[R] signifies the Member has declared an interest. [W] signifies that the question was tabled in Welsh.

And the first item on our agenda this afternoon is an urgent question. I have accepted an urgent question under Standing Order 12.66, and I call on Adam Price to ask the urgent question.

Thank you, Llywydd.

Will the Cabinet Secretary give a statement on reports that Ford plans to cut over 1,000 jobs from its engine plant in Bridgend? EAQ(5)0140(EI)

Yes. I spoke this morning with Ford’s vice-president, who confirmed that there is no employment risk at the Bridgend site in the short term, and that employment numbers will remain broadly similar to today, up to 2021. However, I reiterated our position that we stand ready to do all we can to support the plant in becoming more productive and, crucially, in securing new products for the plant, from 2021 onwards.

I’m sure the Cabinet Secretary would agree that the loss of these jobs—over two thirds of the jobs—at our third largest manufacturing plant, would be terrible news for the workers, the families, the communities affected, but also for the whole of Wales, on this, our national day. He referred to the assurances that he has had previously, and had reiterated, until 2021. Can he say when he, for the first time, heard about the plans to reduce these jobs in 2021? Did he hear overnight, with shock and dismay, like the rest of us? Does he feel that he, in any way, and the workforce, are being misled by the company management? Is he satisfied that we are having the right engagement with the company, at the right time, in the right place, with the right person?

In September, he promised to visit the Detroit global headquarters of the Ford Motor Company. I understand that visit did not materialise. Last month, he said,

‘If that means going to Detroit, we will go to Detroit.’

Will he now go to Detroit, or will the First Minister, who is in the United States for St David’s Day, urgently change his travel plans? We know this is a company that actually listens to political leaders when they lobby them. We had that, of course, when the planned factory for Mexico was changed, moved to Michigan, as a result of a phone call from the White House.

Now, Ford is a company that is pivoting towards new brands and new technologies, including electric vehicles and driverless cars. What specific progress is he able to report on evaluating the prospects for these technologies in Bridgend? Can he say whether, in his assessment, our exiting the European Union and the affect that this had on Ford, through the devaluation of sterling losing the company, by their own assessment, $600 million a year, has been a factor in their stated plan to seek job cuts and efficiencies throughout its European division?

And, finally, can I say that, if this is now on the agenda—losing two thirds of employment at our third biggest manufacturing plant—does he agree that that would be an economic crisis every bit as serious as the one that we faced recently in steel? And will the Welsh Government, therefore, jointly with the UK Government, with unions, and sector representatives, convene an urgent summit on the future of the Welsh and UK automotive industry?

I’d like to thank Adam Price for his questions and say that our objective is in averting what could be a crisis, as outlined by the Member. I recognise fully the considerable skills that are apparent at the Bridgend plant, the loyalty of the workforce and, clearly, the anxiety that will be felt by workers and their families right now. There is also a risk not just to the automotive sector in south Wales, but to the supply chain that benefits from the existence of Ford here, and to the wider Welsh economy. And, for that reason, we are absolutely determined to do everything we can to ensure that Ford finds new opportunities, new products to bring to Bridgend, in the next decade.

I spoke with the vice-president because the vice-president is the person who will make the decision on Ford in Europe and, therefore, on Ford in Bridgend. But I’ve been very clear that if there is anybody else that needs to be engaged anywhere around the world, including in the United States, I would be happy to do so. But it is my firm belief now that it is the vice-president that ultimately will be making future decisions about the plant and where products in Europe will be manufactured.

