The following amendment has been selected: amendment 1 in the name of Lesley Griffiths.

The next item is the Welsh Conservatives debate on rural communities. I call on Paul Davies to move the motion.

Motion NDM8307 Darren Millar

To propose that the Senedd:

1. Notes the importance of the rural economy and the role that small businesses play in rural communities across Wales.

2. Recognises the valuable contribution of Welsh farming to the rural economy.

3. Acknowledges the benefits of events such as the Royal Welsh Show, the National Eisteddfod and others in supporting rural communities and promoting the Welsh language and culture.

4. Calls on the Welsh Government to:

a) create an infrastructure strategy to address the challenges facing rural communities; and

b) redouble efforts to tackle poor public transport connectivity across rural Wales.

Motion moved.

Diolch, Llywydd, and it gives me great pleasure to lead this debate on the importance of the rural economy in Wales, and I move the motion tabled in the name of my colleague Darren Millar. One third of the Welsh population live in a rural area, and, according to the Country Land and Business Association in Wales, the rural economy supports around 459,000 people, and we on this side of the Chamber believe that more needs to be done to recognise the value and importance of the rural economy. 

Now, earlier today, Members gathered in the Neuadd for the official launch of the Royal Welsh Show this year, and, in a few weeks' time, many Members will be visiting the Royal Welsh Show in Builth Wells—the pinnacle in the Welsh agricultural calendar—where we'll hear from those representing and working in the rural economy. And whilst there is a huge amount to celebrate in terms of our rural businesses, they are facing some enormous challenges too. In constituencies like my own, businesses are struggling with the increasing cost of doing business, connectivity challenges and poor transport links. Therefore, the Welsh Government needs to do more to recognise and respond to the challenges that rural businesses are facing. 

Now, there has been some progress, and in this Senedd, the Welsh Government has moved to a much more regionally focused economic policy by introducing regional economic frameworks for each region of the country. That move is welcome, as it should provide an opportunity for local stakeholders to have a greater buy-in into economic development in each region. However, I remain concerned that there simply isn't enough feed-in from those at the front line of the rural economy. 

Now, today's motion recognises the valuable contribution of Welsh farming to the rural economy, and I believe that the farming industry must have a voice in these regional economic frameworks, to ensure that decision makers can understand the economic needs of the industry, and create policy that better addresses the challenges the sector is facing. It's believed that 90 per cent of Wales's total land area is used for agriculture. Its contribution to Welsh gross value added is greater than the UK average, and yet the average farm income in Wales for 2020-21 was £34,300—the lowest of the four UK nations. So, it's crucial that the Welsh Government recognises the value of the sector and works with it to ensure its viability for the future. 

Now, last week was Welsh Farming Week, and National Farmers Union Cymru launched their 'Framing the future for the next generation' report, which called on the Welsh Government to ensure that the sustainable farming scheme works for all types of farms, and is designed so all farm types can access it, including new and young entrants. That report also called on the Welsh Government to review the Farming Connect programme in conjunction with farming organisations, to ensure it's fit for future generations of farmers. Therefore, perhaps in responding to this afternoon's debate, the Minister will give a commitment to address the recommendations of that report, and tell us more about how it will ensure the farming sector can have a voice on Welsh Government economic policy development in the future. 

Now, our motion also highlights the role that small businesses play in rural communities across Wales. The Federation of Small Businesses tell us that 80 per cent of small businesses contributed to the local community or charity in the past three years, with 38 per cent donating time and 32 per cent contributing skills. And of course, we know that for every £1 spent with small and medium-sized enterprises in the local community, 63p is re-spent in that local area, and so doing businesses locally often provides better value for money. Now, businesses have made it very clear that they are under pressure, and it's critical that governments at all levels work together to create conditions for growth and help small businesses to continue to stay afloat. The Welsh Government must ensure that business support is accessible to all small businesses that need it, not just high-growth, high-potential firms, and it must set out its long-term plans for business rates following last year's consultation. In the discussions that I have with businesses, business rates continue to be one of the most pressing issues facing them, and so it's important that we understand the Welsh Government's plans to reform the system ahead of the proposed local government finance Bill.

Businesses in rural areas continue to tell us that poor infrastructure is also holding back growth. It's a point that the regional economic frameworks all recognise, and given that these challenges are found in rural communities across Wales, we believe the Welsh Government should develop a specific infrastructure strategy for rural communities and businesses. The mid Wales regional economic framework accepts that poor ICT, transport connectivity and a lack of modern business infrastructure are particular weaknesses that need to be addressed. Similarly, the south-west Wales regional economic framework highlights poor digital and transport connectivity in parts of the region. Connecting rural businesses and communities is vital in terms of unlocking their economic potential. According to the Federation of Small Businesses, 32 per cent of rural small businesses reported issues with the reliability of their broadband, compared to 17 per cent of urban businesses, and only 58 per cent of rural small businesses state that the speed of their broadband is sufficient for their current and future business needs. And, given the infrastructure challenges facing rural businesses in all parts of the country, we believe that the Welsh Government should prioritise this issue by developing a specific strategy to support rural businesses.

Of course, infrastructure concerns are not solely about broadband and mobile connectivity, as highlighted in our motion; transport connectivity remains a huge problem area for businesses in rural areas. Wales's public transport system is woefully lacking and it requires urgent attention. Many communities are far less connected to towns and cities than they were 10 or 20 years ago, and that is not good enough. Indeed, the north Wales regional economic framework actually tells us that many parts of north Wales suffer from poor public transport connections, which impacts on residents' access to jobs, education and training. And I know that businesses in west Wales continue to be frustrated by the lack of public transport options for people in their surrounding communities. Therefore, there needs to be a concerted effort to work with local authorities, to develop sustainable transport solutions in these communities, so that people can access work, education and training.

Now, the Minister will know that we do not support the Welsh Government's freeze on building new roads. Businesses in rural areas often rely on the road network, and poorly maintained roads are a barrier to economic growth in rural areas. And we also reiterate the FSB's calls for Governments across the UK to publish a coherent set of target-based infrastructure strategies to deliver the necessary charging and rapid charging infrastructure for electric vehicles by 2030 for rural areas.

