First Minister contender Jeremy Miles said he will look to establish a new at arm’s length body to administer Welsh Government business support, while making an evidence-based case for the 海角视频 to rejoin the European Union’s single market.
The current Education Minister, who is vying with Economy Minister Vaughan Gething to succeed Mark Drakeford, also said the case for a tourism tax needed to be explained more to companies within the sector, while also committing to establishing a new delivery unit at the heart of his government to help underpin better decision-making across departments.
While Labour 海角视频 leader Sir Keir Starmer, in a move being seen as political expediency ahead of the General Election, has played down the 海角视频 creating closer ties with the EU through a customs union or joining its single market - which can be achieved without a political union - Mr Miles said he wants Wales and the 海角视频 to develop the closest ties possible. Figures from the Office of Budget Responsibility show that over the long-term the 海角视频’s economic output will be 4% less than if he had remained in the EU.
The MS for Neath said: “As a former Brexit minister we made the case throughout leaving the single market and the customs union that it would be bad not just for Wales but for the 海角视频. My view is we need the closest available relationship with the European Union and I think a customs union and the single market is that in practice, but the reality is this is a discussion which the 海角视频 Government will have with the EU. There is an opportunity to have that discussion with a government (Labour) that is more committed to a closer relationship. I would want to go to the very closest relationship, but it is a bespoke discussion between the government (海角视频) and the EU.”
Asked it he felt frustrated with the more lukewarm approach of Sir Keir on closer ties with the EU, he said: “I think there a political reality to the context of this discussion which as politicians you need to absolutely take full account of, but I think it is also important to make the case for that and to explain openly to people why that is a good thing. I think there is scope for doing that in Wales and across the 海角视频 and a growing understanding that there have been damaging impacts to the Welsh and 海角视频 economies as a consequence of leaving. I am very confident in the evidence base that we have been able to build and I think that is a really good platform in which to advocate for a closer relationship.”
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Labour has dropped plans for an annual £28bn green investment fund on the back of what is said was a more challenging fiscal outlook.
On the row back Mr Miles said:“I think the election of a Labour Government in Westminster will bring about a step change in investment in our green economy, infrastructure and National Grid. I think what government in Wales and Westminster needs to do is spend as much as possible on ensuring that we transform the economy into a sustainable one and invest in our green energy infrastructure.” But where will the money come from? Even with a Labour administration in Westminster the Welsh Government is looking at a challenging real terms financial outlook.
Mr Miles said: “One of my key pledges is a green economic stimulus package where we use all funding from a capital and procurement perspective to support decent jobs in sectors that are sustainable. The capital and the procurement budget (Welsh Government’s) is worth over £3bn and an example of how you can do that is when I took on the role as Education Minister one of the first things I said was any new school that we funded from our capital budget had to be net zero and we would fund the incremental cost of that for a period of time.”
With limited Welsh Government capital borrowing powers - although it has only just started to maximise its annual capacity - he said if elected he would look to work in partnership with local authorities to utilise their borrowing powers. He said there could also be an increased role for pension funds to invest in the renewables sector.
Addressing a recent meeting of Cardiff Business Club, 海角视频 country manager of energy company RWE, Tom Glover, said the biggest challenges to decarbonising the 海角视频 economy were planning and nimbyism. He cited a 10 year lead in time to get approval for offshore windfarms and while many people were supportive of renewables, there was often opposition to required new electricity pylon infrastructure close to where they live.
Mr Miles said: “The scale of the opportunity and the scale of the need to transform our energy sector is the starting point for this discussion. And what we need to make sure is for those sectors that will most benefit Wales, and the renewable energy sector is right at the top of that list, is that we set ourselves the ambition, over time, for those to be the most attractive in the 海角视频 to invest in. We also need to make sure that the planning and permitting arrangements that we have to support that, starting from protecting our environmental commitments, are as streamlined as possible in order to encourage that investment. Having a singular focus on that and working with energy companies to deliver that is going to be absolutely essential.”
On local opposition to energy projects he said: “We have a planning process that recognises objections from local communities and others already. I think we need to try and do more to locate the benefits of infrastructure that have a national impact and economic significance, so that local communities can feel they have more of a share of that. So you have a community benefits model at the moment, but the challenge for us I think is, if we are looking to develop the sector at a greater scale, is how we can build on that.”
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Asked if he would expect a Labour Government in Westminster to make up for the loss of EU funding and reclassify high speed rail as an England only project to ensure Wales receives a Barnett consequential, he said: “We have already had the agreement from Keir that discussions in relation to structural funding will be made in Wales. They are currently taken by the 海角视频 Government in Westminster which is a row back of the relationship we had during our membership of the EU. I want to see a position where those funds are progressively restored, but the reality of a government that hasn’t even been elected yet is that they are not able to make commitments in relation to public finances at this time.”
