndod—mae'n falch gen i geisio hysbysu hynny yn fwy eang—a fydd yn digwydd dros ddau ddiwrnod yng Ngholeg Menai yn Llangefni ar 22 a 23 Hydref, ochr yn ochr â GBE-N a Rolls-Royce SMR. Felly, mae yna lot mwy yn digwydd, ond dyma ryw fraslun o'r hyn sy'n bosib. Mae'n enghraifft arall, gan fod y penderfyniad wedi cael ei wneud, o sut mae Cymru yn bwysig nid yn unig o ran ynni adnewyddol—ac mae yna lot o gyfleoedd fanna yng ngogledd Cymru—ond ein bod ni hefyd yno ar ddechrau technoleg newydd o ran SMR ym Mhrydain, ac mae Cymru mewn safle arbennig o dda i elwa yn economaidd o hynny am genedlaethau i ddod.
Certainly, this is a golden opportunity in terms of the economy of the whole of Wales, and also regionally and locally. We want to maximise the benefits of that opportunity across the range of dimensions in terms of skills. The Learning and Work Institute has been commissioned to carry out a skills review for Wales. In this context, Great British Energy—Nuclear has been invited to contribute to the call for evidence, so that the needs of the specific workforce for Gwyndod can be at the heart of the strategy that will emerge. The nuclear skills centre and a working group has been drawn together to bring together industry, the Welsh Government, local government and community representatives around a co-ordinated approach, to ensure that we have the system that we need in place to ensure that local people can derive the maximum benefit from the opportunities available.
In terms of the supply chain for local businesses, Welsh Government officials will be playing a central role in the Gwyndod suppliers event—and I'm pleased to publicise this more widely—that will be held over two days in Coleg Menai in Llangefni, on 22 and 23 October, alongside GBE-N and Rolls-Royce SMR. So, there is a great deal of work being done, but that's an overview of what's possible. It's another example, because the decision has already been made, of Wales's importance not just in terms of renewable energy—there are many opportunities in that regard in north Wales—but that we are also there at the beginning of this new technology of SMRs in the United Kingdom, and Wales is in a very good position to benefit economically from these for generations to come.
Diolch, Lywydd. Heddiw rwy'n rhoi'r wybodaeth ddiweddaraf i'r Aelodau am waith Llywodraeth Cymru i ddatblygu fframwaith buddsoddi moesegol mewn amddiffyn i Gymru. Mae'r Llywodraeth hon wedi ymrwymo i drefn y gyfraith ryngwladol, i barchu hawliau dynol ac i gydsefyll gyda gwledydd eraill. Rydyn ni yr un mor bendant bod gan gymdeithasau democrataidd hawl gyfreithlon i amddiffyn eu hunain, a bod y sectorau amddiffyn, diogelwch a gwydnwch yn chwarae rhan bwysig wrth amddiffyn y rhyddid a'r gwerthoedd sy'n bwysig i ni.
Mae'r byd yn mynd yn fwy ansicr. Rydyn ni'n gweld gwrthdaro parhaus, gan gynnwys yn Ewrop ei hun, ansefydlogrwydd byd-eang ehangach, a mwy o fygythiadau i ddiogelwch cenedlaethol. Mae gan Gymru sector awyrofod, amddiffyn a diogelwch sylweddol. Mae'r sector yn cefnogi miloedd o swyddi medrus iawn, yn cynnal cadwyni cyflenwi pwysig ac yn cyfrannu at ymchwil, arloesi a thwf economaidd. Mae diwydiannau fel seiberddiogelwch, lled-ddargludyddion, gweithgynhyrchu uwch ac awyrofod, systemau awtonomaidd a deallusrwydd artiffisial i gyd yn rhan o'r amgylchedd economaidd ehangach. Dylai busnesau a gweithwyr o Gymru allu elwa ar fuddsoddiad, arloesi a thwf, gan gynnwys o'r fargen twf amddiffyn.
Thank you, Llywydd. Today I'm updating Members on the Welsh Government's work to develop an ethical defence investment framework for Wales. This Government is committed to international solidarity, respect for human rights and the rule of international law. We are equally clear that democratic societies have a legitimate right to defend themselves and that the defence, security and resilience sectors play an important role in protecting the freedoms and values that we hold dear.
The world is becoming more uncertain. We are seeing ongoing conflict, including within Europe itself, as well as wider geopolitical instability and increased threats to national security. Wales has a significant aerospace, defence and security sector. The sector supports thousands of highly skilled jobs, sustains important supply chains and contributes to research, innovation and economic growth. Industries such as cyber security, semiconductors, aerospace and advanced manufacturing, autonomous systems and artificial intelligence are all part of the wider economic environment. Welsh businesses and workers should be able to benefit from investment, innovation and growth, including from the defence growth deal.
However, public support for the sector cannot be unconditional. Where the Welsh Government provides support through grants, investment assistance, trade promotion or wider economic development activity, people in Wales rightly expect that support to reflect our values and responsibilities. It's important that we recognise legitimate ethical concerns while supporting a focus on high-quality jobs that the sector sustains in communities across all parts of Wales. It's therefore essential that Welsh Government support is guided by a clear and consistent ethical framework. While decisions on arms exports remain reserved to the UK Government, it is right that the Welsh Government is clear about the principles that guide our own engagement with the sector. We recognise the need for greater clarity in how these decisions are made. That is why we are developing an ethical defence investment framework for Wales.
The purpose of the framework is not to exclude the defence sector from engagement with the Welsh Government, nor to duplicate UK export controls or licensing arrangements. Rather, it is to provide a consistent basis for Welsh Government decision making where devolved support is being considered. In developing the framework, officials are engaging with stakeholders and learning from approaches being taken elsewhere in the UK. The framework will recognise the legitimate role of the defence sector in supporting national security, democratic resilience and economic prosperity, while ensuring Welsh Government decisions are informed by appropriate ethical considerations, including respect for human rights and international humanitarian law.
Our approach will be based on enhanced ethical due diligence. In practice, this means retaining the existing UK legal and regulatory framework while introducing additional ethical considerations to support Welsh Government decision making in the areas mentioned earlier. This will be a proportionate approach designed to provide greater transparency and assurance without creating unnecessary barriers for businesses operating responsibly, legally and in support of our economy and security. The framework will focus on activity taking place in Wales and on the specific projects, products, services or technologies seeking Welsh Government support. This will help ensure that decisions are informed by a clear understanding of the activity being supported, its intended purpose and, where appropriate, its known end users.
We're also considering the introduction of a proportionate self-declaration process for businesses seeking particular forms of Welsh Government support. This will provide additional transparency and assurance while avoiding unnecessary burdens on businesses operating responsibly and within the law. This framework will also inform Welsh Government participation in defence-related trade missions, exhibitions and business-to-business events, helping ensure a consistent approach across relevant areas of activity. As part of this work, we will also consider how the framework can support innovation and dual-use technologies, recognising that many of the technologies driving economic growth, including cyber, artificial intelligence, semiconductors and advanced manufacturing, have both civilian and defence applications.
