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(Date:)Tj
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(13 February 2002)Tj
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(Time:)Tj
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(14:00 to 17:00)Tj
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(Venue:)Tj
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(Committee Room 3, National Assembly, Cardiff Bay)Tj
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(Title :)Tj
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(ECONOMIC DEVELOPMENT MINISTER\222S REPORT)Tj
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(1 GOVERNMENT BUSINESS)Tj
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(Executive Summary of Quarterly Economic Report: February 2002)Tj
ET
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/TT1 1 Tf
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(1.1 Recent data suggests a more positive outlook for the global economy \
after the slowdown in )Tj
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(the second half of 2001. The US economy appears stronger than expected a\
nd is recovering )Tj
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(quickly.)Tj
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/P <>BDC
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(1.2 Prospects for the UK economy remain reasonably good. GDP growth for \
2001 was only )Tj
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(just below trend though there may be some slowing in 2002.)Tj
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(1.3 The split between manufacturing and services remains quite marked. H\
owever the latest )Tj
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(surveys suggest that manufacturing companies are less pessimistic than d\
uring the previous )Tj
T*
(quarter. The labour market has showed signs of weakening, with a rise in\
UK unemployment. )Tj
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(Unemployment in Wales however continues to fall albeit very gently.)Tj
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(1.4 Inflationary pressures in the UK remain subdued, with some commentat\
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(the UK may be threatened with deflation. This however, seems unlikely.)Tj
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(New LFS data)Tj
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(1.5 New data was released this morning \(13 February\). I will update Me\
mbers orally if required.)Tj
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(1.6 Plans for Media Technium development at Gelli Aur near Llandeilo wer\
e launched last )Tj
T*
(week. It\222s a \2439.7 million project, led by the private sector and b\
enefiting from some \2433 million )Tj
T*
(Objective 1 funding. It will offer incubator units for start-up business\
es in the media industry, as )Tj
T*
(well as facilities for established businesses in the sector. Accommodati\
on will be available for )Tj
T*
(some 30 firms, employing 180 people.)Tj
ET
EMC
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(Business Connect )Tj
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(1.7 The WDA have invited tenders to run the new Gateway to be known as B\
usiness Connect, )Tj
0 -1.2 TD
(providing access to all business support services. This is in line with \
the outcome of the )Tj
T*
(Review of Business Support Services and takes forward the proposals whic\
h the WDA brought )Tj
T*
(to the EDC in October.)Tj
ET
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(Economic Research Advisory Panel )Tj
ET
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(1.8 Advertisements will be placed next week for the Chair and members of\
the new Economic )Tj
T*
(Research Advisory Panel. The intention is to recruit leading business pe\
ople and senior )Tj
T*
(academics to boost research and analysis into the Welsh economy and incr\
ease support for )Tj
T*
(policy making. The Panel will oversee a \243450K programme of research i\
n its first year.)Tj
ET
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/P <>BDC
BT
/TT0 1 Tf
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(1.9 Action is also underway to recruit staff to the new Economic Researc\
h and Evaluation Unit )Tj
T*
(within the National Assembly\222s Research and Development Group. This U\
nit will be )Tj
T*
(responsible for implementing the research programme and providing suppor\
t to the Panel.)Tj
ET
EMC
/P <>BDC
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(Clean Coal Technology Review)Tj
ET
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/P <>BDC
BT
/TT0 1 Tf
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(1.10 This Report was published on 5 February. The reduction of CO2 emiss\
ions is seen as the )Tj
T*
(biggest challenge facing the industry. CO2 can be reduced in part throug\
h new technologies to )Tj
T*
(increase the efficiency of existing plant and by capture and storage \(s\
equestration\). )Tj
ET
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/P <>BDC
BT
/TT0 1 Tf
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(1.11 The Report refers to the potential for enhanced oil recovery, parti\
cularly in the North Sea, )Tj
