I now call on the party leaders to question the First Minister. The leader of the Welsh Conservatives, Andrew R.T. Davies.

Thank you, Presiding Officer. First Minister, last October, one of the most passionate debates was held within this Chamber, and the chamber upstairs was full up with people with an interest in the autism community and wanting to see legislation brought forward from your Government. We were led to believe there was consensus around this, in the Assembly election—that all the political parties believed that there should be an autism Bill brought before the Assembly to improve rights for people who suffer with autism. Yesterday, you brought forward your Trade Union (Wales) Bill. Many people will find it difficult to comprehend why you are standing in the way of bringing forward an autism Bill that could greatly improve access to services and give a legal right to people who have a diagnosis of autism over the trade union Bill that you’ve decided to bring forward. Why have you prioritised the trade union Bill against people with autism?

There are two reasons: first of all, we want to protect workers’ rights. His party—his party—want to remove competence from this Assembly over employment rights and regulations. It’s his party’s fault. We wouldn’t have to bring this forward at the speed that we’re having to take it if it wasn’t for the Wales Bill. So, he can’t sit there and try to claim it’s nothing to do with him. And we will stand up for workers’ rights as his party presses down on them, and that’s why we will introduce a trade union Bill to this Chamber, we will look for support from this Assembly to protect the rights of workers, and let’s see what happens, if the competence changes. But we will stand up for Welsh workers, even as his party tramples all over them.

I believe it’s the Conservative Party that are delivering for Welsh workers, as they are for UK workers, by delivering an economy that has delivered record rates of employment, opportunity and prosperity. But I notice you did not dwell on the reasons why your Government stood in the way of delivering an autism Bill, as opposed to the trade union Bill, where people upstairs after this debate were genuinely in tears and disgusted by the outcome from this Labour Government and the betrayal, as they saw it, of your Government’s commitment in the Assembly election vis-a-vis the words that were spoken in this Chamber in that debate. What is unreasonable—what is unreasonable in the Trade Union Bill about informing employers when strike action’s going to be taken? What is unreasonable about seeking a threshold to get a majority of people who participate in that strike action? There is nothing unreasonable about that. It is your party that is taking us back to the 1970s and moving away from empowering workers to get on in this country. So, what is unreasonable in that Trade Union Bill that demands that your Government bring forward a separate piece of legislation?

It is odious that the leader of the Welsh Conservatives tries to use people who are dealing with young people with autism, using that as a way to attack workers—[Interruption.]—attack workers in Wales and the rest of Britain. The reality is that unemployment is lower in Wales than it is in England, Scotland and Northern Ireland because of the actions of the Welsh Government. He talks about a threshold. I don’t remember him arguing for a threshold in the Brexit referendum. Do you remember that? I don’t remember that at all. Thresholds weren’t important at that stage. I don’t believe in thresholds. I didn’t believe in a threshold for the Brexit referendum. I don’t believe in a threshold as far as strike action balloting is concerned. What I believe in is that we stand up for the rights of workers in Wales, despite what is being imposed on them by a hostile Tory Government. Fifty of his own MPs—50 of his own MPs—were calling for strikes to be banned in the public sector. What, are you going to arrest strikers now, are you? Going back to the 1970s—he’d take us back to the 1930s. [Assembly Members: ‘Hear, hear.’]

You definitely want beer and sandwiches back in Cathays Park, don’t you, First Minister? The people you are repaying are the union general secretaries who have funded Labour up to the tune of £11 million since Jeremy Corbyn became leader. I challenged you to bring forward that autism Bill, which people were genuinely asking for. I have not heard people calling for a trade union Bill here in Wales because they feel they’re discriminated against. The real—[Interruption.]—the real danger is that you will be trailblazing regional pay by bringing this Bill forward, because you will be lowering the threshold for strike action here in Wales, vis-a-vis other parts of the United Kingdom. Most times, when strike action is taken, it is around terms and conditions and pay. So, you will be the trailblazer for regional pay if you continue to push this trade union Bill through the Assembly. But, equally, you should apologise to the people in the autism community—[Assembly Members: ‘Oh.’]—who feel they’ve been let down by you and your legislative programme.

