Incorporating HC 34 i-xii, session 2007-08 and HC 281 i-xvii, session 2006-07

This Welsh Affairs Committee report, "Globalisation and its impact on Wales" (HC 184-I, ISBN 9780215526373), examines the effects of global trade on a variety of economic sectors, including employment and skills, broadcasting, and food supply and production. The Committee found evidence of existing skills gaps in Wales, for example in specialist areas such as science, and recommends that to avoid dependence on low skilled, low paid jobs, the UK and Welsh Assembly Governments work with the higher education sector to raise the skills base. Universities are the drivers of the knowledge economy, which is key to success in the global marketplace. The Committee believes it is imperative that the UK and Welsh Assembly Governments fully integrate the commercial potential of higher education into their policies. Welsh companies can increase their value and stimulate the local economy by exploiting a strong local identity and values, and by making use of higher level and specialist skills to offer premium goods and services that cannot be sourced abroad, particularly in the farming and food production industries, where Wales is developing a global reputation for excellence. Also in the report, the Committee: welcomes the use of innovative methods of broadcasting used by S4C to engage with audiences outside Wales; recommends the commissioning of more programmes reflective of Welsh identity; supports initiatives helping Welsh companies to exploit their global potential in the creative industries.

Globalisation is having an enormous impact on the UK's economy creating significant challenges for policy-making with the shift in economic power from West to East, particularly the rise of China and India in the global economy. The effects will be on felt on highly-skilled jobs as well as some less-skilled employment, and public policy needs to respond to the likely implications for the labour market. The Committee's report considers domestic policy challenges relating to the promotion of innovation and improving the business environment and the skills base in the economy, and issues discussed include: the drivers of globalisation, trade and protectionism, global imbalances, as well as the beneficial and adverse effects of globalisation for the UK economy. The Committee recommends that, in order to promote understanding of the impact of globalisation on jobs and communities, the Government should publish an annual review of new developments affecting the impact of and prospects for globalisation. Given that protectionist sentiment is increasing, posing a threat to the progress of both developed and developing countries, the Committee supports the Government's promotion of a successful conclusion to the Doha trade round. Globalisation is also threatened by the risk of a disorderly unwinding of global imbalances and the success of a reformed International Monetary Fund will be judged by its performance in ensuring global imbalances are properly addressed.

The Wales Office and the Welsh Assembly Government must ensure UK digital inclusion initiatives meet Welsh needs and build on existing good work to deliver on Welsh digital ambitions, says the Welsh Affairs Committee in a report published today. This report "Digital Inclusion in Wales", examines the use of digital technologies in Wales, highlights the urgent need for the eradication of broadband ’notspots' - areas with limited or no access to high speed internet connections - and says this issue must continue to receive priority attention. There should be more support to help a wider range of people use technology effectively. Employers told the Committee they need staff with better IT skills and more training opportunities. The Committee recommends the Welsh Assembly Government explicitly includes this issue in its digital inclusion strategy. The digital inclusion agenda is a complex mix of reserved and devolved matters. This brings a risk that key issues can be overlooked, for example no account has been taken of Welsh language speakers' needs in the Government's Digital Inclusion Action Plan. The Secretary of State for Wales must ensure that bodies in Wales across all sectors are fully engaged with initiatives and that the next stage of Digital Britain adequately reflects Welsh needs. Higher education institutions also have a vital role to play and should be involved in any new research opportunities. The Welsh Assembly already has successful digital inclusion projects in Wales and it should find a way to become fully involved with the UK digital inclusion and Digital Britain work so it does not miss out on policy developments and funding opportunities. The Committee also recommends the creation of a one-stop shop providing advice on the risks for young people using technology, and commends the Assembly's work tackling internet related crimes which it says should be promoted as part of the economic development strategy in Wales.

This inquiry arose from the Committee's belief that any benefits of the 2012 Olympic and Paralympic Games should be felt in Wales and not only in London and the South East of England. The Committee cannot yet conclude whether Wales will benefit from the 2012 Games. Few events will be held in Wales and it is not predicted that Wales will benefit greatly from tourism generated by the Games. An opportunity was missed in the original bid to locate events in Wales particularly in respect of mountain biking and canoeing. In retrospect, it now seems misguided to build expensive new venues when such facilities exist in Wales. Lottery funding will be diverted from Wales to fund the Games, with a loss of an estimated £100 million, which will have a long-term effect on grassroots projects with a reduction in the number of new facilities built and possible problems in maintaining current structures. The Government has launched the London 2012 Business Network and CompeteFor, but there Welsh companies currently only account for 2 per cent of all the total number of registrations on the CompeteFor network. The most obvious benefit to Wales arises from the fact that the Olympic and Paralympic Games in London provide a unique opportunity to generate interest in sport amongst children and young people. Disability sports is a great success story for Wales and the community programme ensures that there are opportunities for children and young people with disabilities. It is important that all sections of Welsh society are engaged with the Olympics and Paralympics and its ideals.

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