T*
(through sequestration whilst recognising that significant legal, practic\
al, environmental and )Tj
T*
(commercial unknowns would need to be resolved. The Report advises that t\
here is no case for )Tj
T*
(Government support for building full scale demonstration plants. However\
, there could be a )Tj
T*
(case for "retrofitting" cleaner coal technologies to existing plant. The\
Clean Coal Technology )Tj
T*
(Review is separate from the PIU Review. However, it will feed into the P\
IU Review.)Tj
ET
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(EC exemption for car sales )Tj
ET
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/P <>BDC
BT
/TT0 1 Tf
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(1.12 Earlier this month the European Commission unveiled plans to change\
the way cars are )Tj
T*
(sold and repaired across the EU. The Commission has put forward many pro\
posals, including )Tj
T*
(enabling car dealers to sell more than one brand of car, make it easier \
for independent )Tj
T*
(garages to service vehicles and allow dealers to both sub-contract repai\
rs and buy spare parts )Tj
T*
(from sources other than the main car makers. )Tj
ET
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(1.13 These changes should help make it easier to buy cars across Europea\
n borders, and )Tj
T*
(help reduce price differences in different EU countries. The impact of t\
hese proposals falls on )Tj
T*
(to the retail industry, and the weight of the impact is dependent on how\
quickly the idea is )Tj
T*
(taken up by both retailers and buyers. These proposals, will however hav\
e no impact upon the )Tj
T*
(automotive component manufacturers in Wales.)Tj
ET
EMC
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(2. RECENT ENGAGEMENTS)Tj
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(New Trade Mission and Fairs Programme)Tj
ET
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/P <>BDC
BT
/TT1 1 Tf
14 0 0 14 10 668.01848 Tm
(2.1 An extensive 2002/2003 programme of trade missions and trade fair at\
tendance, to be )Tj
0 -1.2 TD
(organized by WalesTrade International, was announced last week. The prog\
ramme includes )Tj
T*
(sector specific and general trade missions and arrangement for provision\
of stand space for )Tj
T*
(Welsh companies to exhibit at key international trade fairs. This progra\
mme looks to build on )Tj
T*
(the success of the current programme and includes visits to the US, Aust\
ralia, South Africa )Tj
T*
(and Brazil as well as European markets.)Tj
ET
EMC
/P <>BDC
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BT
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(Dublin Visit)Tj
ET
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/TT1 1 Tf
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(2.2 I visited Dublin on Monday \(11 Feb\) to launch a major new drive to\
increase greater trade, )Tj
T*
(investment and tourism business between Wales and Ireland, alongside Iri\
sh Taoiseach, )Tj
T*
(Bertie Ahern. The allocation of the \24330m INTERREG funding, awarded la\
st November, for the )Tj
T*
(development of West Wales and Eastern Ireland was also announced. I was \
accompanied by )Tj
T*
(representatives of the business community in Wales, who took the opportu\
nity to meet their )Tj
T*
(Irish counterparts and prospective business contacts.)Tj
ET
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(Trade Missions and Fairs)Tj
ET
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/P <>BDC
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/TT1 1 Tf
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(2.3 Welsh companies were active overseas last week as part of WalesTrade\
International )Tj
T*
(programmes. An environmental trade mission consisting of 10 Welsh compan\
ies visited Dubai. )Tj
T*
(This was timed to coincide with a conference on British Environmental Te\
chnology and the )Tj
T*
(companies were well received. In addition, WalesTrade International exhi\
bited at a Britain in )Tj
T*
(Kuwait trade fair. Also, a delegation of 8 companies attended the MIlia \
2002 multimedia trade )Tj
T*
(fair. All companies involved in these events are now working on developi\
ng contacts made, )Tj
T*
(with several potential orders already in the pipeline.)Tj
ET
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/P <>BDC
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(Knowledge Summit)Tj
ET
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/P <>BDC
BT
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(2.4 I am hosting a "Knowledge Summit" at the Celtic Manor Hotel, Newport\
on 20 February. )Tj
T*
(Some 35 influential industrialists and senior academics will present the\
ir views on what further )Tj
T*
(measures and issues the Assembly Government should be addressing to help\
take the Welsh )Tj
T*
(knowledge)Tj
/TT0 1 Tf
( )Tj
/TT1 1 Tf
(economy forward. The Summit has been timed to coincide with the recent a\
doption )Tj
0 -1.22711 TD
(of "A Winning Wales".)Tj
ET
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(North Wales Aerospace Group \(NWAG\) )Tj
ET
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(2.5 Last Friday \(8 February\) I launched the North Wales Aerospace Grou\
p \(NWAG\), at Airbus )Tj
ET
