On Wednesday 16 October 2024, Woodknowledge Wales’ CEO, Gary Newman, addressed the Senedd’s Economy, Trade, and Rural Affairs Committee relating to their inquiry on the Foundational Economy.
All interested parties can watch the full inquiry, to include Gary’s inputs, via the Senedd TV archives.
“…afforestation is a key decarbonisation strategy in the natural environment and the use of timber is a key decarbonisation strategy in the built environment, and their expansion and re-purposing is a clear opportunity to achieve foundational economic outcomes, particularly within our rural communities,” Gary Newman, CEO, Woodknowledge Wales in his written response to the committee.
This inquiry aims to evaluate how well the Welsh Government has integrated support for the foundational economy into its economic development strategy and what further steps are needed. It will explore how cross-departmental coordination can enhance mainstreaming support for foundational sectors, assess the success and challenges of existing foundational economy policies, and identify best practices both within and outside Wales. The inquiry will also examine progress in using procurement to bolster the foundational economy since 2019 and evaluate Welsh Government efforts to promote fair work in these sectors, while identifying areas for further action, including collaboration with the UK Government.
Woodknowledge Wales will emphasise the need for Welsh Government to adopt a more flexible and localised approach in driving systemic change, particularly within the timber and forestry sectors. While general Acts provide important frameworks, sector-specific policies and targeted financial support for innovators (regardless of public or private sector) will enable more effective change. Welsh Government should focus less on top-down control and more on empowering independent actors to implement these initiatives.
“Radical ideas like the Foundational Economy (and other initiatives such as the Well-being of Future Generations Act) are in danger of being discredited by poor implementation,” wrote Gary.
The Foundational Economy, if poorly executed, risks being dismissed as irrelevant to businesses and communities. Instead of focusing on abstract economic concepts, Welsh Government should prioritise practical, tangible outcomes at the sectoral and local levels. One significant opportunity lies in the overlap between the Foundational Economy and decarbonisation efforts. Using locally sourced timber for construction offers both economic growth, especially in rural areas, and a low-cost, technically feasible method for reducing greenhouse gases. However, this opportunity is underused due to limited policy incentives.
“The Timber Industrial Strategy when created and implemented could be a game changer for Wales, if underpinned by a focus on the doing,” wrote Gary.
Cross-departmental coordination within Welsh Government is essential for supporting initiatives like the Foundational Economy, National Forest, and Timber Industrial Strategy. Woodknowledge Wales highlights the success of the Foundational Economy Challenge Fund in fostering progress within its network, particularly through the establishment of its Communities of Practice. They advocate for more agile, independent actors to take the lead in developing and implementing sector-specific projects.
Best practices can be seen in projects like Delivering Net Zero, which emerged through bottom-up momentum within the housing sector. Expanding afforestation and timber use in construction are key decarbonization strategies that could also deliver foundational economic outcomes, especially in rural Wales. However, rigid regulations and a lack of a comprehensive land-use strategy hinder tree planting efforts. A more flexible approach, where landowners have greater agency, could accelerate progress.
“Tree planting is being held back by risk-averse interpretation of regulations and by the lack of an overall Land Use Strategy that incorporates an understanding of the impact of the changing climate,” wrote Gary.
To enhance public procurement’s impact on the Foundational Economy, public bodies must move beyond risk-averse practices. While regulations provide structure, conservative procurement behaviours limit meaningful change. Practical procurement guidance from Woodknowledge Wales already exists, but the slow pace of change highlights the need for a combination of regulatory imperatives and hands-on support to drive high-performance, low-carbon outcomes.
