3. Urgent Question: Main Port Engineering

Part of the debate – in the Senedd at 3:16 pm on 1 November 2016.

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Photo of Ken Skates Ken Skates Labour 3:16, 1 November 2016

I’d like to thank the Member for her questions, and share the concern that is being expressed insofar as the future of the employees of the company is concerned. MPE employed 157 people in total, and, unfortunately, 69 of those have been made redundant. The Member is right that a significant number—I believe it to be 84—are to be retained at the Valero refinery to provide continuity of service. That includes, I believe, staff who are being retained at the main office, which could contribute to the 77, bringing the total to the 84 that I’ve been told is the case.

PricewaterhouseCoopers, as the Member is aware, has been appointed to try and seek buyers for the site assets, buildings and, importantly, linked opportunities for the affected workforce. A session with a number of organisations is being arranged for this Friday at 11.00 a.m. I’d urge the Member to advertise that fact to affected workers. That session will be attended by Jobcentre Plus, the careers advisory service, Business Wales and other local support services, but I’ve instructed my officials to do all within our power to assist those workers affected by this very unfortunate occurrence.

In terms of the history of the company, the Member has already highlighted the significant success of the company over many years. However, in recent times—. I am asking the same question of HMRC as the Member is, because, in recent times, it would appear that the company was in healthy order. I understand that in 2015 the company reported a profit, compared to a relatively small loss in 2014. So, I think it’s absolutely essential that we investigate the tax bill and why it was not obviously allowed for within the accounts. We carried out our regular due diligence. It was our understanding, based on the performance of the company, that the company was in good health, and, I think, given what the Member has said about the contact she has made with a number of people, it would appear to her and to others that the company was performing well. So, this came as a shock to many.

In terms of our support for companies such as MPE, in total only 4.9 per cent of the 1,110 companies that we’ve supported in the last four years—five years, rather—have actually gone into recovery. The proportion is far less than the total number of business failures or enterprise deaths, which, in Wales, was 9.2 per cent, which, in turn, compares favourably with the UK rate of 9.6 per cent. That said, I’m keen to make sure that we utilise all of the support that’s available from Welsh Government, and indeed from the local authority, and so I’ve asked for a meeting with the chair of the enterprise zone and the leader of the council to discuss what we can do collectively to ensure that everybody affected by this decision is supported in the right way to get back into work, if they lose their jobs, and to stay in work if they’ve been able to be retained, but, equally, what we can do in the years to come to make sure that that specific area of Wales gets the support that it needs to thrive as a strong economy.