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Diolch yn fawr, Ddirprwy Lywydd. Pan sefais i yn y Siambr i amlinelli ein cenhadaeth economaidd newydd i gau'r bwlch cynhyrchiant, fe wnes i ymrwymo i roi'r wybodaeth ddiweddaraf i'r Senedd am y camau nesaf ar gyfer sefydlu asiantaeth ddatblygu genedlaethol newydd i Gymru. Lai na thair wythnos ers dechrau'r weinyddiaeth hon, fe wnaethon ni gyhoeddi'r nod economaidd mwyaf uchelgeisiol yng Nghymru ers dau ddegawd, sef haneru'r gwahaniaeth yng nghynhyrchiant Cymru a'r Deyrnas Unedig cyn pen 10 mlynedd. Os ydyn ni'n mynd i gyflawni'r nod hwnnw, mae angen newid sylfaenol yn y ffordd yr ydym ni'n datblygu'r economi yng Nghymru. Bydd yr asiantaeth newydd sy'n cael ei chynnig yn sbardun allweddol er mwyn cyflawni'r newid hwnnw.  Mae gen i weledigaeth glir ar gyfer yr asiantaeth: bydd yn gwella cynhyrchiant yng Nghymru, yn creu swyddi gwell i bobl ac yn rhoi arian yn eu pocedi, gan godi safonau byw. Rwyf am i'r asiantaeth ganolbwyntio ar gadw perchnogaeth a gwerth economaidd yng Nghymru drwy ddarparu canolbwynt cenedlaethol amlwg i fusnesau sydd â'r uchelgais a'r potensial i ehangu. Rwyf am iddi roi cymorth, cyngor ac arweiniad i helpu'r busnesau hyn i ymdopi â'r sefyllfa ariannol, bod yn barod i dderbyn buddsoddiad a datgloi cyfleoedd iddynt dyfu. Bydd cefnogi mwy o gwmnïau o Gymru i dyfu ac ehangu i fod yn fusnesau gwydn, cynhyrchiol a chystadleuol yn allweddol. Rydym yn falch o'r sylfaen gref o ficrofusnesau a chwmnïau mwy o faint sydd gan Gymru, ond mae'n rhaid i ni fynd i'r afael â'r heriau y mae busnesau bach a chanolig yn eu hwynebu ers tro wrth ehangu. Y busnesau sy'n ehangu yw'r rhai sy'n arloesi, sy'n allforio, sy'n defnyddio ein sylfaen sgiliau yng Nghymru, ac sy'n manteisio ar yr ymchwil a datblygu a hybir yn ein prifysgolion. Ac maen nhw'n fusnesau sy'n gallu defnyddio cyllid gan fuddsoddwyr i wireddu eu gweledigaeth. Mentrau a ysgogir gan arloesedd yw'r rhain.

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Thank you very much, Dirprwy Lywydd. When I stood in the Siambr to set out our national productivity mission, I committed to updating the Senedd on next steps in establishing a new national development agency for Wales. Less than three weeks into this administration, we announced the most ambitious economic goal in Wales in two decades; namely, halving Wales’s productivity gap with the UK within 10 years. If we are going to achieve that goal, we need a fundamental change in how we approach economic development in Wales. The proposed new agency will be a key driver in achieving that change. I have a clear vision for the agency: it will improve productivity in Wales, create better jobs for people and put money in their pockets, thereby raising living standards. I want the agency to focus on retaining ownership and economic value in Wales by delivering a clear national focal point for businesses that have the ambition and potential to scale up. I want it to provide support, advice and guidance to help these businesses navigate the finance landscape, strengthening investment readiness and unlocking growth opportunities. Supporting more Welsh-owned firms to grow and scale into resilient, productive and competitive businesses will be crucial.  We are proud of Wales's strong base of microbusinesses and larger firms, but we have to address the long-standing challenges small to medium-sized businesses face in scaling up. Scaling businesses are those that innovate, that export, that utilise our Welsh skill base and that take advantage of the research and development being driven in our universities. And they're also businesses that can mobilise investor finance to realise their vision. These are innovation-driven enterprises.

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I want the new agency to lead a proactive and highly targeted approach to attracting inward investment into Wales, building on established strengths while sharpening focus and promoting Wales's competitive strengths internationally. Innovation is central to our economic development strategy and to closing the productivity gap. I see the development agency as a body with innovation at its core. Innovation is so much more than new product development; it ensures the spread, diffusion and adoption of new technology and helps drive economic competitiveness and productivity improvements. Research tells us that much of the growth in productivity comes from innovation and new ideas, rather than simply increasing labour or capital. In simple terms, innovation matters because it helps the economy grow, makes businesses more competitive, and improves people's standard of living over time.  As set out in our 100-day plan, we're establishing an expert panel to advise us on the design of the new agency. The panel will not operate in isolation; rather, they will engage widely and be outward looking and collaborative in taking forward their work. The panel will be independent of Government and look to international best practice in economic development, as well as tapping into the knowledge and practical experience of businesses in Wales, to make sure their operating environment is fit for the future. We have set out the headline vision. The panel will help us deliver that vision, providing advice, recommendations and challenge about the form and functions of the agency. They will bring their expertise to help us develop the detailed remit and functions of the agency, helping us design and establish an organisation that swiftly supports the growth of the economy. They will provide advice on how the agency can best fit into the wider economic development landscape in Wales, working in collaboration to deliver for our country. And, crucially, they will advise on how the agency can best support productivity improvement, overcoming structural frictions around scaling, to turn opportunities into investable propositions. This new institution must be built on the Wales of today, and of tomorrow, and be able to stand out globally and connect effectively with our businesses across Wales—connecting bro and byd.  And let me be clear at the outset that the Government is not looking to re-create the previous WDA. I want the new agency to be a more agile and dynamic arm's-length body with innovation at its heart, delivering on the strategic direction set by Welsh Ministers. It will draw on best practice and the best advice from around the world, and, in turn, become an international exemplar in its own right. Creating a new development agency is a crucial part of driving the positive changes in productivity that we need. But it needs to be a much wider, collective effort across Wales. We need, collectively and collaboratively, to look at the current landscape and work with local and regional partners to create an economic development system where roles are clear and we're all working together as one team for the people of Wales. As part of that team Wales approach, engagement with Members of the Senedd, political parties and social partners such as trade unions is key. Further discussions will take place on the best way to ensure engagement and input over the period the expert panel undertakes its work, and I hope Members across the Chamber will be willing engage positively, collaboratively and creatively with that work.

