22/01/2012

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:01:33. > :01:36.In Wales... Live in 2012. The Business Minister's promise of five

:01:36. > :01:46.enterprise zones. And how about heating, lighting and water for

:01:46. > :01:46.

:01:46. > :31:15.Apology for the loss of subtitles for 1768 seconds

:31:15. > :31:20.under a tenner a week? That is the Welcome to Wales Sunday Politics.

:31:20. > :31:24.It has been a bruising week for Welsh retell with Peacocks going

:31:24. > :31:29.into administration. Does the Business Minister see positives for

:31:29. > :31:35.the economy? I have been talking to Edwina Hart. Thinking of buying a

:31:35. > :31:39.home next year? They could be good news on heating costs. Warming up

:31:39. > :31:45.beach chairs for 20 minutes, the Liberal Democrats MP, Jenny Willott

:31:45. > :31:49.and Jocelyn Davies. We have got the Conservative Party conference next

:31:49. > :31:53.month. One that could suggest with tongue in cheek that they could

:31:53. > :32:00.always gatecrash your conference, bearing in mind that they are a

:32:00. > :32:07.part in coalition. I am not sure they would be completely at home. I

:32:07. > :32:10.think we are far too democratic for the Tories. On a serious note, how

:32:10. > :32:16.valuable are the party conferences in Wales? They are costly and not

:32:16. > :32:22.everybody turns up. Do you have a future for three-day conferences?

:32:22. > :32:27.Well, I think we made a profit on our conference. It is a nice time

:32:27. > :32:32.of year to be in London. I cannot remember having to cancel a

:32:32. > :32:35.conference ever. Possibly it's something came up in unforeseen

:32:35. > :32:40.circumstances, like a foot and mouth, I cannot understand how

:32:40. > :32:46.would a why they can sort this one. Otherwise you cannot keep in touch

:32:46. > :32:52.with members. The first weeks of 2012 have been very unsettling for

:32:53. > :32:56.thousands of workers employed by Peacocks. 249 staff, almost half

:32:56. > :33:00.the head of its workforce in Cardiff, were made redundant on

:33:00. > :33:03.Thursday after the company went into administration. It is cold

:33:03. > :33:09.comfort for the workers that unemployment in Wales fell slightly

:33:09. > :33:12.between September and November. With GDP figures out this week and

:33:12. > :33:17.unemployment at 8.9 % in Wales, I asked Edwina Hart if she was

:33:17. > :33:23.concerned about the economic prospects. They remain

:33:23. > :33:27.disappointing. The difficulty through the economy in terms of

:33:27. > :33:33.unemployment continues. It is important that the Assembly looks

:33:33. > :33:39.at a range of areas properly. We have launched a micro business

:33:39. > :33:43.strategy and people are saying, why worry about micro businesses when

:33:43. > :33:48.big companies are suffering? But these businesses employ people in

:33:48. > :33:53.various places. Micro businesses are defined as between one and nine

:33:53. > :33:57.people. We must get these others in place. When people have got

:33:57. > :34:01.entrepreneurial skills and wants to develop businesses, they must be

:34:01. > :34:04.encouraged into the economy. One by the British Government is trying to

:34:04. > :34:09.stimulate the economy is by creating enterprise zones. That has

:34:09. > :34:13.come under criticism, your party, for delaying more details about

:34:13. > :34:18.enterprise zones. It was promised in the autumn will stop our I am

:34:18. > :34:23.not sure why this has come from --. I am not sure why this has come

:34:23. > :34:28.from. I take that with a pinch of salt. But this was promised before

:34:28. > :34:35.Christmas. But at the end of the day you'll find not all details are

:34:35. > :34:39.finalised everywhere. They will be live in 2012. We have had

:34:39. > :34:44.appropriate discussions with partners about the boundaries. I

:34:44. > :34:49.cannot say, I think the boundaries should be dead. We must have a

:34:49. > :34:54.proper discussion. We must have proper discussions with ministers.

:34:54. > :34:58.We must look at transport infrastructure. I have to fairly

:34:58. > :35:02.assess other applications coming in. We have got capital allowances to

:35:02. > :35:10.be given. We must make sure that I do not think the decision in

:35:10. > :35:14.December could have been altered and then make another decision of.

:35:14. > :35:19.I must look at everybody's benefit in terms of how I use these

:35:19. > :35:22.resources. In terms of capital allowances, we had just finished

:35:22. > :35:27.some discussions with the Treasury and we are going to have more

:35:27. > :35:32.detailed discussions. I did not think the criticisms from other

:35:32. > :35:36.politicians are so good a good at all. But we are looking at places

:35:36. > :35:44.in direct competition like Herod the chair. They do not have capital

:35:44. > :35:49.allowances. -- Herefordshire. whether it is true or not, we have

:35:49. > :35:54.got a perception that they are marching ahead. I am not sure that

:35:54. > :35:59.is correct. Enterprise zones had already been announced. We have had

:35:59. > :36:04.interest expressed by individual companies. Not everybody has

:36:04. > :36:10.publicised what deals might happen and might not. I am confident we

:36:10. > :36:13.will have the policy right in Wales in terms of enterprise zones.

