Future Role of the Welsh Development
Agency and Wales Trade International
46. During the course of our inquiry the Welsh Assembly
Government announced that it would be disbanding its government
Agencies and bringing their activities back within direct control
of the Government. That decision included the Welsh Development
Agency and Wales Trade International.[98]
Andrew Davies AM, Minister for Economic Development and Transport
explained that the business case for bringing the public bodies
within Government was that in a relatively small country of just
under three million people "too great a rise in public bodies
providing similar services or overlapping services led to too
great a fragmentation". [99]
With specific regard to economic development Andrew Davies argued
that overseas investors found working in Wales, at times, to be
"quite frustrating because they would come to the [Welsh]
Assembly Government for Regional Selective Assistance, they would
go to the Welsh Development Agency for property development grants
and if they wanted to have the skills, they would go to ELWa".[100]
Andrew Davies believed that "Having those services provided
directly by Welsh Assembly Government with the direct line of
accountability to a Minister is much more effective".[101]
47. David Pritchard of the Welsh Assembly Government
added that the reorganisation of the agencies would also have
the beneficial effect of streamlining the existing links between
the UK government and its departments; in particular the DTI,
Department for Transport and the Department for Education and
Skills and the Welsh Assembly Government. He asserted that those
links between the Welsh Assembly Government and Whitehall would
become less complicated.[102]
48. However, the present split between the functions
of the Welsh Development Agency and Wales Trade International
would remain, as would the Welsh Assembly Government's approach
to overseas representation. Andrew Davies explained that the Welsh
Assembly Government decided to create, in certain locations, Wales
International Centres. The first, in the Chrysler Building in
New York, was opened on St David's Day 2004. He argued that it
was a good model because "whether it is in New York, Chicago,
San Francisco, North America, Tokyo or Australia, if you can have
that very focused "Team Wales" presence, which brings
together, perhaps, the WDA and the WTI, and also, maybe, the Welsh
Tourist Board, that gives us a very powerful "team Wales"
presence".[103]
We visited the Wales International Centre in the Chrysler Building
during our visit to the United States. We were impressed with
the "Team Wales" approach and with the facilities that
were on offer to both overseas investors, and to Welsh exporting
companies.[104]
49. In addition to those centres, the Welsh Assembly
Government confirmed that it could still call on the facilities
of the Foreign and Commonwealth Offices around the world and to
use the UK crest for its operations. David Pritchard told us that
they would also take advantage of those facilities and was clear
that the Welsh operations were "not totally separate from
them".[105]
50. The decision to bring in-house agencies such
as the Welsh Development Agency, Wales Trade International and
Education and Learning in Wales is a matter for the National Assembly.
We hope that the predicted streamlining of links between UK Government
Departments - including the Department for Trade and Industry,
Foreign and Commonwealth Office, Department for Transport and
the Department for Education and Skills - and the Welsh Assembly
Government will ensure that the needs of Welsh manufacturers and
business continue to be vigourously promoted in the future.
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