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Mae'r wybodaeth sydd ei hangen arnom i lunio'r asiantaeth eisoes yn bodoli mewn busnesau ledled Cymru ac yn y cysylltiadau cryf sydd gan Gymru tu hwnt i'r ffin. Dyna pam y bydd y panel cynghori'n cynnwys grŵp craidd o unigolion sydd â phrofiad busnes helaeth.  Mae'n bleser gen i gyhoeddi heddiw y bydd Jonathan Lewis, ar ôl i'r Prif Weinidog ei benodi, yn cadeirio'r panel cynghori arbenigol. Mae gan Jonathan brofiad busnes helaeth, a bydd yn arwain trafodaethau'r panel dros y misoedd nesaf. Rwy'n ddiolchgar i Jonathan am gytuno i roi o'i amser i gyfrannu ei graffter a'i gyngor i'r Llywodraeth fel rhan o'r gwaith hanfodol hwn, ac rwy'n edrych ymlaen at weithio gydag ef. Byddwn nawr yn gweithio gyda'n gilydd i recriwtio rhagor o aelodau i'r panel, er mwyn i'w waith allu dechrau o ddifrif, yn seiliedig ar waith ymchwil perthnasol sydd eisoes ar y gweill. Byddaf i'n paratoi datganiad ysgrifenedig sy'n rhestru aelodaeth lawn y panel cynghori yn ystod yr wythnosau nesaf. Ddirprwy Lywydd, mae penodi cadeirydd i'r panel i gynghori ar gylch gwaith a model gweithredu'r asiantaeth newydd yn gam allweddol ar y daith i sicrhau mai Cymru fydd y lle gorau yn y Deyrnas Unedig i ddechrau busnes, i dyfu busnes, ac i fuddsoddi mewn busnes. Dewch inni fwrw ati gyda'n gilydd. Rwy'n edrych ymlaen at roi'r wybodaeth ddiweddaraf i'r Senedd ar hynt y gwaith.

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The knowledge that we need to inform the design phase of the agency already exists in businesses right across Wales and in the strong connections that Wales has further afield. That's why the advisory panel will be comprised of a core group of individuals with a wealth of business experience.  I’m pleased today to announce today that Jonathan Lewis, following appointment by the First Minister, will chair the expert advisory panel. Jonathan brings a wealth of business experience and will lead the panel’s deliberations over the coming months. I'm grateful to Jonathan for agreeing to give up his time to provide insight and advice to the Government in this crucial endeavour, and I look forward to working with him. We will now work together to recruit further members of the panel, so that its work can start fully, underpinned by relevant research that is already under way. I will provide a written statement setting out the full membership of the advisory panel in the coming weeks. Dirprwy Lywydd, the appointment of the chair of the panel to advise on the remit and operating model of the new agency is a key stepping stone in the journey towards making Wales the best place in the United Kingdom to start a business, to grow a business, and to invest in a business. Let the work begin together. I look forward to updating the Senedd on further progress in due course.

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I thank the Member for his response. I'd just like to focus a little bit on some of the areas where I think there is common ground between us. In 'Making Wales Work', which was the larger policy document that was the basis for our economic policy set out in the manifesto, we did ourselves, of course, set out the way in which the agency can be a means of ensuring, as we described it, that there is a single front door for business. So, I think we're on the same side and on the same page on that one. The precise sequencing in terms of when you take different functions into the agency, that's a matter of detail that we're working through. But, absolutely, we want to make sure that businesses have a streamlined level of support. Of course, there will always be the need for specialist support in different areas—finance, as he described, and also exports. And, by the way, in relation to his last point, we don't just wait for the agency to come along and solve our economic problems. I was speaking to a business last week about an investment project. I'll be doing it again, and I'm doing it all the time—talking to our teams that work in the different areas of business support. So, the existing business support is there, is ongoing. What we're trying to do is to improve the system for the future. In relation to his point that he made about inward investment, I agree with him. Look, as I set out in my statement, we have to be strategic about inward investment. Foreign direct investment has a role in any economy, but we need to actually focus it on those areas that will be more embedded—through supply chains, as he suggests—in the Welsh economy, that actually build on our existing and possible future strengths. And that is exactly—he's right—what the Irish have done. Through a development agency called the IDA, they have emphasised aftercare, as they call it, because the majority of foreign direct investment is further investment by companies that have already come here. And that's the approach that the IDA have adopted, and it's definitely one that we would want to see at the heart of the strategy of the development agency here.

