Today I am setting out my vision of Wales becoming a global showcase for sustainable clean energy production and energy efficiency. This builds on my statement of 30 April 2002 and is made against the background of the UK White Paper on energy published on Monday. Our aim is to secure the right mix of energy provision for Wales to take us forward through the next two decades in a way that minimises our impact on the environment. We will do that by strengthening our production of renewable energy, through a greater focus on energy efficiency and conservation, and by seizing the opportunities offered by clean coal and liquified natural gas.

We believe we have the right formula in this energy mix to ensure that we have secure, diverse and affordable energy and can meet environmental commitments without having any new nuclear power generation in Wales in this timeframe. Simultaneously, we will have considerable associated economic development opportunities.

Our policy priorities focus on five equally important strands. The first is to pursue much greater energy efficiency, including small-scale on-site combined heat and power and renewable energy plants, in our domestic, business and public sectors, working in partnership with local authorities. Energy conservation offers special opportunities to meet our sustainable development ambitions in Wales. However, achieving these goals will require us to ensure that our energy efficiency, fuel poverty and associated economic development issues are addressed in partnership and coherently.

Much is already happening in Wales in the domestic and public sector, through programmes such as the home energy efficiency scheme. We also have strong Energy Saving Trust and energy efficiency commitment activities that support the Assembly Government’s commitment to energy conservation and attacking fuel poverty. Carbon Trust Wales is developing a powerful suite of initiatives for our business and public sectors through NHS Wales and the Assembly estate. Our local authorities are taking an increasing interest in such matters, and bodies such as the Welsh Development Agency and NHS Wales are looking to be exemplars of best practice in energy efficiency. The new Assembly building is to be built to the Building Research Establishment environmental assessment method standard of excellence and we are seeking a transfer of some building regulation powers from Westminster.

However, we need to scale up and better integrate our efforts under the guidance of an energy conservation strategy. We are therefore proposing that an energy conservation action plan for Wales be developed. This plan will include an enhanced role for local authorities and their energy managers and related officers. There will be greater pressure on all our agencies, ideally with the support of the new Assembly construction forum, to be exemplars of best practice. It will encourage the implementation of green procurement plans and related conservation practices and skills in the private and public sectors as outlined in our new business and environment action plan, which we discussed yesterday.

We will try to devise effective schools and Assembly estates initiatives covering both building improvements and educational messages. A range of planning-related initiatives will also be introduced, including enhanced efforts to encourage best practice by the private house building sector in Wales.

The second strand is a strong drive in Wales, measured against appropriate benchmarks, for a sustainable mix of renewable energy developments. Wales already contributes 3 per cent of its total electricity production of about 30 terrawatt hours a year from renewable sources, primarily through onshore wind and hydro power. There are plans in the pipeline for more projects through a variety of renewable energy technologies. Innovation and research and development are essential to the future of these new technologies and the WDA and the Carbon Trust in Wales will be integral to their development. The Carbon Trust, for instance, has just announced research and development projects in Wales of around £0.5 million. The Economic Development Committee’s recent report on renewable energy recommends renewable energy benchmarks for 2010, which appear to be reasonable. I will give a full response to the Committee’s conclusions next week.

In relation to planning policies, we want to see an integrated approach that brings together the views of developers, local authorities, community groups and our economic development and environmental agencies. The technical advisory group is developing detailed guidance in technical advice note 8. The group is already demonstrating the greater willingness of these parties to engage in policy dialogue. The aim is to ensure that developments will not impact on areas of high quality landscape but that, equally, the best projects that demonstrate significant local benefits and best practice will be positively supported.

In the short to medium term, onshore and offshore wind power are the technologies most likely to contribute substantively to our ambitions. We already lead the UK in the development of onshore windfarms and are closely involved in exciting new offshore developments. Consent has already been given for two windfarms off the north Wales coast and we are working with the UK Government on the next stages of offshore development.

Tidal stream technology and biomass energy provide prospects for further development and we are working with our partners to drive this forward. There is real potential to attract a formative range of tidal technologies to Wales. On biomass, we are continuing to examine ways of developing this sector, but it is still an area of some uncertainty. It is our intention to extend our woodlands and biomass strategy into a comprehensive biomass development policy. We believe, in the longer term, that projects of the scale of the Severn barrage could be desirable. However, that has enormous environmental as well as economic implications and further feasibility work is desirable.

The third strand is to encourage energy infrastructure improvements and press for reform of electricity trading arrangements. As North Sea gas supplies diminish we anticipate an increasing role for liquefied natural gas transported internationally by sea. That would have the benefit of producing a strengthened gas transmission infrastructure in Wales. There are currently two major projects that would make west Wales the LNG centre of the UK, thus reversing the situation whereby this area has been at the end of the energy network. We are also undertaking an analysis of the grid in Wales to provide us with a focus for seeking strategic strengthening.

The energy industry in Wales has revealed strong disquiet with current electricity trading arrangements. These concerns centre on financial confidence in the industry as well as the possibility of significant further curtailing of electricity generation in south Wales. Along with the First Minister, I shall be discussing this further with the industry.

The fourth strand is to encourage the production of electricity from new clean coal power stations. There are enormous coal reserves in Wales and the technology now exists to use this resource in a more environmentally friendly way. Approval is currently being sought for a 450 MW clean coal project that could secure nearly 1,000 jobs in south Wales and offers the possibility of the creation of many more if coal gasification is a commercial success. Coal gasification is an exciting technology that holds the promise of supporting many jobs while lowering emissions. We firmly support further research and development work on the sequestration, or underground storage, of carbon dioxide, which could reduce the carbon emissions from clean coal plants to zero. We must also not forget that, trapped within the coal reserves, are copious quantities of methane. We believe more could be done to exploit methane as a fuel and we will commission work to examine the options available.