Given the significance of this work, and to ensure a consistent approach, I have asked that, where legally and practically possible, any decisions relating to new Welsh Government investment support for defence sector activity are not finalised until the framework is published and implementation arrangements have been fully considered. Should a decision on Welsh Government support be required before publication of the framework, it will be taken by the Prif Weinidog, taking account of relevant considerations. This is a temporary and precautionary measure to ensure that future decisions are considered against the framework from the outset. I want to be clear that this does not represent a withdrawal of support for the sector, nor does it affect existing contractual commitments or the day-to-day relationship between the Welsh Government and defence-related businesses operating in Wales. It does not prevent ongoing engagement, discussions, due diligence or exploratory work with businesses where no investment decision has been taken.
Mae gan Gymru draddodiad balch o hyrwyddo hawliau dynol, undod rhyngwladol a rheolaeth y gyfraith. Rydym yn cydnabod ac yn gwerthfawrogi cyfraniad y gweithwyr, busnesau, ymchwilwyr a phrentisiaid ledled Cymru y mae eu sgiliau, eu harbenigedd a'u harloesedd yn cryfhau ein diogelwch, ein gwytnwch a'n ffyniant economaidd. Rydym yn gwrthod y dewis ffug rhwng cyfrifoldeb moesegol a chyfle economaidd. Ar adeg o fygythiadau cynyddol i ddiogelwch Cymru a thu hwnt, gall Cymru gefnogi sector amddiffyn cryf, arloesol a chyfrifol tra'n aros yn driw i'r gwerthoedd sy'n ein diffinio fel cenedl. Gallwn gymryd ymagwedd foesegol gytbwys a chymesur sy'n adlewyrchu'r gwerthoedd hynny, tra'n parhau i gefnogi swyddi, buddsoddiad ac arloesedd o ansawdd uchel ledled Cymru.
Bydd y fframwaith rydym ni'n ei ddatblygu yn darparu sylfaen glir a thryloyw i Lywodraeth Cymru allu gwneud penderfyniadau. Bydd yn sicrhau bod egwyddorion cyson yn arwain y gefnogaeth i'r sector a bod ystyriaethau moesegol priodol yn eu llywio. Bydd cyhoeddi'r fframwaith yn rhoi mwy o sicrwydd i fusnesau, buddsoddwyr, prifysgolion a gweithwyr ar draws y sector, gan eu helpu i ddeall yn glir sut y bydd Llywodraeth Cymru yn mynd i'r afael â gweithgarwch sy'n gysylltiedig ag amddiffyn ac yn ei gefnogi yn y blynyddoedd i ddod.
Dydyn ni ddim eisiau oedi nac ychwanegu ansicrwydd, a dyna pam rwyf wedi gofyn i swyddogion gyflwyno'r fframwaith terfynol i'w gyhoeddi yn ystod yr hydref hwn. O ystyried pa mor gyflym mae'r sefyllfa fyd-eang yn newid, bydd y fframwaith yn cael ei adolygu'n ffurfiol ar ôl 12 mis ac yn rheolaidd ar ôl hynny i wneud yn siŵr ei fod yn dal i fod yn berthnasol, yn gymesur ac yn effeithiol. Dyna'r cydbwysedd rydyn ni'n ceisio ei sicrhau, ac rwy'n edrych ymlaen at roi diweddariad i'r Aelodau pan fydd y fframwaith yn cael ei gyhoeddi cyn bo hir.
Wales has a proud tradition of championing human rights, international solidarity and the rule of law. We recognise and value the contribution of the workers, businesses, researchers and apprentices across Wales whose skills, expertise and innovation strengthen our security, resilience and economic prosperity. We reject the false choice between ethical responsibility and economic opportunity. At a time of increasing threats to security in Wales and beyond, Wales can support a strong, innovative and responsible defence sector whilst remaining true to the values that define us as a nation. We can take a balanced and proportionate ethical approach that reflects those values, while continuing to support high-quality jobs, investment and innovation across Wales.
The framework we are developing will provide a clear and transparent basis for Welsh Government decision making. It will ensure that support for the sector is guided by consistent principles and informed by appropriate ethical considerations. Publication of the framework will provide greater certainty for businesses, investors, universities and workers across the sector, helping to give them a clear understanding of how the Welsh Government will engage with and support defence-related activity in the years ahead.
We don't want to delay or add uncertainty, and that's why I've asked officials to bring forward the final framework for publication this autumn. Given the pace of geopolitical and economic change, the framework will be formally reviewed after 12 months and kept under regular review thereafter to ensure it remains relevant, proportionate and effective. That is the balance that we are seeking to achieve, and I look forward to providing further updates to Members when the framework is published in due course.
I thank the spokesperson for his contribution and his questions. First of all, I'd just like to point out that it is normal, given the specifics and nature of this sector; most democratic Governments around the world recognise that through having a specific legal and, often, ethical framework as well governing this sector. Scotland, the Scottish Government, has an ethical framework governing this sector. The Northern Irish Government has an ethical framework. Effectively, the UK Government has an ethical framework in its export arms licensing policy. So, what we are simply seeking to do is to bring the Welsh Government in line with all of those other responsible democratic Governments across the world that recognise, when it comes to this sector, because of its sensitive nature, you need to have a proper framework in place. Indeed, I have to say, the representatives of the defence sector that I've engaged with have indicated a willingness to engage positively with the development of this framework, because they regard themselves, as individual businesses and a sector, as being ethical. They see nothing to fear here, they want to engage with us in the process of its development.
The framework is not finalised yet, so I can't give all the detail. I'm trying to update Members as much as I can through an interim written statement that I gave, through an oral statement, and I will return to the Senedd once we have the framework in place, because I think, in this area, because of the legitimate interest that Members have, it's important that you are involved at every stage in the development of the process. In terms of the interim decisions, in my interim written statement, I made it absolutely clear that we would defer where it was practically and legally possible, and I've reiterated that today in the statement that I've made.
Yes, I'm really—
I'm really grateful—. If the Member has concluded—
I'm really grateful for those comments, questions and suggestions, and also the spirit in which they were made as well.
The last point that you were making—I think it’s absolutely important that we will involve trade union partners in the development of the framework. The defence sector, actually, is a highly unionised sector, and I think that ensuring that we have trade union and worker voice in the development of the framework—. And we have to be mindful, absolutely, of our responsibilities to the workforce in this sector. The defence sector and the related sectors employ, already, over 16,000. There's been substantial employment growth, even in the last 12 months, and these are, by and large, high-paid, higher than average, jobs in the advanced manufacturing sector, which is a sector that we want Wales to build even further on its strengths. We have a higher manufacturing base than other parts of the UK. We've managed to maintain that in the UK. We don't want to stay there. We want Wales to re-industrialise even further, and those advanced manufacturing skills are highly relevant to the context that we're describing here. And there are further opportunities that we want to explore.