Finally, I want to take a moment to reflect on the economic benefits of summer shows and events here in Wales. I mentioned the importance of the Royal Welsh Show in my opening remarks, but the Royal Welsh is one of over 100 shows that showcase the very best of rural Wales and Welsh innovation and enterprise. Sadly, many of those shows are under threat, as organisers struggle with rising costs and fewer competitors, and yet, these shows have so much economic potential. They offer an opportunity for rural businesses to network and explore developing partnerships, as well as giving those businesses the opportunity to engage with local and national policy makers, in order to influence policy development. I, of course, will be at the Pembrokeshire County Show, where I will meet with businesses and business organisations from across the county to hear more about some of the acute challenges that they are facing. And, as well as providing economic benefits, they are strategically important in showcasing and promoting Welsh food and drink and also promoting Welsh culture. They are events that bind and connect our rural communities. Mared Rand Jones of the Association of Show and Agricultural Organisations is absolutely right to call them the 'heart of our communities', and so it's vital that, where it can, the Welsh Government supports these important shows and helps them stay on their feet to enable them to continue to provide opportunities for community cohesion and business.

So, Llywydd, our motion today seeks to recognise the importance of rural communities, our rural businesses and entrepreneurs, and calls on the Welsh Government to think more innovatively about how it can support and nurture the rural economy in the future. And I urge Members to support our motion. Let us discuss the challenges facing rural businesses and industries, and develop policies that work for them, not against them. Diolch.

I have selected the Amendment to the motion. I call on the Minister for rural affairs to formally move the amendment.

Amendment 1—Lesley Griffiths

Add new points at the end of motion:

Regrets the removal of hundreds of millions of pounds of funding from the Welsh rural economy by the Conservative UK Government.

Regrets the lack of long-term funding certainty for farm support since the UK has left the European Union.

Amendment 1 moved.

Formally.

The Amendment is moved. Llyr Gruffydd.

Thank you very much, Llywydd, and could I thank those who have tabled this motion this afternoon? Evidently, we agree with the content of the motion; we will also be supporting the Amendment of the Government. It was good to be reminded that there is a third of the people of Wales living in rural areas, because even though there isn't a density of population, when you do quote a stat like that, it does remind us how significant a contribution is made by rural Wales, and it shouldn't be marginalised in any discussions.

And, of course, as with everyone else, one of the biggest challenges facing rural communities today is the cost-of-living crisis. But that crisis does come on top of the premium, if you like, that often comes with living in the countryside, because if you live in the countryside, you have to accept that services are very often further away and that you need to travel further to get access to some services that other people take for granted. And there are costs associated with that as well.

And from an agricultural point of view, these challenges have been compounded by a hard Brexit, which has seen the UK economy shrink, and has led to trade agreements that undermine the interests of Welsh farmers. The UK Government's own impact assessment on the trade agreement with Australia and New Zealand estimates a loss on gross output in the beef and sheep sectors in Wales of about £29 million. It is no wonder that even the former Secretary for the environment in the Westminster Government has admitted that the agreement is not really a very good deal. And when it comes to the value of that agreement, a measly 0.08 per cent increase in UK GDP is the Government's own pitiful assessment, compared to a 5.5 per cent hit to UK GDP, and a 15 per cent reduction in UK trade intensity levels, as a result of Brexit.

But the first priority for me, and the first priority for Plaid Cymru, when it comes to the rural economy is to protect the family farm—that's the priority every time. The family farm is the economic, environmental, social and cultural backbone of the countryside. Now, we have just, in recent days of course, been discussing the Agriculture Bill, and I am very proud of the role that Plaid Cymru has played in strengthening that Bill, and to ensure that there is a better appreciation of the role of farmers, not only as food producers in Wales, but as important employers in some of our most marginalised economies in rural areas—those difficult areas to reach when it comes to creating and maintaining jobs. But also, there is the role of farmers as providers of one of the strongholds of the Welsh language, also as stewards of our environment and natural landscapes in Wales, and so much more. And being able to secure a five-year multi-year support plan in the Agriculture Bill went at least some of the way to restoring what was lost as a result of Brexit, and the seven-year funding security that came within the EU.

Now, the food and drink sector in Wales of course is a very notable sector and a very important sector—over 200,000 people work in that sector. But nearly 60,000 people are employed full-time or part-time on farm holdings in Wales. And we always hear the statistic, don't we, that, for every pound that is invested in agriculture, it puts at least £7 back into the economy. Well, if you offered that return on investment to anyone, they would grab that every time. And that needs to be reflected in everything that this Government does, and maybe it doesn't happen to the extent that it should at present.

We need to remind ourselves constantly of that, celebrate that, build on that, and strengthen that by investing in the agricultural sector, and that that then, of course, has all the support it needs to develop and grow. That is why events like the Royal Welsh Show are important, not only because of the direct benefit that comes from the event, but that, and the Eisteddfod, and also other shows are a platform to emphasise the great contribution that agriculture makes to the broader Welsh economy. And I was also pleased to be able to drop by the event in the Senedd today. More than 200,000 visitors attend the show each year, and almost 40 per cent of those have no connection with the agricultural industry, and that in itself does speak volumes.

Yes, there are unique challenges facing rural communities, in terms of services and access to services, losing key services—surgeries, banks, things that people, as I was saying, take for granted. But I don't feel that the Government is offering a full vision that encompasses the countryside sufficiently. Where is the national vision in terms of protecting rural services? Where is the strategy for the rural economy specifically that's being driven by the Government? And who is driving that focus? Years ago, we had the Development Board for Rural Wales as a focal point that promoted a lot of this work. Now, I would argue that perhaps it's time to look at creating a similar body once again. But in any case, as I said, we will be supporting the motion as amended. But it is one thing to have a motion that praises what we have in the countryside, it is another much more important matter to ensure that the Governments of Westminster and Wales act to protect it and to realise its full potential.

I would like to begin by declaring the fact that I am myself a farmer. And as we've heard from Paul, who opened the debate so well, last week was NFU Cymru's celebration of Welsh Food and Farming Week, a time when we came together to raise awareness and show our appreciation for all the hard work that our farmers and producers bring to Welsh society. Not only does the agricultural community provide economic, cultural and health benefits to Wales, but it also plays an important role in tackling climate change by reducing our carbon emissions, by ensuring that we as consumers have the option to buy locally sourced and climate-friendly food. The celebration of Welsh Food and Farming Week may have ended, but the hard work that the agriculture community does has not, and neither should our support. 