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(UK, Broughton. I was pleased to see the formation of this group, as the \
industry is of major )Tj
0 -1.2 TD
(strategic importance to Wales and is a major contributor to the economy,\
and quality of )Tj
T*
(employment. )Tj
ET
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BT
/TT0 1 Tf
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(2.6 The NWAG will address the key issues affecting the aerospace industr\
y in North Wales, )Tj
T*
(and enable the aerospace sector in North Wales to exchange and pool thei\
r expertise on new )Tj
T*
(technology, processes and skills. Despite its current problems, aerospac\
e remains a key )Tj
T*
(industry with long term growth, and working together we can ensure we ha\
ve the skills and )Tj
T*
(knowledge to take advantage of the recovery and plan for the industry\222\
s growth. An umbrella )Tj
T*
(group combining both the North Wales and South Wales Aerospace Group wil\
l be formed very )Tj
T*
(shortly. )Tj
ET
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(Alcoa , Dolgarrog )Tj
ET
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BT
/TT0 1 Tf
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(2.7 I visited the company last Friday. The meeting went well. The Task F\
orce \(Conwy CBC )Tj
T*
(and WDA primarily\) is urgently looking for a company or individual look\
ing to take over the )Tj
T*
(facility with the credibility to convince Alcoa and ourselves that they \
can make a success of the )Tj
T*
(business. The Assembly is ready to assist through RSA if a suitable proj\
ect can be assembled.)Tj
ET
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/P <>BDC
10 424.00249 m
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(EDICT Conference in Cardiff last week)Tj
ET
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/TT0 1 Tf
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(2.8 I am delighted that transport experts and leading figures from counc\
ils across Europe )Tj
T*
(came to Cardiff last week for three days to study the city\222s proposed\
revolutionary ULTra )Tj
T*
(transport system. EDICT \( Evaluation and Demonstration of Innovative Ci\
ty Transport\) is )Tj
T*
(supported by the EC, with match funding from the Assembly. In addition, \
Sue Essex )Tj
T*
(announced on 22 January that she will be supporting the initial design w\
ork for an initial )Tj
T*
(ULTRA system in Cardiff Bay, following on from the prototype testing now\
underway with )Tj
T*
(DTLR money, and will support construction of the first stage if planning\
, health and safety and )Tj
T*
(all other requirements are secured.)Tj
ET
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(3. MAJOR ISSUES UPDATE)Tj
ET
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(Corus Regeneration Package)Tj
ET
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(3.1 I announced the details of the regeneration package to plenary on 31\
January. These )Tj
T*
(proposals were widely welcomed. I provided details of how the Assembly\222\
s \24376m package of )Tj
T*
(aid was being allocated: )Tj
ET
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( )Tj
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(A passenger railway link is to be reopened between Ebbw Vale and Cardiff\
. \2437m will be )Tj
T*
(committed over two years towards the \24315m project which is expected t\
o be completed )Tj
T*
(in 2004. )Tj
ET
EMC
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(Other measures announced include a proposed Urban Regeneration Company f\
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0 -1.2 TD
(establishment of an Advanced Technology Centre at the former Port Talbot\
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T*
(The communities at Shotton and Bryngwyn are also to receive financial he\
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(The )Tj
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(strategic plan is expected to be published later this month.)Tj
ET
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(Alcan, Rogerstone )Tj
ET
EMC
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BT
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(4.1 WDA, ELWa, ES, Careers Wales and Local Authority officials met the c\
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T*
(January to discuss possible assistance. Much progress was made in identi\
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T*
(both for affected staff, and the site itself. Dialogue is on-going, and \
we are currently awaiting )Tj
T*
(further details from the company to progress matters further.)Tj
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EMC
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BT
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(Cray Valley, Machen)Tj
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EMC
/P <>BDC
BT
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(4.2 Officials have now met the Company and discussed the situation with \
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T*
(possible assistance will be provided to them. )Tj
ET
EMC
/P <>BDC
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BT
/TT0 1 Tf
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(Friction Dynamics Ltd )Tj
