Questions now from the party spokespeople. The Conservative spokesperson, David Melding.

Diolch yn fawr, Llywydd. Minister, last month I welcomed the announcement that the Welsh Government's new economic contract will require businesses to have proposals to become carbon light or free. It is crucial that the Welsh Government sets standards to improve the green credentials of businesses in Wales, especially if we're going to invest and support those companies using public money. However, I also recognise that limiting action to carbon reduction alone is insufficient to create a resilient Wales, as defined by goal 2 of the Well-being of Future Generations (Wales) Act 2015. What conversations is the Minister having with the Cabinet Secretary for Economy and Transport to ensure that the new economic contract offers an integrated response to all seven well-being goals?

Can I thank the Member for his question, and, Llywydd, if I may, before I answer, pay tribute to Martin Bishop, the national manager of the Confederation of Forest Industries, who was a valued member of the Cabinet Secretary's stakeholder round-table group on Brexit, and a passionate advocate for the forestry sector, who sadly died in an accident at the weekend? I'm sure Members, and especially Members who knew him, will join me, and the Welsh Government, in paying our condolences to Martin's family, friends and colleagues. Diolch yn fawr.

The Member makes a very valid point, that, yes, it's good to have those ambitions to tackle carbon reduction, and our ambition is particularly for a carbon-neutral public sector, but also actually it's in the whole. One thing in terms of what we've been looking at too is actually how, and not just in terms of the economic action plan, we use public procurement as well, particularly in the public sector, and with any contracts and supply chains, and how we apply green public procurement. And, particularly within my own portfolio, we're looking at actually how, working alongside the National Procurement Service, alongside WRAP, and the Future Generations Commissioner for Wales's office, to develop a range of measures that allow us to identify trends and actions to help reduce the use of plastics, including things like straws within the public sector, particularly within schools. I'm sure other colleagues have received numerous articulate and well-argued letters from primary school children about their campaigns to get rid of plastic straws in their schools. In terms of conversations with the economic action plan, in particular, I and my colleagues across Government are working closely because we identify now that, actually, we need to work together and across Government on this—both myself and my Cabinet Secretary colleague as well.

Llywydd, on this side of the house, can I extend our deepest condolences to Martin's family?

Minister, to demonstrate that the Well-being of Future Generations (Wales) Act 2015 is being integrated across Government, it is vital that the resilience goals reflected in the contract by calling on businesses to demonstrate how they will contribute towards, for instance, sustainable management of natural resources. If put into practice, a contract that does this could require businesses to set clear and quantified targets that enhance ecosystem resilience within the period in which they receive Government support or are delivering a Government contract. So, what specific measures does the Minister have in mind for ways in which the contract can demand businesses to take action to contribute towards ecosystem resilience and the restoration of nature?

The Member is absolutely right that we need to take steps to not only halt the decline of biodiversity and reverse it, but also promote the value of our ecosystems, biodiversity and habitats to both communities and business alike. 

The economic contract and the calls to action provide a platform for us to make sure that we embed, as you say, the goals in the Well-being of Future Generations (Wales) Act 2015. I am particularly keen to explore potential—[Inaudible.]—already, like green procurement to place responsibilities on businesses to work with us in terms of the Environment (Wales) Act 2016 as well. We will bring in Part 4 of the environment Act, which will place the same responsibilities on businesses to separate their waste for collection just as households have been doing for years.

But also, actually, how do we apply biodiversity goals? One thing is going around, working with local authorities in particular to work out how they've been doing it, but it comes back to actually these ongoing conversations with my Cabinet Secretary colleagues—not just the Cabinet Secretary for Economy and Infrastructure, but across the piece—in terms of how we can apply that.

We've had conversations too with my colleague sat next to me, in terms of timber production within housing. So, showing the value of—. And particularly, for me, in terms of my portfolio—[Inaudible.]—the value of our circular economy not only to maintaining and restoring the sustainable management of our natural resources, but also in terms of the added value in terms of the job benefits that could bring to our economy in Wales.

