Written Assembly Questions tabled on 27 June 2014 for answer on 4 July 2014

R - Signifies the Member has declared an interest.
W - Signifies that the question was tabled in Welsh.

(Self identifying Question no. shown in brackets)

Written Questions must be tabled at least five working days before they are to be answered. In practice, Ministers aim to answer within seven/eight days but are not bound to do so. Answers are published in the language in which they are provided, with a translation into English of responses provided in Welsh.

To ask the Minister for Economy, Science and Transport

David Melding (South Wales Central): Given that manufacturing businesses in England have access to the Manufacturing Advisory Service, which provides support and advice on how to improve operations and grow their business, will the Minister make a statement on what measures are in place for a Welsh equivalent of such a service? (WAQ67329)

Answer received on 3 July 2014

The Minister for Economy, Science and Transport (Edwina Hart): Through our Innovation business support programme, we offer a much more comprehensive and enhanced advisory and support service in Wales, delivered by our Business Innovation Manufacturing Specialists. Our support also includes innovation vouchers which are available at an enhanced rate to that of England.

David Melding (South Wales Central): What is the Welsh Government doing to increase knowledge of export opportunities amongst key business advisors such as accountants and bankers? (WAQ67330)

Answer received on 3 July 2014

Edwina Hart: The Trade team, along with a secondee from UK Export Finance, have developed positive working relationships with account managers in a number of banks in Wales, including HSBC, Santander, RBS, Barclays and Lloyds. Through various meetings, Welsh Government and banking officials have exchanged vital information about the range of services offered by each organisation on trade support and overseas trade missions. As a result of this interaction, we have received a number of referrals by banks to us of Welsh companies requiring trade assistance. Those banks also exhibited at the Welsh Government’s International Trade Day in November 2013 at our invitation.

In addition, the Deputy Director of the Trade and Inward Investment team formally addressed the Association of Chartered Certified Accountants (ACCA) Wales earlier this year to increase it’s members’ knowledge of the trade support offered by the Welsh Government and the trade mission programme.

To ask the Minister for Education and Skills

David Melding (South Wales Central): What response has the Welsh Government made to the analysis of the South Wales Chamber of Commerce that engineering and ICT skills are in short supply? (WAQ67331)

Answer received on 8 July 2014

David Melding (South Wales Central): What is the Welsh Government doing to help improve the quality of middle management skills in Wales? (WAQ67332)

Answer received on 10 July 2014

Huw Lewis: In Wales, the most prevalent skills lacking amongst managers are planning and organisation skills (the cause, at least in part, of 73% of skills gaps amongst managers in Wales), problem solving skills (57%), team working skills (56%) and strategic management skills (50%).

The skills employers consider need improving or updating in the next 12 months for managers are technical, practical or job specific skills (44% of establishments), planning and organisation skills (42%), strategic management skills (40%) and advanced IT / software skills (38%). This data is from the UK Commission for Employment and Skills (UKCES) Employer Skills Survey 2013: Wales report.

On 30 January 2014, the Deputy Minister for Skills and Technology launched the Policy Statement on Skills. This sets out a vision for employment and skills policy in Wales over the next 10 years including the responsible action needed by all stakeholders to develop a resilient, responsive and sustainable post-19 skills system. It also recognises the tough choices ahead if Wales is to deliver the skills needed to raise productivity levels and reduce barriers into employment.

The Policy Statement on Skills was followed by a consultation entitled Proposals for Co-investment in Post-19 Adult Skills Delivery. The consultation, which closed on 16 May, sought the views of stakeholders about our aim to encourage employers to raise investment in the skills of their workforce. Responses to the consultation will be used to inform the content of a Skills Implementation Plan to be published on 15th July 2014. The Plan will set out the key policy actions required in order to raise skills levels in Wales.

Successful organisations have excellent leaders and managers. Middle managers are important, as are lower and more senior managers, and it is essential that they are equipped with the skills they need to enable them to work more productively and to help to drive up growth within their organisation. The Welsh Government is engaging with employers and stakeholders to improve management and leadership in both the private and public sectors. Welsh Government is also looking into working practices which are hailed as yielding significant benefits to companies such as high performance working, and linking strategy and skills to performance measures and skills utilisation, which aims to embed a culture of continuous learning.

David Melding (South Wales Central): What is the Welsh Government doing to help improve marketing skills in Wales? (WAQ67333)

Answer received on 10 July 2014

Ken Skates: I will write to you and a copy of the letter will be put on the internet.