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I'm very grateful to the Member for the spirit of her remarks and the way in which she's engaged as well with me outside of the Siambr. I think these are good questions to ask, and some of them are very much at the core of the process that we're going to go through now. And I do ask Members across the Chamber to engage with that process. Leadership is a combination, you know? It's a combination of having clarity about the goal—and we've set that goal, haven't we? Yes. But also humility to accept that you don't have all the answers. Any politician who says they've got all the answers is misconceived, all right? Some of the best answers will be out there. They will be in the collective intelligence of the nation as a whole. They'll be in people with business experience, some of whom will be involved in this process. They'll be in the trade unions and the social partners. That's why it's important that they have a role here as well. We want to move at pace. That's one of the clear directions that we will give to the group: that we want to get to a minimal viable proposition in terms of the agency as soon as possible. The agency in year 1 of its operations will look different to the agency in year 4, so let's get there and build the future as fast as we can.  All I would say in terms of development agencies is that they have played a central role in virtually anywhere that you can think about in the nations and regions that have closed an economic gap. Few of those nations or regions that have had one have got rid of them. We're one of the few exceptions. There may be a reason for that. They are an incredibly valuable tool. Do you need to get the design right? Absolutely. Getting the right relationship in terms of how arm’s length it is from Government but how close it is to a Government is important. It's one of the key questions that we've already done a lot of thinking on, and we will continue as we go through the design process. I would just urge her and other honourable Members to come with their ideas about how we can get this right for Wales. Because there is a great opportunity here for us to give ourselves an additional lever that we have lacked now for 20 years in order to close the gap, and that's the intention of the Government.

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I am trying to keep my answers short, but let me answer one of the questions. In terms of governance, yes, we do think this should be a statutory body, so our plan is to bring forward legislation fairly soon, as soon as we can. I can't give you a specific date, to be frank with the Member, but we want it to be operational as soon as possible, so not the third or fourth year. I referred to the fact that the agency in its first year of operation will look different to its third year of operation. There will be an evolution over the course of this term. But we want to get to an operational agency as soon as we can during this term. In relation to its budget, yes, we have looked across the world at development agencies. Substantial work has already been done. Part of that work is very much looking at budgetary scope. We have got some indicative figures that we will be sharing with the group. We have draft answers in many of these areas, but you will appreciate that the whole point of setting up the group is to share some of our thinking on what we have been able to set out already and stress-test that with some leading thinkers and people with operational experience, who are able to test the outline model that we have. I want this to be as open and collaborative as possible, genuinely. When we have more of an outline and we have formed the group and we have something further to share, we will do that—on a bilateral basis, meeting with Members, but also through written statements at the appropriate point.

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Rwy'n ddiolchgar iawn i'r Aelod am y cwestiwn. Yn fras iawn, rŷn ni wedi adnabod yn barod mai prif ffocws yr asiantaeth fydd galluogi busnesau sydd â'r potensial i ehangu i dyfu. Mae hynny'n golygu cefnogaeth wedi'i theilwra, gan adnabod beth yw union rwystrau pob busnes. Mi fydd sefyllfa pob busnes sydd â'r potensial i dyfu yn wahanol. Mewn rhai enghreifftiau, mi fydd hyn yn golygu mynediad i gyfalaf; mewn cyd-destunau eraill, help gydag allforio, ac efallai help gyda'r sylfaen sgiliau, ac yn y blaen. Mae defnyddio dull sydd ar sail rhyw fath o reolydd cyfrif yn sicrhau bod y busnesau hynny yn mynd i gael y gefnogaeth sydd ei hangen. I ateb i un o'r pwyntiau a gafodd eu gwneud yn gynharach, mae'n bwysig iawn bod yr asiantaeth yn ffocysu. Mi oedd yna elfen o mission creep yn yr hen awdurdod datblygu. Felly mae ffocysu yn benodol ar gefnogi gallu busnesau Cymru i ehangu yn mynd i fod yn ganolbwynt i'r asiantaeth.

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I'm extremely grateful to the Member for that question. Very broadly, we've already identified that the main focus of the agency will be to enable businesses that have the potential to scale up to do that. That means tailored support, identifying the exact barriers facing every business. The position of every business that has the potential to scale up will be different. In some examples, it will mean access to capital; in other contexts, it may need assistance with exports or help with the skills base. Using an account manager approach will ensure that those businesses will receive the support that they need. To respond to one of the points that was made earlier, it's very important that the agency is focused. There was an element of mission creep in the old WDA. So, focusing specifically on supporting the ability of Welsh businesses to scale up is going to be at the heart of this agency's mission.

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I was pleased to be able to address the board of the development bank last week, and we had an extensive discussion as well with senior executives prior to that meeting. I think that the development bank is an important element within our economic landscape; we're not about having a mini bonfire of the quangos here and then creating something else somewhere else in the landscape. It's about understanding the different roles that the different parts of the landscape can play and how they can work together. We have a vacuum at the moment that needs to be plugged in terms of a development agency. There are bits of economic development and business support that are not directly to do with access to capital at all, and those are the elements that we need a development agency to focus on. On the specific question in relation to equity investments, there is a variety of possibilities there. It's the kind of question that I've been discussing with the development bank very productively. That will continue as we map out the interrelationship between the different elements within the landscape that we're seeking to create.

