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Enterprise Zones to be reorganised

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Enterprise Zone: 'Little to show for the money', claim Conservatives

ECONOMY Secretary, Ken Skates has announced an intention to streamline the operation of Wales’ eight Enterprise Zones while increasing their focus on delivering prosperity for Welsh communities.

During an appearance at the Economy, Infrastructure and Skills Committee, Ken Skates announced the conclusions of his review of the governance of Wales’ Enterprise Zones while stressing his commitment to the continuation of all eight of the zones.

Speaking after Committee, Ken Skates said: “I am very proud of the achievements and success of our Enterprise Zones and grateful for the hard work and commitment of the Chairs and Advisory Boards in driving their success.

“Collectively our Enterprise Zones supported over 10,700 jobs to the end of the last financial year at a cost per job of less than £6k per job, and whilst the pace of delivery has varied between the Zones, this very much reflects each Zone’s economic context and starting position.

“All eight Enterprise Zones have made significant progress, and are continuing to deliver value for money by laying the foundation for future prosperity and creating the right environment to support the development of sustainable job opportunities in communities right across Wales, both in the short and longer term.

“The changes I have outlined are about streamlining bureaucracy and utilising other governance structures where I believe that represents the most sensible way forward. They have also been made as part of a wider review of advisory architecture across my portfolio.

“The views of the Chairs of the Enterprise Zones have been invaluable in shaping my decisions.”

Mr Skates announced that f​our of the eight boards that advise the government on Wales’ enterprise zones are to be wound up this summer. The boards overseeing the zones in Cardiff, St Athan, Deeside and Ebbw Vale will cease to exist from July 31. But the zones themselves – designed to support business growth with some tax incentives – will continue to exist.

Boards in Port Talbot and West Wales will continue, while those for Snowdonia and Anglesey will merge.

Mr Skates also said more enterprise zones could be created, in places such as Wrexham.

Responding to Ken Skates’ comments, Welsh Conservative leader, Andrew RT Davies, said:​ ​“Labour’s enterprise zones have cost the Welsh taxpayer hundreds of millions of pounds – with very little to show for the money and Welsh workers still receiving the lowest average weekly wage in the UK.

“The Cabinet Secretary’s comments indicate the Welsh Government might well continue down the road of Enterprise Zones, potentially throwing good money after bad.

“The approach outlined by Ken Skates seems haphazard at best, utterly shambolic at worst and certainly does not fit into the rhetoric of the Welsh Government’s recently launched economic action plan. Some new enterprise zones are to be created, some boards are to merge, and some wound up altogether!

“The Welsh Government must now make clear its long term plans for the zones and ensure that any future funding produces tangible economic results for Wales and our local communities.”

Wales’ eight Enterprise Zones were first launched in April 2012. The then Cabinet Secretary for Business, Edwina Hart, stated that “My aim in developing enterprise zones is to strengthen the competitiveness of the Welsh economy.​”​

Since the creation of the zones, £221 million of public funds have been allocated to support that policy initiative. Despite huge injections of public funds however, serious questions remain as to whether the Enterprise Zones have delivered their key objectives:

In the Ebbw Vale Enterprise Zone £94.6 million has been spent to create, safeguard or assist just 390 jobs (at a cost of around £250,000 per job)

In the Snowdonia Enterprise Zone £2.1 million has been spent to create, safeguarded or assist just 20 jobs (at a cost of £108,333 a job)

A further issue is the question of whether or not Enterprise Zones have come close to fulfilling their original intent.

Enterprise Zones were set up by the Welsh Government to ‘grow the local economy and provide new jobs’.

However, while Mr Skates claims that over 10,700 jobs were ‘supported’, Welsh Government figures suggest that, in practice, the zones have not been used to create new jobs.

The average cost of each new job created by Enterprise Zones has been £74,000

The St Athan Enterprise Zone was supposed to deliver 10,000 jobs by 2025 – but in five years the number of new jobs actually created was 137.

In Ebbw Vale, £94 million has been spent on just 175 new jobs, the equivalent of £500,000 a head.

