Plaid Cymru has announced that establishing a new national development agency would form the central pillar of its economic strategy if it forms the next Welsh Government. The party's leader, Rhun ap Iorwerth, made the declaration during an address to the Cardiff Breakfast Club, with recent polls suggesting Plaid could become the largest party in the Senedd after next spring's election.
A Modern Agency for a Modern Wales
Mr ap Iorwerth confirmed that the precise remit of the proposed arms-length government body would be clarified within the first 100 days of a Plaid administration. The agency was first proposed in an economic strategy document published by the party earlier this year. Notably, the Plaid leader expressed openness to reviving a powerful name from Wales's economic past.
"Twenty years since its abolition, it is a brand and name that resonates globally, so I am not ruling that out," he stated, acknowledging the potential of using the Welsh Development Agency (WDA) name. The original WDA, with its broad economic remit covering inward investment, business support, and property development, was abolished in April 2006 by the late Labour First Minister Rhodri Morgan, with its functions absorbed directly by the Welsh Government.
Collaboration Over Silos
Addressing potential concerns about creating new bureaucratic silos, Mr ap Iorwerth suggested the new development agency, a proposed innovation agency, and the Development Bank of Wales could potentially operate under a single organisational umbrella. This structure, however, is yet to be finalised.
He emphasised a collaborative, partnership-driven approach. "This cannot and should not be a case of government dictating to business. We will only succeed together, in partnership," he told the business audience. This philosophy would extend to working with everything from small traders to multinationals, as well as trade unions and the further and higher education sectors.
A Plaid government would also need to define how the new agency interacts with existing statutory bodies like the Cardiff Capital Region and other corporate joint committees, which have their own distinct economic strategies.
Building on the Past, Looking to the Future
Mr ap Iorwerth was keen to frame the proposal as forward-looking rather than nostalgic. "This isn't nostalgia or romanticising the WDA. It had many strengths and we want to replicate those, but it also had weaknesses that we wouldn't want to repeat," he said.
The new agency would be a far leaner operation than the original WDA, which in its final year had a budget exceeding £220 million and a headcount of more than 1,000 staff. The Plaid leader admitted that the current fiscal climate means "masses of money" are not available, necessitating innovative thinking.
Key differentiators for the new body would include being "fleet-of-foot" by weaving business expertise and acumen into its fabric from the start, a contrast to what he described as the potential lethargy of government. Plaid would need to determine which current Welsh Government civil servants would transfer to the new arms-length body and what private sector expertise would be brought in, seeking to avoid the redeployment issues that plagued the 2006 merger.
While unable to provide specific budget figures, Mr ap Iorwerth concluded that the agency represents a "statement of intent" and a crucial priority for providing impetus to the Welsh economy, looking ahead to the 2050s and beyond.