As we've heard, major events in our rural communities are crucial as they bring significant economic benefit, including both immediate and secondary benefits to the rural economy and rural businesses. As we've heard, the Royal Welsh Show alone we know attracts almost a quarter of a million visitors each year. These visitors spend almost £10 million in those four days, with secondary sales being estimated to be over £6 million. On top of this, there is a further benefit of £3 million to the local economy as sales move down the supply chain. An estimated 3,000 businesses and organisations have trade stands at the Royal Welsh Show, of which 96 per cent of them would recommend the Royal Welsh Show to other businesses. 

Whilst the Royal Welsh Show is the biggest event in the Welsh agricultural calendar, many of us in rural communities have our own shows that provide equally important benefits to the local rural and agricultural communities, as a result, to the economy. In the Monmouth Constituency, we can boast some of the best agricultural shows in Wales. I'm pleased that the Monmouth show is back this year, after a couple of years out, on Sunday 20 August. It was the biggest one-day show in Wales. It attracted thousands and will attract thousands of visitors, both young and old, to the wonderful Wye Valley, as will the Chepstow show on Saturday 12 August, and we'll finish on 9 September with the fantastic Usk show—another brilliant opportunity to experience much of what the wonderful county of Monmouthshire and the wider region has to offer.  

All of these important events provide a crucial shop window for our small and medium-sized enterprises, communities, group charities, clubs and associations. As we all know, SMEs are the beating heart of the Welsh economy, representing 99.4 per cent of businesses in Wales, which, in turn, accounts for 62.6 per cent of employment in Wales and 39.4 per cent of turnover. It must be noted that the overwhelming Majority of businesses in rural communities are microbusinesses. SMEs in rural communities have been under immense pressure and continue to face barriers such as the lack of connectivity, as we've heard also, throughout Wales and the rest of the United Kingdom. 

As we all know, people living in rural Wales have some of the lowest pay packets in the United Kingdom. Gwynedd, for instance, has the third lowest wages in the UK at £421 a week—considerably less than those in near urban areas. This is one of the main reasons that people living in rural areas face a greater chance of being in poverty. If the Welsh Government is serious about tackling poverty in rural communities, we need to see a redoubling of efforts to tackle poor transport connectivity across rural Wales, and we also need to see modern infrastructure that allows rural communities to further decarbonise. We must see an increase in the amount of investment in rural Wales, providing opportunities for businesses to grow and employees to earn more.

I encourage all my colleagues here today to support the recommendations that we've laid in the motion. Thank you.   

In this rural communities debate, I'd like to say that north Wales is largely rural and the economy is dominated by sectors such as agriculture, forestry and tourism. There are no large conurbations, which makes it an area of small and medium-sized enterprises that are found within the foundational economy. However, there is one important sector that's missed out from this debate, public services, which have been totally underfunded now for over a decade. You go to a rural community and you see, yes, family farms, but also teachers, carers, council operators, nurses and pensioners living there. You cannot have thriving local communities without public services employing Welsh-speaking local people, who spend in local communities and keep everyone safe, healthy, housed and protected. 

Just one north Wales further education group, Grŵp Llandrillo Menai, employs around 2,000 staff supporting 20,000 students. The council is the largest employer in Anglesey; in Flintshire, the second-largest employer after Airbus, employing 5,500 people. Then there are those employed in the health service and social care. Public services are integral to the well-being of rural communities. If we invested in care, we could grow back the rural economy through people.

The motion’s called for a redoubling of the effort to tackle poor public transport in rural areas, and I agree the situation is dire. We are in a bus transport emergency, and just to keep existing routes open has meant intensive talks between councils, operators, the unions, Transport for Wales and Welsh Government over recent weeks. We need a reality check and a campaign as soon as possible to bring back our bus routes before they disappear. It's because passenger numbers have decreased over the last two decades. Those with concessionary passes have decreased the most in recent years, and not returned since COVID, and cuts to public service funding from the UK Conservative Government have meant cuts to bus subsidies. Add to that inflationary pressures and you will see bus transport procurement and the cost of running services has increased by 40 per cent, and that’s on top of driver shortages.

For almost 20 years I’ve represented rural areas as a community and county councillor and volunteer sitting on partnership organisations. I saw the amount of European funding that came into our rural communities, through the rural development plan, to fund projects that helped with diversification for farmers, bursaries for people looking to innovate and start up rural businesses, and funding for community events that showcased local produce, such as the Mold and Llangollen food festivals and the Clwydian range tourism and food groups. There was also funding for rural transport, including procurement of buses and trials of tourism services, funding for village halls, community centres and places of worship at the heart of rural communities.

They also wanted to become more sustainable, and there was renewable technology, such as the Corwen community hydro scheme, funded with European money. Wales’s net benefit from the EU budget was estimated at around £79 per head, and following Brexit the Conservative Government took replacement funding from Welsh Government to give direct to councils, although much less and through a very competitive, bureaucratic bidding process. If you want the rural economy to grow and thrive for everybody, then we need to see a return to investment in public services again, and the Conservative benches should be asking their colleagues in Westminster to fulfil their promise of not a penny less for Wales. Thank you. 

The rural and agricultural businesses in Wales are the lifeblood of our economy. As point 1 in our motion makes clear, the role of rural small businesses should not ever be underestimated. Each farm in Wales is estimated to be economically linked to around 40 to 80 other businesses. Farming is truly a foundation upon which the £6 billion Welsh food and drink supply chain is built. It employs 17 per cent of the Welsh workforce whilst managing 90 per cent of the Welsh land. The latest data from my own region shows that around 15,600 people from South Wales East are employed within the agricultural, forestry and fishing industry. South-east Wales has a rich history of successful rural enterprise, from the invention of Caerphilly cheese, thanks to a handful of local farmers dating back to 1830, to many different rural small businesses who support local farmers’ markets and food events. We in the Welsh Conservatives recognise the valuable contribution of Welsh farming to the rural economy, as point 2 of our motion notes.

This year’s Countryside Alliance Awards for Wales highlighted many incredible small businesses in my region, with three businesses making it to the final: the Queen Bee Honey Company in Torfaen, Nash and Sons butchers in Blackwood, and James Morris from Tŷ Poeth farm in Pontypool, who has diversified his 200-year family trade by planting sunflowers and pumpkins, alongside traditional meat and dairy farming.