In Snowdonia, £2.1 million has been spent on creating 6 new jobs.

Looking at the figures revealed for the Haven Enterprise Zone, reveals that 356 jobs have been created, 561.5 safeguarded, and 196 assisted: 1,113.5 jobs.

Using a crude measure – the total number of jobs involved came at a cost of under £8,500 each. However, under one third of those jobs are the sort of new jobs the Enterprise Zone was supposed to create.

Business

Workplace inequality affects economy

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Workplace equality: Could grow economy by 10%

INFLEXIBLE workplace structures, gendered assumptions about childcare, and wide-scale discrimination mean mothers are more likely to be trapped in part-time, low-paid work with fewer opportunities for career progression.

Those are the findings of a National Assembly committee which has been looking at the issue.

The Equality, Local Government and Communities Committee believe such factors are key causes of gender inequality and represent a loss to the economy.
The UK Government’s Women’s Business Council estimates that equalising the employment rates of women and men could grow the UK economy by more than 10% by 2030.

The employment rate for women with dependent children in Wales is 75%, compared to 91% for men with dependent children.

The gender pay gap between men and women in Wales is 15% for all employees (full and part time).

A 2016 survey by the Equality and Human Rights Commission revealed that Welsh employers lag behind England and Scotland in offering flexible working.

The same survey found that 87% of employers in Wales feel it is in the best interests of organisations to support pregnant women and those on maternity leave. But it also found that 71% of mothers reported negative or discriminatory experiences as a result of having children.

Employment law isn’t devolved to Wales but the Committee focused on the levers at the Welsh Government’s disposal including employment of public sector workers and businesses and organisations in receipt of public funding,

“During the course of our inquiry we heard some shocking individual experiences: women who lost their jobs during maternity leave, careers derailed because of the lack of flexible work, and fathers prevented from taking on caring responsibilities because of cultural attitudes,” said John Griffiths AM, Chair of the Equality, Local Government and Communities Committee.

“These stories have directly influenced our conclusions and recommendations.

“Preventing a large proportion of the population from contributing their skills and experience to the workforce is not fair and does not make economic sense.

“In light of technological, social and economic changes, now is the time to modernise workplaces so that they are fit for the future for everyone, not just parents.

“We believe the Welsh Government can set a standard in promoting flexible working, ensuring organisations in receipt of public funding are flexible by default and by reassessing its new childcare offer.”

The Committee makes 34 recommendations in its report, including:

  • That the Welsh Government should advertise public sector jobs (including teaching posts) as ‘flexible by default’, and lead the way by allowing senior roles like Ministers and councillors to be job-shared;
  • Strengthening the obligations on organisations receiving public funding to provide flexible working and report on the retention rates of staff returning from maternity leave;
  • The Committee heard that the Welsh Government’s new Childcare Offer was unlikely to achieve its main aim of increasing maternal employment in the most effective way. It recommended the Government reconsider the target age group and the income threshold; and,
  • the Welsh Government improve advice services in Wales, and that information about rights and obligation at work should be provided to women at an early stage of pregnancy.

The report will now be considered by the Welsh Government.

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Business

Skates makes case for rail

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Rail investment inequitable: Ken Skates demands action

TRANSPORT S​ECRETARY Ken Skates has cited slow speeds, manual Victorian signalling and level crossings bringing traffic to a standstill up to 200 times a day in his call on the UK Government to make available an equitable level of funding for rail infrastructure enhancements in Wales.

In May, Ken Skates announced Cardiff University’s Professor Mark Barry would lead on the case for investment in rail infrastructure in Wales, against the backdrop of the UK Government’s £50bn investment in HS2.

The Transport Secretary summarised the case in the Senedd on Tuesday​ (Jul 17)​.

Ken Skates told Assembly Members: “The initial findings of this work are stark. Wales has not received an equitable share of UK rail investment over a sustained period, denying us the economic benefits enjoyed elsewhere in the UK.