In terms of timing—. And, yes, what we're trying to do with the framework is get the balance right between these two really important and legitimate aims of public policy and of society. We want to see the economy thrive and generate the high-paid jobs, good jobs, everywhere, to coin a phrase. We want that, and we want it to be done in a way that's consistent with our values. I think it's really important, not just in this context, but in every context. It's not business over here and ethics over there. Many successful businesses and founders will say, actually, the most successful businesses in the world are the ones that marry those two together, so that, actually, you're in a situation then where you can be proud to go to work. You can be proud of the work that you do. If you know the ethical framework is there for what you do, then that is the way to actually motivate, not just yourself, but the workforce et cetera, and the communities that depend on these businesses. That's true in every sector, and that's why, as I said, nobody that I've spoken to in the defence sector has said, 'We don't want an ethical framework.' Many of them said, 'Look, we want to behave in the most responsible way that we can, and we want to engage on that basis.'
The issue of timing—yes, I think that you're right. Obviously, we want, for the reasons that I think will be well understood as we're developing the framework, where we can, to defer decisions until after the framework has been published, and after you, as a Senedd, and civil society and everyone else, and the sector have been able to see it. We will. But, obviously, there may be some time-critical situations where it is not practically possible or legally possible for us to defer, and that's why I set out again in the statement today that there are exceptional circumstances that every Government has to allow some flexibility in relation to, and it's true in this case as well. But I've set out in this oral statement how we will deal with those, if they arise.
I'm always disappointed when you're disappointed, Janet, and there were so many strands to that, I could be tempted to disappear down a few rabbit holes. But, look, let me just say this: surely there should be some agreement between us that there should be an ethical framework for business in general that should be applied.
I'll give you an example: when the UN guiding principles on global business and human rights was agreed at the UN, who was the first Government in the world not just to endorse it, but actually to produce a national implementation plan that created an ethical framework for every sector of business? Well, I'll give you the answer: it was the UK Conservative Government in 2013. So, look, you can judge us on the framework when it's published, okay. I'm giving you an update on where we are in the process. So, by all means, hold us to account in terms of the content of that when that is ready.
I think you do mischaracterise our position in so many different ways. I don't have time to respond to all of them. But I was absolutely clear in my statement that we're creating an ethical framework that we believe is a solid foundation for the sector because it gives transparency. There is nothing to fear here for the sector. It's not a prohibition of the defence sector. I recognised in my statement that there is an important and legitimate role for the defence sector in the defence of democracy, not least in the uncertain times that we're living in, but it needs to be done in an ethical way. And I would have hoped that that would have been the basis for consensus across the Chamber, because, ultimately, the way we defend democracy in all ways is ensuring that we can actually point to the values that we are, ultimately, trying to defend.
I'm grateful to the Member for her contribution and for reminding us, in the world that we live in, why this is so important, of course. When we have—. We have, in the case of Israel, of course, and in the case of Myanmar, two states where United Nations commissions have found that they have been guilty of being in breach of the genocide convention, the most serious and egregious breach of international humanitarian law that is imaginable.
The framework will help ensure, first of all, that our decisions as a Government—. Because the UN principles that I referred to place a responsibility on us, as a state actor, as a Government, to ensure that, in our engagement with business, we are doing so in a way that is consistent with those principles and with the wider framework of international humanitarian law. So it gives us the framework whereby we can hold ourselves accountable in relation to the decisions that we make, basing them, in an accountable and transparent way, on ethical principles, and in a consistent way.
In terms of companies themselves, as I said, the framework is still in development, but in essence, of course, we will expect the companies involved to confirm that their operations in Wales that we are supporting are in line with the framework that we have agreed. So, at both levels, it gives us that transparency, that consistency and that assurance that what we are doing is consistent with our values, which is what you would want in any context.
We will, obviously, in developing the detail of the framework, be engaging with companies of all sizes within the sector in order to ensure that, as I said in my statement, the process that we design is proportionate. We recognise the reasonable point that the Member makes, that we cannot apply the same expectations to large multinational corporations to small and medium-sized businesses, and that will be a factor in the design of the process in this case, as it is, of course, in already current frameworks. In any situation currently where we give money in relation to projects, there is a process to go through in terms of fair work and other considerations. But the point in terms of SMEs is well made and it certainly will be a matter that we will give due consideration to.
Thanks to the Member for his question and for the knowledge that he was able to bring to it. As I said, I think, in the statement, where possible we will seek to build on the existing UK framework, where that has a tier of knowledge and information that is relevant. I think it is fair to say, absolutely, that the global context in terms of supply chains is complex here. We have to be mindful of our ability to fully audit, and some of this will be context specific. So, in designing the framework, we will have to focus very much on the activity in Wales of the entities in question, being mindful of our own resources and the information available to us.
Diolch, Lywydd. Rwy'n croesawu'r ddadl bwysig hon ac yn diolch i'r Aelod dros Gaerdydd Ffynnon Taf am ei chyflwyno. Meddyliwch am ferch 19 oed yn y Rhyl a adawodd yr ysgol dair blynedd yn ôl ac sydd heb weithio ers hynny. Mae'r ymchwil ar yr hyn sy'n digwydd nesaf yn glir. Heb gymorth, gall y person ifanc yma gario craith gyflog rhwng 10 y cant a 15 y cant, sydd yn dal i'w gweld pan yn 42 oed, yn ddyfnach fyth ar ôl pob cyfnod pellach mas o waith. O ran dim ond yr allbwn economaidd, mae eithrio un person ifanc yn costio tua £100,000 gydol oes i'r gymdeithas gyfan. Yng Nghymru, fel rŷn ni wedi ei glywed, rŷn ni'n amcangyfrif bod tua 50,000 o bobl ifanc rhwng 16 a 24 oed sydd ddim mewn addysg, cyflogaeth na hyfforddiant. Mae hynny'n fethiant cymdeithasol ac yn un economaidd: 50,000 dyfodol yn culhau, a Chymru gyfan yn ysgwyddo'r gost.
Dylem fod yn fanwl gywir pwy ydyn nhw, gan fod y diagnosis yn penderfynu beth yw'r driniaeth. Dydyn nhw ddim yn un grŵp. Mae tua thraean yn ddi-waith yn yr ystyr gonfensiynol, yn chwilio am waith ond yn methu â dod o hyd iddo. Mae tua dwy ran o dair yn economaidd anweithgar, ddim yn chwilio am waith neu ddim yn gallu ei wneud, ac yma mae afiechyd, yn anad dim afiechyd meddwl, wedi dod yn un o'r gyrwyr sy'n tyfu gyflymaf. Y rhai a adawodd addysg gynharaf yw'r rhai mwyaf tebygol o aros ar wahân i’r farchnad lafur hiraf. Bydd system a adeiladwyd ar gyfer y rhai sydd yn ceisio gwaith yn unig yn parhau i golli'r grŵp mwy. Bydd system wedi'i hadeiladu o amgylch rhwystrau iechyd yn unig yn colli'r gweddill. Ac oherwydd bod y ffordd yn agor neu yn cau cyn i berson ifanc gyrraedd y farchnad lafur, mae ysgolion a cholegau yn rhan o'r ateb hefyd. Felly, mae angen ateb cyfansawdd sydd yn mynd i'r afael â'r holl ffactorau yma.
