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

I have accepted an urgent question under Standing Order 12.66 and I call on Hannah Blythyn to ask the urgent question. Hannah Blythyn.

What discussions has the Cabinet Secretary held on the future of jobs for Welsh workers employed at the Vauxhall plant in Ellesmere Port, in the light of the General Motors announcement that they intend to sell Vauxhall to Peugeot? EAQ(5)0141(EI)

I have today written to the Groupe PSA chair, Carlos Tavares, to highlight the importance of the Ellesmere Port site to north Wales, in particular, the quality of the skilled workforce who commute there on a daily basis, and the valued supply chain companies in the region. I’ve also requested an urgent meeting and, furthermore, I have spoken with Vauxhall officials today to discuss the opportunities for the Ellesmere Port site that workers and companies in Wales can take advantage of in the years to come.

Thank you, Cabinet Secretary. Hundreds of my constituents across north-east Wales are directly employed at the Ellesmere Port plant and, as you indicated in your answers, there’s also the significance of the plant to the wider supply chain and the economy of our region. Cabinet Secretary, we know that the uncertainty caused by Brexit is negatively impacting on the automotive sector, and it’s the responsibility of all Governments to work with the sector and trade union representatives to secure jobs and industry investment into the future. We know that existing labour agreements indicate that jobs will be safe until 2020, but we need to ensure that Ellesmere Port gets those new products after 2020, and the UK Government could help with this through a more interventionist approach. In fact, we know that the UK Government is not averse to this, as we’ve seen them step in, post EU referendum, with Nissan. Does the Cabinet Secretary agree with me that this sort of action should apply across the UK automotive sector as a whole, and tomorrow’s budget offers a timely opportunity to act?

Can I thank the Member for her question, and say that we believe that something in the region of 450 people living in Wales are employed at the Ellesmere Port Vauxhall site? In addition, there’s approximately a dozen companies within Wales in the supply chain. There is no doubt that uncertainty over Brexit needs to be removed in order to help Ellesmere Port’s Vauxhall site, and indeed the Luton site, to maximise on the potential of its productive workforce. It’s my firm view that what is good for Nissan should also be good for Ford, and for Vauxhall, and for the entire automotive sector in the UK.

I do believe that the business Secretary, Greg Clark, wants to do his very best for the automotive sector, but he also needs the Chancellor and the Prime Minister, and the whole of the UK Government, to be as committed to manufacturing in the UK as they are to the city of London. As I’ve said, I’ve spoken with Vauxhall, I’m seeking an urgent meeting with the Groupe PSA chair to discuss the opportunities that could come if the Vauxhall Astra’s lifespan is extended into the next decade or if new products are developed, in particular for the supply chain in Wales where we believe there is the potential to grow significantly the number of opportunities to supply Ellesmere Port and Luton.

May I support the comments that have been made by the two previous speakers—the Cabinet Secretary and the Member for Delyn? Clearly, there’s a clear message that needs to be conveyed to the Chancellor of the Exchequer with a view to tomorrow’s budget. I would appreciate it if you could expand upon what exactly you would like to see in terms of support to ensure a more long-term future for Ellesmere Port. But you’ve also referenced the supply chain. Can I ask what the Welsh Government is doing to ensure that the supply chain is strengthened and is secured in the medium and long term? And may I ask, as reference has been made to the uncertainty emerging from Brexit in terms of the economy, whether you would support the Plaid Cymru demands to devolve some of the levers in terms of job creation, such as VAT and corporation tax, in order to ensure that we can be prepared to do more to protect many of the jobs such as those that we’re discussing today?

Can I thank the Member for his question, and say that he is absolutely right? There is a role for the UK Government—a very significant role for the UK Government—to play in securing the future, not just of the Ellesmere Port Vauxhall site, but the whole of the automotive sector in the UK. Tomorrow, the UK Government, and the Chancellor in particular, could make a very warm statement regarding the investment in research, development and innovation in the automotive sector. We know that the business Secretary has already announced that significant resource will be made available for the development of new electric-motor-driven cars, and I believe that this poses a great opportunity for the Welsh automotive sector and the automotive sector that feeds the Welsh supply chain. I also believe that additional resource could be offered to the Ellesmere Port Vauxhall site if it is in a position to be able to identify a new product, or develop jointly a product with other parts of the combined company.

The Astra product at the moment only has approximately 24 per cent of local content. This presents a great opportunity as Vauxhall exits GM—and GM, in the past, have traditionally bought from within the EU. There’s an opportunity for a greater proportion of the supply chain to be captured by Welsh companies. For that reason, my officials were already in touch with Vauxhall prior to the announcement this week to discuss how companies in Wales can prepare themselves better to capture a greater degree of the supply chain work. This co-operation will continue with Vauxhall.

