Agenda item

To report to the Scrutiny Committee on the performance of the Economy Department.

DECISION

1.     To accept the report and note the observations.

2.     Ask the Economy and Community Department to convene a group early in the new year to consider the challenges facing the agricultural industry.

 

The Cabinet Member for Economy and Community presented the report noting that since June, services continued to make good progress towards the Council's priority targets and projects within its portfolio. It was noted that several of the projects were on track to deliver results before the end of the financial year.

It was noted that joint work had been taking place with the Welsh Government and neighbouring local authorities to prepare a report for consultation to introduce and establish a tourism levy from March 2026. It was noted that it was intended to hold a more detailed discussion with the Scrutiny Committee in February after assessing the impact of any proposal on the economy and communities of Gwynedd. It was noted that customer satisfaction levels with library and archive services remained high, and it was noted that grants of up to £300,000 had been offered to 69 organisations across Gwynedd to promote culture and events. It was noted that regeneration and community support services had secured an investment of £9.8m for various projects across the county, and it was noted that £370,000 had been allocated through a pilot town and community councils funds under a tight Government timetable. It was noted that 55 councils had responded to the scheme, and it was noted that it was hoped that the fund would be available again in 2026-27 with more notice for councils to be able to respond.

It was noted that Gwynedd Business Week in October provided an opportunity to listen to issues that were important to businesses during a challenging economic period and to celebrate the successes of businesses both large and small. It was noted that £900,000 had been allocated in grants to businesses, and it was noted that the next round would be announced the following week. It was noted that employment support work had helped 48 people in Gwynedd to overcome barriers to work. It was noted that the United Kingdom (UK) Government had announced that the North Wales Artificial Intelligence Zone application had been successful and that the Trawsfynydd site had been named as part of the application. Subject to obtaining planning permission, the Welsh Government would offer the same benefits to the site as the free port sites on Anglesey. It was noted that this development boosted the development of the science park at Trawsfynydd. It was noted that the details of the business case would be presented to the Committee in the new year.

It was noted that good progress had been made with the Parc Padarn developments and that a tourist information centre had been completed, but that a decrease in the number of Byw'n Iach users was a cause for concern. It was noted that the Byw'n Iach Board was responding proactively by adapting the facilities and the proposal. It was noted that a decrease in the number of children receiving swimming lessons through school continued to contribute to an overall reduction, and it was noted that joint work with Byw'n Iach and the Education Department continued to encourage schools and children to attend, noting that there had been a slight increase in recent months. Maritime and harbour staff were thanked for working hard through the winter storms to ensure the county's coasts and ports were safe.

During the discussion, the following observations were made: -

The reality of the employment prospects associated with the science park at Trawsfynydd was questioned, and it was asked whether the establishment of a Small Modular Reactor (SMR) site such as Wylfa would have brought more jobs to the area. In response, it was noted: -

-        That historical proposals had been linked to the possibility of SMR development on the site.

-        That the policy picture had changed, with the UK Government moving in a different direction in terms of funding and prioritisation, meaning that there was no short-term proposal to develop a SMR in Trawsfynydd.

-        The current work focus was on preserving and ensuring the continuation of decommissioning work on site over the next few years, with approximately two hundred jobs currently associated with this work.

-        That the decommissioning programme extended to circa 2060.

-        That the development of the science park hub was seen as an opportunity to innovate, attract new ideas and identify various opportunities to create future employment, using the infrastructure and skills already on site.

-        There was an opportunity to share further details with the Committee on the plans in the coming year.

It was asked what else the service was doing to attract employment to Gwynedd, specifically about the development of a food centre on the Glynllifon site under the North Wales Growth programme. It was further asked whether the opportunities would offer living wage jobs rather than low-wage jobs. In response, it was noted: -

-        That the scheme was progressing but needed to be modified for two reasons, namely planning considerations and changes in organisational circumstances.

-        Planning feedback had indicated that the on-site food unit element of the original proposal was unlikely to be supported due to an impact on biodiversity and wildlife, but it was noted that this did not mean that this element would disappear completely as alternative site options would be considered outside Glynllifon.

-        The proposal was now being developed through three phases, with the first phase relating to new technology for a milking parlour.

-        That there was significant investment (around £2m) in the milking parlour to educate young people and local farmers about future technology.

-        Phase two of the development included the establishment of a sheep milk centre, noting that it would be the first of its kind in Wales, with the intention of encouraging the growth of a sector that was expanding in parts of Europe.

-        Phase three of the development included the development of a rural innovation hub, with the planning application nearing completion, and it was noted that this centre would be next door to the college and would specialise in technology for agriculture in the future.

-        That the whole scheme was an investment of over £10 million.

In terms of attracting investment more widely, it was noted: -

-        That the economic strategy sought to identify areas of growth over the next few years to create a basis for attracting investment.

-        Developments such as an artificial intelligence zone were likely to increase the interest of companies to locate in the area.

-        That discussions were taking place with several companies interested in locating in Gwynedd.

-        That skills needed to be made available locally, and the intention to work with colleges to ensure that enough young people were prepared for these fields had been identified.