Thank you, Llywydd. I welcome this important debate, and I thank the Member for Caerdydd Ffynnon Taf for bringing it forward. Think of a 19-year-old young woman in Rhyl who left school three years ago and who hasn't worked since. The research on what happens next is clear. Without support, that young person can carry a wage scar of 10 per cent to 15 per cent, which is still visible at the age of 42, running deeper after each further period spent out of work. In terms of just the economic output, the exclusion of one young person costs about £100,000 over a lifetime to the entire society. In Wales, we estimate that about 50,000 young people aged between 16 and 24 are not in education, employment or training. That is a social failure and an economic failure, too: 50,000 futures narrowed, with the whole of Wales bearing the cost.
We should be precise about who these people are, because the diagnosis determines what the treatment should be. They are not from a single group. Around a third are unemployed in the conventional sense, looking for work but unable to find it. Around two thirds are economically inactive, not looking for work or unable to work. And in this context, illness, and above all mental illness, has become one of the fastest growing drivers. Those who left education the earliest are the most likely to remain disengaged from the labour market the longest. A system built only for jobseekers will continue to miss the larger group. A system built only around health barriers will miss the remainder. And because the routes open or close before a young person reaches the labour market, schools and colleges are part of the solution too. So, we need a comprehensive solution that tackles all of these factors.
It is right that, at the beginning of this new administration and this new Senedd, we ask some hard questions of the system we've inherited. This Government took office with spending on employability support marginally higher per head than other parts of the UK, and with the proportion of young people who are NEET rising sharply on the most recent survey data. So, higher spending in Wales, yet more young people currently adrift. I don't think anybody in the Siambr would find that acceptable, and the Government doesn't either.
One of the key questions for me is how long after disengaging does the system first reach a young person. Actually, is it the system that's disengaged from them, rather than the young people from the system? I've asked my officials to establish that number precisely. In designing any policy, of course investment matters, but as the Member for Caerdydd Ffynnon Taf said, outcomes matter more. The measure of success is not the number of job starts or the people on a programme that we can count, but whether a young person is still in good work or learning six months on, and 12 months on. And that's the standard I want applied to every programme in my portfolio.
The young person's guarantee was designed by the previous administration. Governments change but the commitment to young people should not and does not. Under this Government, under this Minister, I want it to grow even stronger. That's why we're proud to support the motion today. No young person in Wales should be left without a route into education, training or work. Our task is not to do less for young people, it's to do better by them, and doing better also demands honesty. Existing policies—UK and Welsh alike—under Governments of every colour have not been sufficient to the task. We need better.
We're not starting from a blank sheet of paper. Some of the most promising results internationally come from approaches that join up employment and health support together, and from guarantees that put a firm time limit on how long a young person waits for an offer. When I meet with Alan Milburn soon, I will discuss these ideas and how we can work as two Governments together. I want to work as a Minister with everyone in this Chamber, and with the cross-party group on youth employment—there's no monopoly on good ideas—and I want our work to be evidence led. I have to say that I haven't seen any convincing evidence myself that immigration is a major contributory factor for youth unemployment.
We do know some things about what works, and we can draw upon the experience of the New Deal for the unemployed, 25 years ago—one of the most successful interventions ever in terms of active labour market policy. We know that tens of thousands of young people are outside work and learning now, while Welsh employers still report vacancies they struggle to fill. What that tells me is that this isn't only about job preparation; it's structural.
It's no good if a job exists but you never hear about it, or you haven't heard about the young person's guarantee, or you can't afford the bus to reach it, or the bus route doesn't even exist to help you get there. Support on its own is not enough because you cannot train a young person into a job that does not exist. So, you need work on the demand side as well as on the supply side. The work of our new development agency in helping to scale Welsh firms, in building the sectors of the future, and in helping some of our traditional sectors like tourism and food and drink to provide those first jobs, is critical. And we will be asking more of employers. To echo the point that was made by one of the Members here, Governments can do so much, but Governments on their own cannot do everything, and in creating first jobs, we need employers to do more as well.
There's a harder challenge that has been on the horizon and has now arrived. Artificial intelligence, on the early evidence, is not abolishing occupations, but it is stripping out the routine tasks from which entry levels were traditionally built in administration, in customer service, in junior professional work. If firms do not redesign the first rung, it will simply disappear. Our responsibility as a Government is to help make sure that technological change expands opportunity rather than narrows it, and we need the skills system to enable us to do that. Our support right across Government must answer the labour market of tomorrow, not the one of 10 or 15 years ago.
None of this works if a young person cannot find the way in. Too often, we ask the young people that are furthest away from the labour market to navigate the most fragmented part of our public services. Trusted relationships help a young person back into the system: youth services, councils, employers, colleges, trade unions, community organisations. Our job is to make those connections simpler and stronger so that no young person has to tell their story twice.
Llywydd, fair work gives more than a wage; it gives purpose, routine, a place amongst others, community. We'll keep testing what works. We'll ground that in the evidence and the lived experience of young people. We'll be honest about what does not. We'll change course where the evidence demands it. Our focus will be relentlessly on outcomes, not just activity, and the test of everything is simple: whether we reach that 19-year-old in Rhyl sooner, offer them something worth taking, and build a first rung that holds. Diolch.
Ddirprwy Lywydd, hoffwn ddiolch i'r Aelod dros Gasnewydd Islwyn am ddod â'r ddadl hon gerbron, y ddadl olaf yn ystod y sesiwn yma, ac ar bwnc mor bwysig. Dwi'n ddiolchgar hefyd am y cyfraniadau gan Aelodau eraill. Mae hon yn drafodaeth werthfawr, nid yn unig am ddyfodol economaidd un etholaeth, ond am y rôl ehangach y gall de-ddwyrain Cymru ei chwarae wrth sicrhau ffyniant i Gymru gyfan. Mae'r etholaeth yma'n unigryw. Mewn un daith fer, gallwch fynd o Gaerllion, lle cadwai Rhufain ei llengoedd, drwy Gasnewydd, dinas y Siartwyr, ac i fyny'r cwm, drwy Risga, Trecelyn ac Abercarn, i'r Coed-duon—cymunedau a gododd diwydiant Cymru â'u dwylo eu hunain.
Ychydig iawn o etholaethau sy'n dal cymaint o hanes Cymru mewn cyn lleied o filltiroedd, ac ychydig iawn sy'n dal cymaint o'i dyfodol: gweithgynhyrchu uwch, arloesedd sydd yn arwain y byd, gwasanaethau cyhoeddus cryf, gweithwyr medrus, diwydiannau digidol sydd yn tyfu, a sefydliadau addysgol arbennig. Pan fyddwn yn siarad am dwf economaidd, nid maint y twf yw'r unig beth sy'n cyfrif; y cwestiwn go iawn yw a yw'r twf hwnnw yn codi safonau byw, yn creu swyddi gwell eu cyflog ac yn cryfhau cymunedau. Dyna pam mae'r Llywodraeth hon wedi gosod amcan uchelgeisiol iddi hi ei hun ac i Gymru i haneru'r bwlch cynhyrchiant rhwng Cymru a'r Deyrnas Unedig.
