Wales is a key component in the government’s commitment to a strong and stable economy. It is one of the United Kingdom’s success stories, with more people than ever in work and an employment rate higher than Japan, Canada and most European countries.
With the number of people without jobs at a low not seen since the 1970s, it is little wonder that a top economist forecasts stronger growth for Wales than the UK average and that its economic climate has been described by the CBI as “the best for years”.
Much of this success can be attributed to the new confidence that devolution has brought to Wales. In the past, a Wales dependent on the traditional heavy industries of coal and steel suffered more than other regions when the UK was gripped by recession. Today, a dramatic turnaround has taken place. UK fiscal policies are providing a background of unparalleled continuous growth, low inflation and interest rates, and high employment; and policies formulated in Wales by the
National Assembly are investing in people and business to encourage innovation and entrepreneurship.
There are 117,000 more people in work in Wales than there were in 1997; the unemployment level is over 40 per cent lower than it was then and the unemployment rate is now below the UK average. Over the past six years Cardiff, our capital city, has recorded the highest rate of jobs growth in the UK. And the generator of this jobs growth has been private enterprise, with the number of private sector jobs growing faster than the public sector over the past five years.
Helped by low mortgages, the housing market is more buoyant than it has ever been; business start-ups are higher; between 1999 and 2005 Welsh export growth outperformed the UK; and recent surveys have shown Welsh private sector output growing for the 37th month in succession, and increasing at the fastest pace for 18 months.
The Millennium Stadium in the heart of Cardiff; the Millennium Arts Centre, and the nearby iconic Assembly debating chamber in Cardiff Bay; Swansea’s National Waterfront Museum and many other new developments throughout Wales are symbols of this newfound air of confidence.
Global companies like Airbus in North Wales; General Dynamics at Oakdale; and Logica CMG – all leaders in their sectors – have chosen Wales as their base over other British and European locations. Gone are the days when Wales was seen as just a branch office for multinational companies.
I recently visited Shotton in North Wales where, in an outstanding success story, Corus Living Solutions has won a £92m contract to produce its innovative modular buildings for the British Army. These low-cost, high-quality buildings could be the answer to the problems encountered by first-time buyers.
In addition we have secured seven more years of European structural funding for Wales to finance hundreds of exciting new projects.
In its young life, the budget of the Assembly has nearly doubled to £13bn and the Government of Wales Bill, presently before Parliament, recognises that the Assembly needs a stronger and quicker mechanism to achieve its legislative priorities.
These are exciting times for Wales. Devolution has been a key factor to our economic success and by equipping the Assembly to face the challenges of the 21st century, we will help to achieve our objective of a vibrant Wales that is world class, economically competitive and which provides high-quality public services.