Questions were asked about monitoring and influencing the quality of jobs within grant schemes, referring to expectations such as paying the living wage and promoting the Welsh language in supported businesses. In response, it was noted that certain conditions were being set as part of the Council's grants, and it was noted that two key conditions included the payment of the living wage and the promotion and use of the Welsh language. It was noted that these were monitored while the programme was live, but it was noted that further monitoring could not be carried out after the grant period (approximately three years) had ended. It was noted that the grants provided a level of influence on businesses, but it was noted that there was uncertainty about the continuation of the funds after March.

An enquiry was made about large and community events across the county noting that some events had grown to such an extent that health and safety requirements, operational arrangements and the reliance on volunteers made it difficult to hold the events, despite their economic benefit to local areas. It was asked whether the department could support the groups organising these events across the county. In response, it was noted: -

-        That the service had recognised the importance of events when they were managed safely.

-        That an event co-ordinator had been appointed to support organisers through the process of ensuring safe arrangements, including referral to the event safety group where necessary.

-        That the Shared Prosperity Fund (SPF) was available to support events across the county, and this also influenced the promotion of principles such as local volunteering, bilingualism, and sustainable tourism.

-        There was uncertainty about funding after March, noting that the Council's internal budget was not to support events in the next term, and the situation would depend on the UK Government's decisions.

-        Training sessions had been held to support organisers, including a session on severe weather, and it was noted that another session would be held on mountain and coastal safety in partnership with the rescue services.

-        That organising events was a challenging area with a number of barriers, and the advisory role was important to help organisers navigate the requirements and liaise with the right departments, noting that a cross-departmental group discussed events to ensure a balance between benefit and risk.

Concerns were noted about the impact of changes to agricultural payments and the implications for rural village economies, citing pressures on the dairy industry from international imports, price uncertainty, and the impact on businesses that depend on agriculture. It was suggested that the department set up a task and finish group in the new year to look at the implications for Gwynedd. In response, it was noted that concerns were regularly raised by agricultural unions and the economic strategy reflected the value of the sector to the Gwynedd economy. A willingness to further discuss what action a local authority can take within the context of international commercial factors that are beyond local control, was noted.

The need for local training to support employment opportunities relating to Wylfa was emphasised, and a personal experience of the need to travel long distances for training in the past, was noted. In response, it was noted that an engineering and construction specialist centre had originally been developed in Llangefni in connection with Wylfa and that the facility was there to support training for construction and engineering for the nuclear sector. It was noted that an officers' meeting regarding Wylfa was scheduled for the following week, and the points about local training would be raised in those discussions.

A question was asked about the development of 10 new units in Minffordd. In response, it was noted that construction had begun and enquiries had been received, but formal agreements would not be given until the construction work was completed. It was noted that there was also a potential link between Minffordd and the science park at Trawsfynydd, and that the two developments could create opportunities for businesses to co-locate. It was noted that local businesses were continuing to look for additional space and historically there had not been enough sites available in the area. Hope was expressed that the units would be suitable to meet the demand.

Questions were asked about the maritime service at Morfa Bychan, in particular the problems of overnight parking on the beach and the fact that officers did not have enforcement powers. It was asked whether there was a possibility of introducing a by-law to control the situation. In response, it was noted that the beach at Morfa Bychan was among the busiest in the county, and it was noted that seasonal wardens helped to reduce some of the problems over the summer. It was noted that a significant lack of enforcement powers continued, and it was not expected that it would be realistic to introduce a by-law in the short term as the process was lengthy and complex. It was noted that other arrangements would need to be considered noting that there was no easy solution, especially over the winter months although the pressures tended to decrease. It was stressed that an investment to improve the infrastructure and increase capacity on the site was planned for the beginning of the new year to minimise the impact on the village. It was elaborated that the service would regularly review the options in preparation for the next season.

Views were expressed that there was a contrast between the demographic picture showing a significant reduction and the simultaneous discussion of high numbers of jobs being created within the construction and engineering sector. Concern was expressed about the potential for workforce inflow and the impact on housing and community planning. It was questioned whether the county was in a position to plan ahead for this possibility.

In response, it was noted that the developments needed to be put into context, and it was noted that plans on the scale of Wylfa were not envisaged in Gwynedd in the coming years. It was noted that the science park at Trawsfynydd, was in the early stages, and was likely to result in much smaller numbers of jobs, with a more realistic short-term target relating to creating opportunities for local people in the face of an expected reduction in decommissioning over time. It was noted that the development of a potential data centre was being considered, but that construction would take place over a period of about six to eight years, rather than immediately. It was stressed that workforce and skills planning was a critical factor in all plans and that such developments would not be feasible unless the workforce was available. It was confirmed that developments on Ynys Môn were likely to have an impact on the surrounding areas, and that this was part of the wider consideration.

Concern was expressed about the impact of recent tax rulings on tourism and hospitality businesses, citing examples of significant increases in tax bills and the risk of job losses and local supply chain disruptions, including food producers and suppliers. In response, it was noted that the matter was real and affected rural businesses. It was emphasised that what the Council could do in practice was to use the evidence as part of a clear business case for a larger support package for businesses. It was noted that business grants were expiring and there was no certainty of funding after April, and that the combination of the end of grants and tax pressures strengthened the argument for seeking a business support fund in the coming year.

 

RESOLVED

1.     To accept the report and note the observations.

2.     To ask the Economy and Community Department to convene a group early in the new year to consider the challenges facing the agricultural industry.