Questions now from the party spokespeople. The Plaid Cymru spokesperson, Rhun ap Iorwerth.

Thank you very much, Llywydd. Having full access to the European single market through membership of that market, including the customs union, is crucially important for businesses in Wales. Sixty per cent of Wales’s exports goes to the EU. We’ve heard this week that the European Union has started to advise businesses in Europe to think twice before using car components from the UK from now on. The motor components sector is still an important sector in Wales and this advice within the industry on the European continent has the potential to be extremely damaging. Do you agree with me, therefore, that the Conservative Government’s attempt to withdraw the UK from the customs union is likely to be very damaging in terms of the car components sector in Wales?

Can I thank the Member for his question and say that our position is very clear and is based on our trade White Paper? We need a customs union with which to do business, and I am deeply concerned about the future not just of the automotive sector, but all sectors that rely on smooth customs arrangements. Now, of course, there are opportunities for the automotive sector in terms of the UK single market, but there are also major threats that the Member has highlighted.

You gloss over it somewhat, but you did reiterate what the Labour Party position is there, which is that, upon leaving the EU, we should have a customs union as opposed to the EU's customs union. This really isn't about splitting hairs—you're talking about a new customs union that would have exemptions from certain EU laws. Now, I'd argue that that is just about as unworkable as Theresa May's famous 'max fac' option. It would be inconceivable, in my mind, for the EU to accept the situation where a non-EU country can enjoy the full benefits of frictionless trade with the EU whilst not following all the rules of the EU. Now, simply put, the Labour Party position, to my mind, doesn't do anything more than the Tory position to protect, in this case, the car components sector in Wales. But, moving on, membership of even the customs union alone wouldn't achieve frictionless trade. Membership of the single market is also needed for that. Does the Welsh Government still believe that the interests of the Welsh economy are best served by being a member of the EU single market?

Well, again, we've been entirely consistent in saying that we believe that we will need access to the single market on our exit from the EU. With regard to a customs arrangement, we've also been very clear in saying that we have to have a consistent regulatory environment across the UK and Europe to ensure that we can have smooth passage of goods and services, and that we also need smooth, seamless customs arrangements.

Again, you gloss over certain terminology: 'access to the European single market'. Again, this is not about splitting hairs. The House of Commons next week will have an opportunity, as you know, to defeat the UK Government on a number of amendments that could protect the interests of the Welsh economy. One of those will be on a Lords amendment to keep the UK in the single market through European Economic Area membership. Now, if Labour MPs, along with Plaid MPs who will, supported the amendment, a Government defeat would be likely, forcing the Government in effect to deliver what could be seen as a soft Brexit, more helpful to the Welsh economy. Jeremy Corbyn, though, has ordered his MPs to abstain on the vote, opting instead for his own equally unfeasible, I think, idea of asking the EU to let the UK have its cake and eat it—the kind of fantasy politics that I don't think we can gamble the Welsh economy on. Now, on what will be one of the most defining votes for a generation in the interest of Welsh jobs, wages and industry, what advice will you give your Labour colleagues at Westminster to persuade them to back EEA membership and to dissuade them from going down in history as the enablers of a hard Tory Brexit? 

We've been entirely consistent, and the Member here accuses me of glossing over what might be semantics. Actually, we've been very clear in our approach and we will not budge in our approach. And that will inform every position that we take in terms of informing and encouraging Members of Parliament and Members of the House of Lords. We wish to see access to the single market continuing and we wish to be a member of a customs union. The Member highlights the biggest gamble. Right now the biggest gamble as we exit the EU would be for Wales to also exit the union of Great Britain and Northern Ireland. What is crucial right now is that we maintain—[Interruption.]. It is true—it is true that the biggest gamble that could take place now would be independence for Wales as we exit the EU. We need to maintain right now good, strong relations with the rest of the United Kingdom and we need to protect the economy of Wales, just as the economy of the UK needs to be protected too.