The fifth strand is the setting of achievable and measurable carbon dioxide reduction targets for 2020. Our energy intensive industries face potentially serious consequences if carbon reduction targets are over ambitious. We have a higher preponderance of industrial activity than the UK average and the most energy intensive industries are often concentrated in the more deprived areas of our country. Wales produces around 12 mega tonnes of carbon through our annual carbon dioxide emissions. The measures that I have outlined are capable of reducing that by about 20 per cent or 2.5 mega tonnes of carbon by 2020.

Transport is likely to remain predominantly oil-based until at least 2020. Until that time, improved vehicle fuel efficiencies through the development of hybrid vehicles and, in the longer term, transport systems based on fuel cells powered by hydrogen, look attractive. We will be observing progress closely and seizing all opportunities to put Wales in the vanguard of hydrogen economy.

In conclusion, this is our vision for the development of a unique energy strategy for Wales. It sets us firmly on the path towards a low carbon future and provides a coherent and compelling medium-term strategy, which fits perfectly within our sustainable development duty. It eschews the nuclear option, but should put Wales in the forefront of clean energy generation, which is more than sufficient for our needs and which drives forward a strong energy conservation ethos across all our public and private sectors.

We have already started work on many important initiatives that will help inform and support the implementation of this strategy. As I said earlier, I and the First Minister intend to hold a second energy summit with the energy industry and its major customers later this year, to discuss the issues in this strategy and to reflect on the issues covered by the UK Government’s White Paper.

I will do my best to welcome the positive aspects of this statement, but will not conceal my disappointment at the gaps. I welcome the aim of making Wales a global showcase and welcome the announcement of no plans for nuclear power. You rightly deal at length with the important subject of energy efficiency, but I do not trust statements without figures. Do you agree with Plaid Cymru’s calculations that, following the take-up of current schemes, it will take over 70 years to tackle the problems of inadequate insulation in houses in Wales? Therefore, when you talk of ‘scaling up’, are you prepared to scale up the efforts seven fold, to achieve reasonable progress in 10 years, or two fold to achieve the same target when I am over 100 years old?

On new housing, why is there no mention of the Assembly Government’s recommendations on the new building regulations due in the near future, which may be the most important decision to be made in the next two years? On renewable energy sources, which I hoped would be addressed and is the most important aspect on which we can take action, I welcome the fact that the target was agreed unanimously by the Economic Development Committee. That involved an enormous amount of careful work, but I am disappointed that we have to wait until next week for the full response, which is the key point of this energy statement. Do you accept that our benchmarking target, or aspirational target—in the new vocabulary—of 4 terrawatt hours should be adopted for 2010?

On planning, there is one key question, which everyone in the industry—such as the people at the National Assembly’s sustainable energy group meetings—asks: when will TAN 8 be issued? It is already far beyond schedule and has still not been issued. Is it possible that in two months, when this Government comes to an end, this important aspect of energy policy will still be unresolved?

I have two more questions. I am glad that you share my disquiet over the current electricity trading arrangements. The new electricity trading arrangements are a disastrous handicap to the efficient and proper development of renewable energy. Do you share my disappointment that, as far as I can see, there are no clear recommendations on that in the UK White Paper? Will you make strong recommendations from this Assembly that if we are serious about renewable energy, this is an urgent issue?

Finally, I hope the following is true, but I would like an explanation: you propose that burning carbon can be an efficient zero carbon technology. You say, and I welcome this, that there will be money for further research on this. Can you explain what research has raised reasonable expectations that, in the near future, you can burn coal to produce energy at an efficient price and yet not release any carbon dioxide? We must be careful about the energy implications of sequestration.

To summarise, we should examine the 20 per cent cut in carbon dioxide emissions by 2020—it is certainly the minimum for which we can hope. However, why are there no firm targets for 2010?

On home energy efficiency, we are already achieving a great deal through the home energy efficiency scheme. Edwina Hart has been working with local authorities to improve energy efficiency in local authority housing. She has agreed to part fund the Welsh Local Government Association energy officer post with the Energy Saving Trust to raise the profile of energy efficiency among senior management and elected members. We are working with local authorities and the private sector to raise awareness of energy efficiency measures. As I said in my statement, we are looking to get the transfer of functions of building regulations, which will give us more control, particularly over the private housing sector. Therefore, we are doing a great deal, but we realise that there is more to be achieved. We are addressing these needs across all of our portfolios, whether in terms of local authority housing through Edwina Hart, planning through Sue Essex, and energy through myself.

On the Economic and Development Committee’s recommendations on renewable energy targets, I will respond to the Committee separately. If I had wrapped up my response to the Committee’s report in my statement today, I would have been criticised for belittleing the report, which is not my intention. I pay tribute to the Committee for its work on this. It has made a major contribution to our policy and thinking as a Government.

TAN 8 will be issued soon. It is more important to get it right, than to go for a quick fix. It is also important that all the partners are signed up to it. There are indications that the process was positive and that all the major players are working towards a common position. We will achieve consensus and Sue Essex will make an announcement on that.

On burning carbon, our research on coal gasification shows that it is possible to almost eliminate carbon dioxide emissions by pumping the gas into old oil and gas fields thereby capturing and sequestering it. Pumping it into coal mines is not feasible because of problems with fault lines. Experience of this system in the USA has been positive. We will consider to what extent such technology can be transferred to Wales. Given our huge reserves of coal and our coal mining tradition, it may well be a major way forward in terms of our contributions to a low carbon energy production system.