:36:13. > :36:19.Scotland has baby just announced four enterprise zones and it has

:36:19. > :36:25.been introduced in Northern Ireland. -- just announced. For every 13

:36:25. > :36:29.jobs lost in the public sector, it is said that just one is created in

:36:29. > :36:33.the private sector it. We must have more confidence in the private

:36:33. > :36:40.sector. They are very pleased with the way that we have engaged with

:36:40. > :36:45.them. They say that we are good in dealings with them. We will help

:36:45. > :36:49.the workforce with skills and everything. I do not send when I am

:36:49. > :36:55.asked these questions that we get confidence in the Chamber and that

:36:55. > :36:59.they are in the same world. We have got more than 200 million floating

:37:00. > :37:04.around in the Treasury coming to Wales. There has been discussion

:37:04. > :37:08.with the Liberal Democrats about that. Will you be making a case to

:37:08. > :37:13.the First Minister that a big chunk of that money should come to your

:37:14. > :37:18.portfolio? We do have consequences and they do go into reserves and

:37:18. > :37:22.discussions to take place. We have to prioritise. We must recognise

:37:22. > :37:26.that we must prioritise money carefully into all manifesto

:37:26. > :37:32.commitments and particularly we must help the economy. That is what

:37:32. > :37:37.we have done. You must put your house in order before asking for

:37:37. > :37:43.extra money. That was Edwina Hart. We will talk about enterprise zones

:37:43. > :37:47.in a minute. But I am sure be depressing economic concern for you

:37:47. > :37:53.is the future of Peacocks. Particularly in South Wales, the

:37:53. > :37:59.impact could be sued if we lose the jobs. It is almost 1,500 jobs. --

:37:59. > :38:04.could be massive. It is a worrying time for employees. Putting

:38:04. > :38:10.politics aside with who has done what and who has been slow off the

:38:10. > :38:14.mark, what practical steps can politicians make to tried and

:38:15. > :38:18.safeguard jobs? It is difficult late in the decor politicians to do

:38:18. > :38:23.very much, to be honest. Much more needed to be done earlier to

:38:23. > :38:27.prevent Peacock's going into administration. A lot more could

:38:27. > :38:32.have been done working with the banks. Particularly what the part

:38:32. > :38:36.state owned banks like RBS, who played a significant part in desk.

:38:36. > :38:41.We must learn lessons from what happened here to make sure it does

:38:41. > :38:46.not happen to other big employers. The banks, when they are making a

:38:46. > :38:49.decision about whether or not to invest additional resources into

:38:49. > :38:55.companies, they must look not just at the financial side, but the

:38:55. > :39:00.social side as well. A company like Peacocks was operating at a profit.

:39:00. > :39:05.It was running at a profit and it was a good brand with potential to

:39:05. > :39:08.keep employing and keep making money and to be successful. RBS

:39:08. > :39:13.should have taken that into account and other creditors when making

:39:13. > :39:20.decisions will stop when you were in government you set --. When you

:39:20. > :39:26.were in government you set up a reactor programmes. What is your

:39:26. > :39:30.reaction to Peacocks? A buyer should have been bought. We must

:39:30. > :39:34.look at business being made sake. We should have looked at training

:39:34. > :39:39.and helping towards our opportunities. But it will be cold

:39:39. > :39:45.comfort for people that have lost their jobs, when we talk about

:39:45. > :39:51.things that could have happened but it is too late. Certainly, RBS were

:39:51. > :39:57.bailed out by the taxpayer and they had endured these people have lost

:39:57. > :40:01.their job when it was a profitable business. On trying to kick-start

:40:01. > :40:06.the economy, on enterprise zones I asked the Business Minister if it

:40:06. > :40:13.was a perception or a reality that Wales was behind enterprise zones.

:40:13. > :40:18.What is your take on that? I am not clearer now about the enterprise

:40:18. > :40:22.zone and what it means to be in the enterprise zone. We have had some

:40:22. > :40:27.announcements before we understood what it would actually mean. We

:40:27. > :40:32.have got the Cardiff council coming in front of my committee, the

:40:32. > :40:35.Finance Committee and I was told... That we have got significant

:40:35. > :40:39.financial leaders which will come to the help of businesses which

:40:39. > :40:43.were set up in enterprise zones and the Minister was saying that due

:40:43. > :40:48.process must take place before enterprise zones can be set up.

