I now call for questions from the party leaders. Leader of the Welsh Conservatives, Andrew R.T. Davies.

Thank you very much, Presiding Officer. First Minister, why did the Welsh Government decide last week to sack the chair of Sport Wales given that, upon his appointment, the then incoming chairman was told by the Welsh Government representative that he was entering a toxic environment and that he was tasked with tackling a dysfunctional and insular organisation? Does all your Government agree that sacking this chairman was the right reproach?

First of all, can I say that Sport Wales was facing great difficulties? That much is true. There is an independent review of Sport Wales, which is continuing at this moment in time, but it was quite clear that the relationship between the chair and the board and the vice-chair had broken down and therefore action had to be taken in order that the organisation could be rebuilt.

I am told that the review has been concluded, First Minister, and, on 13 February, the Welsh Government’s deputy permanent secretary, James Price, dismissed all the allegations made against the then chair and offered him three options to move the situation forward, all of which saw him continuing his involvement in some shape or form within Sport Wales. What happened in the very short intervening period, which altered this situation and resulted in the sacking of Paul Thomas?

Well, as is known, on 14 February the Minister made a statement to Assembly Members on the headline findings of the review. One of those findings was that a clash of cultures had developed between the chair and other board members. It was clear that action needed to be taken in order for the board to become fully functional in the future.

I have the letter here—it is in the public domain, so you can comment on it—that was sent to James Price at the beginning of March that clearly itemises the allegations that were made against the chair and how those allegations were rebuked. There are some very serious allegations levelled against the previous chair and also the current chief executive of Sport Wales. Sport Wales handles a considerable amount of public money and has a remit to improve elite sport and participation sport around Wales.

I would be interested to hear how the Welsh Government will take forward the allegations and investigate the allegations against the previous chair, and also the current chief executive, as the allegations warrant answers, and above all to make sure that Sport Wales is able to get on with its day-to-day functions. But I do reiterate: the Welsh Government told the new chair, Paul Thomas, on taking up office, that he was entering a toxic environment and that he was tasked with tackling a dysfunctional and insular organisation. I do ask once again: does the entire Government agree with the dismissal of Paul Thomas?

The answer to the question is ‘yes’. The Government has taken a view on this. It is quite clear that the organisation remained dysfunctional and that the relationship had completely broken down between the chair and the board. In those circumstances, no organisation could possibly be expected to deliver what it should do in the future. We know that all organisations need to adapt to changing circumstances and the independent review of Sport Wales’s operations is continuing, but it was quite clear that Sport Wales could not continue with the dysfunction that still remained in the organisation and the Minister took the decision that the best way forward was to take the action that was taken in order to make sure that Sport Wales is effective in the future.

Plaid Cymru leader, Leanne Wood.

Diolch, Llywydd. First Minister, the proposed job cuts at the University of South Wales are of great concern, and I’m sure you share that concern. The plan is to cut 139 jobs to deal with rising costs and various other challenges. The University of Wales Trinity Saint David is also looking to downsize its workforce. I’d like to place on record mine and Plaid Cymru’s support for the roles both of those institutions play in our society. But I am concerned about the situation that those institutions are facing and about the prospect of losing what are well-paid jobs. What discussions has your Government held since the two sets of redundancies were proposed? Were the universities’ strategies shared with you and are you satisfied with the explanations they’ve given for these changes?

I’ve not seen any explanations for these changes at this moment in time. I am aware of the situation, however, at those institutions. We expect there to be a period of consultation and that staff and unions are kept informed at all stages in the process. One of the issues that concerns me is that we are seeing a drop in applications, particularly from students from abroad. We know that applications through UCAS to Welsh universities from EU countries, for example, decreased by 8 per cent between 2016 and 2017. The fewer the students there are, the less money there is and the less money there is to pay staff, and that concerns me.