The detail of what has been presented this morning is a worst-case scenario for the Bridgend plant if no new products are secured in the next decade. That is why I am determined to work with not just the company, but also with the workforce and their representatives in the unions, to identify the opportunities that Ford itself has spoken about being able to attract to Bridgend. I wish to, in the coming weeks and coming years, understand better what specific products Ford Europe are looking to bring to Bridgend, so that we as a Welsh Government can continue to support the company, as we have done since the dawn of devolution. There is no doubt that the loss of EU membership does pose a very significant challenge for Ford in Bridgend and, indeed, the automotive industry across Wales and the UK. All of the engines produced there go to Europe to then be sold back within Ford automobiles. And that’s the reason why the First Minister has been absolutely consistent throughout the Brexit talks that our top priority must be free and unfettered access to the single market, as made clear in the White Paper.

I do believe that in order to avert the crisis that the Member talks of, we need to have a more meaningful engagement from the UK Government, and what is surely good for Nissan is also good for Ford. I’m also keen to ensure, as I’ve spoken of on previous occasions here in the Chamber, that we secure as much of the £2 billion of research development and innovation funding announced by the UK Government for the Welsh economy and for advanced manufacturing, where we know Wales has a very proud track record. Today is a day of anxiety, there is no doubt, for the workforce, but I am determined to bring together the company, the unions and the workforce to identify the products that will give Ford Bridgend a longer term viable future.

Cabinet Secretary, I think you’re right—there is a lot of anxiety today, since this news came to light yesterday. Adam Price did ask specifically—I don’t think you answered his point—about the First Minister’s schedule whilst he’s in the US. And can I ask if the First Minister has amended his itinerary, and will he be attempting to meet Ford executives whilst he is in the US? Perhaps you could update us on that.

The concerns, of course, are based on the assumption that Ford is unable to bring in any new work. You said in answer to two previous questions that you stand ready as a Government to be supportive to the situation, but can I ask for some specifics? What specifically is the Welsh Government prepared to contribute?

The Member may be aware of numerous forms of support that the Welsh Government has been able to offer Ford over many years. In fact, since 1978, Ford in Bridgend has benefited to the tune of approximately £140 million. Since the dawn of devolution, we’ve been able to support Ford with skills training packages, with capital expenditure, with infrastructure support, and we stand ready to do that again. In particular, I’m keen to ensure that we draw down and utilise research and development funding, so that we can attract new forms of engine manufacturing, and new forms of motor development to Wales, and specifically to Ford. I’d like to explore the opportunity for joint ventures between Ford and other original equipment manufacturers, because I do believe that when it comes to electric vehicles in particular, there are huge opportunities to be had in OEMs working more closely together. And if Welsh Government can facilitate an agreement between Ford and another manufacturer, we would happily do so, and we would support any joint venture, with financial support, if required and if viable.

Now, in terms of the FMs visit to the United States, the First Minister has already announced, during his trip to the United States, a further investment by GE, and I think that demonstrates how we have a strong track record as a Government of securing additional work for existing investors in Wales. We will go on doing that with Ford. But I must stress again that I have spoken with the decision maker in Ford. I will meet again with the decision maker in Ford to constantly press upon her the loyalty of the workforce, the skills at the plant, the track record of this Government working with Ford, the investment that we placed in it, and, above all, the interest that Ford itself should have in being in one of the most productive countries in western Europe.

Cabinet Secretary, without knowing the authenticity or even the validity of this so-called leaked document, we have to be extremely careful about whipping up hysteria about job losses at Ford’s engine plant at Bridgend. The only official indications we have had from Ford is that they’re scaling back investment, but they are still making a multimillion pound investment at Bridgend. It’s too early to be talking about strike action. If Ford did announce that this is their intention, to cut back in Bridgend, it’s my region, and then I would fight alongside everyone else and stand shoulder to shoulder with my constituents and the unions in opposing job losses. But, until then, I think we must try and calm the situation. Cabinet Secretary, do you agree with me that it is too early to be even considering strike action and will you assure my constituents that you will do everything you can to ensure that Ford continue to invest in the Bridgend plant?

Finally, Cabinet Secretary, can you update us on the discussions you’ve had with the UK Government about joint action you can take together to secure the long-term future of the engine plant in Bridgend?