Dydy 'cynhyrchiant' ddim yn air sy'n cynhesu’r galon, efallai. Hyd y gwn i, does neb erioed wedi ysgrifennu cerdd amdano—hyd yma, efallai. Talwrn y Beirdd nesaf, efallai. Rwyf wedi chwilio. Ond mae ei arwyddocâd yn syml ac yn drawiadol, onid yw e? Economïau mwy cynhyrchiol sy'n talu cyflogau uwch, yn denu mwy o fuddsoddiad ac yn creu mwy o gyfleoedd i genedlaethau'r dyfodol. Os ydyn ni o ddifri ynglŷn â ffyniant Cymru gyfan, yn enwedig yn y cymunedau hynny sydd wedi teimlo'n rhy aml eu bod nhw wedi cael eu hanwybyddu, mae'n rhaid i ni fynd i'r afael â chynhyrchiant Cymru. Nid jargon mohono; cyflog dydd Gwener yw e yn y pen draw, cynhaliaeth teuluoedd a chymunedau.
Dirprwy Lywydd, I would like to thank the Member for Casnewydd Islwyn for bringing this debate before us this afternoon, the final debate of this session, on such an important topic. I'm also grateful for the contributions from other Members. This is a valuable debate, not only about the economic future of one constituency, but about the broader role that the south-east of Wales can play in ensuring prosperity for the whole of Wales. This constituency is unique. In one brief journey, you can go from Caerleon, where the Roman legion dwelt, through Newport, the city of the Chartists, and up the valley, through Risca, Newbridge and Abercarn, to Blackwood—communities that built Welsh industry with their own hands.
There are very few constituencies that capture so much of Welsh history in so few miles, and there are few that hold so much of its future: advanced manufacturing, world-leading innovation, public services that are strong, a skilled workforce, digital industries that are growing, and excellent educational institutions. When we talk about economic growth, it's not the scale of the growth that matters alone; the real question is whether that growth actually increases living standards, creates better paid jobs and strengthens communities. That's why this Government has set an ambitious objective for itself and for Wales to halve the productivity gap between Wales and the UK.
'Productivity' isn't a word that warms the cockles of one's heart, perhaps. As far as I know, nobody's written a poem about it—to date, at least. Perhaps at the next Talwrn y Beirdd, we will see that. But its significance is simple and striking. More productive economies pay higher salaries, they attract more investment and create greater opportunities for future generations. If we are serious about the prosperity of the whole of Wales, particularly in those communities that have too often felt that they have been ignored, then we must tackle Welsh productivity. It's not jargon; it's a salary on a Friday, ultimately, it is sustenance for families and for communities.
The good news is that Casnewydd Islwyn already holds many of the key ingredients for Wales's economic success. Start with Newport—a city with a habit of arriving early at the future. In 1839, thousands marched down Stow Hill to demand a vote a generation or more before the rest of Britain caught up with them. Newport is early again today. It has become one of Wales's most important economic centres. It is home, as we've heard, to globally significant semiconductor and advanced manufacturing businesses.
The modern world runs on slivers of silicon thinner than a human hair—in our phones, our hospitals, our electric vehicles, in our artificial intelligence—and a remarkable share of that capability globally sits within a few miles of the communities we are discussing this afternoon. Isn't that an exciting thing to say? We were at the heart of an industrial revolution in the past and we are there, right at the centre, at the leading edge today. The growth of the semiconductor cluster in south-east Wales settles an old argument. Wales can compete internationally in high-value, knowledge-intensive industries. Not in theory, but in practice, now. These are precisely the sectors that drive productivity and create the highly skilled, well-paid jobs our communities deserve.
Alongside that industrial strength stands another major asset, the University of South Wales and its Newport campus, of course. A university is not simply a place young people pass through for three years. As an anchor institution, it is part of the economic machinery of the region. Its work in engineering, digital technology, cyber security, business innovation and workforce development helps ensure that local employers can find the skills they need. It provides a vital bridge between research, innovation and commercial opportunity. If Wales is to attract and keep high-value industries, institutions like this one will be central to the mission. The same is true for Coleg Gwent and further education. FE and higher education together, working as a regional version of the team Wales approach, is going to be so central to our economic success.
Newport's strengths reach well beyond manufacturing and higher education. This is now the city where the United Kingdom counts itself and registers its ideas. The Office for National Statistics keeps the nation's numbers—this nation, and the one next door, and the one up north as well. The Intellectual Property Office guards its inventions here. There's something quietly satisfying about a city that for too long has been undercounted, I think, in the national story, being the place that does the counting in so many contexts. More practically, perhaps, these organisations have made Newport a hub for highly skilled employment, drawing talented people into the city and creating room for the private sector to grow around them. Add excellent connectivity through the M4 corridor, the rail network, which we are seeking to build out and build upon, and access to wider regional markets, and Newport has become a nexus, a driver of economic activity, not just for itself, but for the wider region and for the nation as a whole.
The same is true of the Valleys communities that give this constituency its unique character. When Victorian engineers wanted to build the tallest railway viaduct in Britain, where did they choose but Crumlin? Blackwood, Newbridge, Risca and Abercarn carry a proud industrial heritage and a workforce with deep experience in engineering, manufacturing and the skilled trades. These communities built the Welsh economy once, but they're not museum pieces; they have an equally important part to play in building the next Welsh economy too.
Now, our challenge is to make sure that investment reaches every part of Wales and every part of this constituency, and, as you've said, that local people can reach the opportunities being created. That means investing in skills, creating, as the Deputy Minister is now doing, and fashioning a skills system that actually delivers the needs of our employers, but crucially as well allows our young people to achieve their true potential, backing local businesses, improving transport, digital connectivity, enabling people to find quality work close to home.
It also means learning from our own history, and few places teach the lesson better than this constituency. For generations, coal came down these valleys to be burned at Uskmouth and exported out of the port, and too much of the wealth it created went elsewhere. For too long, Wales has hosted energy projects without keeping enough of the value they generate. That must now be reversed. If Welsh land, wind, water and sea bed create wealth, the people of Wales should see more of the value of it. The energy story of Casnewydd Islwyn is already turning. At Uskmouth, the old coal-fired power station is being transformed into one of the largest battery storage hubs in the United Kingdom, storing clean power on the very site that once burned Valleys coal. Beside the steelworks at Llanwern sits one of the largest solar developments in Britain. The uplands above the Sirhowy and Ebbw valleys have the wind, and beneath them, the flooded workings of the old collieries hold warm water that mine water schemes elsewhere are already putting into homes. Even our newest industries point the same way, because a semiconductor cluster is a hungry customer for clean, reliable, affordable power. So, the question for this constituency and for Cymru, for Wales as a whole, is no longer whether the energy transition will happen here, it's who will own it, who will drive it and who will benefit from it. That's the question my work on behalf of the Government on a national energy strategy is designed to answer, and we will explore the levers we can use in Wales to build a strategy that benefits the people of Wales and Casnewydd Islwyn economically and socially, to ensure that we maximise that prize.