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When the Labour Government was elected in 1974 with the promise to create a development agency, when did they create the development agency? In 1977—three years. Here I am, six weeks in. Maybe I could be accused of being too open. I'm telling you about every step of the way. There's no Government in the world that would create a development agency without gathering together the best knowledge that they can gather. That's how you do good policy. I urge the Member, who can often be more thoughtful than he has been today—[Interruption.] I just think that in any policy development, you have to go through a period where you are understanding the strategy that you're trying to set out. That's true of any organisation. That's true of anything that you're trying to create. Because the mistakes that are made in institutional design—and there are many in state capability across the world—are because at the outset people are not clear about what they're going to achieve. We will not make that mistake. That is why we are going to root our development agency in the leading edge of thinking and practice across the world, in Wales, people from our diaspora, people with business experience in Wales. Because we cannot afford to get this wrong. That is my commitment to the people of Wales. We have to get this right; we cannot get it wrong.

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It's certainly absolutely key that our national productivity mission and closing the productivity gap is translated into real outcomes in terms of people's lives, which is why, as I set out in my statement, this ultimately is about raising living standards. It is about raising the level of wages. And I think that, in addition to the agency, of course, making sure that we are understanding both our success in achieving our productivity mission, but also how this is translated into outcomes, real outcomes, for people across Wales, is critical, which is why we have said and committed to creating an economic commission alongside the agency. This is what the Basque Country did in creating its agency, modelled on the WDA, 40 years ago. They also created an economic institute, in order to make sure, in their case, that the pathway that they adopted was one that was fair and inclusive as well.

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Well, I think that it certainly would help us greatly as a nation, I think, if we were able to achieve multi-year budgetary cycles, and that is something that the Westminster Government, I think, should agree to. Because in all of the many important things that we need to achieve for our people, having that sort of multi-year certainty at every level would be the case, and it's certainly the case for the private sector, and private sector businesses as well. We want to create an agency and an economic landscape that will deliver for Wales for the long term, in order to create that level of certainty, and positivity as well. And that has to be rooted as much as possible in a team Wales approach. That's not to say—. Look, there will always be disagreements, as there should be, in a democracy, around this Chamber, but if—. All the evidence suggests that if we're able to at least create some degree of common ground, that gives us a solid foundation as a nation. There are certain things where, actually, what unites us in terms of what we're trying to achieve economically for our people should be more important than what divides us. That's the approach that I want to take with the development agency.  I don't have all the answers. Some of the best ideas will be around this Chamber and outside of this room. And to the extent that it's possible, even at the outset, if we can try and capture that knowledge, those best ideas, then that's the way that we create the sure foundation and certainty for the businesses that need to make their own investment decisions that he describes.

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Well, those are exactly the questions that we have some answers to ourselves, but we're testing them against the best in the world. So, we are talking to people about which are the best start-up and scale-up ecosystems in the world—what can we learn from them? Some of it has to be adapted and translated to our own context—we can't all become Silicon Valleys—but there are other places in the world that are similar to us, which have created the kind of environment that he describes, which is more successful at scaling up but also retaining ownership. Part of it is about looking at things like venture capital, for example, and the different stages of venture capital that are necessary. I think that we need to set some targets, clear targets. Wales needs to have a unicorn; it's not the only target, but it's an important one. The centaurs, the level below that—that's an important element within a healthy business environment. But you need scaling density, as it's called, at every level—even small businesses, if we can help them grow. There are tried-and-tested tools and techniques that we know have worked in other places. What we're trying to do, as quickly as we can, is marshal that evidence and turn it into a plan of action for Wales, and I urge, again, everyone in this room, and beyond it, to get involved in that process.

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I'm very grateful to the Member. We were looking, really, for a very senior business leader with experience, really, of running large commercial organisations, somebody that had strong Welsh links and a shrewd understanding of the interrelationship between different sectors. Jonathan Lewis has all of these attributes in abundance: incredible experience in business, top leadership roles in major infrastructure and service sectors across the world, particularly energy, engineering, construction and technology. He's currently chair of the UK's largest port operator, Associated British Ports. Throughout his career in the energy sector, he's engaged with national development agencies around the world. He will bring, really, I think, the strategic vision and practical experience to this role in chairing the advisory group. And crucially of all, of course, he's passionate about Wales and he wants to help us set up a development agency that can help us realise our economic potential. I want to place on the record that I have a distant family relationship with Mr Lewis by marriage. This is a small nation, but to avoid any risk of a perceived conflict, that's why I asked the Prif Weinidog to make the decision about the identification and appointment of the panel's chair. And, of course, any potential or perceived conflict of interest will be managed as they would be for any other advisory group of this kind. I'm delighted that an individual of Jon Lewis's calibre has accepted the Prif Weinidog's invitation to chair this panel. I look forward to working with him and the rest of the panel that we're putting together to design a development agency that is capable of matching our shared ambition for Wales.

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This Government is committed to building a fairer, more ambitious Welsh economy rooted in our communities. We will strengthen support for co-operatives and employee-owned businesses, helping them create secure jobs, retain wealth locally, grow Welsh ownership and ensure communities share directly in Wales's future economic success.

