Economy Minister Adam Price has announced plans for a new national development agency to drive business support and inward investment at arm's length from the Welsh Government, aiming to harness private sector expertise to boost economic competitiveness. In his first major interview, Mr Price also confirmed a new key economic target focused on improving productivity, where Wales currently lags around a fifth below the UK average.
New Development Agency
The agency, inspired by the former Welsh Development Agency (WDA) abolished in 2006, will be smaller and more agile, with innovation at its core. Its precise remit, staffing, and budget will be determined in the coming months, potentially involving the transfer of civil servants and private sector hires. Mr Price emphasized a phased approach, saying, "It will be a driver of our economic strategy and the key engine for that." He added that the agency will work with a degree of agility and dynamism close to business, drawing on existing skills and private sector knowledge.
Operational Timeline
Mr Price could not provide a definitive timeframe for when the agency might become operational, whether next year or possibly into 2028. He noted that setting everything up at once is unlikely and that a critical path is being mapped out. The agency is not seen as a panacea but as a key component in closing the productivity gap.
Development Bank of Wales Review
A full review of the Development Bank of Wales will assess gaps in capital provision for scaling Welsh firms. Mr Price highlighted venture capital and "active capital" as areas needing attention, where businesses receive not just funding but also know-how. The review will determine whether equity functions should remain with the bank or move to the new agency. "It's a technical question, not a theological one," he said, stressing the need for empirical analysis.
Economic Targets
The new government will establish a fiscal and economic commission to support data collection and target-setting. Mr Price indicated a single headline goal focused on productivity (GVA per hour worked), where Wales is at around 84% of the UK average. "It has to be a meaningful one and something that crystallises," he said, adding that stretch targets are good for focus. The commission, modeled on the Basque Country's Orkestra institute, will ensure programs align with leading-edge thinking.
Collaboration and Landscape
Mr Price stressed the need for alignment across Wales' economic development landscape, including corporate joint committees, freeports, and UK Government bodies. He emphasized cooperation over competition, saying, "We want to create an economic development system where we're all working together." The agency will have strong regional divisions to work with local government and businesses.
On the agency's name, Mr Price joked that Wales is a nation of poets, and the name will encapsulate its vision and mission, possibly referencing heritage while being built for the future.