Can I thank the Member for her questions and reiterate the point that was made to me—the assurance that was given to me by Ford’s vice-president—that there are no employment risks today? But we’ve always known that the risk is longer term for Ford in Bridgend. From 2021, the challenge is in finding new products that can be manufactured at the plant. In recent months, we’ve been assured by Ford that they’re looking at a range of opportunities that can be brought to Bridgend. What I wish to see now is greater detail about what those opportunities are—what it is that Ford is actually looking at specifically and how they’re going about attracting the investment to the Bridgend plant. And, for that reason, I intend meeting with the vice-president again and also with union leaders, because it’s my firm belief that we do our best when we work together as a team. I think Ford have proven in Bridgend that when you have a proactive Government and when you have a positive, proactive unionised workforce, you can produce the best goods imaginable. We need to make sure that that relationship between the workforce and the company and Welsh Government remains strong. But, crucially, we have to ensure that Ford identify the new products and that’s the reason why I will be placing more pressure on them to bring forward detail about what opportunities they are talking about actually materialising.

Huw Irranca-Davies.

Diolch, Lywydd, and can I thank you for granting this urgent question today? It is a matter that’s caused a lot of concern, but can I say the concerns are not new only today, based on these press reports; they’ve been ongoing for some time? I thank the Cabinet Secretary for, first and foremost, recognising the skills, the loyalty and the sacrifices that the workforce have made already in terms of making this plant productive. But, as we can see from the reports over the weekend, there may be an even bigger task ahead. I think it’s incumbent on all of us as regional Assembly Members, and as a constituency Member with hundreds of the workforce employed within my constituency and their families depending on them, that we make sure that there is a long-term future. And this idea of actually bringing together the workforce and the unions, who are representing their members there on the ground, on the shop floor and on the production floor, with management so that we can talk very hard-nosed about what we need to do to make this the go-to plant of Ford in Europe and worldwide—so that the productivity that they hit will be the one that means that Ford’s management globally will say, ‘The next investment will come to Ford Bridgend.’

We know that this is not imminent. We know we have breathing space until 2020-21. The Jaguar engine is coming to the end of its life. We have some investment but not the investment that we wanted on the Dragon engine, but that is good as well. It is surely now that all of us—Welsh Government, ourselves as Assembly Members, the workforce, the unions and the management—need to be sitting down around the table and saying, ‘How do we make this the plant that will bring that investment in?’ So, I have three specific questions. One is: what can the Welsh Government do, beyond what’s been laid out already, to actually facilitate those productive, constructive talks—hard-nosed talks they will be—so that all players around the table agree on a plan to go forward. Does he agree that we need to be doing that now? Because if the investment decisions that we need to secure the future of this plant will be put into place in 2020 and 2021, they need to be taken in the months and the year ahead.

Thirdly, what do we know now—these months later—about the UK Government guarantees that were given to another plant within the UK, quite rightly, about the insecurities, post Brexit? What do we know about that? And do we know that those same guarantees are being extended to the workers in Ford Bridgend as well, because they damn well should be—pardon my French, Presiding Officer. They really should be given those same guarantees. So, please, we know the investment that’s come over many years from the Welsh Government into this plant, we know the efforts that the workforce has put in, but it seems we have a mountain to climb in very short order. We should all be working together to make sure that we climb this mountain and we have a productive future for this plant and for the workers—there are hundreds of them within my constituency.

Can I thank the Member for his question and I recognise the deep concern that he has for not just his own constituents, but the constituents living in neighbouring parts of south Wales? I also know his commitment to the Ford Bridgend plant and the workforce there is unwavering.