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Thank you. I'm really grateful for the question, the supplementary. Indeed, it's fascinating, actually, the research that you quoted. I quoted it myself at the employee-owned business association's conference, and you are absolutely right that there's very strong evidence that employee ownership, co-operative ownership—these models—can help us achieve that ambitious national productivity mission goal. So absolutely, we should be creating the best possible environment and support to ensure that we maximise that opportunity. So, we're committed as a Government to supporting and expanding co-operative businesses, employee-owned businesses, providing them with the specialist support that they need, including finance from the Development Bank of Wales. I'd ask as well, perhaps, if she could ask if the constituent can contact me directly, because we're keen to know how we can get this right, because there is a huge prize there. Wales gave the world, through Robert Owen, the co-operative as an idea. Let's build on that heritage for the twenty-first century, and where we want to get to with our national productivity mission goal, and let's make sure that we maximise the opportunity.

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I've said that we want to make Wales the best environment, the easiest place to start a business, grow a business and invest in a business. As part of that, obviously, we need to look at all of the policy levers, including our business rates policy. We are already committed—it is a manifesto commitment—to revising and reforming the business rates system, so that we do, I think, square the balance, get the balance right, in terms of making sure that our small companies, and particularly our high-street companies, particular sectors in our town centres that have been under particular pressure—. So, we have begun that work. We'll probably need to do it in phases, but we are certainly very, very committed to using all the levers, including the reform of business rates, to create the best possible business environment for our small businesses.

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Yes, at the employee-owned business conference, actually, I was able to point out that the targets in terms of the employee-owned sector had been exceeded, and I think there are about 113 employee-owned businesses in Wales, but as we say in Welsh, 'nid da lle gellir gwell', so let's exceed further our ambition. The Member will know that I do love a good target—it keeps you accountable. So, we are working below that headline, North Star national productivity mission. Work has been going on in detail at the next tier of targets. And, certainly, I will take back his suggestion about having a particular target for this vitally important sector as well.

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Fel rhan o’n cynllun 100 diwrnod, rydym yn datblygu’r strategaeth genedlaethol ynni. Bydd yn egluro sut y byddwn yn cwrdd â'n hanghenion ynni gan greu manteision i gymunedau ac yn lleihau effeithiau negyddol. Byddwn yn egluro sut y caiff perchenogaeth gymunedol ei chyflawni a rôl ehangach ein cwmni ynni cyhoeddus Cymreig.

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The national energy strategy is progressing as a priority of our 100-day plan. It will set out how we will meet our energy needs by benefiting communities and minimises negative impacts. We will set out how community ownership will be achieved and the expanded role of our Welsh public energy company.

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Wel, mae sicrhau bod Cymru'n cael y budd o'r potensial ynni adnewyddol glân sydd gyda ni yn greiddiol bwysig i'n polisi ynni ni. Ni oedd wedi, trwy'r cytundeb cydweithio a oedd yn bodoli'n gynt wrth gwrs, creu'r sail ar gyfer creu Ynni Cymru, sydd yn helpu cymunedau i wneud yn union yr hyn rŷn ni'n sôn amdano, sef sicrhau eu bod nhw'n berchen ar adnoddau ynni cymunedol. Dŷn ni wedi gweld yn y gorffennol, wrth gwrs, yn ein hanes ni, sefyllfa lle'r oedd gyda ni gyfoeth mewn ynni o ran glo a wedyn y budd, wrth gwrs, yn cael ei golli o ran yr elw. Dŷn ni ddim eisiau gwneud y camgymeriad yna eto. Felly, mae'r sylfaen wedi cael ei osod yna gydag Ynni Cymru. Beth rŷn ni am ei wneud nawr, wrth gwrs, ydy adeiladu ar y seiliau hynny trwy greu cwmni ynni cyhoeddus sydd yn dod â'r elfennau gwahanol at ei gilydd. Mae gyda ni Ynni Cymru, sydd yn edrych ar yr haenen gymunedol, ac wedyn mae gyda ni Trydan Gwyrdd Cymru, sydd yn berchen i bobl Cymru ar lefel uwch o ran maint prosiectau, ac wedyn y gwasanaeth ynni. Rŷn ni'n dod â'r rheini i gyd at ei gilydd o dan un ymbarél, fel ein bod ni'n sicrhau bod gyda ni'r capasiti ar bob lefel i weld bod Cymru a phobl Cymru, ar lefel gymunedol, ar lefel genedlaethol, yn cael y budd o'u potensial ynni.

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Well, ensuring that Wales gets the benefit from the clean renewable energy potential that we have is crucial to our energy policy. It was us, through the co-operation agreement that existed in the previous Senedd, who created the basis for the creation of Ynni Cymru, which helps communities to do exactly what we're talking about here, namely ensuring that they own community energy facilities. We've seen in our past a situation where we had wealth in terms of energy arising from coal but where the benefits were lost, and we don't want to make that mistake again. So, the foundation has been laid with Ynni Cymru. What we want to do now, of course, is build on those foundations by creating a public energy company that brings the various elements together. We have Ynni Cymru, which looks at the community element, and then we have Trydan Gwyrdd Cymru, which is owned by the people of Wales at a higher level in terms of the scale of projects, and then the energy service. We are bringing all of those together under one umbrella, so that we ensure that we have the capacity at all levels to see that Wales and the people of Wales, at a community level and a national level, get the benefit from their energy potential.

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I'm grateful to the Member for his question. I've not seen the report to which he refers, but what I will do, therefore, is ask my officials to provide me and him—and we'll make sure, of course, that other Senedd Members get a copy of the response—a detailed assessment along the lines that he is asking for.

