3. 3. Statement: Article 50 Response

Part of the debate – in the Senedd at 3:35 pm on 29 March 2017.

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Photo of Leanne Wood Leanne Wood Plaid Cymru 3:35, 29 March 2017

Today will mark a profound day in the history of Wales. While Wales voted narrowly to leave the European Union, the UK Government’s intention is to take us out of the European single market as well. This is the largest economic and trading bloc in the world. For Wales, that single market is the destination for some 67 per cent of our exports, a higher level than any other part of the UK. And the UK Government’s intention to reach a free trade agreement will not put us in the same position as Norway, Iceland or Switzerland. I do hope that we will be in a position to debate the UK Government’s statement very soon. It will be essential for this Assembly to scrutinise that statement, of course, but I have some immediate questions now on the Welsh Government’s view.

First Minister, we need to be very wary of the UK Government’s actual intentions, compared to the warm words that we’ve seen from the Government earlier today. They admit that the UK will lose influence over the European economy. They speak of securing the freest possible trade in goods and services, but they admit that this won’t be a single market membership—it won’t comply with the four freedoms—and, therefore, it could lead to tariffs. I’d like to know the Labour Government’s position on this, please. Do you believe that a free trade agreement can lead to continued single market participation? Do you anticipate tariffs, and if so, which sectors do you think would be most at risk? What does today’s triggering of article 50 mean for Airbus, for Toyota, for manufacturing as a whole?

I want to turn now to the future of this Assembly, and the future of this nation. We should be under no illusions about today’s article 50 notice. It does not fulfil the wishes of the Scottish Government, nor, to my mind, the Welsh Government. It certainly doesn’t satisfy Plaid Cymru. The language from the UK Government is that they have an expectation of a significant increase in devolved powers. Anyone who takes that at face value needs a reality check. The UK Government, by definition, is in power. The balance of powers within the UK is within their remit, and it doesn’t have to be negotiated with EU institutions. The UK Government should be providing us with guarantees, not expectations. First Minister, what will the Welsh Government be doing to secure that increase in powers that we will need to protect and boost our economy as Brexit happens? Is it now time to make the case for a new Wales Bill, a Wales Bill that is actually fit for purpose?

The UK Government statement on article 50 contained no mention of agriculture or the environment. EU funds are only guaranteed up to 2020, meaning we need to secure the replacement arrangements during this Assembly term. First Minister, you stated in response to my questioning yesterday that agricultural subsidies could disappear. The need for certainty is now urgent. Plaid Cymru will not accept any loss of agricultural funding as a result of Brexit. We have been clear that Wales should receive the same funding and that we should have full policy control over how it is allocated. Are you prepared to fight for that funding in the coming period, First Minister?

Turning to the actual negotiations, the UK Government has indicated that the devolved Governments will be consulted. I haven’t been filled with confidence about how the Welsh Government has described the consultation that has happened to date. Today, we hear language about the United Kingdom negotiating with the EU as a single state, but there are now two years ahead of us, which are critical for the future of Wales. You say in your statement that today marks the beginning of serious negotiation. Given that you’re disappointed and frustrated with the JMC process, how will you now work with the UK Government? You’ve stated that you will not sulk from the sidelines, so how are you going to put the Welsh national interest on the agenda? And given that you didn’t see that letter beforehand, nor did you have any opportunity to input into it, can you honestly say that, up until this point, you have been listened to by the Prime Minister? You claim to see evidence of movement, but, First Minister, to us, it doesn’t look like there’s been much movement at all.