Now, in terms of new technology, there is dynamic change taking place within the automotive sector at the moment and the Member identifies the fact that the Jaguar AJ engine will be ceasing production later this decade. Jaguar are not the only manufacturer looking to produce new engines and new types of engines. For that reason, it’s essential that Ford work with other motor manufacturers across Europe and around the world to identify opportunities to develop new engines together, and to bring them to Bridgend. Bridgend has had a history of being the most competitive and productive plant in Europe. We wish to see that status reinstated and I was told by the vice president of Ford today that the workforce—the plant—is on the right journey towards becoming the most competitive again and the most productive again in Europe. That enabled me to argue strongly for the case that further investment is therefore surely—surely—something that should be welcomed and should be driven to the Bridgend plant, because, as new forms of engines are required, Ford in Bridgend have a proven track record of delivering the highest quality in a timely fashion.

The Member is absolutely right that these are challenging times—there’s no doubt about it—but we do have a First Minister who has a proven track record of securing jobs that are at risk. We only need to look at the Tata crisis as an example of how he has been able to deliver on his promise of securing quality jobs for people here in Wales. Indeed, as I’ve already said, he’s done it again this week with GE. My intention is to meet with Len McCluskey later this afternoon. I’ve already spoken with Andy Richards, the general secretary of Unite Wales. I’ve also spoken with local Assembly Members today. I’ve spoken with the First Minister and with Ford’s vice president this morning. It’s my intention to bring together all partners to reinstate a team Ford ethic at Bridgend, one that will lead to further investment and new products being brought to what is an outstanding plant.

Well, Cabinet Secretary, you may have talked to two Assembly Members, but I don’t think you’ve talked to all Assembly Members who represent the area and I think, with respect to democracy here in Wales, it would be good if you could include all Assembly Members who represent the Bridgend region as part of any future discussions.

Look, you may say that Ford have investment in the area and you may have warm words to say about Ford, but I have the scars from the debates around Ford closing their plant in Swansea and the ensuing Visteon pensions campaign with Ford. So, it may be nice for you to trust them, but their words may not be reflected in the actions that they take post 2021. So, I want to be assured by you, because I didn’t hear you answer Adam Price: when did you find out about these reports in the press today? Yes, they may be leaked reports, but we need to understand what discussions you had with the company to know what the level of severity was up to this point because, of course, those living in the area will be very concerned. Also, this is an anchor company, so I want to try and understand what the other companies working around Ford are feeling today—not only Ford workers, but those smaller companies. You say quite a lot about looking for new products, but what are some of those new products? Are you concerned that, with regard to Tata buying Jaguar Land Rover in 2008, lots of investment has gone to the west midlands plant, and that may be to the detriment of the production in Ford in Bridgend? So, have you looked to analyse the effect of those investments in another part of the UK and how that impacts on us?

We talked about Tata only a few weeks ago. It would be good if we could have that industrial strategy from you as a Government so that we can put all of these tools together in one particular document and we can understand how we as Assembly Members across the Chamber can input into this in a positive way, because we have no interest in trying to make capital out of this. We have to secure those jobs in south Wales, because if Ford do not feel the pressure then, believe me, they may move those jobs elsewhere. Because they’re a multinational corporation and they are not committed to Wales as, potentially, some other Members in this Chamber may think.

I should begin by saying to the Member that other Members whom I spoke with this morning actually proactively contacted me, and that’s why I was able to share with them details of conversations that I’ve had with the key decision maker. The Member is welcome to contact me at any time if she feels strongly enough about issues in her region.

I should also say that right now is a time to build trust, not to undermine it or to destroy it, and I believe that it is through reinstating a team approach at Ford in Bridgend that we will see the plant through to a more viable future. There is no doubt that there is great anxiety at the plant, and I have stated today to Ford’s vice president my desire to seek details of the new products that are being looked at. I want to know exactly what it is that Ford in Bridgend can expect and should expect to be manufacturing in the next decade. These products, I understand, could concern electric and hybrid engines, but we need to know exactly what it is that Ford’s Bridgend plant will focus on producing in years to come.