It is odious—I use that word again—to suggest that those people who are dealing with autism and who are dealing with and caring for those people with autism should be set against people who want to have their rights as workers. Isn’t it typical that the Tories’ attitude, as it always has been, is, ‘Set people against each other. Divide and rule.’ We will do all that we can to help those people with autism and those people caring for people with autism. We’ve done that through previous legislation. We have done that through the funding we have put in place. We haven’t cut social services spending by 6 per cent as he has and his party has in London. Delayed transfers of care—up in England, and the disaster of the NHS in England at the moment were all caused by a lack of spending on social services. I make no apology at all for standing up for the rights of workers in Wales and their representatives, and if he doesn’t like that, he can go and explain to voters in Wales why he wants people to be in a position where they no longer have the ability to exercise their democratic right to strike. He yaps away, doesn’t he? He yaps away like an untrained dog in the back of the Chamber there—

There’s been a lot of yapping during this question and answer.

From our perspective, we will stand up for the rights of workers, even if he is indifferent to them.

Plaid Cymru leader, Leanne Wood.

Diolch, Lywydd. On 15 December last year, figures on the performance and the value of the Welsh economy were published. Now, they haven’t received a huge amount of attention, but they show that the Welsh economy now stands at 71 per cent of the UK index, down from 71.4 per cent in 2014. Now, we need to be closing that wealth gap and not presiding over it widening. Aside from the risk that we face from losing the funds currently received by deprived communities, there’s also a risk to businesses and jobs from the decision to leave the European Union. It’s vital from a safeguarding jobs perspective that Wales continues to participate as much as we possibly can in the single market. First Minister, do you agree with Plaid Cymru that it is in the Welsh national interest to continue to participate fully in the single market without tariffs or barriers?

It’s a position we’ve held for many, many months. The phrase we’ve used is ‘full and unfettered access’. Single market participation amounts to much the same thing. What we have to avoid in the next few months and years is anything that impairs the ability of businesses to export from Wales and therefore makes it more difficult for them to employ people. It’s right to say that GDP needs to increase. The way to do that is to invest even more heavily in skills. As people have more skills, they’re better able to attract investment that leads to better-paid jobs. That is exactly the direction that we want to move in. I—and I’m sure she would have done the same thing, of course—listened to the Prime Minister’s speech this morning. Some of it was welcome. I think the tone was better. It wasn’t as aggressive as the nationalist wing of her party—Theresa May’s party—tends to explain it. There were issues about recognising the rights of the devolved nations, which I welcomed, although there is a contradiction in saying that the British Parliament decides the final deal without the devolved parliaments having their own view as well. Leaving the single market I don’t agree with. This half in, half out of the customs union needs more explanation. And, of course, how you have control over immigration with a large open border has never been explained either. So, there is some clarity, not all of it welcome. Some of it is better from the Prime Minister, but there is still a lot of work to be done to make sure that we have the best outcome for Wales.

Thank you for that answer, First Minister. Plaid Cymru would argue that Wales is now facing a made-in-London plan for withdrawing from the European Union. I’m glad that you mentioned the question of exports. On this map, the risk to Wales from a hard Brexit is illustrated very strongly, I think. The Welsh economy is the most dependent part of the UK on exports to the EU. Manufacturing economies like ours rely the most upon that market. We’re talking about industrial jobs, jobs in the food industry, in tourism, jobs that are vital to people in Wales, which cannot be put at risk. Now, we also know that much of the non-European investment into Wales has been attracted here because of our position in the single market. Another risk to this country, beyond losing our position in the single market, is that we are heading for neoliberalism—ultra-neoliberalism—based on deregulation and privatisation, based on slashing workers’ rights, based on watering down environmental regulations that keep our country and our landscape clean. We face losing so many of the hard-won gains, and none of us should be prepared to put those at risk easily. First Minister, will you commit to exploring how we can avoid taking this path of economic and social vandalism, and will you champion the need for continued participation in the single market and for the highest possible standards for workers, consumers and for businesses?