Conservative spokesperson, Russell George.

Diolch, Presiding Officer. Cabinet Secretary, the coming new wave of technological advances in electric vehicles will potentially present Wales with a raft of new economic opportunities. You have previously said that the Welsh Government's new economic action plan is not going to be prescriptive, but do you agree with me that it would be wrong if it wasn't prescriptive in some sectors in order to maximise the potential positive impact of new technologies, including electric vehicles, on Welsh jobs and on growth?

The Member raises a crucially important point, in that automation is probably the biggest challenge for many, many sectors of the Welsh economy, and will continue to be so for many years, if not decades to come. Business would not wish us to be overly prescriptive in the way that we support their future development, but what we have done is created a calls to action, essentially five points in the criteria that we have set for businesses to draw down our direct support, which are matched to the five factors that will drive productivity—and, of course, one of those key enablers is the embracing of automation and artificial intelligence.

I think it's absolutely vital that we recognise that many small, micro and medium-sized businesses are actually nimble enough to be able to adapt to the age of automation, whereas larger companies can take longer to steer, even though they're able to future scan, in some respects, better. What I'm keen to do is to ensure that the calls to action apply equally to SMEs and to our anchor and regionally important companies as well. It's vital that all companies of all sizes, right across Wales, embrace automation rather than try to resist it. 

Thank you for your answer, Cabinet Secretary, but on my previous criticism, I do think the economic action plan does need to have tangible targets that can be met. But, I understand what you say with regard to not being too prescriptive in terms of what business would want, but that doesn't mean to say that it's not a piece of work that Government can do here. So, what I would like to ask you, Cabinet Secretary, is: what assessment have you made of Wales's existing electricity generating capacity and its existing road network in relation to the ability of that infrastructure to support the introduction of a large number of electric vehicles in the future in Wales?

I have met with National Grid and it's quite clear that significant investment is required to strengthen the grid if we are to see the development of electric vehicles as we would wish, and certainly as we would wish in order to cut carbon emissions. That investment should be provided centrally and it should be provided speedily. For our part, we are looking at developing more electric charging points, but the grid, if we are to see the targets met that the Cabinet Secretary for environment has outlined, then we will have to see a strengthening of the grid.

In terms of transport and the road network, I'm also on record as saying that I would like to see, in the future, trunk road development linked to the potential testing of autonomous and electric vehicles and connected vehicles as well. I'd like to see Wales leapfrog other countries that are keen to embrace this technology, but which are yet to show an absolute desire to do so. 

Thank you for your answer, Cabinet Secretary. We as Welsh Conservatives recently launched our 'Livable Cities' programme, where we outlined a number of policy commitments in relation to electric vehicles. In particular, we outlined proposals to create a road to prosperity fund that would enable the formation of 10,000 electric car charging points across Wales by 2030 and ensure the creation of a new centre for excellence to support the creation of new electric vehicle technology. So, can I ask you Cabinet Secretary, will you offer your support to these proposals and commit to bringing forward policies to support this ambition?

I'd be more than willing to meet—. I should say I'd be happy to meet with the Member to discuss the proposals, because I think they align quite neatly with our proposals for the Tech Valleys initiative and for the automotive sector as a whole. And indeed, for that matter, they align perfectly with the work that's going on at the moment by Professor Brown concerning automation and digitisation. So, I'd be more than happy to meet with the Member to discuss the exact proposals contained within the report, and to see where we can ensure, together, on a cross-party basis, that we can work together to advance the economy in the way that it has to be advanced in the age of automation, which is to embrace digital technology.

UKIP spokesperson, David Rowlands.

Diolch, Llywydd. Cabinet Secretary, statistics consistently confirm that Wales has the highest number of families classed as living in poverty, which at 24 per cent is the highest in the UK, yet those who occupy this Chamber and who are in well-salaried employment have decided that there will be no extraction of shale gas in Wales, period. However, in light of the situation highlighted above, is it not time to re-evaluate the extensive evidence that now exists with regard to this industry? I might add that I'm asking this question of you, Cabinet Secretary, because it may have huge economic benefits to this country.

