<p>European Union Referendum Result</p>

1. 1. Questions to the First Minister – in the Senedd on 28 June 2016.

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Photo of Mr Simon Thomas Mr Simon Thomas Plaid Cymru

(Translated)

6. What assessment has the First Minister made of the European Union referendum result? OAQ(5)0081(FM)[W]

Photo of Carwyn Jones Carwyn Jones Labour 2:09, 28 June 2016

(Translated)

A number. Of course, the decision has been made, and the decision has to be respected. Our priority now as a Government is to ensure the future of the people of Wales, and to ensure that that future is a bright one.

Photo of Mr Simon Thomas Mr Simon Thomas Plaid Cymru

(Translated)

Thank you, First Minister. Would you agree with me that the only way forward that would respect the decision made by the people of Wales in last week’s referendum, and also gives the Welsh economy and Welsh businesses and communities a decent chance, is that we remain members of the single market, that we remain members of the European economic area, and that we then proceed along those lines? Because last week’s vote didn’t outline, or didn’t make any decision as to what sort of exit was being considered. If you do agree with me, what steps are you taking? You have just outlined the work out in Brussels and you have told us what you can do jointly with the Westminster Government. Will you be pressing for that in Wales? You will certainly, in so doing, have my support, and Plaid Cymru’s support, I think.

Photo of Carwyn Jones Carwyn Jones Labour 2:10, 28 June 2016

(Translated)

As I said earlier, a specialist team is going to be located in the Brussels office in order to ensure that they’re able to negotiate with the European institutions, in order to ensure that the voice of Wales is listened to. We will be part of the British system, but it’s extremely important that we have our own route into the European institutions, in order to ensure that Wales doesn’t lose out, and that is what we intend to do. I cannot emphasise enough how important it is to have access to the single market, because so many business in Wales are dependent on that. The worst case scenario would be for us to return to the WTO system: 10 per cent on cars, a 15 per cent tariff on foodstuffs—that would be the absolute worst case scenario for Wales. We hope, of course, that there will be something better on the table, but there is a great deal of work to be done before that.

Photo of Dawn Bowden Dawn Bowden Labour 2:11, 28 June 2016

I’m sure the First Minister would appreciate that Members will want to ensure the best outcomes for their constituencies. It’s what we’re elected to do, and I’m no different to that, so I’m going to be taking this opportunity to join the call for assurances for my own constituency, which is, of course, Merthyr Tydfil and Rhymney valley—a constituency that has been a major beneficiary of EU funding. It’s helped a number of projects of significant benefit to the local economy and communities. However, it’s not just the funding for the existing projects that are important to my constituency, First Minister; it’s the proposed developments, such as the next stage of the dualling of the Heads of the Valley between Hirwaun and Dowlais, or Dowlais and Hirwaun, which will be crucial to the economy of the constituency. So, whilst I’ve noted that you have confirmed, and I welcome that, that in any discussions with Brexit negotiators you’ll be seeking absolute assurances that Wales will be receiving no less funding from Brexit than we received prior to—can I seek further assurances from you that you will be seeking the financial support necessary for the dualling of the A465 between Dowlais and Hirwaun and you will hold them to account if this is not delivered?

Photo of Carwyn Jones Carwyn Jones Labour 2:13, 28 June 2016

Absolutely. If the money is not made up by the UK Government, then it follows logically that we won’t be able to fund many of the projects that are currently planned to be funded by European money, because we don’t have that money. So, without that money, there are many projects that, beyond the period when the UK has left the European Union, will not be able to be funded unless that guarantee is forthcoming. That is absolutely crucial for our future; it’s why I wrote to the Prime Minister yesterday in order to get the guarantee that was put on the table. That means making sure that Wales loses out not a penny—not a penny—as a result of the referendum last Thursday. Regardless of how people voted, I do not believe that anybody voted in order for Wales to have less money.

Photo of David Melding David Melding Conservative

First Minister, the stark fact is the Welsh economy is the most exposed in the UK to any possible downturn in trade with the EU or a decline in inward investment seeking access to the single market, and this has to be made known to those now responsible for the Brexit negotiations.

Photo of Carwyn Jones Carwyn Jones Labour 2:14, 28 June 2016

It’s true, because we know that there are many, many companies in Wales that are here solely because of the access they get to the single market. If they lose access to the—free access; they’ll still be able to sell in the market. I mean, no-one is suggesting there’ll be no trade at all, but it’s the terms of trade that are important. For example, if you are a company that has bases in the UK and other European countries, if you find that one manufacturing plant in the UK is subject to a 5 per cent or 10 per cent tariff and the others are not, then it doesn’t take a genius to work out where investment will go in the future. So, it’s absolutely crucial that the single market is retained and there are no tariff barriers between ourselves and our biggest export market, which is the EU.