PLAID Cymru has unveiled plans to revive the scrapped Welsh Development Agency if it wins a majority in May’s Assembly election.

Plaid's Ynys Môn AM, shadow economy minister Rhun ap Iorwerth said the party would also set up a National Bank of Wales dedicated to providing funding and rate relief to Welsh businesses along with a new organisation, dubbed the National Infrastructure Commission Wales, which will plan, fund and deliver infrastructure improvements throughout the country.

He said he wanted to create 'a WDA for the 21st century'.

He said: “This will be a public-private partnership, with strong representation from business on its board, autonomous from the civil service but answerable to government,” he said.

Newport businessman Gerald Davies, executive chairman of Kymin Financial Services, welcomed the idea.

He said: "Some25 years ago, Henry Engelhardt, the head of Admiral, was looking to set up an insurance company. Apparently he wrote to 100 local authorities, asking for help to set up a company. He had prepared a business plan and cash flow forecast. No one replied, with the exception of the WDA. They ultimately agreed to lend him £1m. The rest, as they say, is history.

"Admiral now employs 5,000 people in Wales. Admiral is a member of the FTSE100 (Financial Times Stock Exchange top 100 companies by Market Capitalisation). It is the only FTSE100 company with its headquarters in Wales.

"That was a brilliant decision by the WDA. So, yes, we need it back as a separate agency. t helped that Henry is a brilliant businessman. He steps down this year, after 25 years as chief executive. We should all thank him."

Mr Davies said: "While I do not agree with Plaid Cymru on most topics on this they are spot on."