Thank you for your strong statement. I understand that we are currently looking at headlines. I will expect to see a bit more meat on the bone next week, when you respond to the Economic Development Committee’s recommendations. When you make that response, I hope that you will refer to what the Assembly and WDA can do to promote jobs in the energy sector, whether they be energy efficiency jobs, small firms undertaking building work, social economy projects under the Communities First initiative, or jobs in fabrication and maintenance. That is particularly important in terms of our renewable energy sector, where Wales already has a good track record. We need to build on that track record, not lose it.

A Member recently mentioned biodiesel in the Chamber: I hope that you will consider it because the expertise exists in Wales to realize that aspiration. I was interested to learn that you are eschewing future nuclear plants in Wales—I agree with that and applaud it wholeheartedly. You mentioned that there would be no new nuclear power plants in the medium term: is that because the industry has no plans for new plants or because the Assembly is making a stand? I would like to think that it is the latter.

The subordinate legislation that I proposed to the Assembly under Standing Order No. 29 was to remove nuclear waste storage from the catch-all industrial activity classification in Wales’s planning regime. I was delighted when the Assembly voted unanimously to remove nuclear waste from that classification, as it would stop the sort of planning blight that we have sadly seen in Trecwn in north Pembrokeshire. I am sure that the Assembly would have been more delighted to vote for a motion that said no to new nuclear sites in Wales. It seems to be the perfect time to press home that aspiration for Wales—no new nuclear plants and no new nuclear dumps. As we follow these aspirations we must be mindful of the local economic difficulties that the inevitable run-down of the nuclear industry will create—I am thinking especially of Ynys Môn. We must start to broaden the economic base of the communities that will be affected. I hope that any plans that you bring forward will address that future difficulty.

Energy conservation and efficiency are not only major contributors to reducing energy use and achieving carbon dioxide emissions targets, they also contribute to job creation, employment and to raising the gross domestic product per capita level. As you rightly pointed out, this is a huge area where we already have much expertise. It may not grab headlines as a major project would, but low-key work is more sustainable. I have discussed the environmental business services sector with Sue Essex and I am delighted that the Welsh Development Agency sees this as a priority. We have given it the resources to develop the sector, not only because of our sustainable development duty, but also to increase employment in a crucial growth sector. The development of biodiesel is an interesting idea—notwithstanding the earlier experiment in Llanelli—and I am delighted that the Chancellor gave tax incentives in the budget for people to use biodiesel.

As a Cabinet, we were certain that we did not wish to commission any new nuclear power stations, however we felt that it was morally indefensible to take that line and not contribute a policy towards a more balanced growth. We could not say that while we do not want nuclear power generation in Wales, we are happy to take electricity generated by nuclear power elsewhere. We feel that we have taken a balanced and holistic approach and I am delighted that the UK Government agrees. Although nuclear waste is not directly related to my statement, I will discuss this with Sue Essex and write to you, giving the latest position. I have heard that Wylfa on Ynys Môn is due to be decommissioned in 2010 and if that is the case we must work with the agencies—the local authority, the WDA and others—and the local workforce to identify alternative jobs or training opportunities, according to their needs.

I am grateful for the Minister’s statement. It follows yesterday’s debate on sustainable development, when it was highlighted that the private sector has had the impression in recent years that the bottom line of sustainability is greater cost. That need not be the case and I am sorry that there is little here to show that sustainability does not cost more. The statement that there will be no new nuclear power stations will be applauded in many quarters, but it is irresponsible not to present an alternative to nuclear energy. The emphasis in this paper is on wind power, which we know cannot completely replace current nuclear power station energy output. You may therefore gain some credit, but you will also lose much credit for not bridging the gap left by nuclear power. Also, on nuclear power, you have not indicated whether you will support the licence extensions on plants such as Wylfa. The licence could be extended so, although it might be headline grabbing to state ‘no new nuclear power stations’, if you were prepared to support the 10-year extension of a licence then the headline might well prove misleading.

There are some positive points in this statement, however. I hope that the Minister can provide more information on the Wales energy conservation action plan, which he will no doubt tie in to the report to the Economic Development Committee. Also, on liquefied natural gas, south-west Wales can play a major role and be a gateway to the rest of the UK, which is a positive option. However, I am worried by the Minister’s enthusiasm for wind energy and offshore windfarms in particular. I attended a meeting last night where Labour and Liberal Democrat Members expressed their scepticism about offshore windfarms and how one particular project was inappropriate. I hope that the Assembly Government does not have double standards and that we will not hear one message from one Member and a different message from another Member. The landscape was industrialised in the last century by slag heaps and so on throughout the Valleys communities and I hope that the landscape will not now be industrialised by wind turbines, onshore or offshore. We must not forget that tourism is a major part of the economy for many coastal communities. Since the establishment of wind turbines near such communities will hardly support them, what sustainability can you offer them?

On the issue of sustainability affecting companies’ bottom lines, I said yesterday that all companies, especially the most successful, are always trying to reduce their costs, and for many energy is a major cost. That is why we support the work of the Carbon Trust, which helps companies, large and small, to reduce their energy consumption and, therefore, their costs. Also, if this policy causes any long-term costs for individual companies or sectors from increased energy prices, that may be more than offset in their investment cycle by reductions in energy use. The calculation is that, over the longer term, the increase for major energy users will be approximately 1 per cent or more. We feel that, given other investment opportunities, many companies will be able to carry that. However, we have concerns about the impact of any changes in policy on energy-intensive industries and we will make strong representations to the UK Government on those issues.

