Wales's Future Relationship with the EU

2. Questions to the Cabinet Secretary for Finance – in the Senedd on 14 February 2018.

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Photo of Dawn Bowden Dawn Bowden Labour

(Translated)

2. Will the Cabinet Secretary provide an update on recent intergovernmental discussions about Wales's future relationship with the EU? OAQ51758

Photo of Mark Drakeford Mark Drakeford Labour 2:19, 14 February 2018

I thank the Member for the question. Recent meetings of the Joint Ministerial Committee on European Union negotiations have been more constructive than hitherto. The machinery remains, however, defective in both design and delivery. Further steps are needed to ensure that Welsh interests are taken into account in shaping any future relationship with the European Union.

Photo of Dawn Bowden Dawn Bowden Labour

Thank you, Cabinet Secretary. Perhaps I should more usefully have asked about the internal workings of the UK Government, because as far as I can see they can't agree amongst themselves at the moment on the nature of our future relationship with the EU, so it's really hard to see how they can talk sensibly to the devolved nations about it. We've heard several times, Cabinet Secretary, that the clock is now ticking on the EU negotiations, and I fear that time is now against us if we're to deliver the best deal for Wales and the UK. Given that the Joint Ministerial Committee has not met since December and is not providing a mechanism for the serious engagement that is required on these issues, and in light of the recently published national, regional and sector analyses, which I'm hoping to get over and see at some time this afternoon, do you agree that it is imperative that the UK Government now get their act together if the devolved nations are to have a proper opportunity to plan for the consequences of these negotiations with the European Union?

Photo of Mark Drakeford Mark Drakeford Labour 2:20, 14 February 2018

Llywydd, I entirely agree with the Member that the really challenging issues that are there in negotiating the UK's future beyond the European Union are not helped by the inability of the UK Government to organise itself in a purposeful and reliable way. When the JMC on European negotiations next meets, it will have its fifth chair in the 15 months in which it has been in operation. It is no wonder that we have not met since December when we have yet another change in personnel at the head of that body. So, dealing with the UK Government is immensely frustrating in the way that they struggle to provide a coherent single voice that represents their views on these things, and then to provide practical leadership of the sort that will be needed as the UK leaves the European Union. The Welsh Government continues to take every opportunity that we can, nonetheless, to play a constructive part in every forum to which we are invited and at every encounter that we have with the UK Government.

Photo of Andrew RT Davies Andrew RT Davies Conservative 2:21, 14 February 2018

One thing we know, Cabinet Secretary, is that the footprint of diplomatic activity across the European Union will change from the Foreign and Commonwealth Office, and they are resourcing their footprint to a greater degree. Obviously, it's vital that that new footprint does recognise the devolved context that the United Kingdom operates under, and I'd be grateful to understand what interaction his department has had with the Foreign and Commonwealth Office to make sure that Wales's representative role within that new footprint of representation, diplomatically, is recognised and is as strong as possible?

Photo of Mark Drakeford Mark Drakeford Labour 2:22, 14 February 2018

Llywydd, the Foreign and Commonwealth Office is represented from time to time at the JMC on European negotiations, and is normally represented at the JMC on Europe. That does provide us with an opportunity to discuss directly with UK Ministers the way in which diplomatic representation will be organised the other side of Brexit. We take every opportunity we have to impress on those representatives the need for a UK presence to be genuinely representative of the whole of the United Kingdom, and regularly make offers of assistance to the UK Government to make sure that, when it is speaking on behalf of the United Kingdom, it is well informed about Welsh interests and opportunities that there will be there for Wales in the new post-Brexit era. 

Photo of Leanne Wood Leanne Wood Plaid Cymru 2:23, 14 February 2018

There have been indications from the UK Government that it may be prepared to reverse its approach to the Brexit Bill after legitimate concerns were raised about a Westminster power grab that would undermine devolution and pose a constitutional crisis. Now, this mooted u-turn from the Westminster Government is welcomed by Plaid Cymru. However, we see time and time again that Westminster cannot be trusted to deliver on its promises. Can you confirm if you've had any indications of such a policy reversal and, furthermore, can you tell us how you intend to hold them to their word, and if you have a plan B should they renege on their promises?

Photo of Mark Drakeford Mark Drakeford Labour

I entirely agree with Leanne Wood that we must have more than warm words from the UK Government on this matter. We have to make sure that they act on the promises that they have made, and she is quite right to say that they have made very explicit promises in this area. The Secretary of State for Scotland said on the floor of the House of Commons that the UK Government would come forward with amendments to put right the problems in the withdrawal Bill at Report Stage in the House of Commons, and that did not happen. We have had further repetitions of that promise, however, on paper and orally, that this will now happen at the House of Lords.

The Welsh Government will pursue a twin-track approach here. We will work with our colleagues in the Scottish Government where we have opportunities inside the discussions with UK Government to press them to come forward with an amendment that we could support and that could lead to a legislative consent motion being laid in front of the National Assembly. But we are yet to see any text that would give us comfort that that is to be produced, and, while it isn't available to us, we will pursue amendments at the House of Lords. It was very good to see Lord Dafydd Wigley at a briefing session that the Welsh and Scottish Governments jointly ran in the House of Lords two weeks ago. There was a considerable interest, Llywydd, amongst peers of all parties and crossbenchers, in the case that we were jointly able to make about the defective nature of the withdrawal Bill and why it will need to be amended. If we can't get an agreed amendment with the UK Government, we will pursue our own amendment in the House of Lords, and we will seek to defeat the Government so that we can amend the Bill in the way that is necessary.

Photo of Jack Sargeant Jack Sargeant Labour 2:25, 14 February 2018

Cabinet Secretary, inter-governmental discussions are obviously vital if we're going to get the best deal for Wales, particularly to industry. You will know that my home constituency is home to Deeside enterprise zone, and is the home of many companies, including Airbus and Toyota. My constituents rely on many companies like this, and those like Tata Steel, for their livelihoods and their children's livelihoods. Having worked on the Deeside industrial estate myself, I know how important it is too. Can the Cabinet Secretary reassure me that all efforts are being made by this Government to ensure that the UK Government delivers the best deal for my area and the industries that we rely on?

Photo of Mark Drakeford Mark Drakeford Labour 2:26, 14 February 2018

Can I thank the Member for that supplementary question—the first, I'm sure, of many in which he will represent the vital interests of his constituency? And he's absolutely right to point to the fact that Deeside has a whole series of major industries that rely on our membership of the European Union for their success and current way of operating. So, we press, as we always do upon the UK Government, the vital need for full and unfettered access to the single market, so that Airbus, for example, which relies on the ability to move goods across the European Union in a tariff-free way, is not impeded in its ability in the future and does not lead, as a result, to questions being raised about whether investment in Wales is the best place for that company to see its future. Not only does Airbus rely on the free movement of goods, but it relies heavily on the free movement of people—the ability of people who operate across the footprint of that company to move in and out of Wales in pursuit of the company's business. We make these points regularly and specifically to UK Ministers, and it's very good to have the support of the Member this afternoon in the efforts that we make to do so.