However, we seem to have a Government that fails to understand the rural community and the value that it adds to Wales. They’re intent on harming the rural communities, whether it be forcing farms to plant trees on prime agricultural land, or still failing to use local produce in schools, which would truly enhance and benefit the rural community and the surrounding areas of those schools, or, like we see now with the new anti-shooting agenda, by wanting to change the regulations on the release of game birds. This divisive agenda is another example of large-scale state Intervention, with increasing red tape around licensing. The Welsh Government is intent on using taxpayers’ money to restrict freedoms instead of using the legal framework that is already in place successfully across the UK. Because of this, licences—[Interruption.] Of course.

Thank you, Laura Anne Jones. You've listed off a number of areas where Welsh Government aren't seemingly supporting our rural communities. Would you agree with me that another such measure is what we debated just a moment ago, which is forcing our rural communities to drive at 20 mph through villages and small towns and market towns, to follow the example of the city centre of Cardiff?

Absolutely, I do agree with you. It is a shame. The Minister was listening, anyway, so maybe your point will be heard. [Interruption.] What did you say, sorry, Minister? What did you say? I think she wants to make an Intervention. No. Oh, right, okay.

The Welsh Ministers are intent on using taxpayers' money to restrict freedoms, as I said, instead of using the legal framework that is being used successfully across the UK. Because of this, licences run the risk of being open to challenge by those who oppose shooting. All this will do is hurt the rural economy in Wales, showing once more that if you don't live in a city then this Government shows an unwillingness to understand your way of life.

This Government needs to do what our motion calls for and create a proper infrastructure strategy to address the real challenges facing rural communities, and redouble efforts on connectivity and tackle poor public transport across Wales. Wales cannot survive without our rural communities, but, if we carry on like this, our rural communities won't be able to survive in Wales. 

Thank you to the Conservatives for bringing this important debate forward this afternoon. And thank you to Paul Davies for outlining the fact that small businesses are the backbone of the rural economy, and that, of course, includes family farms, and also the fact that the shows—the Royal Welsh and smaller shows—make a very important economic contribution.

In terms of social life in rural areas, I'd also like to note the contribution of the young farmers' clubs, in terms of the activities that they stage throughout of the year. One of the greatest privileges of my role as a Member of the Senedd is to travel the length and breadth of the region and see the wealth of talent and innovation that defines our rural areas and our agricultural communities. These communities are incredibly self-reliant. This is reflected, for example, in the large number of businesses that are owned by communities or are social enterprises in Mid and West Wales.

But, often, this culture of self-reliance can mask numerous challenges that these communities face, challenges that are created or intensified by more than a decade of austerity—that is, cuts in public spending—in addition to Brexit and the appallingly damaging trade deals, as Llyr mentioned earlier, for the agricultural sector, and the current cost-of-living crisis too.

There's a certain irony in the Conservatives bringing forward their motion this evening, given that so many of these current barriers to economic development in our rural communities are a direct product of Tory policies. Just to give you one example, the challenge of poor public transport, which many of you have mentioned already, and connectivity in rural areas, which, ironically, the Tories in this motion are calling to be improved, is exacerbated by their Government's denial of the £5 billion in Barnett consequentials owed to Wales from HS2. 

This important caveat notwithstanding, I'd like to add my voice to calls for the Welsh Government to develop a strategy to address the challenges facing our rural communities. Indeed, I've called for such a strategy in this place before now. It needs to go beyond the issue of infrastructure, important as this is, and deal explicitly and holistically with the issue of rural poverty, which is both a cause and product of economic underdevelopment in our rural communities.

Masked by the outward appearance of affluence, poverty often lurks below the surface in rural areas. Let me give you one example. Ceredigion has amongst the highest average house prices in Wales, almost £40,000 higher than the Welsh average. But, at 30 per cent, according to the latest Bevan Foundation data, it also has the second highest rate of child poverty of any local authority area in Wales. And as research shows, rural poverty is a distinct phenomenon, with different causes and consequences to those of urban areas and urban poverty.

There is often a rural premium on key goods in rural areas, a cost of remoteness that can add about 15 per cent to 30 per cent more to the cost of basic goods and services. While costs are higher in rural areas, wages are lower. Median earnings in Wales are lowest in Pembrokeshire, Ceredigion, Conwy, Gwynedd and Powys. A typical worker in Pembrokeshire, for example, is £346 a month worse off than the typical UK worker. Accessing health, welfare, financial and childcare services is often more difficult in rural communities. According to research by the Bevan Foundation, poor rural households in Wales have faced a triple squeeze during the present cost-of-living crisis from high costs, low incomes and limited state support.

I conclude with this: as I've suggested many times, the roots of rural poverty in Wales stem from policies emerging from Westminster, but many others are closer to home. So, I've called more than once for a Welsh Government strategy to tackle and to target those issues that concern rural areas. So, this evening, I'm going to repeat that demand, in the hope that we can move on and tackle rural regeneration in a holistic manner and do so as a matter of urgency, because those areas certainly deserve that. Thank you.

From north to south, east to west, a patchwork of farms characterise the Constituency of Aberconwy that I have the honour to represent. Over my many years, I have been a solid supporter of our agricultural sector, and, whilst I've been in this place, I've led the Opposition to the Wales-wide nitrate vulnerable zones, I've called out the unjustifiable difference between the TB testing charts used in Wales and those in England and Scotland, and I'm still awaiting a letter from the Minister on that. I've held you to account for stripping farmers of hydropower station business rates support, challenged your decision to allow farmers to be charged second home council tax on holiday lets on their farms, and I even launched the Welsh wool pledge.

In fact, this is a timely opportunity for me to remind you all of the scandal that is the price paid for wool, and I'm really pleased that Sam Kurtz my colleague is actually carrying on with this campaign. It's so important. British Wool has confirmed it will pay farmers just 30p a kilo for its core grade of 2022 wool. In fact, Welsh mountain will only be paid at 10p a kilo. Based on a 2.5 kg fleece, farmers would receive just 75p a fleece for core grade. Unsurprisingly, current wool prices are not even covering the cost of shearing. The National Association of Agricultural Contractors have put shearing prices at £1.65 a ewe. How ridiculous that a material that can be used in clothing, carpets and buildings is receiving such little support from our consumers. So, I would be pleased if the Minister would provide an update today on what steps you're taking to promote the use of Welsh wool.