The strategy will set an ambitious yet reachable energy target, including targets for local community and Welsh public-owned energy. The Basques have done it. Iberdrola, a Basque company, is one of the biggest giants across Europe now, because they designed their manufacturing system, but also their energy system, around ensuring that the benefit was kept. We can do that in Wales as well.
I think crucial to this, of course—. Private development and private capital, in any economy, will always play a central role, and we want to attract that capital to invest in Wales to enable us to achieve our potential, but we cannot do it alone through private development. That's why developing our own public energy company, as I said, but also co-ordinating across the different parts of Government, across the different organisations—that's going to be essential to ensuring that we achieve the potential in Casnewydd Islwyn and across Wales.
That's why the creation of a new national development agency matters so much. On this very point about the confusing landscape that we have at the moment, we want to actually have a single front door. If I am a business owner or an investor or a founder and I want to know where to go, then we need to simplify and streamline that, because we want to work faster and further with those companies to ensure that we maximise the opportunity, not just for them, but for Wales as a whole. Our vision of a development agency reflects our determination to be more ambitious, more strategic, more proactive. It will work to attract inward investment, but crucially as well develop our own businesses to scale up, to strengthen local and regional economies and deliver the high-value jobs that we need.
Crucially, we understand that there's an important role here for transport; it's not a separate issue from economic growth. That's why we're joined at the hip, myself and the Deputy Minister for Transport, because infrastructure is a key part of how we deliver socially and economically for our nation, and for every part of our nation. The south-east Wales regional transport plan gives us a platform to connect communities in Casnewydd Islwyn and across the wider region. We're building further on that plan. We have an ambitious vision in terms of how transport can contribute to ensuring that we have the potential there.
Mae metro de Cymru yn ganolog i'r uchelgais honno o hyd. Rhaid iddo olygu gwell cysylltiadau rhwng trenau, bysiau a chyfnewidfeydd, a rhwng y rheini a phobl, wrth iddynt gerdded, olwynio a beicio, gan ei gwneud hi'n haws cyrraedd gwaith, hyfforddiant ac addysg, heb orfod dibynnu ar gar ar gyfer pob taith. I gymunedau Casnewydd Islwyn, mae'r prawf yn un syml: a yw'r buddsoddiad yn gwella mynediad go iawn at gyfleoedd ar draws Casnewydd Islwyn, ar draws rhanbarth ehangach y Cymoedd a phrifddinas-ranbarth Caerdydd, ac ar draws Cymru?
Ddirprwy Lywydd, nid stori am botensial yn unig yw stori economaidd Casnewydd Islwyn. Mae eisoes yn lle o gryfderau sylweddol, capasiti gweithgynhyrchu uwch a gydnabyddir yn rhyngwladol, sydd ag economi ddigidol ac arloesedd sy'n tyfu, cyflogwyr mawr yn y sector cyhoeddus, prifysgol flaenllaw a chymunedau â thraddodiad balch o sgiliau, gwydnwch a menter. Mae'r cryfderau hynny'n sylfeini cadarn at y dyfodol. Wrth inni anelu at haneru'r bwlch cynhyrchiant rhwng Cymru a'r Deyrnas Unedig, adeiladu diwydiannau'r dyfodol a sefydlu asiantaeth ddatblygu newydd i ysgogi buddsoddiad a thwf, bydd etholaethau fel Casnewydd Islwyn yn ganolog i'n llwyddiant ni.
Ac nid damwain yw bod yr etholaeth hon yn cario enw bardd—Islwyn. Mae yna thema yn fan hyn, onid oes? Y bardd Islwyn o Ynys-ddu yng nghwm Sirhywi a ddysgodd inni fod yr oll yn gysegredig. Roedd e'n iawn. Nid oes dim byd cyffredin am y cymunedau hyn, nac am eu pobl, nac am eu dyfodol, ac mae'r gwaith o adeiladu'r dyfodol hwnnw eisoes ar y gweill.
Mae ein nod ni yn glir. Mae'r weledigaeth yn gyffrous. Rŷn ni'n gallu cymryd ysbrydoliaeth o'r rhagoriaeth rŷn ni'n ei weld, fel gwnes i ei weld pan oeddwn i'n mynd o gwmpas KLA a gweld dyfodol Cymru o fy mlaen i—pobl ifanc gyda sgiliau ar eu huchaf, a chwmni sydd wedi rhoi lawr gwreiddiau mewn clystyrau ehangach mewn meicrocosm o Gymru rŷn ni eisiau ei chreu. Diolch yn fawr.
The south Wales metro is central to that ambition still. It must mean better connectivity between trains, buses and exchanges, and between those and people, as they walk, cycle and scoot, making it easier to reach work, training and education, without having to rely on a car for every journey. For the communities of Casnewydd Islwyn, the test is simple: is the investment increasing real access to opportunities across Casnewydd Islwyn, across the wider region in the Valleys and the Cardiff capital region, and across Wales?
Dirprwy Lywydd, the economic story of Casnewydd Islwyn isn't just a story of potential. It's already a place of significant strengths, higher manufacturing capacity that is internationally recognised, with a digital economy and innovation that is developing, major employers in the public sector, a prominent university and communities with a proud history of skills, resilience and enterprise. Those strengths are firm foundations for the future. As we aim towards halving that productivity gap between Wales and the UK, building the industries of the future and establishing a new development agency to encourage growth and investment, constituencies like Casnewydd Islwyn will be at the heart of our success.
And it's no accident that this constituency carries the name of a poet—Islwyn. There is a theme developing here, isn't there? The poet Islwyn from Ynys-ddu in the Sirhowy valley taught us that all is sacred. He was right. There is nothing ordinary about these communities, or the people, or their future, and the work of building that future is already there.
Our aim is clear. The vision is an exciting one. We can take inspiration from the excellence that we see, as I saw when I visited KLA and saw the future of Wales before my very eyes—young people with the highest level of skills, and a company that has laid down roots in broader clusters in a microcosm of the Wales that we want to create. Thank you.
Lywydd, diolch yn fawr. I move the motion and recommend that the Senedd gives its consent to the relevant provisions in the Steel Industry (Nationalisation) Bill as set out in the legislative consent memorandum.
Steel is no abstraction to Wales, it is in our bridges and our railways, in the turbines that will power our future and in the history of generations of families from Shotton to Llanwern, from Trostre to Cardiff. It's a strategic national asset, and a country that cannot make its own steel is a country living at the mercy of others. That is why this Bill matters. It builds on the UK Government's steel strategy and it provides the power to transfer the shares or property of a steel undertaking into public ownership where a public interest test is met: in simple terms, a safety net beneath an industry too important to lose. The need is real and urgent. Energy costs are among the highest in Europe, global overcapacity is squeezing prices, trade barriers are closing markets and the short-term cost of the transition to the low-carbon steel of the future weighs heavily on the industry of today.