As a former student at Treforest, I know how important this institution is for the Valleys. It’s always played a leading role in upskilling people to do the work that our local economies need doing. Now, there are demographic challenges, which you’ve alluded to, and rising costs facing that university, but I don't think that should mean that we should lose the positive economic impact that the institution generates. Plaid Cymru also believes that the University of Wales Trinity Saint David plays a vital role in the west as well. The proposals are for a 4.6 per cent reduction in staff at USW and the figure for Trinity Saint David is yet to be confirmed. I've had contradictory information on these job losses. On the one hand, we were told that many of the roles at risk will be managers, but from the trade union, I've been told that the roles to be cut could include jobs in IT, library staff and student services as well. Do you think, First Minister, that these job losses are normal housekeeping or are they a sign that these two universities are facing a difficult future?

I’ve not seen anything on this scale since I was in university myself in the 1980s, and that is concerning. It's also correct to say that it’s not quite clear what sorts of jobs would be lost. That’s why, of course, we expect there to be that period of consultation, so that there is greater clarity from both institutions about what they are proposing. But I am concerned—I don't know whether this is correct or not, but I have the figures in front of me—as to whether the drop-off of applications, not just from the EU countries, but other countries as well, is having an effect on those universities’ income, which would be, from our perspective, as a country that welcomes students, something to greatly regret.

Both the institutions are feeling the pinch as well from the decision taken to lift the universities admission cap in England. We know that the situation around European and international student recruitment remains volatile and is likely to be for some time, but the responsibility to navigate through these difficult waters falls to us here in Wales, and it’s you, First Minister, who has overall responsibility for protecting our higher education sector. So, what will the Welsh Government do to support our universities? How will you help to protect these jobs and ensure that there’s no impact in the longer term upon courses? Do you intend to carry on as business as usual or are you going to step in and provide support and guidance to Welsh universities so that they can continue to do the good job that they do, serving our economy and our country?

We’ve provided more money for higher education, but it's about more than that. It's about making sure that Wales is still seen as a place where students from abroad want to come to. That is a point I've been making very strongly whenever I've gone abroad and, indeed, when ambassadors have come to visit us here in Wales. That is hugely important. We also finance schemes, for example, like Sêr Cymru. Sêr Cymru is a way of bringing in the top academics into Wales, attracting, then, the best students as well. That helps with the sustainability of universities. Some universities themselves have invested heavily in capital programmes to improve, or indeed build new campuses, which again are hugely important in terms of attracting in students. But what we don't know at this moment in time is what effect Brexit will have—we've seen some figures already on EU students applying to Welsh universities and, of course, students from other countries such as India, where there's been a significant drop-off of numbers over the past few years—and what effect that will have on the sustainability of our universities. That is something that is yet to be fully seen in terms of the impact.

Leader of the UKIP group, Neil Hamilton.

Diolch yn fawr, Llywydd. It's inevitable, I suppose, a certain amount of posturing takes place at the beginning of any negotiation and the current Brexit negotiations with the EU is no exception to that. The First Minister wants to play a direct role in these negotiations and there is, in fact, a useful role that he can play. He could write to Chancellor Merkel, for example, to say it’s a mistake on their part to disconnect the trade talks from the other issues that haven't been decided, such as EU citizens’ rights in this country and vice versa, and also the question of the dowry that the EU apparently wants the British taxpayer to stump up, which may be as much as £60 billion, which is a bit rich considering we've paid them £500 billion in the last 40 years.

Secondly, there is the other development in relation to Spain and Gibraltar, where it seems that the EU is trying to use Gibraltar as a bargaining chip to try to get a better deal from us. Given that the question of sovereignty in Gibraltar has been decisively settled by referendum, where nearly every single resident of Gibraltar voted to retain its links with Britain, will he write to the Prime Minister of Spain and also to the Chief Minister of Gibraltar supporting the Gibraltarians’ right to self-determination, which is guaranteed by article 1 of the UN charter?

Well, firstly, it’s right to say that there’s a lot of posturing, that much is true, and there are issues that still need to be worked through. But the important thing is to discuss the start as soon as possible and that the future of EU citizens all around the UK and UK citizens in the EU is resolved as quickly as possible. I do think there’s been a significant amount of hysterical reporting on some of these issues. It was said that the UK was using defence and security as a bargaining chip. That’s not the way I read the Prime Minister’s comments last week, in fairness. It’s also said that Spain is trying to use Gibraltar. I don’t believe that either. Spain, in fact, has been very quiet on the issue of Gibraltar. It was just one clause that appeared in the Commission’s negotiating document. That has more to do with not sovereignty, but Gibraltar’s status as a tax haven and how that would affect the border with Spain in the future. So, I see nothing malevolent in this. There are issues wherever there are tax havens that need to be resolved when there is a land border with that tax haven.