You claim that it was irresponsible to eschew the option of nuclear power generation without alternatives. I made clear in my reply to Christine Gwyther that I felt that it was irresponsible to refuse nuclear energy produced outside Wales without proposing an alternative. I am on record as saying that. That is why we are proposing alternatives. This is not just a matter of windfarms, whether onshore or offshore. One of the five strands is clean coal energy production, which I think has huge potential. Also, there is biomass energy, which is of interest to Mick Bates and NASEG. I referred to that in my statement. On extending Wylfa’s licence, British Energy will discuss that with us and with the UK Government if necessary. However, it is a matter for the company to decide upon. I said in my statement that there would be no new nuclear power generation. We are not in a position to close any operating plants, and would not wish to do so.

We will develop a Wales energy conservation action plan, and I will report on progress to the Economic Development Committee. On liquefied natural gas, as I said in my statement, Wales, and particularly south-west Wales, has been excluded from the benefits of the gas network. We are therefore delighted that Exxon and Petroplus have expressed interest in developing LNG terminals in Milford Haven. We are also delighted that Transco is seriously considering extending the network from its terminal in Dyffryn Clydach near Neath to Milford Haven to accommodate shipments of LNG into the network. That will make a huge impact. I have been lobbied by the south west Wales economic forum, as I am sure you and other Members have been, about extending the gas network to the south-west, which will open up a more dynamic market for a range of energy sources. I do not wish to comment on planning issues, but that is a positive development.

On wind energy, particularly onshore, it would be inappropriate for me to comment on particular applications. However, the thrust of onshore wind development is that it is done with the consent of local communities. That is being addressed in terms of planning and in developing TAN 8. It is not about imposing solutions on local communities; we want to work with those communities. That is why it is important that all the major players, particularly local authorities, are involved in the extensive process of developing TAN 8 and have ownership of it when it is published.

I am grateful for your comments, Presiding Officer. I greatly welcome the statement, Minister. It is of tremendous strategic importance, as carbon reduction is a global issue. If we do not take action, it will affect the lives of millions of people around the world. It is a great disappointment—it is worth reiterating this, although you did not mention it—that the United States of America has not signed up to the Kyoto agreement. That is a fundamental plank in the global strategy to achieve the aims that you outlined and to make Wales a global showcase of renewable energy. That is one of the most significant steps that the Assembly could take in its first term. I am pleased to hear your commitment to that.

Deep questions must be asked about the security of the energy supply. One such question involves the next phase: that is, the rundown of nuclear power during the next 20 years and the need to replace at least 20 per cent of our fuel supply. Other speakers have mentioned the need for a planning policy to encourage that, and TAN 8 is also relevant. However, we also need a broad portfolio of energy supply. The work undertaken in the Economic Development Committee on this is exemplary in terms of achieving that. We must consider how closely we will work with Westminster in order to ensure that, once our structural funding runs out, we have a long-term programme to establish a broad portfolio from hydrogen of the future to the development of wind power, particularly windfarms over 50 MW. We must consider how we relate with Westminster on this, be that through a memorandum of understanding or through other means.

It is critical that we have exemplar projects. The greatest service that we could do is to ensure that all our new public buildings are built to the highest standard; you mentioned the standards that will be applied in the Assembly building. Schools present a particular opportunity and yet there is little funding for school energy programmes. Will you undertake, Minister, to ensure that the work of the Energy Saving Trust is encouraged by greater funding? County councils could save an immense amount of money on energy, if we helped them to reduce their requirements by good energy conservation projects.

We must consider developing this nationally. Your statement, welcome as it is, failed to address the problem of how we co-ordinate advice to private industry and to the public sector about how they can achieve all that. What plans do you have to cope with the problem of co-ordination?

A tremendous project relating to hydrogen fuel cells has been undertaken by Professors Dennis and Freda Hawkes in the University of Glamorgan. We need a strategic balance between developments today, such as school energy exemplar projects—like the biomass project in Llanwddyn—but we also need to increase research and development. What work are you undertaking to make sure that we in Wales remain at the cutting edge of research and development?

The US Government’s failure to sign up to the Kyoto treaty is something we all find extremely disappointing. The Prime Minister’s speech on Monday and the Government’s commitment to sustainable development indicate that the fact that countries like the US are not taking the initiative makes it even more important that we take our sustainable development duties seriously and set an example.

We need security of supply, particularly with the decline of the North Sea gas fields. That is why the whole area of security of supply, together with the planning policy framework, which will be encompassed in TAN 8, is so important. I agree that the Economic Development Committee’s work has been exemplary and I have already paid tribute to that. I will respond to the Committee’s report next week. We work closely with our colleagues in Whitehall, and that is why we must influence the UK Government’s White Paper on energy and we will continue to seek to do so.

We are ideally placed to benefit from new technologies. We have a long tradition of this. The First Minister told us that the Grove cell, the predecessor of the fuel cell, was invented in Swansea. With respect to research and development, our officials are working with departments in the University of Glamorgan and elsewhere, where there is particular expertise in hydrogen economy and other technologies.

As to public buildings, I agree with you. We have all had experience of buildings that have been erected without regard to energy conservation or alternative sources of energy production. All of my colleagues, including Jane Davidson, the Minister for Education and Lifelong Learning, and Edwina Hart, the Finance Minister, are considering ways in which we can ensure that public bodies incorporate best practice in the building of public buildings. This includes making sure that the buildings are highly energy-efficient, that they conserve energy and are in line with our duties towards sustainable development.

I warmly welcome your statement, Minister, and in particular the announcement that there will be no new nuclear power plants in Wales. This is indeed excellent news. It would be even better—to reinforce Christine Gwyther’s point and in the spirit of environmental protection and sustainable economic development—if you and the Welsh Assembly Government could give a categorical assurance that there will be no new sites for the storage of nuclear waste. I understand that this is not your direct responsibility. There is overwhelming support for it in the Chamber. Over 40 Members from all of the political parties have signed my statement of opinion to that effect.