“Network Rail’s Wales Route, which makes up 11% of the network, has received little more than 1% of total spend on enhancements in England and Wales.

“This has resulted in low lines speed on the South Wales Mainline, capacity and speed constraints along the North Wales Coast, infrequent commuter services for the Swansea Bay city region, and inadequate cross-border services in both North and South Wales.

“I continue to support HS2, but call once again on the UK Government to make the right choices to benefit north Wales, and exert pressure on them to mitigate against the probable impact of HS2 on the economy in South Wales.”

The work carried out by Professor Barry highlights the use of old, inefficient, and unreliable infrastructure constraining the number, speed, and quality of services.

“These constraints dampen demand, restrict economic growth, and increase costs to passengers and tax-payers.

“I will continue to set out a broader vision for a successful rail network. One that helps us meet our obligations to the environment, responsibilities for Well-being and Future Generations, delivers the goals of the Economic Action Plan, and meets the UK Government’s commitment to rebalance the economy.

“The work undertaken has identified direct transport user benefits of at least £2bn, generated by reducing journey times for rail passengers. Additional benefits also arise from reduced road congestion leading to environmental and safety improvements.”

James Price, Chief Executive, Transport for Wales said: “The success of the Wales and Borders rail service relies on efficient and reliable infrastructure with the ability to transport more people more efficiently. We look forward to working with the Welsh and UK governments to deliver improvements that meet the needs of passengers in Wales and across the border.”

Cardiff University Professor of Practice in Connectivity, Mark Barry said: “Wales’ railways are stuck in second gear. Long-term under-investment compared to the UK as a whole has left them unfit for purpose.

“It’s no great surprise fewer people in Wales choose to use the train than in the rest of the UK, leading to less efficient rail operations, higher subsidies per passenger and more road congestion. This is a brake on our economic growth, improvement of air quality and carbon reduction.”

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Business

Kidwelly firm is Responsible Business Champion

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Award winner: John Burns with Llanelli MP Nia Griffith

BURNS P​ET NUTRITION has been nominated for responsible business award.

The Kidwelly-based natural pet food company Burns Pet Nutrition has been nominated for a National Responsible Business Champion award in Parliament.

John Burns, who owns Burns Pet Nutrition and the Parc y Bocs Farm Shop, attended the ceremony in Westminster last week with local MP Nia Griffith. Mr Burns was nominated for his community outreach work, paying all his staff the Living Wage and providing the only fully-accessible disabled toilet in the Llanelli area.

At the awards ceremony, Mr Burns was congratulated by Andrew Griffiths MP, the Minister for Small Business, Consumers and Corporate Responsibility. He also spoke with Baroness Greengross, who co-chairs the All-Party Parliamentary Corporate Responsibility Group (APCRG) that runs the award.

Nia Griffith MP said, “It was fantastic to welcome John Burns to Parliament last week, and to celebrate all the wonderful things he is doing for the local community in Kidwelly.

“Burns Pet Nutrition is a vibrant and innovative business that provides excellent local job opportunities and work experience placements for young people. It is a genuine Living Wage employer, and does a huge amount of work with local community groups… in particular providing transport for the senior citizen Kidwelly Luncheon Club.

“John’s farm shop at Parc y Bocs is also a huge asset to the community, and astonishingly the ONLY place in the Llanelli area with a fully accessible disabled toilet. This is a model for other businesses and also Carmarthenshire County Council, who need to step up and provide some of these facilities themselves.”

John Burns said “I was delighted to attend Parliament last week with Nia Griffith MP and have my company nominated for a National Responsible Business Champion Award.

“This means a lot to me, as I have always thought it vital that businesses have a connection with the communities they serve. That’s why we strive to provide good job opportunities for local people and pay our staff a proper Living Wage. We also try to help local community groups in any way we can, through our Burns in the Community programmes and donations to good causes.

“We are also very happy to be able to provide a fully-accessible Changing Places toilet at our farm shop. We know the difference this can make for disabled people and those who care for them, so it is important to us that we cater to the whole of the local community and everyone passing through.”

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