It’s absolutely clear that the people of Gibraltar wish to remain British and that’s what should happen. That was a decision of a referendum. They also voted 95 per cent to remain in the EU. That’s not going to happen. When I met with the Chief Minister of Gibraltar, he was quite clear that the last thing Gibraltar wanted was the closure of the border. It would be disastrous for the economy of Gibraltar. Some 15,000 people cross that border every day. So, it is in the interest of both Spain and Gibraltar that that border stays open, but of course there will need to be a consideration of what effect Gibraltar’s tax status has on the European market, which I’m sure can be resolved.

Well, it’s certainly true that it’s in the interests of both countries—Spain and Gibraltar—for that border to remain open because 40 per cent of the jobs in Gibraltar are filled by people who live in Spain. Given that the rate of unemployment in Andalusia is 30 per cent and in Gibraltar is 1 per cent then it’s massively in Spain’s interest to respect the existing status of Gibraltar and, indeed, its status as a tax haven for that matter as well. So, I’ll repeat my question to the First Minister: will he write to the Chief Minister of Gibraltar and to the Prime Minister of Spain supporting the Gibraltarians’ case, both in relation to sovereignty and to their freedom to set what tax rates they want in respect of the trade that is actually conducted within the territory of Gibraltar?

In fairness, the Prime Minister of Spain has not actually laid claim to Gibraltar or indeed commented at all on the issue of Gibraltar. The issue has come from the Commission not from Spain itself. I reiterate what I’ve just said: it is a matter for the people of Gibraltar how they choose what relationships they choose to have. They have voted overwhelmingly to stay British and that’s exactly what should happen. Nowhere should be forced to transfer to another country against the wishes of its population. That’s true of any country in my view. I’ve already met with the Chief Minister of Gibraltar. I will be meeting with him in the next few weeks. I’m happy to reiterate that point to him. In the discussions we’ve had, it’s Gibraltar’s concern about what Brexit might mean for their own trade situation and their border, that is what Gibraltar’s been most concerned about, certainly as we look forward over the next two years.

I agree with the First Minister. He’s absolutely right: the border is of critical importance to Gibraltar. But it’s not as though we have no bargaining chips in our hand in this respect. If indeed it is the case that Spain has put its claim to Gibraltar’s sovereignty on ice and is prepared to live with Gibraltar, that’s well and good. But the idea that the European Commission suddenly produced this proposal in a letter without discussion with the Prime Minister of Spain is fundamentally absurd. Clearly, this is something that has been decided in the Council of Ministers between the Commission and in particular the Prime Minister of Spain. It is vitally important for southern Spain as well as for Gibraltar that there should be no interference from Spain in the economic life of Gibraltar at all. I think, given that the First Minister was a strong supporter of remain and, indeed, Gibraltar itself and the people of Gibraltar were overwhelmingly in favour of remaining in the EU, I think this is where he can play a significant role in trying to persuade the EU authorities of the good sense of coming to sensible agreements with Britain in the interest of us all.

Well, I’ve never had three questions on Gibraltar, I have to say. I’m not responsible in terms of my devolved powers for Gibraltar, but we do have a relationship with Gibraltar. As I said, I’ve had meetings with the Chief Minister and I’ll continue to have meetings with the Chief Minister in the future, as Gibraltar is in a similar situation to, for example, Northern Ireland, although it’s very different in the sense that Gibraltar is outside the customs union and it has its own arrangements in terms of tax. But what is absolutely clear is that when Brexit happens there must be no destabilisation either of the area around the border on the Spanish side or, indeed, of Gibraltar itself. I’d expect that to be examined as part of the negotiations. I would not expect nor would I support there to be any negotiations about future sovereignty over Gibraltar; that matter is settled.