Recently, I visited Trefriw woollen mill. It is run by the brother and sister duo Morgan and Elaine. Their great-grandfather took over the mill in 1859, and the family have now been producing high-quality wool products for over 150 years. We could learn from their example and make the public realise that it is environmentally responsible to be backing such businesses, to be backing Welsh agricultural businesses.

I know that there was a missed opportunity in the Agriculture (Wales) Bill—I would congratulate you, though, Minister, on the fact that we've now got that Bill—amendments that were tabled to explicitly include support for new and young entrants were unsuccessful, and economic viability of agricultural businesses has been omitted as a sustainable land management objective. My record and that of my Welsh Conservative colleagues prove beyond doubt that we want prosperous rural communities with active farming remaining firmly at their heart. We have not short-changed them. The Welsh Government's assertion that the UK Government is failing to keep its promise is simply not true. The UK SPF is, at a minimum, matching the size of the European regional development fund and the European social funding in Wales and will ramp up to £340 million in Wales by 2024-25. That, of course, is in addition to other UK Government funding, such as the levelling-up fund and the city and growth deals. Wales will also continue to benefit from a tail of EU funding over the coming years.

At its heart, we are back once again to the debate we had a few years ago. As I see it, the Welsh Labour Government should have spent its allocation of EU funding for 2014 to 2020 by the end of 2020, not drag it out into the authorised overlap. The reality is that Wales is receiving a record level of investment from our UK Government. In fact, the UK Government is also investing in a project that will help farmers. [Interruption.] Yes, if I must. [Interruption.] No, go on.

I just wanted to ask you what the level of capital investment was to Wales.

Put it this way: with all the investment that is now coming in, all this crying about, 'There's not enough money coming from the UK Government', is absolute crocodile tears.

DEFRA is part funding a £1 million project run by grass and forage seed specialists and breeders, Germinal, in collaboration with the Institute of Biological, Environmental and Rural Sciences at Aberystwyth University. Part of this research will involve developing flavourless pea varieties in order for pea protein to be used to replace soya—you know, that awful thing that's imported far too often.

I will finish by highlighting another matter that I have long campaigned to see addressed: New Zealand lamb, having set the standard boasting 60 or more days of shelf life for vacuum-packed chilled lamb, and up to 110 days for carbon dioxide gas-flushed lamb. Welsh lamb has a shelf life of just up to 21 days. By boosting the competitiveness of Welsh produce, agricultural productivity, local demand for local products, and backing for diversification, we could all be supporting a sector that directly supports an agricultural workforce of 49,876. Support for that group has to be perfected if our rural communities are to have any real chance to thrive.

So, stop moaning about the UK Government; use the levers at your disposal to start making a positive difference. And I'll just add quickly—

No. Oh, you were doing so well, Janet. You were doing so well. End on a high note for yourself. [Laughter.] Jane Dodds.

I just really want to concentrate on one part of this motion. I think we've heard lots about how important our rural economy is, and I don't think that's in dispute. I just want to look at part 4 of this particular motion, and to hear from the proposer as well, because it talks about connectivity and infrastructure, and of course, we know that digital connectivity, job opportunity, housing costs, health, transport, are especially challenging for us in rural areas, and for young people, who want to know what their future is, going forward.

So, I want to look at whether we can couple infrastructure, roads, homes, and those digital issues with what I take the motion, perhaps, to mean, with social infrastructure in our rural areas—childcare, community networks, good public services, which we've heard about, including our schools and our health and social care—and how this motion can address that as well. We need, as we've all heard, vibrant rural communities that create places where people can live and work, from cradle to grave.

Many people have spoken about a rural strategy, a rural economic development Bill, and there is something that we do need in order to bring all these issues together, focusing on the needs of our rural areas. For example, the proportion of micro-enterprises in mid Wales was the highest of the four regions. It also has a higher number of active businesses as a proportion of the population than anywhere else in Wales, and that's a good news story. But there isn't the digital connectivity. It's not just the transport connectivity to support growth, to support innovation and to support flexible rural working in mid Wales; we need that digital connectivity as well.

And we've heard that public transport is again a frustration. I met recently with residents in Borth in Ceredigion around bus services. And I think it's important that we remember that with the roads review, now that we're not committed to building new roads, which I totally support, surely the money from that, we need to think now about how that goes into public transport, particularly in our rural areas. 

Finally, I have to be in agreement with many of our speakers, because the Conservatives in our Senedd need to take responsibility for what the Conservative Government has done in London. The UK Government stated that the levelling-up fund was specifically tilted towards the north, the midlands, Wales, Scotland and Northern Ireland, and yet, in 2022, Powys did not receive a single penny of levelling-up money. Instead—[Interruption.] No, I’m not taking an Intervention. Instead, we saw some very wealthy parts of the UK receiving large amounts of money, including the Prime Minister’s own Constituency, which received £19 million.

And Brexit, which everyone warned would affect our economy, particularly our rural economies, but don’t take my word for it, take the word of Ian Rickman, a farmer in Llandeilo, who talks about the trade deal. I quote:

'There’s no way you can dress those trade deals up as a good thing. I’ve heard farmers say the industry was more or less chucked under a bus.'

So, I do support calls for a long-term infrastructure strategy for our rural communities and I’m grateful that this has been brought forward to improve digital and transport connectivity to create a thriving economy. But I also think we need to remind ourselves that it is decisions made by successive Conservative Governments on Brexit, on trade agreements, on levelling up that have continually disadvantaged and undermined our rural communities. So, I hope, in the summing up, that the Conservatives will take responsibility for the role that they have had in piling on additional challenges for our farmers and our rural communities. And I will be supporting the Government Amendment. Diolch yn fawr.

I welcome this debate this afternoon. And I will just say, Jane Dodds wouldn't let me make an Intervention, but I'd just like to say that the Lib Dems did throw farmers under the bus with the nitrate vulnerable zones vote in the last Senedd, so I'll take no lectures from Jane Dodds about taking responsibility.

