7. Debate on the External Affairs and Additional Legislation Committee report: 'How is the Welsh Government preparing for Brexit?'

Part of the debate – in the Senedd at 4:48 pm on 18 April 2018.

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Photo of Jenny Rathbone Jenny Rathbone Labour 4:48, 18 April 2018

As David Rees has already said, the promise during the referendum was that we would be no worse off if we left the European Union, and it's up to the UK Parliament to ensure that whatever deal is agreed by Mrs May, and she brings back to the UK Parliament, meets those criteria. Otherwise, they ought to know what to do with it. What our job is is to articulate the needs of Wales and how Wales will not have its devolved powers rowed back on as a result of leaving the European Union. We have already rehearsed the problems around the LDEU and the referral to the Supreme Court, so this is a discussion that's going to go on and on. But I think that we need to be wise to the rhetoric that has been surrounding this versus the reality.

When members of the committee visited Toyota in Deeside in February, it was made very clear to us that it would be a disaster if the just-in-time goods that they import into Felixstowe were going to be delayed as a result of us no longer having a single market arrangement, and that if there were additional customs checks in Felixstowe, it would obviously put a major question mark over whether or not Toyota would continue in the UK. It was therefore a very pleasant surprise to see that Toyota has actually agreed to build the latest engine at Deeside, which was announced after our visit. 

I think one of the issues for me is not just the time that all the big brains in Welsh Government are having to deploy on this subject when we could be dealing with other more pressing matters like eliminating poverty or sorting out homelessness, but that the cost of leaving the EU could be huge. Mrs May, in her speech at the Mansion House, for example, identified a number of EU agencies that she wanted the UK to continue to be involved in as an associate member. She mentioned the European Medicines Agency, the European Chemicals Agency and the European Aviation Safety Agency as ones that she had in mind.

Our discussions with stakeholders made it clear that those three are very important to the continued functioning of Welsh organisations. Cardiff Airport warned that if they were not part of the European Aviation Safety Agency, it would have a considerable impact on their ability to compete with other European airports and would certainly put new costs and new delays on their operations. The NHS Confederation, the Royal College of Nursing and the British Medical Association were all clear that we need to be part of the European Centre for Disease Prevention and Control as well as the European Medicines Agency. Leanne Wood has already referred to the fact that if we're not part of the European Medicines Agency, we will be at the back of the queue in terms of getting new medicines, because we will no longer be a large-enough economy to merit new medicines being given priority to our country, so that is obviously a very serious matter.

When we were in Brussels at the end of last month, one of the people we saw was Mr Stanislav Todorov, the permanent representative of Bulgaria, who is an extremely important figure at the moment, because Bulgaria holds the presidency of the European Union, so what he had to say is very important. He was perfectly clear with us—he was refreshingly clear and candid, in fact—about the expectations being raised by Mrs May and others. He said, 'Look, these agencies are all about strengthening the single market, and if the UK is not part of the single market, ergo they are not going to be members of these agencies.' Obviously, we can negotiate some sort of observer status, but it doesn't look very promising if the hard line adopted by Bulgaria is played out across the rest of the EU. Therefore, we have to then ask ourselves what the cost is going to be of setting up similar regulatory bodies in the UK, which is money that we, therefore, don't have to spend on other things like insulating all our homes.

So, I think there's a real tendency to want to have our cake and eat it on this one, but I hope that this report is a useful summary of some of the issues that we need to continue to pursue to protect Wales's interests.