In terms of the actual details that have been revealed today, they are, as I said to Adam Price, the worst-case scenario for what would happen—what would happen—hypothetically, if no new products were to be secured for the Bridgend plant. But our intention is to secure new product, is to work as part of a team with Ford, with the workforce, with the unions, and that’s the reason that I’m bringing them all together. Everybody has a shared interest in this—the unions, the workforce and Government—to make sure that Ford survives and that Ford in Bridgend thrives well into the future.

We will work together, we will develop trust across partners, and we will work with the company, and, if that means playing tough with Ford Europe, we will do so.

And, finally, Suzy Davies.

Diolch yn fawr, Lywydd. Thank you for your replies to date, Cabinet Secretary but I’d like to try another couple past you again, as we haven’t had answers to these. [Interruption.] When did you hear first about this worst-case scenario? The MP for Bridgend confesses that she was completely blindsided by it, so I’m wondering whether you were.

Can you give me an answer, a straight answer, to the question: has the First Minister attempted to change his schedule in America to meet somebody from Ford? It’s a straightforward question. That’s a ‘yes’ or a ‘no’.

And another couple of questions: last September, Ford did say that the cut in Dragon production would not affect the workforce, and like all of us, you included, Cabinet Secretary, and Assembly Members—and, of course, Len McCluskey himself said in his recent visit that he was asking the company to demonstrate that they were ‘working hard for product replacement’. Those were his words, and I think we share those.

Today’s worst-case scenario report suggests that perhaps Ford has either failed, which means that there’s a bit of a black future facing us, or that they haven’t worked that hard yet. I heard your answer to Caroline Jones earlier on, but I wonder which of those two scenarios you think is probably the more accurate. I think it’s worrying that the company has suggested that work practices at the plant aren’t as efficient or effective as in other UK plants. That’s the first time that we’ve heard that, or at least first that I’ve heard that. Mr McCluskey said that he would ‘work hard’ with the company—I’m quoting him again—so do you agree that the kind of work that Huw Irranca-Davies was talking about earlier on should be undertaken as swiftly as possible so that Ford can never find themselves in a position where they can point to the workforce as an excuse for threatening that plant? I think my other questions have been answered, so, if you can tackle those four questions, I’d be delighted.

Yes. Can I thank the Member for her questions? First of all, the Member asked whether the First Minister will be flying to Detroit to meet with Ford. As I’ve already said, I have spoken with the person who will be making the decision. More importantly, we know what I’ve been doing, we know our position: where has the Prime Minister been on this? We need a similar assurance—[Interruption.] We need a similar assurance for Ford as was given to Nissan. The First Minister has proven that he is able to stand up for Welsh industry: where is the Prime Minister? As I’ve said, I will continue to engage with the person that will make the decisions about the Bridgend plant. That person is the vice-president of Europe, that person is the person I spoke with this morning and will continue a dialogue with, and the mischief making from the Members opposite will not detract me from speaking with key decision makers in securing the future of Ford at Bridgend. Regardless of what mischief they wish to make, we prefer actions not words on this side—so, actually averting a crisis rather than promoting the idea of one.

In terms of Ford itself—[Interruption.] In terms of Ford itself, the communications between—[Interruption.] The Members protest too much.

The Cabinet Secretary is continuing—is finishing—his answer.

I do think there is a need—[Interruption.] I do believe there is a need for Ford to better communicate to its employees, to its members, the long-term objectives for the plant. That is the reason that I’ve spoken both with the unions and with the vice-president; it’s the reason why I will be bringing them together. Because what was presented today was a worst-case scenario based on a hypothetical situation. The fact of the matter is, for the automotive sector, you have to look long term at what products are coming down the line, but there is a worst-case scenario for any manufacturer if you don’t secure new products. The key question for us, and what we are focused on, is actually securing those new products—not just talking about what opportunities there are, but holding Ford to account for their promise that they’re looking at new opportunities. They may well be looking at new opportunities; we wish to know what exactly they are and when we can expect them to be secured.

Diolch i’r Ysgrifennydd Cabinet.