ET
EMC
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BT
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(4.3 Officials are still in contact with the company. The company has suf\
fered by the downturn )Tj
T*
(in the American economy but still employ around 110 people and are conti\
nuing to invest in )Tj
T*
(the site. The RSA offer has been closed but the conditions attached to t\
he release of the )Tj
T*
(proportion of the offer remain in place until May 2002. At this time we \
will receive a report from )Tj
T*
(the company, supported by an independent accountant, confirming that all\
the assets and jobs )Tj
T*
(on which grant was paid have remained in place for 18 months from the da\
te of the final )Tj
T*
(payment of grant \(November 2000\). )Tj
ET
EMC
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BT
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(4.4 Job Gains since the previous EDC )Tj
ET
EMC
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BT
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(Cardiff Ice Company announced an expansion with a new facility in Caerph\
illy with the )Tj
T*
(help of a \243400,000 offer of Regional Selective Assistance [announced \
Western Mail )Tj
T*
(25/01/02])Tj
ET
EMC
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(Plastek Industries, based at Clydach Vale have announced 55 new jobs as \
part of a )Tj
T*
(\2431m investment partly funded by RSA and UK Steel Enterprise. )Tj
ET
EMC
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BT
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133.244 89.40248 l
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BT
/TT0 1 Tf
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(Global Fibres of Crumlin, a manufacturer of polyester pen tips for fibre\
and highlighter )Tj
T*
(pens, will increase its workforce from 16 to 50 over the next 3 years. T\
he company have )Tj
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BT
/TT0 1 Tf
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(Woolworths, Cwmbran - a new \2432.5m Woolworth\222s store is to open in \
Cwmbran\222s )Tj
0 -1.2 TD
(shopping centre next month, creating 100 new jobs. The 32,000 sq ft stor\
e will stock )Tj
T*
(30,000 product lines when its doors open on March 14)Tj
ET
EMC
/Lbl <>BDC
BT
/T1_0 1 Tf
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(l)Tj
/T1_1 1 Tf
( )Tj
ET
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136.366 680.60248 l
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136.366 680.60248 m
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BT
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(B & Q, Cardiff)Tj
/TT1 1 Tf
( )Tj
/TT0 1 Tf
(- are to open a new superstore at Culverhouse Cross in Cardiff, which wi\
ll )Tj
0 -1.22711 TD
(open in May, creating 230 new jobs)Tj
ET
EMC
/Lbl <>BDC
BT
/T1_0 1 Tf
7 0 0 7 35.713 629.63899 Tm
(l)Tj
/T1_1 1 Tf
( )Tj
ET
EMC
/LBody <>BDC
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229.73199 627.62299 l
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BT
/TT0 1 Tf
14 0 0 14 50 629.63899 Tm
(Toyota Motor Co, Deeside. - Forty new jobs have been created at Toyota\222\
s state-of-the-)Tj
0 -1.2 TD
(art engine plant on Deeside since the beginning of January with a furthe\
r fifty jobs being )Tj
T*
(created by the end of 2002. The current workforce of 510 will increase t\
o 600 by the end )Tj
T*
(of the year.)Tj
ET
EMC
/Lbl <>BDC
BT
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( )Tj
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178.38 541.42299 l
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BT
/TT0 1 Tf
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(Insolutions, Cardiff - Californian based Software Company to establish E\
uropean HQ in )Tj
T*
(Cardiff. By the end of the year the Cardiff operation will employ around\
30 people in )Tj
T*
(product support and in sales and marketing.)Tj
ET
EMC
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/TT0 1 Tf
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ET
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BT
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(4.5 Job losses \(over 50\) since the previous EDC )Tj
ET
EMC
/Lbl <>BDC
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( )Tj
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BT
/TT0 1 Tf
14 0 0 14 50 402.43898 Tm
(Timet \(UK\) Ltd, Waunarlwydd - announced 50 redundancies. Timet \(UK\) \
Ltd is part of a )Tj
T*
(major organisation that has its main base in the USA. The Waunarlwydd pl\
ant )Tj
T*
(manufactures parts for the aerospace industry, principally components fo\
r Rolls Royce. )Tj
T*
(The current round of redundancies is as a direct result of downturn in t\
he industry )Tj
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( September.)Tj
ET
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/Lbl <>BDC
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( )Tj
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218.07001 295.95529 l
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BT
/TT0 1 Tf
14 0 0 14 50 297.97128 Tm
(Roberts Tannery, Abergele - 38 jobs to go as company in Abergele closes \
as a result of )Tj
0 -1.2 TD
(a decrease in spending on leather goods in America following the F & M o\