As I said earlier in response to Chris Gwyther, the issue of nuclear waste and nuclear sites is not part of this statement. Nevertheless, I will discuss that with colleagues, particularly with Sue Essex regarding planning. I will respond to your and Chris Gwyther’s request in writing, in due course.

I am pleased to make a statement today on the introduction of Individual Learning Accounts Wales, the successor to the ILA programme that was suspended just over a year ago. I made a commitment then that a more robust and better-targeted ILA would be introduced in Wales. The Assembly Government has developed ILA Wales in partnership with Education and Learning Wales, building on the strengths of the original programme, and using evidence gathered from external evaluations, internal reviews and the lessons learned from other UK countries.

I am delighted to be able to publicly launch this first phase in Swansea tomorrow. This signals the start of the selection process for learning providers, such as colleges and private training companies. Individual learning accounts, first introduced across Wales in 1999, were warmly welcomed by all those involved—individuals, organisations involved in encouraging people to take up learning and improve their skills, and the providers supplying the learning. We attracted interest from over 80,000 individuals, with over 44,000 going on to use their ILA to fund the learning of their choice. One of the most important messages from the first ILA programme was that people felt that they had control over their learning by having a real choice on how to spend their ILA funding. No one was dictating how or where the money should be spent; instead, individuals were empowered to make that decision. What better way to ensure a sense of ownership of, and encouragement to continue with, learning?

External evaluation revealed that nearly 90 per cent of people who used an ILA in Wales felt that their ILA-supported learning had met or exceeded their expectations. Over 60 per cent stated that a gain in confidence had been a major benefit of taking a course. Reading such results and talking to people who have benefited from using an ILA makes us realise that this programme was capable of making a difference, breaking down some of the barriers to learning.

One area that concerned me was that over half of account holders indicated that they would have taken the course without the help of an ILA. The original programme was open to all. However, I want to see the most effective use of our precious education and training resources and, therefore, ILA Wales will not be available on a universal basis. It will be targeted to reach those who most need support. One of the Assembly Government’s priorities is to provide equality of opportunity in learning. ILA Wales will help to achieve this by providing financial help to those with no or low qualifications—those people who, for whatever reason, missed out on learning opportunities earlier in their lives. Specifically, ILA Wales will be available to those whose highest prior learning is at level 2 or below—not higher than GCSE or NVQ level 2, or equivalent.

The decision to suspend the original programme was made because of the grave concerns about the activities of some learning providers and their marketing companies, particularly those who had had their revenue cut off with the earlier closure of the ILA programmes in England and Northern Ireland and, later, in Scotland. Although no incidences of fraud were uncovered in Wales, the threat by those learning providers was palpable. You only had to look across the border to see the devastating effects that fraud could have on a programme. Therefore, we took a reluctant but prudent decision to suspend at that time.

We were right to suspend the original programme, but we were equally committed to introducing a successor programme to build on the positives of the original programme. What we are introducing with ILA Wales is a good idea made better. We have designed a programme that has built on the best aspects of the original, making them even more effective. ILA Wales will concentrate resources on those who face the greatest financial barriers to participating in learning. Those least able to afford to pay for learning will be given the most help. People in receipt of income support or job seekers allowance will receive the maximum help—up to £200 a year to spend on learning. Those on other income-related benefits will receive 80 per cent of the course costs, up to a maximum of £160, and all other eligible people can have 50 per cent of course costs met, up to £100.

ILA Wales has learned the lessons of the first ILA programme, particularly by taking time to understand what went wrong in the rest of the UK, and by ensuring that we have the necessary systems and controls in place to administer the programme effectively and in the best interests of the learner and the provider. It is imperative that we have the best quality learning providers to offer a wide range of subject areas to ensure that people across Wales have equality of access to their chosen method of learning. Learning providers that wish to be involved in the scheme will be required to go through a selection process where checks will be made on their financial viability, quality of learning, track record in delivering learning, marketing practices, and health and safety policies. Approximately 100 learning providers will be selected to offer ILA Wales funded learning. We will announce the second stage, the individual applications, when we are satisfied that this selection process is complete.

This is another good news story for Wales. We are the first UK country to bring back individual learning accounts, which, together with the Assembly learning grant, will further widen access to, and provide opportunities in, lifelong learning across Wales. This is another step in the Assembly Government’s ambition to make lifelong learning a reality in Wales, and to achieve the vision of making Wales internationally renowned as a learning country.

I am glad that the Minister has made a statement of substance today, after she wasted our time yesterday. However, I am concerned that she regards this issue as more urgent and important than the financial and managerial crisis that faces ELWa. I am not alone in the Chamber in being disappointed that, in response to that crisis, she has only made a wholly inadequate written statement about the Pop Factory. In that statement she acknowledges that she knew about the project all along, disclaims all responsibility for it, ignores wider issues of concern, and, once again, suggests that Rhondda Cynon Taf County Borough Council was party to that project: it was not, as records in the Library will show. With a typical lack of nerve, she refuses to answer questions on what we really want to ask her about.

However, I have some questions about this statement. It is short on crucial detail. I am glad that the individual learning accounts have been sorted out in Wales rather than elsewhere. That is a credit to the department involved. I am afraid that we do not have enough details to be able to agree with the Minister that this is good news for Wales. The Minister cannot tell us today when the individual learning accounts will start. When will new applicants be able to apply? That is what will be of most interest to potential learners. This statement is of great interest to training providers, but it would have been just as useful as a written statement. Could you give us an indicative timescale as to when people will be able to take advantage of the individual learning accounts?

