It is essential, therefore, that the Assembly works effectively with organisations such as central and local government, the business sector, development agencies, voluntary groups and community organisations. Our policies must complement those determined at other levels of governance, but must be interpreted on the basis of what works for Wales, through identifying and reinforcing our strengths and conquering our weaknesses. The power of the public sector in economic development is real but limited as much economic activity takes place in the private or social sectors. The main role of government is to set the right competitive environment for economic development, remove barriers to growth and participation, and ensure that the people of Wales have the ability to benefit fully from enhanced prosperity. Through an active regional policy we also have the opportunity to ensure a more balanced pattern of development across the territory of Wales.
Any economy is in a constant state of flux.
Jobs are constantly being created and lost and new companies are formed while others cease trading. This churning is an essential part of a healthy, dynamic economy which is continually adapting and modernising. The process takes place regardless of government intervention and should be encouraged while recognising that there may be short term difficulties caused by major shocks which require specific assistance. The Assembly needs to ensure that the people and communities affected by such changes are given every support to respond quickly and effectively. Ensure that resources follow policy priorities.