Sector Skills Councils (SSC) in Wales are "a crucial interface between education and employment", according to Stephen Studd, Chair of the Alliance of Sector Skills Council (ASSC).
He made the statement whilst addressing the Enterprise and Learning Committee on 10 March 2011.
The committee was gathering evidence for its review of the SSCs which will form part of the committee's legacy report for the next assembly.
Stephen Studd stressed that SSCs must be adequately resourced to enable them to deliver their work in Wales.
Cynon Valley Labour AM Christine Chapman was interested to hear what difference SSCs made to Small and Medium Enterprises (SME) in Wales which can be very isolated at times.
According to Stephen Studd, by creating a much needed pool of talent in business and technology, the SSCs can offer employment apprenticeships to SME that possibly, could not afford them otherwise.
The economic contribution of higher education in Wales was also discussed and Professor Andy Penaluna from Swansea Metropolitan University gave evidence to the committee.