The Triple Bottom Line Revisited

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1 The Triple Bottom Line Revisited Rita Singh Director of Policy Follow us on Twitter Dilynwch ni

2 The Triple Bottom Line revisited Opportunities for the public sector to take action based on a true application of this approach

3 Size of Wales! Population: Gross Value Added (GVA): 3 Million Growth +5.3% 47.3 billion 15,696 per head of population. 75.2% of average for total of all UK regions Employment: million (Sept - Nov 2012) 68.6% of those aged Public sector employment: 25.7% of people in employment (Sept 2012) (Approx. 330,000 people) Housing Stock: 1,350,000 in 2011; 70% owner occupiers; 13% rented from private owners, 10% rented from RSL and 7% rented from local authorities

4 Employment by sector Other service activities, 46, 3% Arts, entertainment & recreation, 32, 2% People employed by households, etc., 1, 0% Agriculture, forestry & fishing, 37, 3% Manufacturing, 147, 11% Mining & quarrying, 2, 0% Electricity, gas, steam & air conditioning supply, 9, 1% Human health & social work activities, 211, 15% Water supply, sewerage, waste & remediation activities, 12, 1% Construction, 89, 6% Education, 151, 11% Wholesale & retail trade; repair of motor vehicles and motor cycles, 202, 15% Public admin & defence; compulsory social security3, 88, 6% Professional scientific & technical activities, 60, 4% Administrative & support service activities, 81, 6% Real estate activities, 18, 1% Financial & insurance activities, 30, 2% Information & communication, 29, 2% Transport & storage, 47, 3% Accommod-ation & food service activities, 93, 7%

5 Challenges Facing Wales Social: Economic: Environmental: Wales leads the UK s child obesity league according to World Cancer Research Fund (WCRF) - 36% of 2-15 year olds overweight or obese; cf. 30 % in England and Scotland & 27% in NI 32% of children in Wales are living in poverty, higher than the British average. Welsh government budget 'toughest since devolution The amount of funding allocated to Welsh Government Departments for is 14.9bn ( 15.4bn in ) a cut by 1.7bn in real terms since Declines in many farmland species due to changes in farming practices, especially loss of mixed farming and move from arable to permanent pasture. GHG emissions: MtCO2e

6 Opportunities available to Wales UK Government s response on 1 Nov 2013 to recommendations from the Commission on Devolution in Wales (Silk Commission) first report on Responsibility: Financial Powers to Strengthen Wales (Nov 2012): Borrowing powers given to Welsh Ministers, so that they can borrow money to invest in Wales Devolve certain taxes, to ensure the Welsh Government has an independent funding stream to pay back the money it borrows Devolve Landfill Tax and Stamp Duty Land Tax in Wales Provide for a referendum so that people in Wales can decide whether some of their income tax should be devolved, in the same way as it is in Scotland. To which Sir Merrick Cockell, Chairman of LGA said: "Local government leaders in England will be thinking we want some of what they're having. English regions are in danger of becoming the poor cousins in the union as devolution hands Scotland and Wales an unfair competitive advantage

7 Opportunities available to Wales Government of Wales Act 2006: Welsh Ministers must make a scheme ("the sustainable development scheme") setting out how they propose to promote sustainable development. Two other key duties apply relating to annual reporting to set out how the proposals in Scheme have been implemented;& after every election Welsh Ministers to publish a report on effectiveness in promoting SD The First Minister s Legislative Programme included commitment to legislate to make sustainable development the central organising principle of the devolved public service in Wales and to create an independent body to provide advice, guidance and expertise.

8 Opportunities available to Wales Importance of EU Funding in Wales: Some 150,000 jobs in Wales are dependent on the single market, More than 450 firms from other member states are located in Wales, providing over 50,000 jobs, and Current European Structural Funds programmes, , Wales has received 1.9 billion in funding from Europe Current Rural Development Programme, , Wales receives a total package of 841m under the Common Agricultural Policy (CAP), some 110 million is invested annually in rural Wales through the RDP 20% of ESF programme funding will be spent on tackling poverty and promoting social inclusion

9 Opportunities available to Wales Energy: Welsh Government aspirations in 2010: 22.5 Gigawatts of installed capacity from different renewable energy technologies by 2020/25 Gas: 39%, Coal: 22%, Nuclear: 20% of the electricity generated in % from renewable energy contribution in 2011 to electricity generation, of which 68% came from wind energy Total capacity of approx. 760 MW in 90 operational RE projects 72 approved applications with 2,200 MW additional generating capacity if built Further 48 applications (1,000 MW total installed capacity) have been submitted to consenting bodies and are awaiting decisions over 28,000 projects with combined installed capacity of approx. 93 MW receiving FITs. Approx. 97% of these projects are domestic installations & 97% of these are solar PV.

10 Tools available to Wales Policies: Future Generation Bill Environment Bill: legislative framework to manage Wales natural resources in a joinedup way, & proposals for a new area-based planning approach to natural resource management Increased devolved powers (as outlined earlier) Commission on Public Service Governance and Delivery: examine how public services are governed reporting at end 2013 Programmes / Initiatives: Natural Resources Wales: brought together Environment Agency Wales, Countryside Council & Forestry Commission in Wales Enterprise Zones & Finance Wales Sustainable Development Charter Carrier Bag Charge Ynni r Fro & Arbed

11 Next Steps: Future Generation Bill Aim: Legislate to provide a clear focus on the challenges public service is seeking to address, and ensure that decisions recognise the connections between social justice, economic prosperity and the management of natural resources, both now and over the long term Also open a National conversation on challenges faced by communities across Wales & engage as wide a variety of the public as possible on what the Bill will mean for them.

12 The pitfalls of not getting SD! Recent statement from a WG Minister: social and environmental implications were outweighed by economic benefits. I agree with the inspector that these are relevant issues, but I also consider that the economic aspects of the proposed development are a main consideration in the determination of this application. Oct 2013 Our sustainable development imperative requires me to balance the longer term impacts of my decision in economic, social as well as environmental terms. I have concluded that I will introduce, through amendments to Part L, a requirement to reduce greenhouse gas emissions by 8% from 2010 levels. (instead of 40% as was consulted upon) July 2013

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