:40:48. > :40:55.That sounds like common sense. does but some had been announced

:40:55. > :40:58.before anything was set up. But all the arguments about enterprise

:40:58. > :41:03.zones and the questioning and the pressures on the ministers does not

:41:03. > :41:09.stop people wanting them. Newport wants to be a digital enterprise

:41:09. > :41:15.zone. I think we have got a lot of interest and I'd think it will be a

:41:15. > :41:19.feature of the economy in Wales but we need to get it right. We cannot

:41:19. > :41:24.look at other people's timetables. Perhaps it does not matter with

:41:24. > :41:32.timetables in England but we need to get it right. When we look at

:41:32. > :41:38.the last Welsh budget, the people - - the Liberal Democrats could have

:41:38. > :41:45.been said to have made mistakes. Will you make sure that the money

:41:45. > :41:48.does go on economic stimulus? wrong to say that we prioritised

:41:48. > :41:55.that ahead of the economy because we have been tried to support it,

:41:55. > :41:58.be it. It is absolutely critical that we have a workforce with the

:41:58. > :42:03.skills that are necessary in the teacher to build the economy and to

:42:03. > :42:08.be able to work in the jobs we have available. Education in Wales has

:42:08. > :42:14.been poorly funded and has fallen far behind other parts of the UK

:42:14. > :42:22.for many years. Clearly we need to have more investment in encouraging

:42:23. > :42:26.businesses. The enterprise zones are critical to doubt. But they

:42:26. > :42:30.matter what Edwina Hart said, they are about six months behind England

:42:30. > :42:35.and we are falling behind. It is not just capital allowance. Other

:42:35. > :42:39.things could be done to support the development of enterprise zones,

:42:39. > :42:42.support businesses and encourage growth. We are losing out to

:42:42. > :42:48.England, particularly across the border where enterprise zones had

:42:48. > :42:53.already been set up. From next year, people buying new homes in Wales

:42:53. > :42:58.could pay as little as �7.50 per week for heating, lighting and hot

:42:58. > :43:02.water. The Wells government believes these savings could be in

:43:02. > :43:07.reach using green technology, like solar power up. -- the Welsh

:43:08. > :43:14.government. But could the housing industry be overloaded with extra

:43:15. > :43:18.cost? The Vision of dramatically cheaper heating, lighting and hot-

:43:18. > :43:23.water for new homes originally came from the Welsh government more than

:43:23. > :43:28.one year back. Updated figures on savings are due shortly. Tougher

:43:28. > :43:30.building regulations are due to come next year. It all mean more

:43:30. > :43:36.insulation as standard but regulations will not be enough

:43:36. > :43:41.alone. Homeowners must invest in technology, might heat pumps and

:43:41. > :43:45.solar power to maximise savings. understand fuel prices are going

:43:45. > :43:50.one way, which unfortunately is up in the long term will stop we want

:43:50. > :43:58.to make sure people benefit from lower fuel costs. --. We want to

:43:58. > :44:03.make sure. We must stop damaging emissions. How has to set

:44:03. > :44:09.regulations have just come to Wales. -- powers. They want to use them to

:44:09. > :44:14.cut carbon emissions by 55 % compared to standards in 2006 will

:44:14. > :44:18.stop builders say that could add --. Builders say that could massively

:44:18. > :44:24.increase home building costs. The Government thinks it will cost

:44:25. > :44:29.�7,000 extra. The big things in terms of costs, things will be more

:44:29. > :44:34.expensive but as technology becomes more widespread, costs will come

:44:34. > :44:38.down. We could find that in Wales we have got better skills in

:44:38. > :44:43.renewable technology and from a development point of view, it that

:44:43. > :44:49.is an area they want to concentrate on and develop them building in

:44:49. > :44:53.Wales might be a perfect platform. Homes are priced according to local

:44:53. > :44:59.market conditions. Builders have said squeezed profit margins in

:44:59. > :45:02.some areas could mean house building will stop. We did not want

:45:03. > :45:07.to developers going across the borders. We want more homes in

:45:07. > :45:11.Wales. We want environmentally friendly houses but we have got to

:45:11. > :45:15.have the balance. It the balance is wrong, that will cause the problem.

:45:15. > :45:21.We must take and a bridge where in different areas of Wales, we have

:45:21. > :45:25.got different situations, depending on the market. The industry is very

:45:25. > :45:31.clever and very efficient with standards and meeting them in a

:45:31. > :45:34.cost-effective way. I think that we will see a wheel progress being

:45:34. > :45:38.made by the industry and understanding additional standards

:45:38. > :45:43.that are being made and making sure that standards are met in a cost-

:45:43. > :45:47.efficient way. The Welsh government begins consultation on building

:45:47. > :45:50.regulations in the next few months. It understands it must balance the

:45:50. > :46:00.extra cost of the new green domes against the long-term savings in

:46:00. > :46:01.