But I must also be honest with the Senedd: welcoming this Bill is a bittersweet experience. When the blast furnaces at Port Talbot hung in the balance in 2024, we were told by one Government in Westminster and then the next that nationalisation was not on the table. Roughly 2,600 people lost their livelihoods. A year later, when Scunthorpe's furnaces came under the same threat, Parliament was recalled on a Saturday to keep them burning. Suddenly, every option was on the table. That was the difference, and Wales felt it keenly. I deeply regret that the purpose at the heart of this legislation before us today was not embraced in time to save the blast furnaces at Port Talbot. The belief is wide and deep in Wales that our steel industry was not treated equally. We do not ask for preferential treatment for Wales, but we do expect to be treated with the same fairness and the same dignity.
Even so, yesterday's regret must not stop us from protecting tomorrow. I welcome the fact that this tool will now be firmly in the toolbox for Wales, as for every other part of the United Kingdom. And let's also be clear about what this Bill does not do. It does not guarantee the future of the Welsh steel industry. No statute can do that. What it guarantees is that, if the hour of danger comes again, Government can act within days rather than despair for months, so long as these powers remain on the statute book where they're needed. We will oppose any attempt to let them quietly slip from it. A sunset clause on these powers contained in the Bill must never become the sunset of an industry.
We also must be equally clear about something else: a safety net for one producer must not pull the floor from under the others. If British Steel in Scunthorpe is nationalised, a state-owned undertaking must not undermine the commercial position of 7 Steel or Tata Steel. A company relying on the public purse should not price below other producers, nor enjoy an unfair advantage in public procurement, nor draw investment and energy support away from Welsh sites. The Welsh Government will hold the UK Government to this principle at every stage.
The Bill deals with both reserved and devolved matters, and it will affect all four nations of the United Kingdom. I told the UK Government clearly that the lack of time given to this Government and to the Senedd to scrutinise the Bill was unacceptable. Urgency is never an excuse for disregarding devolution. We did insist on clear commitments to protect Welsh interests and we secured important undertakings as a result, and I will return to them in closing.
While there is currently no intention or need to use these powers in Wales, it is right that they exist, and it is the UK Government that holds the resources to act at this scale. Let's remind ourselves what is at stake. Once the electric arc furnace at Port Talbot is operational—the second largest anywhere in the world—nearly half of the UK's steel-making capacity will be here in Wales. The future of steel in these islands is a Welsh future. The Bill does not secure that future by itself, but it ensures that no Government can ever again claim that the means to defend it, if necessary, is missing. It's on this basis, clear-eyed and with our expectations on the record, that I recommend the Senedd gives its consent.
Diolch, Lywydd. I'd like to thank all the Members who contributed to this evening's debate. Let me begin with a concern that is widely shared across the Siambr: the way that this Bill was handled, which did curtail our ability to scrutinise it. The preceding legislation that led to the Scunthorpe operations being effectively put into Government control and then nationalised, of course, was an England-only Bill and it was passed, as I said earlier, in a day. This was a four-nation Bill. It relates not just to a potential move in relation to that one site, but it's a piece of legislation that could be applied to steel operations anywhere in the United Kingdom. Given that, I think the approach should have reflected the devolution settlement.
There was no prior engagement with the Welsh Government. The reason that has been given, I understand, is one of it being commercially confidential. Well, with something that is as strategically important to the future of the Welsh economy and the UK economy, then I don't think that stands up to scrutiny, to be perfectly frank.
We were put in a difficult position, as were the other devolved legislatures. The Northern Ireland Assembly hasn't been able to arrive at a position because there's been simply no time because of the compressed timetable. We, as we always will, will reflect on what we could have done differently, but, in essence, we were put in a very, very difficult position.
What we tried to do was, given that suboptimal position, we tried to get the best result for Wales. Yes, the commitments that we sought in relation to Wales's legitimate interests on behalf of our steel communities—we wanted that in statute, that those are our principles. I think they're principles that will, I think, probably be widely shared right across this Siambr. Now, we were able, because we held out, to get those commitments, at least on the record, and we were successful at least in getting a commitment from the current UK Government. But if they were prepared to make that promise at the despatch box, why weren't they prepared to put it in statute? Because the promise doesn't change, the commitment doesn't change, but, of course, a statutory commitment is always better because you can hold not just this Government to account, but, of course, it stands, then, in the legislation governing future administrations as well, and I simply don't understand the resistance to putting it on a statutory basis.
People have spoken rightly with feeling about Port Talbot, and I will not add further to what I said in opening, except this: we cannot restore what that community lost, but we can make certain that the option to nationalise is firmly available to future Governments if necessary, and that's what consent today achieves, and it's why, in all conscience, we could not do anything other than recommend to the Senedd that we support it. Of course, any policy in relation to nationalisation or wider steel strategy has to be fair, and we have to have fair competition, and I think we were right and other Members are right to raise that. Public ownership exists to rescue an industry, not to distort a market, and if these powers are used in Scunthorpe or anywhere else, we will measure the consequences against the interests of our Welsh steel industry, our Welsh steel companies and communities that depend on that sector, and we'll not stay silent if Wales is made to pay the price of an intervention elsewhere.
But our message today is simple: we consent to this Bill, or we urge the Senedd to do so, because Wales must never again be told that the tools to save our steel do not exist. We consent to this legislation with our eyes open and with our conditions on the record: equal treatment, fair competition and a full Welsh voice whenever these powers touch the interests of our people. Thank you.
Diolch, Lywydd. Hoffwn ddiolch ar y dechrau i Llŷr Powell am gyflwyno'r ddadl hon, a Louise Emery am agor ac am wneud hynny mewn ffordd gytbwys oedd yn cynnwys anghytundeb diffuant a chraffu, ond hefyd yn cynnig syniadau adeiladol, a dwi'n credu bod hynny bob amser yn adlewyrchu'n dda ar ein democratiaeth ni, ein bod ni'n cael y cyfuniad yna. A byddaf i'n dychwelyd at rai o'r prif bwyntiau o anghytundeb rhyngom ni yng nghanol fy araith, ond hoffwn ymateb i rai o'r syniadau diddorol mae Louise wedi eu cynnig, ac yn sicr byddwn i yn barod iawn i edrych ar sut i gryfhau yr hyfforddiant lletygarwch sydd yn digwydd, a dysgu oddi wrth y Swistir yn hynny o beth, a'r cysylltiadau mae eisoes wedi eu hadeiladu, hefyd y syniadau ynglŷn â'r pasys bws a hefyd y pasys Cadw. Ac rwy'n gwybod, o siarad gyda Louise, fod yna doreth o syniadau eraill gyda hi, ac rŷn ni'n barod iawn bob amser i edrych ar y rheini yn adeiladol bob tro. Mae hynny'n wir, wrth gwrs, ar draws y Senedd.