Having lived in a rural community my whole life, I feel extremely privileged to have grown up in that environment, having the world on your doorstep, and it’s a fantastic part of the world. And now, I’m very lucky that I represent my home in the Senedd. The communities across the greatest Constituency of Brecon and Radnorshire are unique. They’re not all the same, and in some corners, we have a vibrant Welsh language culture down in Sennybridge and different parts of the constituency; in others, we have thriving market towns in Hay-on-Wye, Builth Wells and others. And our communities in rural areas are all brought together by that sense of community and that everybody is there to support their neighbour, and that is something that we should all be very proud of in our rural communities—that everyone can come together and support each other.

The backbone of my constituency and many rural constituencies is agriculture and our small businesses. Agriculture provides jobs and opportunities, and more importantly, the food that we all need to survive. And that is why it’s vitally important that, when the Government comes forward with a new sustainable farming scheme, food production is put at the heart of that to make sure that all our farmers are producing food for our nation and to make sure they have a very profitable future.

One thing that is also very close to my heart, and it was raised by Cefin Campbell, is our young farmers movement. As a proud member of Rhosgoch Young Farmers Club and Radnor YFC, I do say that it is the best youth movement that we have in the entire world. It pulls so many young people together, pulls everyone together from different communities, and actually teaches those skills that many people in rural areas need. And it also helps tackle that rural isolation that many people face and is a great way of actually addressing the mental health concerns of young people in rural areas.

Others have mentioned it in the Chamber, but I feel very proud that my constituency is the home of many agricultural shows: Brecon, Sennybridge, but more importantly, the jewel in the crown, as I call it, the Royal Welsh Show. And I personally have had many good days there and have also had some very good nights, mostly in the National Sheep Association bar, or in the young members' pavilion. It's a very, very good place to be, and I encourage everybody to go to the NSA bar if you get a chance. The Royal Welsh Show attracts so many visitors to our rural communities, and those people who come there spend over £10 million in our local economy, and that's huge to my constituency and it's huge to Wales. As others have said, with over 200,000 people descending on Llanelwedd, it's really something that I think the Government should be investing in further, and I'm very pleased that at the launch of the Royal Welsh Show today, the Minister gave her commitment to actually supporting the Royal Welsh Show going forward.

One issue that I find very important to me, and to my residents, is the lack of—. I see the Minister shaking her head. It's very important to my communities, the Royal Welsh Show. You may not like it, but I certainly do. One of the issues that many of my residents are concerned about is the lack of broadband and infrastructure in rural Wales, and that isn't a responsibility—[Interruption.] Yes, I can hear you muttering on, Rhianon; I agree. Listen to what I'm going to say. It's not a responsibility, I understand, of the Welsh Government, and I do want the UK Government to do more. I want them to go further in rural communities, to actually make sure we get rid of those notspots, because it is an area that does hold businesses back, but there are other areas of infrastructure, like our roads, which are the responsibility of the Welsh Government, and they need to be upgraded and the Government need to take that extremely seriously. I'm just checking the time, Llywydd, don't worry.

Shooting is also something that is really important to my communities, and the consultation that has now ended on controlling the release of game birds across Wales, if that comes into force, we are going to see jobs and businesses lost across Wales. I think the Government need to take every response to that consultation very, very seriously, because I don't want to see people in my constituency losing their jobs because of this Government's attitude towards shooting in Wales.

As I said, I love the great outdoors, and I'd just like to finish with this: one of my personal highlights of the week is when I get to leave this place and actually travel back to my constituency of Brecon and Radnorshire and the place I call home. Diolch.

I'm going to remind us about the rural communities and the investment that the EU funds have contributed to that rural economy. In mid Wales, the current round has created more than 2,750 jobs and 655 new businesses. More than 1,900 businesses received funding or business support. Almost 1,300 people have been helped into employment and nearly 7,000 qualifications have been achieved. Aberystwyth University has benefited from more than £45 million to develop new facilities like VetHub1 and AberInnovation.

Brexit means, of course, that we've lost access to new EU funds, and because of decisions taken by the UK Government, your Government, Wales is losing £1.1 billion compared to the EU structural and rural funds, despite promises—Janet Finch-Saunders, perhaps you weren't listening—that we wouldn't lose a single penny. Now, let's look at that £1.1 billion loss and that wishing list and shopping list that you bring here every single week, and you can start to tick off and cost some of those things that might have happened, but won't happen, because your Government made a promise that they knew was no promise at all. They never ever intended to keep it.

So, I'm giving you an opportunity today, and I hope that you will take it. It's an opportunity to apologise to the rural communities for the broken promises about Brexit, to apologise to the farmers too, for their lack of long-term funding certainty since we've left the European Union. And I have no doubt that you want to stand up and say 'sorry'. That's what you're going to say.

Would you take an Intervention, Joyce? Actually, when it comes to Brexit, I voted 'remain', of course, but I'm democratic, so I want to respect the result of people in Powys, and people across Wales. But when it comes to Brexit, I heard Jane Dodds earlier talking about how Powys had done so badly. Powys did badly under EU structural funds; they did much better when it came to the UK Government shared prosperity fund: £15 million that Jane Dodds has forgotten about for the Montgomery canal, and a whole raft of other projects that I could also name, Joyce Watson. 

Well, I don't know how you were taught maths in school, but I do know how I was taught maths in school, and what I know about maths is that £1 billion less can't possibly be more. A minus is a minus; a minus doesn't become a plus just because you get up and say it. That's how I was taught maths, anyway. So, after you failing to apologise for that deficit, I shall move on. 

Just to let you know what the Welsh Government has done investing in rural Wales, we've secured 100 good manufacturing jobs in Llanfyllin, a new HQ and IT infrastructure for LEB Construction in Aberystwyth, growth and new markets for Atherton Bikes in Machynlleth and Airflo Fishing Products in Brecon—didn't hear those mentioned. Pembrokeshire Food Park in Withybush has been a big success story, attracting Pembrokeshire Creamery's £17 million investment and the creation of 80 new jobs—didn't hear about those. More than £7.8 million has been invested in the mid Wales food sector, helping companies like Hilltop Honey and Radnor Hills to partner with leading UK retailers, and the Dyfi bridge scheme, the Bow Street railway station and the Newtown bypass have all helped connect communities—didn't hear anything about those. The mid Wales growth deal is making great progress, and the £110 million committed by the Welsh Government, and the UK Government, will lever in investment of up to £400 million. But it still won't make up for the £1.1 billion loss.