There are also opportunities in terms of exports, in particular to China, with Vauxhall being severed from GM. It’s the hope that the combined company may be able to explore additional export opportunities in the far east, which could drive up volume and demand in the Ellesmere Port site. We are willing to look at any levers available at our disposal, and any additional levers that would better secure the automotive and manufacturing sector in the UK. And it’s fair to say that there is a very strong cluster of automotive activity in the north-west and north-east of Wales that actually benefits many companies right across the north Wales strip, and through into mid Wales. We wish to work with colleagues across the border, with local authorities, and with Members of Parliament as well, with whom I spoke yesterday, to develop that cluster even stronger and to ensure that it has a very bright future as we leave the European Union.

The head of the PSA Group, which is buying General Motors’ European units said, I believe yesterday, that Brexit means it may be more not less important to have manufacturing in the UK. He insisted that the new combined company would have an opportunity to set new internal benchmarks for performance, but he also said that this will allow plants to be compared and improve; and, of course, production commitments expire in 2021 for Ellesmere Port. Given that the plant is in England, but critically important to north-east Wales and Wales more generally, how will you, and how are you engaging with the UK Government, where the Prime Minister and business Secretary have been in close contact with the PSA Group and General Motors, and have stated that they will continue to engage in work with PSA in the weeks and months ahead to ensure that the commitments made by GM to Vauxhall’s employees and pensioners are kept and will build on the success of Ellesmere Port, and the other affected sites, in the longer term?

Can I thank the Member for his question? The Member will be aware that a decision on the Vauxhall Astra had been deferred after Brexit due to uncertainties, and it’s quite clear that for Vauxhall, for Ford, for Nissan—for the entire automotive sector—what is required most is certainty over the future deal that the UK will reach with the European Union. Ellesmere Port is actually currently one of the most productive facilities in the new combined company, but there will be 24 factories across the EU as part of the new company. It will be Europe’s second biggest manufacturer after Volkswagen. We wish to see Ellesmere Port receiving the investment from the UK Government that will enable it to grow and prosper.

In terms of the assistance that we can give, of course, with so many people being employed from within Wales at the Vauxhall site in Ellesmere Port, there is a critical role for the skills training provision providers in north Wales, and so, for the regional skills partnership, this is a vitally important piece of work. I know that the colleges in north Wales have provided exceptional employees with the skills that are required to ensure that there’s maximum productivity at the site, and I also know that the regional skills partnership is acutely aware of the challenges, but equally the opportunities, at Ellesmere Port. I have sought a meeting with UK Ministers to discuss the automotive sector. This, of course, is the latest in a series of announcements that demonstrates the very great need for the UK Government to act in a more interventionist manner. The words have been put on paper that suggest the Government is willing to do that, but tomorrow the UK Government can actually throw money behind their words and invest in the manufacturing sector across the UK.

I note from the media there’s a lot of fear and uncertainty being stoked up around this issue at the moment. Peugeot hasn’t said that it intends to close the plant. Indeed, Peugeot’s boss has suggested that his company will want to keep production in Britain to take advantage of future UK trade deals that could benefit exports. That’s quite a logical position, particularly in light of the fact that the United States is the biggest growth market for British-made cars, with sales jumping by 47 per cent last year. What work are you doing to point out the benefits of car building here, and what attempts are you making to attract Citroën-Peugeot to manufacture in Wales?

Can I thank Michelle Brown for her questions? Of course, remaining in the single market in the EU would have been the best way to secure manufacturing, not just in Wales, but across the UK, but a decision has been made by the British people to leave the European Union. Against that backdrop, what is absolutely essential is that we invest in future technology to futureproof the automotive sector, particularly as we enter into the fourth industrial revolution. With regard to this, the group chair said that it’s envisaged that £1.47 billion of savings will be achieved per year by 2026 within the Vauxhall-Opel group. That presents challenges, of course, for Ellesmere Port, but the message that I would send very clearly to the group chair is that the Ellesmere Port site has one of the most highly skilled and productive workforces anywhere in the Vauxhall-Opel family, and that instead of looking at cuts or reducing the workforce at the Ellesmere Port site in years to come, it should instead be looking at increasing the amount of manufacturing that takes place at the site.

We invest very heavily in the development of the automotive workforce and we’re also working with the automotive sector in seeking new opportunities, particularly in the field of electric motors. The Wales automotive forum has already provided me with an analysis of the likely impact of the decision by PSA to acquire Vauxhall-Opel, and it is believed that the Astra could extend its manufacturing lifespan beyond the end of this decade. That would provide sufficient time for a new product to be identified and brought to the Ellesmere Port site, or indeed for the new combined company to jointly produce a new product and for it to be manufactured here in the UK in Ellesmere Port.

I thank the Cabinet Secretary.