6. What assessment has the Cabinet Secretary made of the impact that the closure of the Arla milk processing factory will have on the local economy in Llandyrnog? OAQ52270

My sympathies go to those affected by this disappointing decision. The Cabinet Secretary for Energy, Planning and Rural Affairs has requested an urgent meeting with the company and our Business Wales service has made the appropriate links to support those impacted by the closure.

Thank you for that response. Of course, I’ve looked back at the 'Prosperity for All' action plan that you have, and that talks about foundation sectors. Food is one of those, and you mentioned that you’re working across the Government to have the greatest possible impact in that particular sector. Now, we know how crucial milk processing is. Andy Richardson said in a report four years ago that more needs to be done to grow that sector; it creates jobs, it adds value, it brings value in terms of labelling and environmental benefits, rather than having to transport produce from one part of the country to another to be processed.

But the truth is that we're not growing processing capacity in Wales. It is shrinking and, in light of Brexit and what we're facing, adding value to food has to be a clear priority. So, I would urge you to leave no stone unturned. Of course, you mentioned the Cabinet Secretary for rural affairs. She has a role, but you, as a Government, of course, have supported other investments across Wales, and I would be eager for you to consider all possible options in this context because it is important that we not only safeguard the almost 100 jobs that will be directly lost, but also the wider dairy sector in north-east Wales. 

I think the Member is absolutely right. The food and drink sector has shown strong growth in recent years and is growing towards the target of a £7 billion contribution to the Welsh economy. But, in the future, the processing issue will be a major consideration not just of my colleague Lesley Griffiths but also of the enabling plan that's being developed for the food and drink sector. I think it's vital, in the short term, for the people that work at this particular facility, that we look at every opportunity there may be to save those jobs, and I am aware from news reports that the company may be considering alternative products for the site. I'll be meeting with taskforce members who are being convened this month to discuss the future of the site and options for us to be able to support either the existing business in diversifying, or another business in taking over operations, if that is at all possible.

Clearly, the distance for producers between the proposed new site and their sites will make them additionally vulnerable. At the end of your previous comments you also referred to the reports I've also seen that Arla is to retain the existing Llandyrnog site while they explore other opportunities. What actions will you therefore be taking in your dialogue with them to further explore and potentially support those opportunities and the products that might be involved, and how that might provide security for the workforce and their families currently working at that site?

Well, I think, first of all, we need to understand exactly what it is that Arla may be able to provide as an alternative to the products that are being produced there at the moment, and then we'll be able to, if at all possible, put together a bespoke package of support that could include, for example, skills retraining or skills training programmes that could include facility development support. We don't know exactly what those proposals are at this moment and how serious the company is about alternative products being developed at the site, but I can guarantee that we will look at every opportunity to protect those jobs and, if it all possible, help grow the company and maintain its presence in its current facility.