I will, as I’ve done consistently since June. Of course, there’ll be nothing to stop this Assembly from implementing EU directives if it wishes to. If that’s something that the Assembly wants to do, there shall be no ban on doing that. It’s a matter of the democratic process. One of the contradictions that were expressed by the Prime Minister was that she said that the British Parliament should have a vote on the final deal. Fine, but a lot of that will involve devolved areas. There has to be at least a legislative consent motion through this Assembly before the British Parliament can take that vote. So, there are a number of issues that will need to be resolved there. I was concerned at the Chancellor’s remarks on Sunday when he said that the British economic model would have to change if there was a particularly hard Brexit. He mentioned lowering corporation tax. That was, I think, just one thing out of many things that he would like to do that are not to the taste of either her or me. I don’t believe in, as they would put it, deregulating the employment market. That means slashing workers’ rights and slashing workers’ pay. I don’t believe in destroying environmental protections that have been put in place, that have not just helped in terms of the environment but have helped to promote tourism over the years. Yes, I share with her a concern that there are some in the Conservative Party who see this as an opportunity to introduce radical, right-wing thinking, without any kind of restraint at all, and that is something that I and, I’m sure—I know—she would resist at all costs.

Yes, First Minister, and Plaid Cymru has stated that we are not prepared to sign up to a negotiation plan that has been hatched by Westminster elites if there is no regard to the devolved administrations. We both know that it makes sense for Wales to work closely with the other devolved governments. Scotland is prioritising single market membership and their economy ahead of any other constitutional aims that they might have, but they are prepared to hold an independence referendum if their compromise options are not met by the UK Government. The situation, as you are aware, in Northern Ireland is very sensitive at the moment, too. Will you confirm that you will work with the Scottish Government and the next Northern Ireland Executive to ensure that the Prime Minister of the UK is deterred from pushing through a plan for more deregulation and more privatisation, which would, of course, be very harmful to people here in this country?

We do work with the Scottish Government. We don't, clearly, have the same view on the final destination, as it were, but we do work with them and talk to them with a view to forming common ground where we can, and that is sensible diplomacy. Northern Ireland is more difficult, because, in Northern Ireland, the First Minister and the deputy First Minister had very radically different views on Brexit. We see the situation in Northern Ireland, and part of the dynamic of the problem in Northern Ireland is Brexit. It's not the main problem at the moment, but it sits there, because of the peace agreement that was put in place, and the only identity that people in Northern Ireland shared was a European one; they don't have another shared identity. So, that must be managed very, very carefully. But it's hugely important that, whatever the outcome of the election in Northern Ireland, we're able to work with Northern Ireland and with Scotland to remind Whitehall that this isn't just about the Whitehall bubble; it's about all four nations of the UK.

The leader of the UKIP group, Neil Hamilton.

Diolch, Lywydd. The First Minister is trying to compete with the leader of Plaid Cymru as a sort of Jeremiah of Wales today in relation to Wales's future outside the EU. I’m sorry to hear him say that he is against lower taxes on business, because the Irish republic has very successfully used a lower rate of corporation tax to attract a huge number of firms into Dublin, particularly in the financial services sector. So, it seems to me wholly counter-productive to Wales's interests to rule this out for the future.

Last week, the First Minister said, in relation to the single market:

‘I don’t believe you can have access to the single market and, at the same time, say that you want full control over immigration.’

Well, that's exactly what we do have with the South Korea trade agreement; why isn't that going to be possible for us in Britain?

How can you have full control over immigration when you have a large, open border with the EU?

Sorry, I missed that.

How can you have full control over immigration if you have a large, open border with the EU?

Well, Theresa May referred to this in her speech this morning. We did have a common travel area with the Irish republic long before either of us were members of the EU. This is a practical question that does need to be solved, and there's no reason to think it can't be solved. But what I'm interested in, as a result of—[Interruption.]

Let's allow the leader of the UKIP group to be heard, please.