Our rural communities offer exceptional quality of life. There are new opportunities with more people working from home. But as someone who grew up in mid and west Wales, went to school, worked in hospitality and retail jobs, raised my family, I don't have a sentimental view about rural communities; they have to thrive, they must be places where young people feel confident and excited about planning their futures. Farming and tourism are important, but I wanted to highlight the manufacturing and the green technology, and that is why the Welsh Government is focused on delivering better jobs, better skills and better connected communities, as I demonstrated. 

The Minister for rural affairs to contribute—Lesley Griffiths. 

Diolch, Llywydd. I welcome the opportunity to reply to this debate. I endorse the points made in the motion about the fantastic businesses that exist across rural Wales and the importance of summer shows in promoting those businesses and the wider well-being of rural communities. I also agree we need to continue to improve the transport and other critical infrastructure on which people and businesses in rural areas rely. Many businesses in rural Wales already show what the rural economy of the future can look like—businesses giving back to the environment, more than they take out in natural resources; employers who see social partnership and fair work as core to their corporate values; innovative businesses applying cutting-edge science to global challenges; and cultural businesses bringing the Welsh language and our heritage into more people's lives. Indeed, some businesses represent many of these characteristics all at once. 

Our role as the Welsh Government is to work with these businesses alongside other public bodies to proactively promote an economy focused on well-being. We do not believe the best economic outcomes are delivered simply by letting the free market decide. We believe Government Intervention whereby public support for economic activity comes in exchange for securing wider public benefits represents a better future not just for our rural economy but for the whole of Wales. We want more Welsh businesses to deliver the wider benefits so many already do.

Our infrastructure policies are set out in our strategic plans, including 'Llwybr Newydd' and the Wales infrastructure investment strategy. Our approach to rural connectivity has been shaped by a series of round-tables conducted by the Deputy Minister for Climate Change with local authority leaders and transport experts from across Wales. Our rural pathway takes a hub-and-spoke approach, helping those in the most isolated communities better access their local village or town, and from there, a wider range of onward transport choices. 

The North Wales Transport Commission identified the need to prioritise schemes that enable better rural-to-rural connections, and proposed car clubs, car sharing and e-cycles, as well as highlighting the role of workplace travel planning to support people to access the options available to them. Projects like the Sustrans E-Move pilot and the Sherpa service in Snowdonia are just two examples of transport policies that have demonstrated success in improving rural connectivity and that provide models that can be adopted more widely.

But I cannot emphasise enough that Welsh Government support for our rural communities takes place in the context of severe economic headwinds, amplified by a whole series of damaging policy decisions taken by the UK Government, out of a uniquely Conservative blend of ideology and incompetence that the Welsh Conservatives choose to conveniently ignore. In the time I've got available, it's a challenge to actually summarise the very long list of appalling decisions, but decisions that have had particularly detrimental impacts on the rural economy of Wales include their total lack of preparation for securing a deal with the EU, where the shambolic and, as yet, unresolved approach—I've had a meeting this afternoon about this—to facilitating the movement of goods across our borders is only the most visible manifestation. They have created chronic—[Interruption.] No—labour shortages and supply chain disruption with their chaotic immigration and labour market policies in the wake of EU exit.

They have set us back compared to our European neighbours by failing over more than a decade to invest in the critical infrastructure for which they are responsible, including our energy system, our digital connectivity and our railways. And, of course, there's the acute disaster that was the brief premiership of Liz Truss, who enjoyed the fulsome support of the Welsh Conservatives as she cast aside the UK's international reputation for economic competence and inflicted a colossal—colossal—burden of debt on both the public finances and the budgets of every household in the land. In the hope that it will stop the Leader of the Opposition chuntering, I will take an intervention.

I'm grateful to you for taking the Intervention. Going back to your point about the so-called collapse in produce from Welsh farms, can you name me a better time to be selling lamb and beef over the last six years, where beef has been £5 a kilo, lamb is £7 a kilo dead weight? I actually practise every day in the agricultural world; I know what's going on. We haven't seen the collapse of the agricultural industry, like you prophesied, from leaving the European Union—

I'd like you to stop pointing, please.

We've seen a better place for us—

Llywydd—

—to trade our commodities.

Okay. Fine. Yes, pointing is not becoming of any Member. The Minister to respond.

I also want to remind the Tories that no section of the Welsh economy has felt the brunt of Conservative management more than our farmers and fishers, so that addresses your point. We heard from Jane Dodds quoting Ian Rickman, the vice-president of the farming union—you ask the farming unions what they think about the UK Government's policies.

We've also seen the UK Government barter away farmers' interests in pursuit of trade deals that add to the bureaucracy of doing business, increase trade friction and threaten to undermine standards, and not just for farmers. Just last week, one of the leading lights in Welsh fisheries was quoted in the press describing the Tory handling of Brexit as absolutely, fundamentally, profoundly devastating. The same could be said of the betrayal of rural Wales in the failure to honour the commitment made by UK Ministers, which other speakers have referred to, to ensure that not a penny less—not a penny less—would be provided in replacement EU funding.

I would like to give credit to the leader of the Welsh Conservatives for rightly pointing out the gross iniquity of the decision to class HS2 as an England-and-Wales project. It does serve, I think—and I'm being positive now—as a very powerful message that this Senedd can speak with one voice, across party lines, to point out that this denies Wales the ability to improve rural connectivity at the scale and pace we all agree is needed. The leader of the Welsh Conservatives has said that his party should stand strong and tall in the Welsh wheat field and not be bending in the wind to the whim of Westminster. So, for the sake of rural Wales, I would call on the Welsh Conservatives to really heed their advice and lend their voice to the calls for full replacement of EU funding for rural development, along with a commitment to a long-term planning horizon that we know is needed for economic development generally and land-based enterprises like farming especially.

I do hope the Welsh Conservatives will decide to put country before party today and urge their UK counterparts to reverse their decision to remove hundreds of millions of pounds in funding from not only transport infrastructure investment in Wales but also from the rural economy too, by supporting the Government Amendment to the motion. Diolch.

Samuel Kurtz now to respond to the debate.