How will this be resourced? Will there be a new budget heading, and if so, how much money will be included? If the learning accounts are to be included in the existing budget, could the Minister identify where that would be? Will the financial crisis that ELWa faces—and there is talk that it will make large numbers of staff redundant—impact upon the funding of individual learning accounts and ELWa’s capacity to manage them? I suggest that it might.

It is interesting that the statement does not clarify who exactly will administer the individual learning accounts. It is unlike the Minister to be coy about such matters. I imagine that it will be ELWa, although the statement refers to a partnership with ELWa. The Minister has said that lessons have been learned from the estimated £97 million fraud that occurred in other parts of the UK. It is important to put on record that we are pleased that that did not happen here. However, there was major fraud. How confident is the Minister that ELWa is capable of selecting learning providers and checking their financial viability and quality? I am not the most likely Member to quote from the holy scriptures, but the phrase about a mote in other people’s eyes when there is a beam in your own comes to mind. I hardly think that ELWa is in a position to question anyone’s financial rectitude.

When will the Minister acknowledge that these individual learning accounts, which are a positive development, and many other positive aspects of her education agenda are being severely damaged by the lack of confidence in ELWa? When will she take positive action to investigate what has gone wrong there and correct it in order to restore confidence in this important body? Until we have confidence in ELWa, individual learning accounts will not develop beyond the statement on a piece of paper that they are today, and will not make a difference to people’s lives.

To address your points in order, I agree with you that it is a credit to my department and to ELWa that we are announcing the first phase of ILA Wales, namely inviting applications from learning providers. It was also a credit to ELWa that Wales was the last country in the UK to close down the first ILA programme. While Capita administered the other programmes across Britain, ELWa successfully and prudently managed our programme in Wales. The problem with the original programme was not connected in any way with its management but with the fact that it did not contain sufficient robust mechanisms to test the quality of training providers. When the programme was closed down in England, Scotland and Northern Ireland, we could not be sure that those training providers, who were in it for the money and not for the learning, would not come to Wales. That was the reason for the programme closing down.

In light of current issues, I sought extra reassurance from our chief accountant that all the correct measures had been put in place, and he gave me that solid assurance. My officials have also worked with the ILA development team since the suspension of the original programme, and we seconded one official to ELWa for three months to assist on the operational development, as we had to be clear that the measures would work. I am confident that they will work, or I would not be making this statement today. We will not spend programme funds until we are satisfied that the council’s new systems and controls are working effectively.

This is an important statement because it offers the learning providers that are prepared to deliver quality learning the opportunity to sign up before May so that learners can take advantage of the programme from September onwards. Many people consider developing new learning during the summer and we wanted to ensure that we tied-in with the normal academic and educational timetable. The budget contains £2 million for each year.

On the number of people able to benefit from the programme, if every place were to be taken, approximately 20,000 people would receive £200 each. However, a range of opportunities is available, depending on people’s incomes, which gives rise to the possibility of a wide programme, targeted at those with the lowest incomes and with the least qualifications.

I am pleased with this announcement. You may remember a reception held in the Assembly hall when representatives of the Union of Construction, Allied Trades and Technicians asked when you intended to re-launch ILAs in Wales, as the original scheme was valuable and welcome among UCATT members.

There are several innovative and imaginative workplace training schemes in Port Talbot in my constituency, for example, at the BorgWarner factory on Baglan energy park, in Kenfig Hill. Another example is the work with which Hywel Francis MP is involved, namely developing a union academy in Port Talbot. A key element of this is allowing trade union members, in the first instance, to access lifelong learning in the workplace. Many of those taking up these opportunities have incomes—and I appreciate your point on targeting people on low incomes. Can I assume that, even if people earn regular wages, as long as they do not possess qualifications beyond GNVQ level 2 or GCSE, and even if people are in reasonably well-paid, gainful employment, they will be eligible for assistance under this scheme, so that programmes such as the union academy in Port Talbot can extend their benefits to people in the workplace?

The two criteria with which we will operate are level of income and the level of qualifications, as we want to link both elements. One hundred per cent of course costs will be met for those in receipt of income support or jobseekers allowance and whose highest prior learning attainment is at level 2, which is equivalent to GCSE level, or below. Eighty per cent of the course costs of those people in receipt of the working families tax credit—many of the people that you described will be in that category—the working tax credit, the disabled persons tax credit, housing benefit or council tax benefit and whose highest prior learning attainment is at level 2 or below will be met. That will be up to a maximum of £160, so a substantial amount of support will still be offered. All others who are eligible will receive 50 per cent of course costs up to a maximum ILA of £100 if their highest prior learning attainment is at level 2 or below. Therefore, we are carefully targeting this and giving the most money in the new scheme to those who fulfil the criteria. It is also important to remember that people who are currently taking up basic skills learning have free access to that training, and that is strongly supported through trade union mechanisms in the workplace. However, if an individual, for example, wanted to follow a basic skills course that incurs a charge with a registered provider—one that would have been through all the quality assurance checks—an ILA could be used for that purpose. We want to make them as flexible as possible. They are aimed at ensuring that people have proper learning routes.

I thank the Government for distributing copies of this statement in advance. I concur with Helen Mary Jones, who expressed concern about how this statement has been handled, given that the Minister does not believe it necessary to make an oral statement in the Chamber on the important questions surrounding ELWa. After all the concerns expressed in the Chamber on that subject, the fact that the Minister has issued a written statement rather than submitting herself to be scrutinised by Assembly Members who wanted to question her on important issues displays breathtaking arrogance on her part. It is very well for Government Ministers to make woolly, warm statements relating to their portfolios; they should also stand up to be scrutinised on matters about which the Government may feel uncomfortable. Yesterday’s actions were incredible, given that this oral statement has been made to Plenary today.

