Clarity needed over the objectives and expectations of Welsh Government’s enterprise zones, says Assembly Committee
17 December 2013
Too little is known about the objectives and expected results of the Welsh Government’s Enterprise Zones, according to a National Assembly for Wales Committee.
The seven Enterprise Zones that are sited around Wales are, in the government’s
own words, "geographical areas that support business infrastructure and compelling
incentives"
.
The zones are focused on different economic sectors, including manufacturing, financial services, advanced energy generation and aerospace. They all receive benefits to improve infrastructure, provide Business Rate support, next generation broadband and Enhanced Capital Allowances, among other things.
The Assembly’s Finance Committee was told that all seven Enterprise Zones have strategic objectives – but not what they are. That they have bid for investment – but not exactly what they have bid for. And that they will be expected to deliver results – but not how that success will be measured.
The Committee did find that the zones are making a difference in some areas and that there is great competition to gain a place on a zone’s board of directors, even though they have no budget and members are not paid.
“There is still an air of mystery surrounding the Enterprise Zones since their announcement by the First Minister more than two years ago,” said Jocelyn Davies AM, Chair of the Finance Committee.
“The Committee found it very difficult to establish solid information about their objectives, their funding or how their performance is being measured.
“We believe that, if their purpose and performance is to be properly scrutinised, the Welsh Government needs to be much more transparent about these enterprise zones.”
The Finance Committee makes five recommendations in its report including:
While we are assured that strategic plans exist, while they are unpublished it is impossible to scrutinise them. While there may be sound commercial reasons to keep some of the details private, we recommend the Minister considers making public as much information as possible;
If Enterprise Zones are to hold their own budgets in future, we recommend that robust accountability arrangements are put in place to ensure value for money; and,
The Minister ensures all Enterprise Zones consider how best they can ensure that all businesses are informed about Business Rate Relief.
More information about the Finance Committee can be found here.
More information about the Finance Committee’s inquiry into Enterprise Zones can be found here.