Diolch, Llywydd. It's a pleasure, it really is, to close today's debate. I've listened to it intently, because it's something that's incredibly important to me, the rural economy, as the Shadow rural affairs Minister. It's incredibly important that we do note the importance of the rural economy, that we do note the role that small businesses play in our rural communities, and recognise the valuable contributions from our agricultural community, from agricultural shows and events such as the National Eisteddfod as well. I think that's incredibly important.

Paul Davies opened the debate, talking about the nearly 0.5 million people supported in the rural economy and the importance around the Royal Welsh Show and the event that was there to launch that today, and the importance that we'll need to see in the sustainable farming scheme. I'm keen to listen to the Minister's statement on the sustainable farming scheme in only two weeks' time; I think that will be an incredibly interesting period for the agricultural community. Paul also mentioned business rates reform. I think that is something that we really do need to take heed of, and the Welsh Government really do need to have a look at that as a matter of urgency. And at this point, I'd just like to say that my cross-party group on rural growth is doing an inquiry into the rural economy and rural productivity at this time, taking evidence from those in the sectors, right across the rural economy, to try and give some tangible policies—not party political policies, tangible policies—to the Government, to try and lever some investment into our rural economies. Because the clue's in the name—it's a cross-party group.

Llyr Gruffydd mentioned the importance of rural contributions, but actually mentioned the rural premiums as well—that's something that really needs to be understood, having to travel further for services—and the family farms being the backbone of the rural economy. And the agri Bill amendments, which were first tabled by Mr S. Kurtz from the Welsh Conservatives, picked up by Plaid Cymru and the Government—I'm pleased that those have come forward. But he also mentioned that shop window that the Royal Welsh Show gives, and all shows and eisteddfodau give, for our rural communities, especially those who don't come from a rural background—going to those events, potentially for the first time, being able to have a taste and visualisation of what rural Wales really is about.

Peter Fox, I have to give you credit for putting food on the agenda, really, with your food Bill, and that's something that you've played an integral part in. I know the Minister is very keen on Wales's food and drink sector. I think that's an important part, where we have potential exponential growth in it. Because let's not forget, for the first time in 20 years, we've had Welsh lamb, Welsh sheep meat, going across to America—the fifth largest importers of sheep meat, a fantastic new market that we're able to access. That's the positivity that we want to be seeing.

But I have to come back to some of the negativity that's been mentioned here today with regard to some of these elements around UK Government funding. Obviously, everybody here will have read the transcript from the Economy, Trade and Rural Affairs Committee, which Paul Davies eloquently chairs. We took evidence from Professor Steve Fothergill. So, when the Labour benches and Plaid Cymru want to dispute, and say that we're £1 billion short-changed, we're not. I quote Professor Steve Fothergill:

'The SPF is ramping up, and the SPF does get to the level, in real terms, of roughly what the European funds originally were. So, in that sense, the UK Government's correct.'

That is Professor Steve Fothergill. And it's not just Professor Steve Fothergill. David Phillips, associate director of the Institute for Fiscal Studies, said:

'So I think it makes sense to ramp up the amount being spent by the UK SPF', because EU funds are tailing off and SPF funding is ramping up. But that's not a new phenomenon; that's exactly what happened under EU funding previously—that it tailed off and ramped up over specific periods. So, that's something that we really need to get to grips with.

Carolyn Thomas—[Interruption.] I'll take a quick Intervention.

Thanks, Sam. I think there's one thing I would like to clear up, and I'd also like to give Jane Dodds the opportunity to correct the record. Jane in her contribution said that Powys had not received a single penny of levelling-up money in 2022. The truth is that Powys received £27 million of UK levelling-up funding in 2022. So, I wonder if Jane Dodds would be willing to correct the record in that regard and perhaps make an Intervention in your closing-up contribution, Sam.

Thank you, Russell. I'll give way to Jane, should she so wish, but—

I'm happy to correct the record, Llywydd.

I'm also pleased that the people of Powys—

Can I thank Jane Dodds for correcting the Record? 

Yes, I thank Jane Dodds for that contribution. I'm pleased that the residents of Powys have advocates such as Russell George and James Evans as well.

Going back to Carolyn Thomas's point around the public sector being the largest employer, who pays those taxes? We need a big strong private sector to pay the taxes to pay for those public services. That's really important. The point that Carolyn made around the bidding process for EU funds as well, I take Carolyn back to the evidence we took at the Economy, Trade and Rural Affairs Committee from a host of applicants to both EU funding and new shared prosperity funding, who have complimented the simplicity of the shared prosperity funding application process. There in black and white is evidence. You shake your head, Carolyn—that is the evidence we've gathered from independent organisations, third-party sectors, who have absolutely welcomed the simplicity of the shared prosperity funding. 

One thing—I'm conscious of the time, and I hope the Llywydd is kind given that I've taken an Intervention—I want to compliment Cefin Campbell on mentioning the YFC, as James Evans has as well, and others. It's a cause very close to my heart as a former chair of Pembrokeshire YFC. I think if you could bottle up what the YFC is and sell that, you'd be a very wealthy person because of the skills it gives to individuals. But in the five minutes and 42 seconds that Cefin contributed, I think four minutes were spent on criticising the Westminster Government, so maybe—[Interruption.] Potentially, it's a bid for the General Election's Carmarthen new seat. So, maybe there's a candidacy from Cefin Campbell there for the general election, and maybe I've broken a news embargo there. Apologies if I have. 

Llywydd, I'm conscious of the time and I really have paid attention to everybody that's debated today. All I can say is it's really important that we have these debates and flesh it out, but let's remember where we are and why we're here. We're here to ensure that we get the best for the people of Wales, and that means scrutinising the Welsh Government as well. We are willing to look at ourselves and say, yes, Barnett consequentials, which the Minister raised—we are willing to say, 'Yes, Wales deserves those Barnett consequentials.' It's about time that backbenchers on the Labour benches and the co-operation agreement partners in Plaid Cymru put as much pressure on the Labour Government here in Wales as they seem to spend as much time focusing on the Westminster Government. I urge everybody to vote for the motion today.  

The proposal is to agree the motion without Amendment. Does any Member object? [Objection.] Yes, there are objections, so I will defer voting on this item until voting time. 

Voting deferred until voting time.