utbreak and )Tj
T*
(September 11. The closure will take place over the next few months.)Tj
ET
EMC
/Lbl <>BDC
BT
/T1_0 1 Tf
7 0 0 7 35.713 228.57129 Tm
(l)Tj
/T1_1 1 Tf
( )Tj
ET
EMC
/LBody <>BDC
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202.51601 226.55528 l
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BT
/TT0 1 Tf
14 0 0 14 50 228.57129 Tm
(AvestaPolarit, Pontypool. - steel maker to close factory warehouse facil\
ities with the loss )Tj
T*
(of 44 jobs by the end of July. Company said the move was necessary to se\
cure the )Tj
T*
(viability of the plant and it\222s remaining 110 workforce.)Tj
ET
EMC
/P <>BDC
BT
/TT1 1 Tf
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(5. ACTION OUSTANDING FROM PREVIOUS MEETINGS)Tj
ET
EMC
/P <>BDC
BT
/TT1 1 Tf
14 0 0 14 10 123.75079 Tm
(EDC 30 January 2002)Tj
ET
EMC
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142.272 85.55528 l
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BT
/TT0 1 Tf
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(WTB Section 4 Grant)Tj
ET
EMC
/P <>BDC
BT
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(5.1 The position has not changed since I last reported to Members on 30 \
January. Assembly )Tj
ET
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(Government and WTB officials are in discussion with DTI regarding the st\
atus of the scheme's )Tj
0 -1.2 TD
(existing EC notification.)Tj
ET
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(Wind Farms)Tj
ET
EMC
/P <>BDC
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(5.2 A quasi-judicial decision is one which involves a determination rela\
ting to the rights of )Tj
T*
(individuals and organisations \(rather than a purely policy decision\) a\
nd which the law therefore )Tj
T*
(requires to be taken in accordance with certain strict rules. These are \
that the decision must be )Tj
T*
(taken strictly within the relevant statutory powers and for the purpose \
for which those powers )Tj
T*
(were intended to be used, to be arrived at after taking into considerati\
on all relevant )Tj
T*
(considerations and ignoring irrelevant considerations and to be seen to \
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T*
(rationally and proportionately and in accordance with a fair procedure. \
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T*
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ET
EMC
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BT
/TT0 1 Tf
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(5.3 In relation to Cefn Croes, the decision whether to hold a public inq\
uiry is one which, in the )Tj
T*
(absence of any objection from the local planning authority as a statutor\
y consultee, Parliament )Tj
T*
(has entrusted to the Secretary of State for Trade and Industry alone. Be\
cause it is a decision )Tj
T*
(which affects the rights of individuals \(including those of the applica\
nts and objectors\) it is )Tj
T*
(quasi-judicial in nature and has to be taken in accordance with strict l\
egal guide-lines. Failure )Tj
T*
(to do so would render the decision unlawful and liable to be quashed by \
the courts. The person )Tj
T*
(with the duty to take the decision was the Secretary of State for Trade \
and Industry, who had )Tj
T*
(at her disposal all the relevant facts and policy considerations. )Tj
ET
EMC
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BT
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(5.4 In recognising this, the Assembly Government response to the DTI pro\
vided the decision-)Tj
T*
(maker with all the material of which we were aware of relevance to the d\
ecision, without )Tj
T*
(expressing a view as to what the Minister's decision should be. )Tj
ET
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BT
/TT0 1 Tf
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(5.5 We specifically stated that the DTI needed to satisfy itself that al\
l the information pertinent )Tj
T*
(to the case had been collected, scrutinised and accorded appropriate wei\
ght in the decision )Tj
T*
(making process, and indeed whether this could be achieved without a publ\
ic local inquiry, )Tj
T*
(given that this process is the accepted means of testing and collecting \
information in a )Tj
T*
(comprehensive and transparent manner, where the issues involve more than\
local )Tj
T*
(considerations.)Tj
ET
EMC
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(Quasi-judicial list)Tj
ET
EMC
/P <>BDC
BT
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(5.6 I have asked my officials to consider whether it would be possible t\
o identify the economic )Tj
T*
(development issues in which the Assembly has an interest and which could\
be deemed quasi-)Tj
T*
(judicial. My officials are discussing the feasibility of this with OCG. \
I will advise the Committee )Tj
T*
(as soon as I know the outcome.)Tj
ET
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(Arthur Andersen)Tj
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(5.7 The Assembly Government has had no business dealings with Arthur And\
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0 -1.2 TD
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<]>>
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46332
%%EOF