To ask the Minister for Finance

Peter Black (South Wales West): How often in the life of a funding award to a third sector organisation would the Welsh Government review due diligence and governance? (WAQ67334)

Answer received on 3 July 2014

The Minister for Fincance (Jane Hutt): Due diligence is not a static exercise. Just as an external body changes over time, so will the risk associated with dealing with that external body or any key individuals within that external body. Therefore, it is important to ensure that due diligence is undertaken throughout the life of an award - at appraisal and at monitoring and payment stages.

The nature of the checks undertaken are proportionate to the size and nature of the grant, the amount of expenditure involved, the nature of the existing and planned activities and the duration of the funded activity.

Peter Black (South Wales West): What is the governance review process used by the Welsh Government in assessing the suitability of an applicant for funding? (WAQ67335)

Answer received on 3 July 2014

Jane Hutt: The Welsh Government undertakes an assessment of the viability of any external organisation, prior to agreeing to any funding commitment, including the identification of any governance issues. This includes full due diligence checks, which consider the organisation’s corporate information, its legal status or authenticity, its governance and financial viability. Guidance on the due diligence processes required has been issued to enable due diligence to be undertaken consistently across the Welsh Government. Training is also provided to officials on a regular basis on the importance of due diligence and any checks undertaken are proportionate to the level of funding being awarded.

It is both a requirement of the Welsh Government internal audit and of the Grant Management Minimum Standards, that the due diligence system introduced in October 2013 is utilised every time that a funding decision is made. The information held on this system can be reviewed by any Official in the Welsh Government at anytime and has provided a mechanism whereby officials can record and efficiently share information about external bodies. The due diligence system enables Officials to review and add corporate information associated with external bodies and review and add information on individuals and link them to associated external bodies.

Peter Black (South Wales West): How are concerns about due diligence and governance regarding third sector organisations in receipt of Welsh Government grants and European funding flagged up and to whom, and are Ministers notified of existential threats? (WAQ67336)

Answer received on 3 July 2014

Jane Hutt: There are a number of ways in which concerns can be raised regarding organisations in receipt of Welsh Government funding. Notification concerns can vary widely and can come from a range of sources, such as from a third sector organisation, a member of the public, a public sector organisation or from any other funders.

The information can be received by any Official in the Welsh Government at anytime. The due diligence process introduced in October 2013 has provided a mechanism whereby officials can record and efficiently share information about external bodies. This system enables Officials to review and add corporate information associated with external bodies and individuals (linking them to associated external bodies as appropriate). It is a requirement of both Welsh Government’s internal audit and of the Grant Management Minimum Standards, that the due diligence system is used every time a funding decision is made and prior to payments being released.

Depending upon the scale and nature of the concern which is raised, it may be appropriate to notify the relevant Ministers.

Great care is taken to investigate any concerns received, as a number of these can be investigated and determined to be unfounded.

Where a concern is identified with an organisation or individual, that could impact on other external organisations that provide grant funding, the information is shared with relevant partner bodies. This includes the sharing of information through the Good Governance Group which includes Big Lottery Fund, Charity Commission, WCVA, WLGA and other appropriate bodies who are providers of publicly funded grants.

Peter Black (South Wales West): Given that the Big Lottery Fund decided that governance issues should be a key determinant in deciding whether funding is awarded to organisations, following an incident in 2005, will the Welsh Government introduce a similar system? (WAQ67337)

Answer received on 3 July 2014

Jane Hutt: The Welsh Government is committed to undertaking a full assessment of the viability of any external organisation, prior to agreeing to any funding commitment, including the identification of any governance issues. This includes full due diligence checks utilising the due diligence system introduced in October 2013. The information held on this system can be reviewed by any official in the Welsh Government at anytime and has provided a mechanism whereby officials can record and efficiently share information about external bodies. The due diligence system enables officials to review and add corporate information associated with external bodies and review and add information on individuals and link them to associated external bodies. It is both a requirement of Welsh Government’s internal audit and of the Grant Management Minimum Standards that the due diligence system is used every time a funding decision is made.

The due diligence undertaken needs to be proportionate to the overall risk and we must take care not be become overly risk adverse. A risk adverse culture could lead to the threat of lost opportunities for the Welsh Government and ultimately the Welsh tax payer. The Permanent Secretary further reiterated this at Public Accounts Committee on 12 June 2014 when he stated, ‘I would not want us to be designing out imagination or risk taking.’