Barnett Formula and devolving the Crown Estate
On rail’s high speed two project, which will now only reach Birmingham from London, he said: “My case is Wales should be entitled to a proportion of funding as a consequence of Barnett and I will continue to make that case. But actually what we really need is a reform of Barnett in its entirety to make sure it is a fairer funding mechanism right across the 海角视频.”
Wales does get a Barnett floor of £114 per head compared to England to recognise greater need. Mr Miles said:“There is an element of needs-based but I don’t think it fully reflects a needs-based formula in all parts of the 海角视频. I think it would also be preferable to have an independent mechanism for adjudicating on questions where there are disputes. At the moment, whether HS2 for example but there are others, essentially the Treasury decides. I don’ think that is sustainable.”
He is also supportive of the Crown Estate being devolved, as is currently the case in Scotland, to Wales. However, he recognises that could come with risk as the 海角视频 Treasury currently nets off the block grant of the Scottish Government £10m regardless of the profit or loss performance of Crown Estate Scotland. That will rise to £40m by 2028-29. The Welsh Government could also incur setting up costs.
Mr Miles said: “It is technically quite complex (devolving the Crown Estate), and we don’t want to be in a situation where that risk is an unmanageable one, given the profile of our funding in Wales. In Scotland there is an inter-relation between revenues and Crown Estate in Scotland and their (Scottish Government’s) settlement and those elements would need to be negotiated as part of the devolution of that to Wales. However, as a part of a package with a reform of Barnett and prudential borrowing powers, you could see a more stable basis for that. The new licences in the Celtic Sea for floating windfarms from the Crown Estate though a real opportunity for renewable energy being a fundamental part of our economic policy for years to come. I would couple that with a Wales-wide skills map identifying the needs in the sector.”
Business support
Mr Miles has also committed to a review of Welsh Government business support in areas such as tourism, inward investment, innovation and productivity. The current model does see some of that activity, under the banner of Business Wales, outsourced to private sector providers through a procurement process.
Mr Miles said: “These are things to be looked at, but I don’t think it is a commissioning or a procurement process, but is a body which has the Welsh Government as its principle stakeholder and operating at arm’s length. That is one of the options, but if you look at what is happening in Spain, Canada or Australia, there are a range of options.”
However, he stressed it would not be a return of the Welsh Development Agency, which was abolished by the then Labour administration of Rhodri Morgan back in 2004 and staff brought into the Welsh Government’s civil service.
Mr Miles said: “This is not the WDA and the OECD will say to us, as they have before, that we have a mixed record in this space historically in Wales. The point I am making is that today, in different parts of the world, there is effective practice where these functions are delivered at arm’s length, so we should set an objective of looking at that and seeing if that model works for Wales.”
On the Welsh Government’s proposed tourism tax, where there is opposition within the sector who fear it will deter tourists, he said:“I think the key to this is understanding how that tourism tax income is invested in order to support and build up the tourist economy. That is the key to getting more widespread agreement in relation to this and that is what happens elsewhere.”
The Welsh Government has already said income raised would be hypothecated for investment back to support the tourism sector, including in infrastructure.
Mr Miles added: “So, I think bringing that alive and understanding what that means in practice if you say running a tourism business is part of our challenge. We need to explain more clearly what the benefit would be for that business.”
Delivery unit
He said he would establish a new delivery unit at the heart of his government to ensure ‘smart decision making.
Mr Miles said: “I think it is a case of thinking afresh in a rapidly changing economy and because of the pressure on our budgets. It is a different way of working, setting bold objectives, empowering people on the front line to deliver them, and thinking about new ways of delivering on those cross-government objectives. I think the question of funding for public services is a good example of this. We need to look at a whole public service approach when looking at the challenges of funding so recognising that a decision in relation to one could easily affect and create demand in another. So, working across government is really important. During Brexit and in our response to Covid, we developed really good and innovative ways of working on a cross-government basis. I think building on those will give us the answers to some of the challenges ahead.”
He said a delivery unit will have a focus on three to five key priorities. He added: “It would work with departments to ensure that they have clear delivery plans in place, support and press those departments if delivery isn’t on track, and look at new ways of delivery. Crucially it will look at the implementation plan for a new policy at the point that it is being developed and announced.”
He was asked if believed the civil service had the capacity to ensure the success of a delivery unit, or whether new blood would need to be brought in.
He said: “My vision for a delivery unit is that it draws on the best within the civil service and brings on the most talented people to work, maybe for a period of time, before moving onto other parts of the civil service. This will ensure a constantly refreshing pool of talent doing that particular work.”
If elected First Minister he said he would also prioritise the setting up of a national economic council. He said:”I am looking for a First Ministerial level group of individuals that can advise government on its economic policy, with the aim of increasing prosperity and solidarity and sustainability. It is modelled on an equivalent body in Ireland which commissions its own work and advises the government. So it produces that strategic level of engagement and that direct voice for businesses, trade unions and organisations in the environmental sector to make sure that policy is shaped with that direct input.”
How quickly would the council be established? Mr Miles said: “In my first week I would get work under way. It reports quarterly in Ireland so I would want to get it up and running as quickly as possible.”