Granted I'm not responsible for energy, but I will answer the question because I think it's a very important question. No, we won't shift our approach insofar as shale gas. Instead, we believe, and it's stated very clearly in the economic action plan, that we wish to see both well-being and wealth improved in the aggregate across Wales, but we also wish to see inequality in both reduced. We wish to see prosperity spread more fairly across Wales, and every aspect of Government can contribute to that agenda. In terms of energy, the Minister for environment and rural affairs has been very clear that, in the future, energy projects must be based and focused on a stronger community ownership ethic, in order to provide cheaper, more accessible, more affordable and more reliable energy supplies for people's homes. It's absolutely shameful that people still live in energy poverty, and we are addressing that by ensuring that community ownership takes centre stage in future energy programmes.

I thank the Cabinet Secretary for that explanation, which, of course, reiterates the same old policies. The United States is at the forefront of the shale gas extraction industry, and it has brought enormous wealth to that country. Many other countries around the world are now seeking to exploit this new resource, including China, Canada, Mexico and Indonesia, as well as countries in Europe, which include Ireland, Poland, Denmark and Germany. 

They're all wrong. 

Gas fuel is far cleaner than any other fossil fuel and, indeed, given recent evidence, possibly far cleaner than the wood chip we use to heat this establishment. The dangers relating to extraction have been extensively exaggerated, as statistics from the USA have proven over a number of years. Surely, Cabinet Secretary, the people of Wales have the right to at least have this huge resource properly examined, especially as the extraction industry has the potential to create many hundreds of well-paid jobs.

I'd argue that, actually, it's renewable energy that has the potential to create more jobs and jobs that are sustainable. And also in terms of renewable, you can guarantee that it will be there tomorrow, whereas once you've drawn out all of the shale gas, it's gone. My belief is that the United States' position is a rather quick fix, here today, gone tomorrow approach to energy, drawing out as much energy as you can or as much gas you can in order to provide short-term economic growth. That cuts precisely against the grain of the economic contract that looks at responsible business practices, and the economic action plan that looks at long-term sustainable growth. So, I would still argue that we should be focused on developing renewable energy, rather than simply going for that short-term quick fix to economic problems, which is what the pursuit of shale gas in the United States demonstrates.

You make an eloquent defence of the matter, as you always do, Cabinet Secretary, but again I reiterate: is it right that we allow a quarter of our population to live in poverty when we have a natural resource worth billions of pounds lying dormant beneath our feet? It is estimated, Cabinet Secretary, that there may be up to 34 trillion cubic feet of gas in Wales, with at least 12 trillion fully accessible. If this resource were to be exploited, we would not require a nuclear power station built by French and Chinese conglomerates; we would not have to see the beauty of our landscape despoiled by huge arrays of wind generators or thousands of acres of green fields covered by solar panels; nor would we need to import thousands of tonnes of liquid petroleum gas, shipped from halfway across the world, and at what cost to the environment? Surely, Cabinet Secretary, it is time for the Welsh Government to put the interests of the poorest people of Wales before political dogma.

I think it's very important to separate the question of energy poverty, and how we solve energy poverty, from the exploitation of natural resources that are here today but if we were to exploit them now they would be gone tomorrow and they'd be gone for every single future generation. We don't support the extraction of shale gas. We will not support the extraction of shale gas. What we will go on supporting is the development of energy development systems that can provide affordable energy and address energy inequality across communities. Of course, projects like the Swansea tidal lagoon are pathfinder projects for Wales, they will be new projects, but they could showcase Wales as the provider of renewable energy for millions of homes, and just as shale gas has temporarily given the United States some degree of energy independence, I believe, in the long term, renewable energy generation through tidal power could give Wales a degree of energy independence as well, as well as affordable energy for the people of the country.