What discussions have taken place between the Cabinet Secretary and HM Treasury in relation to the extension of enhanced capital allowances for Welsh enterprise zones?
I have commissioned a comprehensive review of the Enterprise Zone programme as a whole, which will consider the current economic conditions and my Economic Action Plan (EAP) priorities to develop a clear strategic focus for the programme moving forward which continues to offer the right incentives to business and remains competitive with other UK enterprise zones, especially English zones located closely across the border. My review, which will report in spring 2019, will also take into account the findings of the recent EIS Committee report into Enterprise Zones.
I remain convinced that an extension of ECAs (currently due to end in 2024 at Port Talbot and in 2020 at other Zones) would be a welcome additional incentive to companies looking to invest in Enterprise Zones in Wales and I have been in correspondence with HM Treasury to request an extension of ECAs at the Zones until 2025. I have been assured that the position of ECAs will be given due consideration as part of the Budget process. You will appreciate that this matter is not devolved; however I have offered the services of my officials to engage with those at HM Treasury to review and they are currently engaged in discussions.
Enterprise Zones were prioritised for Superfast Cymru deployment at inception, with coverage enabled to 95.95% of eligible premises. Many parts of the Zones (e.g. Gaerwen, Mona & Bryn Cefni Industrial Parks within the Anglesey Enterprise Zone) are enabled with the latest “Full Fibre” Ultrafast Networks (FTTP) with other businesses using Superfast Broadband having the option to upgrade to an FTTP on demand connection if required in future. Additionally the Ultrafast Connectivity Voucher scheme, which focused on the Enterprise Zones at its launch, provides up to £10,000 towards eligible costs of an ultrafast broadband connection, delivered through Leased Lines, Wireless Networks or FTTP on Demand.
I have reported annually on Enterprise Zone performance since inception and have also published progress reports on the Zones in 2013 and 2014 plus Strategic Plans for each individual Zone in 20I5, which have been updated annually with performance data. I have asked the Enterprise Zone Chairs to review their Strategic Plans to reflect their priorities and aspirations for their zones for the three year period 2018 – 2021 and these will be published shortly. Links to published documents can be found here: https://gov.wales/topics/businessandeconomy/growing-the-economy/enterprisezones/?lang=en
The comprehensive review of the Enterprise Zone programme which I have commissioned will consider future measurement of performance for the programme, in particular key performance indicators (KPIs) and targets, aligned to the work underway as part of the EAP. I will provide a further update once the review is concluded and considered.
You will know that I streamlined governance arrangements for some of the Enterprise Zones with effect from 31 July 2018, with Cardiff Airport, Central Cardiff and Ebbw Vale Boards having ceased, the latter having been replaced by the Tech Valleys Strategic Advisory Board. The Boards for Haven Waterway and Port Talbot Waterfront are continuing for a further three year term until July 2021; the Anglesey and Snowdonia Boards will continue for a further year but look to merge to a single Board beyond that time; and the Deeside Board will continue for up to one further year whilst arrangements are put in place to establish an advisory board to oversee the Advanced Manufacturing Research Institute (AMRI).
My Chief Regional Officers are already in active discussions with key stakeholders in their regions and are working with them to develop plans that will set out how each region can best capitalise on its strength and opportunities. The presence of Enterprise Zones within each of our regions is undoubtedly part of the asset base that we will build upon; as place based intervention, the Zones reflect the importance of flexing our approach to local circumstances, challenges and opportunities. This chimes with the broader regional approach we have set out in the Economic Action Plan and the use of local and regional intelligence to help shape our delivery.
I publish performance data for the Enterprise Zones annually. The performance report for 2017-18 was published in the summer and includes details of the number of jobs created, safeguarded and supported plus details of public and private investment into the Zones. The details can be viewed at: https://gov.wales/docs/det/publications/enterprise-zone-key-performance-indicators-annual-report-april-2017-to-march-2018.pdf