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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

Cabinet Secretary for Economy says Tata chose to ignore multi-union report

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TATA STEEL has confirmed to the Welsh Government plans to close its two blast furnaces at Port Talbot, transitioning to electric arc furnace steelmaking as part of a £1.25bn strategy. This move is set to impact approximately 2,800 jobs, with major implications for the local community and wider Welsh economy.

Jeremy Miles MS, Cabinet Secretary for Economy, Energy and Welsh Language, expressed deep disappointment over the company’s decision to disregard the multi-union report’s recommendations for a more sustainable transition. This report, commissioned by the UK Steel committee, had advocated for measures that would reduce the environmental impact of steel production while considering the workforce’s welfare.

The phased closure will begin with Blast Furnace 5 in June, followed by Blast Furnace 4 and other heavy assets by September’s end. Over the next 18 months, the first wave of job reductions will take effect, beginning this July, with further losses anticipated at the Llanwern site over the next two to three years.

The Welsh Government has criticised the pace of the transition, suggesting that a more extended consultation period between Tata and the unions might have mitigated the scale of job losses. As the company prepares for a three-year transition period, it will rely heavily on steel imports to meet customer demands, a move that raises concerns about the future of local production capacity.

Miles underscored the strategic importance of the Welsh steel sector, not only for the local economy but also as a vital component of the UK’s industrial landscape. He urged Tata Steel to avoid compulsory redundancies and to collaborate closely with the Transition Board to provide the necessary support, including reskilling and employment opportunities for the affected workers.

The confirmation of the shift has prompted significant unrest among the workforce, with unions balloting for potential industrial action. Tata has set conditions on its voluntary redundancy packages, which are subject to ongoing negotiations along with future investment commitments.

The Welsh Government remains committed to supporting the steel industry, emphasizing the need for a clear and substantial investment vision that will ensure the sector’s sustainability and the prosperity of its workforce. The transition board has already initiated various support mechanisms, including job fairs, advisory sessions, and a comprehensive action plan to cushion the economic impact on the community.

This transition marks a challenging new chapter for Port Talbot and the entire Welsh steel industry, with long-term implications for the regional economy and its people.

Commenting, Welsh Conservative Shadow Economy Minister, Samuel Kurtz MS said: “The disappointment felt by those losing employment at Tata cannot be understated. We need to support our steelworkers, not just with warm words, but with skills, retraining and jobs.

“We have been clear that we want to see a blast furnace remain open in the transition to electric arc furnaces and we need to take full advantage of the opportunities that the new Celtic Freeport will bring.”

In a joint statement following their respective contributions in response to the statement, local Senedd Members for South Wales West, Tom Giffard MS and Dr Altaf Hussain MS added: “We need to support our communities in and around Port Talbot more than ever following the disheartening news from Tata.

“It is a matter of deep regret that the Labour Welsh Government have yet to put a single penny on the table to support the UK Conservative Government-funded transition board. We need more detail from Labour as to what they are actually doing to back the workforce.”

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Business

Women make better homeworkers than men, according to new survey

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A GROUNDBREAKING survey conducted by the team behind the British Business Excellence Awards (www.britishbusinessexcellenceawards.co.uk) have uncovered a significant trend in the remote work landscape: women are leading the charge as successful remote workers, surpassing men in both productivity and overall satisfaction with remote work arrangements.

The survey, encompassing more than 2,300 UK adults in full-time employment (a 50/50 split of men and women), revealed a striking trend: over two thirds of employees (69%) perceive female remote workers as more productive than their male counterparts. Contrary to traditional assumptions, women are not only adapting to remote work, but thriving in it.

Additionally, over three-quarters of women (76%) reported increased productivity since transitioning to remote work, compared to 54% of men. This shift in productivity is closely tied to work-life balance, with 72% of women indicating an improved balance since working remotely, compared to 58% of men.

Female remote workers also stood out in terms of approachability and support, with a staggering three-quarters of respondents (75%) perceiving female colleagues as more approachable in the virtual workspace. This accessibility and support contribute to a more cohesive and connected remote work environment.

In a reflection of the evolving priorities in the business world, over half of men (54%) and three-fifths of women (61%) believe that female remote workers are more progressive when it comes to sustainability and environmental initiatives. Women in remote roles were perceived as having a stronger focus on implementing sustainable practices and promoting eco-consciousness in their virtual teams.

Conversely, the survey highlighted a perception that male remote workers are more comfortable with embracing technology and artificial intelligence (AI), with 78% of men and 61% of women expressing this view. This suggests that male remote workers are seen as driving digital transformation and leveraging tech tools more readily in the virtual workspace.

Sarah Austin, Director of the Lloyds Bank British Business Excellence Awards, commented:

“These findings challenge traditional norms and underline the importance of fostering an inclusive work environment where all employees, especially women, can thrive. The data clearly shows that women bring unique strengths to remote work, contributing to higher productivity, improved work-life balance, and a focus on sustainability.

“The survey underscores the significant advantages of supporting and promoting women in remote work settings. As businesses continue to navigate the remote work landscape, understanding and leveraging the strengths of female remote workers can lead to enhanced productivity, employee satisfaction, and overall success.”

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Business

Improved customs infrastructure promised for Port of Fishguard

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SIGNIFICANT developments are poised to transform the Port of Fishguard in Pembrokeshire as a result of Brexit, with proposed enhancements including expanded parking for heavy goods vehicles and the construction of new processing facilities.

The Welsh Government has announced the need to augment customs infrastructure at this key transit point following the UK’s departure from the European Union. This expansion will bolster the port’s capacity and introduce a suite of new structures: two processing buildings—one permanent and one temporary—a mechanical and electrical plant, a waste management building, two water tanks, and enlarged parking facilities for heavy goods vehicles.

In preparation for these enhancements, the government has issued a tender for initial groundwork. This encompasses geotechnical and geo-environmental studies for three proposed buildings dedicated to processing, produce, small animals, and livestock. Additional plans include nine supplementary structures such as mechanical and electrical plants, an animal waste facility, various plant structures, and three water tanks.

The scheme also includes the establishment of a new parking area designed to accommodate 50 trailers, improvements to coastal protection measures, slope reprofiling, and the construction of retaining walls as necessary to support the new parking layout.

This infrastructure upgrade is in line with Stena Line Ports Fishguard’s strategy to adapt to new UK-EU trade dynamics post-Brexit. As border controls tighten, particularly for animal and plant products from the EU, physical inspections are set to begin across Great Britain from April 30 this year. Notably, Stena’s route from Rosslare to Fishguard remains the sole ferry connection from the Republic of Ireland to Great Britain that transports livestock.

Although inspections of these imports from Ireland are not anticipated to commence before spring 2025, the establishment of Border Control Post (BCP) facilities at Fishguard is essential for the inspection of imported goods, including live animals and various plant and animal products.

A Welsh Government spokesperson emphasised that the invitation for ground investigation works at the port is a precursor to the decision-making process regarding the BCP facilities, focusing on the diverse range of commodity types currently arriving at Fishguard which would necessitate such facilities.

The tender for these preliminary ground investigations is expected to be awarded by the end of the month, paving the way for a substantial redevelopment of the port’s operational

capabilities and infrastructure in response to Brexit-related requirements.

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