---

Welsh Affairs

I wish you, Mr. Deputy Speaker, and the whole House a happy St. David’s day, and I am sorry that I shall be unable to attend the end of the debate. My hon. Friend the Member for West Bromwich, East (Mr. Watson) has called for a St. George’s day debate, and I shall be happy to wish him a happy St. George’s day on the appropriate day. This September will mark the 10th anniversary of the momentous night when the people of Wales voted to create a democratically elected National Assembly for Wales, placing decision making in the hands of the people of Wales. The margin of the victory that evening was narrow, but that has not held Wales or the Assembly back. Ten years on, the Assembly has firmly established itself as the voice of the people in Wales. It has earned respect as a centre of innovative policy making, and as it has grown in strength, stature and self-confidence, so, too, has Wales as a whole. There can be no doubt that Wales is going in the right direction, with a record number of jobs, massive investment in schools and hospitals and a successful Welsh economy. Yes, there are challenges ahead, but the choice facing Wales is how we build on the success of the past 10 years, rather than going back to the failure before then. The challenge facing Wales is increasingly global. The enlargement of the European Union and the dramatic growth of emerging economies such as China and India is leading to rapid and sometimes unnerving changes in the world economy, but it is creating opportunities, too. China and India are producing more university graduates each year than the whole of Europe, so competition is increasingly coming not just from low wage costs in their manufacturing industries but from the higher tech, knowledge-based sectors. It is, therefore, more important than ever to harness and build on the huge talents of the people of Wales and to place an ever greater focus on quality and excellence, with everyone who is able to work being assisted with the skills upgrading and training they need to work. Boosting skills is the key. It means more than simply ensuring that a higher proportion of our young people go into further and higher education. That is only the bare minimum. How can we compete with countries such as South Korea, where 40 per cent. of 25 to 34-year-olds have a degree or equivalent?