6. Will the First Minister make a statement in response to the announcement that wholesaler Palmer and Harvey has gone into administration? OAQ51438

I have been made aware that wholesaler Palmer and Harvey has gone into administration. For any business in Wales impacted by the announcement, guidance and support are available through the Business Wales service.

Thank you. I was contacted last week by a constituent who was extremely concerned about the impact that this will have on their small family-owned business. Palmer and Harvey is the main supplier, and that is the case for hundreds of convenience stores in rural areas. I was informed by the constituent that Palmer and Harvey customers do have accounts with agreed terms that allow shops to pay either monthly or fortnightly. So, even if an alternative supplier does have the stock to supply affected businesses, they're concerned that it could take time to put in place necessary financial and licence checks to allow new accounts to be opened, certainly this side of Christmas. So, it is the case that the only option available to businesses would be cash purchases, and many of those won't be in that position. So, my constituents do fear that the cash-and-carrys local to them will simply not, in the short term, be able to set up delivery schedules for services to meet their needs and, in turn, the needs of those local constituents. So, First Minister, is it possible in any way for the Welsh Government to make enquiries and give what assurances they can to affected businesses and individuals in mid and west Wales and elsewhere at this time?  

I can say that Business Wales is available to provide information, guidance and support to any business impacted by the announcement, and I would encourage them to make contact. Business Wales advises and supports businesses on all aspects of their operation, including evaluating their supply chains to identify alternative suppliers, which includes Welsh companies. And supporting the development of local supply chains and clusters so that more economic value and employment is retained locally will be part of the new regionally-focused model of economic development, which we will set out in the economic action plan. 

First Minister, 10,000 firms went out of business last year in Wales. The number of firms still in business after five years is just 43 per cent, which is below the UK average. Now, understandably, some firms will go out of business due to changes in the market and for other reasons, but can I ask what your explanation is to why businesses are more likely to go out of business in Wales, and can I also ask how the Government is addressing this trend? 

In terms of why businesses in Wales, some businesses, fail, we know that that will happen from time to time, unfortunately. The latest phase of Business Wales aims to create 10,000 new businesses, 28,300 new jobs and provide support to help inspire the next generation, and that service provides support right across Wales for aspiring entrepreneurs, start-ups and existing microbusinesses and small and medium-sized enterprises, including social enterprises.