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Rwy'n ddiolchgar iawn am y cwestiwn, a dwi'n gyfarwydd gyda'r adroddiad gafodd ei gyhoeddi, oedd yn arbennig o ddiddorol. Yn sicr, mae'r Llywodraeth yn gefnogol iawn i ni yng Nghymru unwaith eto wneud y budd o'r potensial unigryw sydd gyda ni—yr ail fwyaf, wrth gwrs, yn y byd o ran y potensial. Rŷn ni am wneud y gorau o'r potensial hynny, a byddwn i'n falch iawn o gwrdd â'r rhai oedd wrthi gyda gwaith y comisiwn er mwyn i ni sicrhau ein bod ni'n symud ymlaen cyn gynted ag sy'n bosib gyda'r sector.

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Thank you for that question, and I am familiar with the report that was published, which was particularly interesting. Certainly, the Government is very supportive of Wales making the most of the unique potential that we have. It's the second highest tidal range in the world, and we want to make the most of that potential. And I would be delighted to meet with some of those who were involved in the commission's work in order to ensure that we make progress as soon as possible in that sector.

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I've already met with the team in NESO that was responsible for the transitional report to which the Member refers. We will have further discussions with them over the course of the six-month period in which they will be inviting responses to the transitional plan. Obviously, we don't have direct responsibility for the transmission network; that is reserved at Westminster. But, obviously, we will be taking a view in light of the national energy strategy, which will be setting out Wales's energy needs, and it's in that context that we will respond in due course.

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I'm very grateful to the Member for that question. And, yes, can I place it once more on the record that, as to the distribution network, which, in contrast to the transmission network, as I referred in my earlier response, is devolved—therefore, 132 kV and below—our policy is very clear, in that we believe that that should be undergrounded. We will not allow pylons on new lines. The only exceptions would involve wooden poles or similarly unobtrusive infrastructure. We'll be setting that out in the first instance through the means of a ministerial statement. I'm conscious that this, actually, as we're discussing planning, although there is an energy policy context, is actually within the area of responsibility of my colleague the Cabinet Minister for Local Government, Housing and Planning—I'm sorry if I've got them the wrong way round. But that would be the first step, and then, obviously, that will be further iterated through the changes in planning. But I want to be absolutely clear: our policy is clear on this—we do not see a role for pylons on new lines in the distribution network.

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I'm very grateful to the Member for his question. I think at the heart of his question is a really centrally important challenge, really—that, even as we try and progress as fast as we can along this pathway to halving the productivity gap between Wales as a whole and the rest of the UK, we have to make sure that we do that in a way that is spatially fair. We cannot have Wales reproducing, if you like, in our context, the problem of the wider UK economy, where we've had wealth and opportunity concentrated in a certain corner. So, in everything that we do, we must make sure that, when we are achieving our economic potential for the nation as a whole, we are seeking to do that for every part of the nation as a whole, and every region and every community. I think that, as he raises the issue of the agency, that needs to be at the heart of the remit letter for the agency. Part of that is where you locate. Well, part of that is creating strong regional divisions who are given that active responsibility on the ground, and then making sure that there are teams located in every part of Wales. And yes, there are benefits to that in terms of football—footfall—but also—. That was a Freudian slip; I wish we were in the World Cup, but there we are. [Laughter.] But yes, look, 'every which way we can', is the short answer. I'm interested in any idea that closes the gap. There are other things that we want to do. My colleague, the Member for, the Minister for rural—

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—rural resilience and climate change—. It's like Cabinet bingo, isn't it? 'I got that one right.' [Laughter.] We will be working together, ensuring that rural Wales and all the sectors that are particularly important in rural Wales, critically, the Valleys as well—. I'm from the anthracite coalfield. The Valleys have not had the platform that they deserve. We will change that as part of our overarching economic strategy, through the development agency, but through policies of the Government as a whole as well.

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Well, I preferred the second half of the question, which was: what are we going to do? Look, I agree that there's a massive opportunity there. Already, there is an important cluster. We have an aerospace cluster. We also have a wider aviation MRO cluster. I'm interested in getting around the table with anyone and everyone who wants to work to ensure that we make the most of those assets that are there. Some of them are physical assets. Some of them are human capital assets—the skills of our people. I want us to build further on those skills. Certainly, we see this sector, including the cluster around St Athan and the airport, as one of the strategically important clusters for Wales. It's a growth platform. Has it been fully maximised in its potential? No, absolutely not. There's a new Government here. Look, if the Member has ideas, practicable ideas—short, medium, and long term—my door is open. Let's get around the table, even, sometimes, Government and opposition, working together. There's no monopoly on good ideas. It is a strategically important cluster for us, we've already identified that, and we will work with the cluster and with everyone else to ensure that it maximises its potential.

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I'm always trying to find common ground, so let's start where there is some agreement. I think it is indefensible that the extra defence expenditure is being found by raiding the budget for vitally important social infrastructure. It's an incredibly unfair and short-termist policy when other options are available. Now, here comes the disagreement: in one of Europe's most unequal countries, is the fairest thing to do, then, to raid the welfare budget, which is there at least to provide some amelioration against the massive poverty that we have in our society, when, instead of that, you could be looking at the other end of the income scale, couldn't you, at wealth, and introducing a wealth tax in this country? So, if there is a deficit to be filled, why don't we actually ask for the money to come from some of the richest pockets and the broadest shoulders, rather than balancing the budget on the backs of the poor?

