1. Will the First Minister outline his proposals for supporting economic growth during 2017 in South Wales West? OAQ(5)0350(FM)

Our economic priorities for South Wales West include supporting businesses to grow, investing in high-quality infrastructure and improving conditions for business.

Thank you for that answer, First Minister. As you’re aware, steel making is a critical element of the economy in South Wales West and is the heart of the economy in Aberavon. The challenges that the industry faced in the last year have eased, but they’ve not gone away. Now, I applaud the Welsh Government in honouring its commitment to supporting the industry, with financial support of up to £12 million announced in December. I’m dismayed that the UK Government has done nothing and actually seems to be putting its back to the industrial sector. First Minister, before Christmas, Lee Waters, John Griffiths and I met with the chief executive officer of Tata Steel UK, and he made it quite clear that the joint venture with Thyssenkrupp was still on the agenda even if the deal is accepted by the trade unions at the end of this month. With that known view on the consolidation of the industry, and the pension deficit problems as well, what discussions and engagement will you be having with Thyssenkrupp and Tata to ensure that Welsh steelworkers have a more secure future?

I can say that any support we provide will be conditional on economic activity being protected in Wales. Our support will be subject—our financial support, that is—to Tata agreeing to legally binding conditions, and no funding will be drawn down by Tata unless those conditions are agreed. And it’s important that workers understand that the money that will be made available to Tata is conditional. We want to ensure that the money ensures that we keep those jobs in Wales and, importantly, we continue to have two blast furnaces at Port Talbot.

Assembly Members finally managed to get a formal meeting with the chief executives and council leaders to discuss the Swansea bay city region before recess, and it’s clear that they see investment in transport—you mentioned infrastructure in your reply to David Rees—as a key driver for the economic prospects of the region. Do you think that Wales’s second city, at the heart of this regional expansion, is big enough and ambitious enough to look simply beyond buses, which is what was recently suggested by Stuart Cole?

No, I think transport solutions can look at any number of different forms of transport. What is important is that the city deal is approved and receives funding from the UK Government, and we hope that will be the case in the future.

First Minister, in the past, you’ve recognised the importance of pensions in the economy when I’ve raised issues with you with regard to Visteon UK and the campaign that many of us were involved in at the time, in relation to the South Wales West economy, and, if those pensions were threatened in some way, how that would affect the economy. So, I’m wondering if we could have, therefore, a discussion on the Tata pension situation, because far be it for us to be criticised for butting out of this debate. I think it’s integral that politicians are part of this debate so that we can lead on this agenda. And I think it’s important, therefore, for us to have a debate on this, so that we can understand what contingency plans your Government will put in place with regard to the number of outcomes that are possible. For example, if the deal is accepted, or if it is rejected, the Welsh Government will have to have a view on that, will it not?

I think it’s unfortunate that Visteon is used as an example, because Visteon closed. I think it’s also unfortunate to suggest that trade unions are doing a disservice to their members. They are looking to represent their members’ best interests, and they’ve expressed a view on comments that have been made. That’s a matter for them. I think what’s hugely important is that there is an understanding that, at this moment in time, there is nothing else on the table. If there were genuine alternatives, then that is something that could be considered further, but that is not the case at the moment. And, so, we have to consider that fact—that the UK Government are not prepared to nationalise the industry. They’ve never given that indication, although I have urged them to do that in the past when David Cameron was Prime Minister. Therefore, the only package that is on the table at this moment in time is the package that Tata have placed there, but it’s for the workers and the trade unions to come to their own conclusions as to the future, particularly of Port Talbot.

First Minister, one of the biggest challenges facing the economy in my region during 2017 continues to be poor infrastructure. A thriving economy is dependent upon good transport links. With the rail network undergoing electrification works, businesses in South Wales West are at the mercy of the traffic flows on the M4. What plans does your Government have to reduce congestion on the M4 over the coming months?

Well, the first thing we want to see is the UK Government making good on its commitment to electrify the line between Cardiff Central and west Wales. Now, they have not given a date on that. The original plan, of course, was to electrify to Cardiff, and then from Bridgend to Swansea, making me wonder what I’d done to upset them in such a way that there should be a gap between Bridgend and Cardiff. But, at the moment, there is no date for the electrification of that line. We need to have that date so we can proceed with the modernisation of the rail network, which we know will take more cars off the road.