Thank you for your protection, Llywydd.

As a result of Theresa May's speech at lunchtime today, she has clarified a number of issues—not all, I accept, and what the First Minister said about the customs union certainly needs further clarification—but she has clarified the Government's position. Can the First Minister now clarify: what exactly is the Labour Party's policy on managed migration from the EU?

I've explain the policy, and that is freedom of movement to work; something close to what the Norwegians have. It takes away the fears of some people that people move to a particular country in order to claim benefits. Whether that's true or not, we know the perception was there. And it is, I think, a reasonable position to take that most people in the UK would accept. Now, I mean, he is right about the situation in Ireland; it does need to be solved. Unfortunately, no-one knows how to solve this. The reality is, and my concern is—and he’s right about the common travel area—but then, for the first time ever in history, there will be wholly different immigration policies on both sides of that border. Ireland, it is true, is not part of Schengen, but it will have freedom of movement. If you want to come into the UK, go into Ireland; you can get into the UK without any checks at all, without any kind of control, and that is the reality of the situation.

In terms of customs, are we then to see the return of the customs posts on that border, and customs posts in our Welsh ports? That issue hasn't been resolved at all—and the effect that would have on the throughput of vehicles and people through those ports. What I fear more than anything else is that, somehow, Northern Ireland gets a better deal in terms of customs than Wales does. That will channel traffic through Cairnryan, and possibly through Stranraer, in the future, at a cost of jobs in the Welsh ports. So, whatever happens, the situation, whether it is the Welsh ports or the Northern Ireland border, has to be the same in order to ensure that fairness of treatment.

Well, the First Minister is talking about all sorts of transitional points, which, inevitably, have to be considered. We had similar difficulties when we entered the EU 40-odd years ago. There were problems with the transition; these can be dealt with. But, what I'm concerned with is that the First Minister is always looking on the black side of things and imagining the worst. He did this in relation to Donald Trump in the United States—and I’ve raised this with him several times—when he said that Donald Trump believes in America first, and it would never be possible to agree a free-trade agreement with the United States. What is clear is that it is not going to be possible for the EU to agree a free-trade agreement with the US, but Donald Trump himself has said in the last 24 or 48 hours that he would move very quickly to make a new trade deal with the UK:

‘I’m a big fan of the UK. We’re going to work very hard to get it done quickly and done properly. Good for both sides.’

Can I not persuade the First Minister to have just a glimmer of optimism for the future?

Well, I do not believe that the American Government will want to have a free-trade agreement with anybody that is anything other than very, very positive for the US and negative for the other party to the agreement. Donald Trump has said he wants to tear up the trans-Pacific partnership. He wants to tear up the North American free trade agreement and have an agreement with the UK. Does that mean, then, that we will see beef full of hormones coming into the UK market and undercutting our Welsh beef farmers? Does it mean that we will see, for example—and his party was campaigning against TTIP, saying that it was a bad deal—does this mean that, if TTIP was back on the table, he would now support it? Would the party now support it? Does it mean, for example, that the UK will collapse at the knees if the US Government says, ‘You must open up your public services to privatisation’? Because that’s what they’ll press for.

I have to say that I am in favour of good relations with the US. Of course I am. I’m in favour of good relations with all countries. But I am sometimes touched by the sweet naivety of the leader of UKIP and his fellow traveller, the leader of the Welsh Conservatives, when they think the world will be an easy place and that free-trade agreements are easy to negotiate. They are not. The free-trade agreement between the EU and Greenland took three years, and that was just about fish. The agreement with Canada was seven years. Other agreements take 10 years.

I’ve looked at the list of tariffs that are involved. I mean, there are tariffs on hats and umbrellas, for goodness’ sake. Agriculture is always excluded from free-trade agreements. Almost always. It’s not there with Canada, it’s not there between Norway and the EU. The agricultural tariff is nearly 50 per cent. Welsh farmers cannot live with a tariff on Welsh lamb and Welsh beef of 50 per cent, and anybody who thinks that they can is letting Welsh farmers down.