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You were doing so well. No, look, to be honest with you, I understand where the Member's coming from, and I don't want to waste time or energy in waging the battles of the past, I'm more interested in winning the prize of the future. And at the heart of your question, there is a massive prize. We have one of the best places in the world—in fact, one of only three where you can build a mega-scale floating offshore wind field. And so the race is between us, the Koreans and the Norwegians to get there first. Let's get that early mover advantage, and not just in building out the floating offshore wind turbines themselves, let's build the turbines, and let's build the turbines in Welsh ports. What we can do, I think, is turn those Welsh ports, if you like, into massive-scale green industrial parks, because where we land the energy, we can actually then create an energy system that will allow our large industrial users, in Tata, Port Talbot, but in the other ports as well, to create a competitive advantage because we have this unique asset of abundant clean energy. Let's use it for Welsh benefit.

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Janet, I know you are one of my biggest fans, but I think you've gone too far. [Laughter.] So, I'm going to have to leave you at the altar here. I won't be joining the Conservative Party any time soon.  But look, we have free ports, we have enterprise zones, we have investment zones, et cetera, et cetera, et cetera. I'm less interested in what we call these things. I'm more interested in what they can do. And if any lever or tool allows us to build faster, to get further to where we want to get to in terms of our productivity goal, then hallelujah. And I'll happily thank anyone that was responsible for helping us along that journey. Let's not get stuck in the politics of this, and let's try and actually raise our sights a little bit and aim at the goal.

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Diolch. As part of the investment zone, we are working with the Cardiff capital region, Newport City Council and CSconnected to develop a skills delivery plan to meet the cluster’s needs and develop future talent. Officials are also included in discussions around creating a dedicated skills centre for the cluster.

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Well, I also had the privilege of visiting KLA last week and I would urge all Members to take up that opportunity. It is so incredible what you see there because this is a full-spectrum cluster. We're not only producing the compound semiconductors, we're producing the machines in KLA that make them. And, for me, it was quite emotional, thinking we've gone from coal mining to data mining, and to see these young people there, in probably the world's leading high-tech cluster in this area, world-leading companies. I was told as well that in that company—KLA, SPTS previously—people go in as apprentices, they end up 25, 30 years later as senior managers. It's a fantastic example of what we can do. So, yes, we're in discussion, as I said, in terms of building the skills centre. But also I know that Newport council is proposing a school's science, technology, engineering and mathematics programme as well, so that we're also switching on the light bulb in young people's minds to imagine what they could be. And that, at the individual level, is really what we're trying to do at the level of the nation as a whole. So, we will absolutely do our part in making sure that this fantastic jewel in the crown delivers the real potential. We ain't seen nothing yet, I think.

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Well, I personally as a Minister and we as a Government will do everything that we can to support the growth of that company, and indeed these growth sectors and clusters. We're fortunate in Wales that we've maintained our advanced manufacturing base. Manufacturing is still 16 to 17 per cent of our economy as a whole, whereas in the UK it's half of that. But we shouldn't actually just stay there. We should re-industrialise. We should drive, as the European Union has talked about, driving up to 20 per cent, we should get back up there as well. We have the foundations to do that. We need to invest in our skill base, we need to invest in our innovation system, we need to invest in the individual companies. At the heart of the development agency is creating a mechanism, a means, of working at greater velocity, in an agile and dynamic way, so that we can support companies like this. We're living through a massive age of disruption, through AI and other related technologies, but, in that, there is opportunity as well, and we are well placed to grasp those opportunities. We have two AI growth zones, we have much of the hard infrastructure through the data centres that are going in, but we don't just want to host hard infrastructure, in the same way that we don't just want to host energy infrastructure; we want to get the benefit of it. That's the kind of strategy that will be the driving force for our Government.

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It's great to hear that the Dragons are involved. And that's precisely the way, I think, in which you maximise the potential for a cluster, when it puts down deep roots across society and when everyone feels that they're part of it. So, it's really great to hear that. We'll do everything that we can, certainly in the skills audit that we have already announced, and certainly with the skills summit, I'm sure that the sector's needs and opportunities will be at the core of that. We're seeing growth, as has already been referred to, because of what's happening with AI, and, of course, quantum computing is not that far away now and quantum computing itself will drive demand for the products of this industry. So, we are in a really strong position here, but we should not rest on our laurels on the pipeline of talent and getting people excited and positive. We are good story-tellers as a nation, but sometimes our natural humility gets in the way of shouting about the fact that we have the world's leading cluster in compound semiconductors. That's a massive thing for a country of 3.1 million people. We're in pole position in a sector that is going to be critically important to the future, so we stand ready to do everything that we can as a Government.

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The Welsh Government is determined to make the most of opportunities that arise from tourism and to do so in a sustainable way. We support tourism businesses in Sir Gaerfyrddin through Visit Wales activity, including marketing campaigns, funding and support to businesses and support for skills initiatives.

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I'm grateful for the opportunity to give that reassurance. We want to work as closely as we can with the tourism and wider hospitality sectors. They are vitally important sectors for us nationally, and in many key localities in Wales, including Sir Gaerfyrddin. I will be meeting with representatives of the tourism and hospitality sectors to talk about practical ways—short, medium and long term—that we can help them to realise their undoubted potential. In relation to the individual business concerned, if the Member can share with me the details, if they are agreeable to that, I will ask officials to see if there are any other means by which the issues that they have raised with you can be addressed.