I had concerns about the previous ILA system, Minister, and you were right to take the action that you took at the time. We supported that. We also support the establishment of a new ILA framework for Wales. We must wait for the rest of the details, which we hope will be forthcoming in a few months’ time, before being able to determine whether the scheme will be successful. In terms of the criteria that you will apply to assess whether people qualify for certain amounts of money, will you confirm that there will be two criteria, based on qualifications and financial means-testing? I understand the need for a qualifications criterion; it makes perfect sense to target the scheme at those people with no or low qualifications. However, the problem with a financial means-testing criterion is that it tends to be so narrow as to exclude a large number of people who would have otherwise been eligible because they have low or no qualifications. I hope that there will be more emphasis on individuals’ qualifications base than on whether they have a certain amount of income. The concern over the financial criterion has been expressed to me in relation to the Assembly learning grant. I do not want to see the mistakes made with that repeated in this new scheme.

Do we know what the cost of the scheme will be in terms of the likely uptake of ILAs? What will be the likely uptake in comparison to the uptake of the old ILA scheme? What will be the cost of administering this scheme? If the amount available is only £2 million, it is important that the cost of administering the scheme is kept to a bare minimum. Will you outline the controls that will be implemented to ensure that the disaster of the first ILA scheme is not repeated? Admittedly, concerns were not expressed in Wales because we did not have the problems that were experienced elsewhere. However, you said in your statement that controls would be implemented. What type of controls will there be to ensure that those problems do not occur in Wales?

I am also concerned about ELWa’s ability to manage the scheme; confidence in the organisation has hit rock bottom, not only among Assembly Members, but also among learners and training providers in Wales. You need to reassure people in Wales that ELWa will be able to manage the scheme. Therefore, I have concerns about the criteria, the administration of the project, and the controls. However, if the scheme begins to reach the people who have been excluded until now, it will get the vote of the Conservative Party.

I have already outlined in full to Brian the income requirements in terms of the new ILA in Wales. However, it is probably helpful to outline how we will ensure quality learning. All learning must either be accredited by an external awarding body or meet determined standards. We are focusing on those with the lowest qualifications so that they can have a meaningful learning experience and gain a new qualification. However, we are aware that many people do not want to start studying for a qualification because they are putting a toe back in the water and need support to develop their learning potential. Therefore, it will be possible to take non-accredited courses under the scheme, provided that they meet the standards determined by the Wales credit framework team. That group is considering ascribing point values to units of learning so that they are transferable. People can use them, can exchange providers and build up a learning bank or portfolio. All courses must therefore have clearly-defined learning outcomes, level descriptors—a description of the equivalent level at which the course will be operating—learning hours and levels of tutor support. That is important in terms of the public purse, to ensure that we are confident that our money is spent well.

I am grateful that Jonathan did not use the word ‘crisis’ as Helen Mary Jones did. It is interesting that everyone involved in the Week In Week Out programme, including the training providers, have written in to complain about how the programme was handled. The training providers were particularly angry—and they have written to the BBC about this—because the National Training Federation for Wales has worked closely with senior ELWa officers during the last year and has witnessed a real desire to produce an excellent training and learning infrastructure in Wales. Therefore, there is not a lack of confidence in ELWa across the board. There are issues, which the Audit Committee is considering. On the issues regarding European procurement, which I reported to the Education and Lifelong Learning Committee, the Audit Committee will be reporting on those and will ask the Assembly Government for its response. We will give that response in due course, as is proper and required by Standing Order No. 12.

In terms of accountability and my role as Minister, accountability for ELWa lies with its accounting officer. Members of the Audit Committee will be fully familiar with the government accounting manual—the bible on how all financial issues are handled inside government; it is the absolute bottom-line—which makes it clear that grants are not to be given in advance of need. It is stated in a document issued by the Treasury that all Government departments and Assembly sponsored public bodies must comply with that requirement. In addition it is noted in a management statement and financial memorandum sent by the Assembly to all its sponsored public bodies, and a letter relating to the designation of an accounting officer is sent to each ASPB. Also, schedule 8 of the management statement gives guidelines for innovation. The Government has put all the processes in place to ensure that those spending public money are accountable at all times.

In terms of the investigations into aspects of finance within ELWa, it seemed appropriate to ensure that Members were given the proper information at this time about the Pop Factory project, which ELWa began to investigate internally in December 2002. It reported the matter to its national council and that is when my officials, as was said in the statement, picked up during their normal monitoring that a payment had been made in advance of need. ELWa is holding an ongoing investigation, as the statement said, and it will report to us when it is completed. There is nothing more that can be said about this issue at present other than that we are always concerned about probity in terms of public money. Our principal finance officer has kept the matter under review and the National Audit Office is also considering the issue. Therefore, is a matter of belt and braces when it comes to issues regarding public money. We need to wait until the report is presented, through the National Audit Office, to the Audit Committee. The Assembly Government can then respond to it, as required by Standing Order No. 12.

The Welsh Liberal Democrats will, by and large, welcome your statement today because it means that individuals will be empowered to choose. The combination of the small, but not insignificant, amount of money available for the individual learning accounts with the Assembly learning grant means that there has been a significant advance in broadening access to education. I also welcome your comments about a more effective use of the money. We all note that the previous Welsh scheme was not subject to fraudulent use as it was in England. We also welcome the targeting in general. The concerns that I have about the scheme relate to ensuring that the processes of evaluation and monitoring are robust. I would like you to say more about that. Also, although a grant of £100 or £200 is not insignificant, it does not buy a tremendous amount of education. We should consider that and how the Basic Skills Agency or Careers Wales—which are here in the Assembly today—could also be part of the loop to ensure that the scheme is effective. Publicity and marketing may be the answer to ensuring that the target audience—those with qualifications below NVQ level 2—take up the scheme. I would like to hear about how we will market the scheme to those people.

