1. What discussions has the Welsh Government had with Arla following its decision to close the site in Llandyrnog? OAQ52324

Well, the Cabinet Secretary for Energy, Planning and Rural Affairs has written to the managing director of Arla to request an urgent meeting to discuss all opportunities the company may be considering and how the Welsh Government may be able to assist.

Thank you for that response. I know it's early days, but I would like to ask whether the Government would be willing to consider maximising the potential of that site by looking at attracting others to operate from that particular site in future. Because the concern is that, if the site is mothballed, it closes everyone else out in terms of the opportunity to process milk in that area. We don't want a situation such as the one we saw in Whitland in west Wales many years ago, where the site was vacant for many years, which meant in turn that it wasn't possible to process milk in that area. That's important, of course, not only because we need processing capacity in Wales for all the reasons that I've outlined previously in my question to the Cabinet Secretary for the Economy and Transport last week, but also, of course, there is a commitment by Arla to continue to take milk from farmers in the north east. But for how long will they be willing to transfer that to Scotland and to Devon without, ultimately, deciding that it's not cost-effective?

I understand that the Cabinet Secretary has had a meeting over the phone this afternoon. One of the things that was being considered was what opportunities there are for this site, ultimately. I remember how difficult it was to ensure that the land was released in Whitland; I was the Minister at the time and ensured that that happened. It stood there, mothballed, for years in the town, and that's not something that people wanted to see; it was something that they wanted to see being resolved, and the land being used. So, there are two things: first, looking at the opportunities for the site itself, and, secondly, ensuring that there is support available for the people who work there, and that will be available, of course, through the ReAct scheme. Also, Business Wales is working with the company to see what opportunities there are.

Last week, responding to me, the Cabinet Secretary referred to the Farmers' Union of Wales statement that Arla was set to retain the site while potential opportunities for other products are explored, and that he would be taking that further with them. I've since been told by one source that 'other opportunities for the site' simply refers to recommencing production should tariffs be imposed on cheese imports post Brexit. But we also saw, over the weekend, reporting that Starbucks has struck a 21-year licensing deal with Arla to manufacture, distribute and market its range of premium ready-to drink milk-based coffees across Europe, the Middle East and Asia, which potentially opens wider opportunities. Perhaps you won't be able to tell us until you've spoken to the Cabinet Secretary, after his discussion, but will you inform the Assembly what discussions have been had, in that context, and whether this is simply restricted to tariffs post Brexit, or whether there are new opportunities linked to the publicised new contracts with third parties?

Well, it is early days yet, but certainly we will explore any possibility that will lead to a positive outcome for the area. And that is something the Cabinet Secretary will continue to do, together with officials.

First Minister, what steps did Welsh Government take, prior to Arla announcing the closure, to try and convince them not to close the plant in Denbighshire?

Well, these announcements often come with little or no warning. What we do of course in those circumstances is two things: first of all, to make sure that Business Wales looks to discuss the future with the company, and, secondly, of course, to provide support to affected employees, including through the ReAct scheme, in order to help them to identify alternative sources of employment. It isn't always the case that, where closures are announced, or proposed—because it is out to consultation at the moment—that we get substantial, or sometimes any, notice.