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We will prioritise areas with the greatest potential. Work is under way to establish an economic and fiscal commission to strengthen granular economic analysis, alongside developing a national development agency. This will help to better align investment, skills and innovation, supporting sustainable growth and high-quality job creation across Wales.

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At the broad level, I think that many of the sectors that he refers to are clearly ones where there is huge economic potential globally and, indeed, for Wales. The point of my initial response was that I think we have to take it to a more specific level, because under renewable industries or green industries, et cetera, there are the subsegments. Wales will have a potential comparative competitive advantage in some of them—not in all—and we need to be focusing our efforts on growing those areas where we have an existing base or we can grow into the adjacent possible. It's the same with AI as well. We're probably not going to be competing with the hyperscalers or the frontier large language model firms like Anthropic, but in terms of the application of AI, there is great opportunity for us in developing through our AI growth zones and based on our existing area of specialisation. The role of universities is critical here in terms of spin-out firms. Certainly, our independent review of the sector, I'm sure, will be looking at the role of universities in our knowledge base and in terms of the wider economy.

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Diolch, Gareth. We are supporting businesses in Carmarthenshire through investment in skills, town centres and major projects like Pentre Awel, alongside direct support for small firms. Our focus is on creating well-paid jobs, strengthening supply chains and ensuring that growth benefits communities across Llanelli and the wider county.

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I received a report on the impact of the fire when I spoke with the company's chief executive officer this week. All personnel were accounted for and evacuated from the area safely. The company is surveying the damage and considering next steps in partnership with the trade unions. I will receive a further update when I visit the site tomorrow.

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I would also like to put on record our thanks to the emergency services—the mid and west Wales fire service—who attended the fire at around 8 p.m. on 3 June. The fire crews left the site on Friday 5 June. It's certainly something that Tata obviously wanted to stress: that their priority always is the safety of their employees and the wider community, as well as the safe and stable operation of the site, which, as the Member would agree, is such an important economic asset, not just in terms of its local and regional importance, but to Wales as a whole. The company, in the discussions that I've already had, have said that they're obviously surveying the damage and have begun the work of making the sites safe. They have actively implemented, or have begun implementing, mitigation plans, including providing alternative processing for the cold mill and the pickle line, which is being transferred to Llanwern, in order to maintain supply to customers, and they've been working with the workforce to enable that to happen. The hot mill, of course, will remain at Port Talbot. As I said, I'll be meeting the CEO and the wider senior project team leading on the electric arc furnace programme tomorrow, and that will be an opportunity to discuss any of the live issues related to the fire damage and the mitigation measures, but also to discuss the wider project. And Tata reiterated very, very clearly to me how committed they are to ensuring that that project is delivered to the wider benefit of the community and, indeed, Wales as a whole.

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We will, obviously, do everything that we can to support the project, which, as I said, is of such strategic importance to Wales. I've already had an initial discussion with the CEO on Monday, not just to discuss the fire, but also the reports in relation to the delay. I'll have a further opportunity tomorrow, when I visit Tata, to discuss these matters in greater detail. To deliver the connection, National Grid Electricity Transmission is expanding the existing Margam site with a new 275 kV substation, and delivering a second 275 kV substation at Tata Steel's Port Talbot site, both of which require the procurement and installation of new supergrid transformers, as well as a 2 km underground cable connecting the two substations. Now, we've engaged not just with Tata, but, obviously, with National Grid Electricity Transmission. They've indicated that the delay is down to several issues, not just the fault of one single party or issue. There's a range of factors. We're seeking to understand that in greater detail. Obviously, many of the levers here and powers are reserved, but to the extent that we can, either through making representations in order to influence policy or delivery, we stand ready to do everything that we can as a Government to ensure that this vitally important project is delivered as quickly as possible to ensure the economic benefit to the community and to Wales.

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I thank the Member for her contribution. I think it's important that we provide reassurance and we don't add to any uncertainty in this regard. What she's referring to there simply isn't relevant in this case, because the voltage involved is at the extra high voltage of 275 kV or above—those are matters that are entirely reserved to Westminster. That's the transmission network, not the distribution network. So, it isn't actually, in any way, relevant to this case, and it's important that we provide that clear reassurance. And as I was referring to earlier, the 2 km of cable is actually undergrounded in this case, but that was a decision made based on a reserved basis, not a matter for us.

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I thank the Member. She raised a number of issues, which I think, in order to respond fully and accurately to, I will have to write to her, because, as I said earlier, I think it's important, as she will fully understand, in terms of the reassurance that we want to provide to the workforce always, that we want to make sure that she gets accurate information and that that is also provided to the workforce and to the wider public. In terms of when did I know, then, I found out on Monday, and we were able to speak on Monday morning with the CEO and have a detailed conversation with him at that stage in relation to what had happened in terms of the fire, but also the reports in relation to the delay. Some of this information is commercially sensitive, so—. Well, there is market-sensitive information about a company that is regulated like this that they can only, under law, provide through appropriate channels. Ultimately, in a commercially led project like this, it's for those commercial parties to decide when that information is released and where, but I found out on Monday. We acted very quickly to ensure that we had as much information as we could from Tata. As I said, we will be seeking to see what we can do as a Government directly, but also what influence we can bring to bear on all of the other stakeholders in order to ensure that this delay is minimised, that we achieve progress in an accelerated way, because that's how, of course, we can maximise the benefit to the workforce, to the community and to Wales. [Interruption.] Of course.

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