Question 1:

Janet Finch-Saunders: Will the First Minister make a statement on Finance Wales?

Carwyn Jones: Finance Wales’s role is to provide finance to support and encourage small and medium-sized enterprise growth, and to create sustainable businesses in Wales, aligned with Welsh Government policies. Since its formation in 2001, Finance Wales has invested £268 million in Welsh businesses, leveraging in an additional £443 million, and creating 13,000 new jobs.

Janet Finch-Saunders: Thank you, First Minister. The welcome announcement by the UK Government about devolving business rates to Wales is a step in the right direction for our small and micro-sized businesses. However, another step is the ability for them to easily access finance. Of 743 loan investments made by Finance Wales since 2007, 73% have attracted borrowing rates of 10% or higher, when 50% of these could have actually been more along the lines of 5% interest rates. First Minister, there are now calls for more reform and scrutiny as regards Finance Wales, as well as for the establishment of a Welsh development bank. Will you support these calls?

Carwyn Jones: We very much welcome the proposal to fully devolve business rates to Wales. With regard to Finance Wales, the Minister for Economy, Science and Transport has commissioned a review into Finance Wales. Whatever the model is in the future, it is important that the body is able to fund itself. That is reflected, on occasion, by the need to ensure that interest rates are set at a level in order to ensure that the body is self-funding. Nevertheless, this matter was discussed at some length in the Assembly last week, and the Minister will now be looking to take proposals forward.