:46:01. > :46:06.Is that a price worth paying? think you have to get the balance

:46:06. > :46:12.right. We must be looking at making houses more energy efficient.

:46:12. > :46:17.Energy bills, if they carry on rising, resources will get further

:46:17. > :46:21.between. We have got schemes looking at existing housing, like

:46:21. > :46:26.the Green Deal. But we must make house is more energy efficient. It

:46:26. > :46:30.must be balanced carefully. We have got problems with the cost of

:46:30. > :46:34.housing at the moment, particularly for people trying to get onto the

:46:34. > :46:38.housing ladder. If new houses are too expensive for first-time buyers

:46:38. > :46:43.to purchase, we will keep on with the problems we have got in the

:46:43. > :46:47.current market and that is not good for the economy and families.

:46:47. > :46:57.are a former housing minister. Could you push this kind of thing

:46:57. > :46:59.

:46:59. > :47:04.crew? Well we had, actually. -- through? We have got the figures

:47:04. > :47:08.from the seven thousand. If you cannot run at your house on that,

:47:08. > :47:12.and that includes water for less than �10 per week, it is worth the

:47:12. > :47:18.extra cost and what we might find his land value might go down a bit

:47:18. > :47:23.to account for that. But concerns about it being too expensive, I do

:47:23. > :47:27.not agreed. As soon as you make something compulsory, the industry

:47:27. > :47:32.steps up. We can be ahead of the game because it is buried important

:47:32. > :47:39.in terms of your property and tackling climate change. -- very

:47:39. > :47:42.important. But people have said the priority is to get people waiting

:47:42. > :47:50.for a house into a house before we start addressing all these other

:47:50. > :47:57.issues. It has got to be built in as standard, absolute rate. I will

:47:57. > :48:01.not waver on that at all. -- absolutely. Houses used to be built

:48:01. > :48:05.without inside toilet. They used to be built without central heating

:48:05. > :48:10.but all of these things are just accepted now and these things must

:48:10. > :48:20.become standard. Time for a look back at the week with Adrian in 60

:48:20. > :48:22.

:48:22. > :48:24.The Welsh Secretary was criticised by Labour for selling their

:48:24. > :48:30.constituency home weeks before the British Government gave the go-

:48:30. > :48:34.ahead for a High Speed Rail link nearby. She said she sold her house

:48:34. > :48:38.in Buckinghamshire because her husband has mobility problems.

:48:38. > :48:44.Labour wants the Prime Minister to look at whether or not she broke

:48:44. > :48:49.the code of conduct for ministers. One Indian visitors had been

:48:49. > :48:53.welcomed to be Senedd it. A review into Plaid Cymru said it had to be

:48:53. > :48:59.clearer about constitutional aims and perceptions of it as a party of

:48:59. > :49:02.Welsh speakers. In A surprise move, the Welsh Conservatives cancelled

:49:02. > :49:07.their party conference two weeks before it was due to take place a.

:49:07. > :49:12.The party said it will hold a one- day rally instead, allowing members

:49:12. > :49:22.to focus on council elections. Politicians from all four main

:49:22. > :49:24.

:49:24. > :49:28.parties united in their support of We have talked about the

:49:28. > :49:34.Conservative Party conference and Peacocks will stop we will talk

:49:34. > :49:42.about --. We will talk about where Cheryl Gillan lives or does not

:49:42. > :49:46.lead. Should it in the constituency they represent? If there is in

:49:46. > :49:52.cases. I live in my constituency and I would not want to get

:49:52. > :49:58.anywhere else. -- we have got variations in cases. Generally, you

:49:58. > :50:01.should live in the area you represent. If it is about

:50:01. > :50:06.representation and representing the people that elected you, you should

:50:07. > :50:14.live in that area. If you want votes, you should be living among

:50:14. > :50:18.them. I did not understand why this person was moving. I do not think

:50:18. > :50:23.you can have a hard and fast rule that you have to live in an area to

:50:23. > :50:27.represent it but I think it would probably be better. It you are

:50:27. > :50:34.asking for votes and you have moved out, people would wonder why but I

:50:34. > :50:41.think here, they understand why. That is quite an achievement, isn't

:50:41. > :50:44.it? It does seem to be a popular attraction. It is an be one thing

:50:45. > :50:49.I'd like is that you can come into the Assembly building and he did

:50:49. > :50:55.not have to have any official business. We have got visitors

:50:55. > :50:58.coming to the Assembly, just enjoying the day. Some people have