2. 2. Statement: EU Transition

Part of the debate – in the Senedd at 2:24 pm on 1 November 2016.

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Photo of Andrew RT Davies Andrew RT Davies Conservative 2:24, 1 November 2016

I’d like to thank the First Minister for his statement this afternoon and, in particular, the updating of Members in relation to the work the Welsh Government has undertaken with its various committees, and the Cabinet sub-committee that is advising the Cabinet. I do find some disappointment, though, in some of the language in this statement today, in particular the downbeat tone. The First Minister of Northern Ireland was also at the very meeting that the First Minister for Wales was at last Monday and these were her words:

‘The UK’s biggest economic opportunity for decades.’

That was what she was referring to when it came to Brexit. That is what we have to face. It is an opportunity. People have spoken, as of 23 June, and it is now for politicians of whatever colour to actually implement the wishes of the British people. It is important that the 48 per cent of people who voted to remain’s views are also taken into consideration, because that is a considerable number of individuals who expressed an opinion to keep our relationship with Europe as well. I’ve been very clear in any comment I have made that there isn’t a one-size-fits-all solution to this, but the views of both sides need to be taken forward in an act of mutual co-operation, rather than just playing the petty politics that some of the language in this statement alludes to, such as—[Interruption.] Well, I appreciate that, in this Chamber, we’ll continue with the banter like this—but the language of confused and mixed messaging. It was the First Minister himself who came out with his six-point plan for where the Welsh Government stood, and before we knew it, the free movement of people was dropped from that six-point plan. It was the First Minister himself who, in early July, talked of the sooner that article 50 was invoked the better, and then that was changed by August to say that the Prime Minister’s approach was a very sensible approach. The only confusion, and the only mixed messaging, I would suggest, is from the First Minister himself and, indeed, the Welsh Government. And that is to be regretted—that it’s not more of a positive engagement when you look at the way that the Prime Minister has reached out to the devolved administrations, in particular, with reinventing and re-establishing the JMC, to make sure that the devolved voice is clearly heard around that table and, above all, making sure that the JMC meets around the whole of the United Kingdom, not just in London.

I would welcome the First Minister’s view as to how the JMC will progress in the next 12 months, 18 months or two years, because he is quite right to identify that this will be the key platform for taking forward the devolved Governments’ views in the negotiations, because the UK Government is the Government on point and is the Government making the negotiations. He, like I, met David Davis two weeks ago today. I found a Secretary of State who was fully engaged, who had a coherent strategy for the way forward and, above all, the announcements—[Interruption.] Well, again, you know, the First Minister and the Labour Party in particular seem to want to take a different view on every position just because the politics of it plays out for them. We have to enact the wishes of the Welsh people on 23 June, and those were cast very clearly: that the people of Wales wanted to recast their relationship with Europe.

Last week, we had the announcement about the Sunderland Nissan engine factory; we had economic growth figures. All positive news and yet still trying to put a dampener on the outcome of the referendum.

I would also like to ask the First Minister, in particular, on the paragraph where he talks about policies and the control of devolved areas. I too support him in his sentiments. I’m sure that every Member in this institution will support him. But there is an opportunity—as, in fairness, your statement touches on—where it says,

‘We accept that some issues will best be dealt with on a UK-wide basis, but this can only be done through intra-governmental agreement, through some pooling of sovereignty.’

So, I’d be grateful if he could enlarge on that particular reference—how he sees that type of relationship, that type of pooling of sovereignty. Importantly, he refers to the policy areas, and not necessarily the financial areas, because it doesn’t make reference in that particular paragraph or anywhere in the statement—. I read that very carefully because, obviously, the money side of the equation has traditionally been an important consideration in Welsh Government schemes, such as structural funding, higher education, agriculture and rural development. I do note that you’ve specifically referred to policy, not financial areas. So, is it the case that the First Minister is more receptive to more sharing of sovereignty in those particular areas so that the money can be best dovetailed into UK Government schemes and stretched further? I look forward to hearing what the answer is that comes from the First Minister.

He also uses the word ‘collude’, which I think is a very unfortunate turn of phrase when he’s talking about international development. Ninety of the 97 inward investment deals were delivered from UKTI last year. It is important that there is a strong relationship—[Interruption.] Those were UKTI’s own figures, First Minister. As we found in earlier questions in First Minister’s questions, you weren’t particularly good at identifying Mexico when it came to free trade, but I’m sure that UKTI have got their figures correct. So, I’d be grateful again—as to how the First Minister will be taking forward the Government’s position in promoting Wales on the UK platform when it comes to promoting Wales as a good, solid destination for inward investment. Again, another point that Arlene Foster made over the weekend was how she sees this as a unique opportunity to develop the offer—in her case, what Northern Ireland has to offer post Brexit—and it would be good to hear how the First Minister will be taking those issues forward.

I, too, join him in the points that he makes about racism and comments that have been made in Wales and, indeed, around the United Kingdom. There is no room at all in any civilised or developed society for such rhetoric, and we should be working across parties to make sure that that is driven out from every walk of life. But it is a fact that the First Minister has rowed back on the principle of the free movement of people, unless he wants to contradict me on that when he does respond to me. So, when he does talk about the importance of the free movement of goods and services, based on the principle that, under EU legislation, and EU understanding of the single market, it has to relate to people as well, how does he see the Welsh Government’s negotiating position assisting in making sure that there is access to the single market, given that you have given up on that tenet, that basic tenet, of free movement of people, which seems to be such a critical stumbling block? I have yet to hear a comprehensive argument coming from the First Minister as to why, from his original position, he has now moved to dropping that key caveat from the Welsh Government’s position.

I do wish the First Minister well. I wish the Welsh Government well in its deliberations, and in particular in its meetings with other devolved administrations and the UK Government. But we really do need to be working from the same hymn sheet on this. The next two years are going to be of critical importance to many businesses, many communities and many individuals the length and breadth of Wales. Wales voted to realign our relationship with Europe. You can’t get away from that. It is incumbent on politicians in all parties to work together, and I do regret the fact that the First Minister’s chosen not to accept the offer that I put to him on the twenty-fourth to work with him on this. I accept his position—he doesn’t want to take that offer up—but I do think that that is a matter of deep regret, because, together, politicians in this institution could achieve so much more when it comes to enhancing Wales’s position around the Brexit negotiation tables.