Also, will students be able to spend this money in England? If so, how can they check that training providers have real accreditation? I am aware that all training providers in Wales are accredited, but there were cases in England of companies going bankrupt, which left people who had spent money on courses without any qualifications.

The selection process follows several stages, with training providers being sifted initially on the basis of being acknowledged providers that can provide a number of formally accredited courses and whose financial standing, based on their accounts, is satisfactory. Therefore, the first sift will ensure that the training provider has the width of provision and is financially sound. The second element of the selection process will relate to an ability to provide a spread of courses, to ensure that relevant quality control procedures are in place, and that there is a geographic spread of courses across Wales. We will also need a linguistic spread across Wales to ensure that there are training providers who are able to provide courses in both languages.

In terms of training providers in England, any training provider will be able to apply to the National Council—ELWa for accredition. The council will then apply the test of quality assurance. Those providers selected by the end of April or the beginning of May must then sign up to a legal agreement to provide the relevant courses, to provide any information that the council might require, to allow the council to look at their books and check their records, and to have the quality of their work assessed. Those providers who are signed up will be added to a database. Therefore, we have strong controls in place and our chief accounting officer strongly endorses that approach. Widening access is crucial; that is what this is all about. We must remember that the chief inspector’s report last week stated that the education and training system has improved overall. There are more learners than ever before, the number of people without qualifications is lower than ever before, and the number of people leaving school who do not to go into training or employment is lower than ever before. ELWa has exceeded targets in terms of people in work-based learning. It has exceeded targets in terms of the new modern skills diploma for adults. It has exceeded targets in the training needs analysis for business. It has delivered 305 innovation and development fund projects. It has recorded a 19 per cent increase in trainees in work-based learning—over its target. It has 156 organisations with investors in people accreditation, which again exceeds its targets. We should celebrate these successes, and, although we should properly consider issues surrounding financial accountability, I am unhappy that there are Members in this Chamber who talk down ELWa and the learners of Wales at every opportunity.

I am grateful to you for answering some of the concerns about ELWa today. You have taken that opportunity in responding to Jonathan Morgan and Mick Bates. You must accept that we have a responsibility as Assembly Members to hold the Government to account. It is not a case of talking anybody down—it is holding the Minister to account. It is incumbent upon you as a Minister to answer questions. You have made the point about ELWa’s involvement with the individual learning account grants. We need to be satisfied that ELWa now has full public confidence to deliver on that.

What questions remain about ELWa? Questions remain about the granting of a contract in relation to the Pop Factory. You tell us today that it has nothing to do with you, but when the launch was made, you were prepared to be photographed announcing the grant. However, once there is trouble, you want to run for cover and say that it is to do with the accounting officer, financial control, or ELWa itself. Where does ministerial accountability lie? You must answer that question. Does your name, as Minister, appear on the contract granted to Avanti?

As I said in the statement, it is ELWa’s responsibility to manage operational and contractual matters relating to individual projects within the usual public sector rules, which are clearly set out in its management statement and financial memorandum. The Government sets a strategic direction and stipulates the obligations of compliance. We have done that. The statement explained the Government’s involvement in full. I remain as convinced now as I was in January 2002, that the project presented to me then was a good project. The project that is now being delivered is not the same project, and I may have a different view. However, the project presented in 2002 was a good one. It involved the Welsh Development Agency, Rhondda Cynon Taf County Borough Council, schools, further education institutions and private training providers. It had the support of the community consortium for education and training, the University of Glamorgan, and a steering group, which was established from April 2002 onwards. There is an Objective 1 application, supported by the local partnership, which is now with the Welsh European Funding Office. This project aims to reach the learners that we would not have otherwise reached, and that must be welcomed.

Neither I, nor anyone else in this Chamber, would be happy about a breach of government accounting procedures. However, we do not know that a breach has occurred until we have the information. It is right and proper that we do not confuse financial accountability with the responsibility of a Minister as the Minister for Education and Lifelong Learning. I doubt whether my name appears on the contract, because I simply cleared a submission that stated that this was a good idea. My officials advised me that it was a good idea and the partners—including Rhondda Cynon Taf County Borough Council—suggested that it was a good idea and I want to ensure that we reach out to people that we cannot reach otherwise. We must wait for ELWa to perform its proper accounting responsibilities in terms of considering the situation and we must consider what the National Audit Office—as ELWa’s auditor—says to ELWa and to the Audit Committee. Then you will have the Assembly Government’s response as usual.

In answering the question you seem to express a degree of doubt, on which you should reflect. You said that you doubt that your name appears on the contract with Avanti. I would have expected you to be clear about that, given the nature of your statement. Will you tell the Assembly whether your name, as Minister, appears on the contract and, if you are not sure, will you place a copy of the contract in the Assembly’s Library?

The only decision that I have made is the one outlined in the statement on ELWa.

I am grateful to be allowed to contribute, as the audit function has been discussed. Jane, do you agree that, in terms of the differentiation in responsibility, the job of the Auditor General and the Audit Committee is to ensure that public money is spent with probity and effectiveness and that value for money is attained, while policy matters are nothing to do with either? They must ensure that the Assembly and the public bodies that are answerable to the Assembly are working efficiently and with propriety within the policy framework that has been laid down. I have asked the Auditor General to investigate the issues and questions that arose from that television programme. However, both policy and questions regarding the effectiveness of public bodies that are answerable to the Government are matters for the Government and the Minister. The role of the Auditor General and the Audit Committee is to investigate within the context of policies that have been laid down.

I agree. That is the distinction. The Government’s role is to set strategic direction—that is what it does. It is the responsibility of the bodies to deliver financial accountability.