Gadewch i mi droi yn gyntaf at yr uchelgais: economi ymwelwyr sy'n gweithio dros Gymru, dros ein cymunedau, dros y busnesau sy'n dibynnu arni a dros y bobl sy'n byw yn y llefydd y mae'r byd am ddod i'w gweld. Mae rhan gyntaf y cynnig yn galw arnom i gydnabod cyfraniad y sector, ac rwy'n gwneud hynny yn llawen ar ran y Llywodraeth. Mae tua un o bob wyth o weithwyr Cymru yn gweithio ym meysydd twristiaeth a lletygarwch, ac, yn wahanol i sawl sector arall, mae'r gwaith hwnnw wedi ei wasgaru ar hyd a lled y wlad, yn cynnal incwm mewn cymunedau gwledig ac arfordirol lle mae cyfleoedd eraill yn brin. Nid ffigurau mewn taenlen yw hynny, bywoliaethau ydyn nhw.
Ac rwy'n cytuno'n llwyr ag ail ran y cynnig: mae Cymru yn gyrchfan ymwelwyr o'r radd flaenaf ac mae hynny'n destun dathlu. Fe gawsom ni lwc ryfeddol, byw mewn gwlad o olygfeydd syfrdanol, arfordir godidog, anturiaethau awyr agored heb eu hail, bwyd a diod rhagorol, a chroeso cynnes Cymreig. Ein gwaith ni yw gwneud y mwyaf o'r lwc hwnnw; dyna beth mae Croeso Cymru yn ei wneud, yn cryfhau ein proffil rhyngwladol trwy weithgarwch yn Ewrop, yr Unol Daleithiau a thu hwnt, gan ddod â gwarant ymwelwyr a manteision i bob rhan o Gymru.
Thank you, Llywydd. I'd first of all like to thank Llŷr Powell for tabling this debate, and to Louise Emery for opening the debate and doing so in a balanced way that included some sincerely held disagreements and scrutiny, but also offered constructive ideas, and I think that that always reflects well on our democracy, that we have that combination of factors. And I will return to some of the main points of disagreement between us as I move through my speech, but I'd like to respond to some of the ideas that Louise put forward, which are interesting, and certainly I would be more than willing to look at how we can strengthen hospitality training and to learn from Switzerland in that regard and the connections that she's already built, and also those ideas on the travel passes as well as the Cadw pass that she mentioned. And I know, having spoken to Louise, that there is a whole host of ideas that she also has, and we are always willing, of course, to look at those in a constructive manner. That is true, of course, across the Senedd.
Let me first of all turn to the ambition: a visitor economy that works for Wales, works for our communities, for the businesses that rely on that economy, and for the people who live in those areas where the world wishes to visit. The first part of the motion calls on us to recognise the contribution of the sector, and I do that gladly on behalf of the Government. Around one in eight workers in Wales work in tourism and hospitality, and, unlike many other sectors, that work is distributed the length and breadth of the country, maintaining incomes in rural and coastal communities where other opportunities are scarce. Those aren't figures in a spreadsheet, they are livelihoods.
And I agree entirely with the second part of the motion: Wales is a world-class destination, and that is a cause of celebration. We've been very lucky to live in a country with glorious views, glorious coastline, outdoor activities that are unsurpassed, excellent food and drink, and a warm Welsh welcome. Our work is to make the most of that good luck; that's what Visit Wales does, strengthening our international profile through activities in Europe, the United States and beyond, bringing visitor expenditure and benefits to all parts of Wales.
Llywydd, next year, that international profile takes on a new dimension. Wales steps on to one of the biggest sporting stages on earth as we welcome hundreds of thousands of Tour de France fans, and there's a certain justice in it—for decades we've been apologising to cyclists for our gradients, and now the greatest race on earth is coming precisely because of them. It turns out we were sitting on a world-class asset all along.
But a great event that leaves nothing behind is just a party. Our ambition is a legacy, so I'm proud to announce today a £4.5 million investment over 2026 and 2027 in tourism-related cycling infrastructure. The peloton will pass through Wales in a matter of hours. What it leaves behind must last for decades. This is about converting a moment of global attention into a permanent national asset—routes, facilities and businesses that serve visitors and communities long after the last rider has crossed the line.
And if we're inviting the world in, the welcome must be real for everyone. A quarter of all visitors to Wales are disabled; if Wales says 'croeso' to the world, that word cannot come with small print. It must hold true for disabled visitors, neurodivergent visitors and people with hidden conditions and barriers. That's why I'm launching Croeso i Bawb, £2 million in grant funding to help tourism and hospitality businesses open their doors wider still. Accessibility is good business, but, more than that, it is simply what 'hospitality' means.
Let me turn now to the two questions at the heart of this debate. Firstly, the visitor levy. Where tourism happens, there are impacts on the local area. That's not a criticism of the sector, it's a facet of success. Visitor levies are neither unusual nor untested. They operate successfully in destinations across Europe and the world, providing resources for the very infrastructure and services that make places worth visiting in the first place. It's, rightly, for each local authority to consult and decide, but, where a levy is introduced, it's an opportunity to make the visitor economy work both for the sector and for the communities that host it, and this Government supports that model.
Second, the 182-day letting threshold. Tourism matters to our economy; so do homes for local people. Those two truths must be held in balance. And where the balance is wrong, we will act. That's why our manifesto committed to reviewing the threshold and creating clear, reasonable exemptions where self-catering accommodation would not qualify as a private home. The Cabinet Minister for Finance is considering these matters as an early priority and will set out our proposals in due course.
Llywydd, the First Minister has said that he is committed to learning at all times, and that will be my approach too. I meet the chairs of the regional tourism forums later this month, and over the summer I'll continue taking evidence directly from sector representatives across Wales, but I do want to go further. Over the course of this term, we are committed to examining whether the form and function of Visit Wales is right for the sector it serves. I believe the moment has come for a proper stocktake, a reset moment between Government and the sector, leading to a shared vision and action plan, a new deal for the visitor economy. I want the sector to help shape it, and I want the Senedd to help shape it too—the cross-party group, Members on all sides, including the parties opposite and the party behind me—for the whole of Wales, built by the whole of Wales. And in that spirit, let me turn now to the contributions Members have made this afternoon.
Anna Nicholl shared some of her constituents' experiences, and I think that, in listening and learning, we need to hold those experiences right at the heart of everything that we do. Steven Rodaway asked us to look at the evidence base, and we certainly will be committed in this and in everything we do to ground everything in the evidence base. We urge Members that want to bring data to our attention to do so, and we will do so ourselves in a transparent manner. I welcome the positive contribution from Shavanah Taj. The levy used well, in partnership with the sector, as we know from across Europe and the world, can actually be an engine of growth and development for the sector. And I know that's the kind of approach that's been taken by the sector in Cardiff. There could be lessons elsewhere in Wales.
I am out of time at this point. The flesh was willing, but the spirit was weak. [Laughter.] All I would say in closing is: look, every nation tells the world a story about itself, and tourism is how the world comes to hear ours. Let's make sure that story is worthy of the country and the country worthy of the welcome.
'Croeso' yw'r gair cyntaf mae Cymru yn ei ddweud wrth y byd; gadewch i ni wneud yn siŵr ein bod ni'n ei ddweud e bob tro o waelod calon. Diolch.
'Welcome' is the first word that Wales says to the world; let's make sure that we always say it from the bottom of our hearts. Thank you.
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The Record of Proceedings for each sitting day, quoted verbatim.