Minister, I'm sure you'll join with me in commending the work of WWF, which has looked at this area of Government policy and would like to see more action. They've come up with some very specific ideas, including reducing the use of resources through increasing business resource sufficiency and resourcing from sustainable certified producers. Additionally, WWF suggests that we could improve biodiversity and restore ecosystem functioning through assessing impact on natural resources and actively investing in restoration. But isn't it true that, so far, this well-being of future generations Act, which is, I think everyone accepts, a landmark piece of legislation, has not been put to full, practical use yet? You really need to raise your ambition and ensure that they fully understand this in, for instance, the department of your colleague the Cabinet Secretary for economy, and really get to work, and you need to be co-ordinating this with the key players out there in the civic sector, like WWF.

The Member refers to WWF, who I have regular meetings with as stakeholders within the sector, and there is value in not just working with WWF, but collaboratively across the sector and across Government about—. And, yes, you're obviously right—we're rightfully proud about our landmark legislation and the ambitions and the aspirations contained in that legislation, but now, actually, we need to put that into practice and recognise that they may be environmental issues but sustainability needs to be embedded across everything we do, which is why there is value in working across Government to make sure that we see the outcomes that we want for future generations.

The UKIP spokesperson, Neil Hamilton.

Diolch yn fawr, Llywydd. I'm sure the Cabinet Secretary will agree with me that it's regrettable that the UK Government has not made more progress in seeking consensus from devolved administrations on the future of farm support post Brexit. This is very important to clarify at the earliest opportunity. Michael Gove has said that he wants to seek a consensus with us. He's also said that farm support should be based more upon the industry's needs and not Barnettised, which, again, I think we can all agree on. But the Welsh Government will have, once the implementation period is completed, significant freedom to diverge from UK Government policy, where that's in the interest of Wales, and one area in particular I'd like to explore with the Cabinet Secretary is the possibility of introducing headage payments for upland farms. These farms are not economically viable by themselves—that's obvious from all the topographical and other difficulties that farmers have to cope with—and if we are to continue to farm the hills of Wales to produce good-quality meat in particular, they will require this kind of support. So, is the Welsh Government in favour, in principle, of having headage payments on the hills?

The Member makes a very important point about the lack of clarity that we are getting from the UK Government regarding funding for future farming support. I was very pleased that Michael Gove did say that about not Barnettising, because we said from the outset that that would not be a good result at all for Wales, and I'm continuing to make sure that Wales does not lose a penny, as we were promised, in relation to funding post Brexit.

I think you're already seeing a divergence in farming policy. Certainly, over the last 20 years when agriculture has been wholly devolved here, whilst it's not wildly different, there is a divergence, and clearly upland farms is an area that is very different to most of England. Probably, there are some areas where you could say it's similar. So, I think that is an area that we are going to have to look at in great detail.

I've already said publicly that I will be launching a Green Paper at the beginning of July, well ahead of the summer shows, to consult on the future of agriculture, and this is clearly something that will be in it.

Thank you for that response. We don't know yet what sort of agreement might be finalised with the EU. One thing we do know is that the UK as a whole is only about 75 per cent self-sufficient in food products. There is a substantial imbalance of trade between Britain and the EU in food and drink products, so there is enormous scope, if the EU should be so foolish as to apply substantial tariffs to imports from the UK, for us to retaliate and for the food currently emanating from the EU to be replaced by food that is grown in Wales and other parts of the United Kingdom. In dairy, for example, our exports to the EU are about £1 billion a year, but we import £2 billion from them. In the case of beef, we import about 400,000 tonnes a year, but we export only 180,000 tonnes. Pork, we import about 1 million tonnes a year, but we export a fifth of that—200,000 tonnes. So, there's tremendous scope here for import substitution. We don't know what sort of regime we're going to face, but it would certainly be sensible for us to plan on the basis of there being no real deal and therefore to gear up Welsh farmers and the industry generally to replace the exports from the EU to Britain, which we compete with. So, what support can the Welsh Government give to farmers and others in the agricultural sector to take up the gap in trade that we currently suffer?

We are very concerned around tariffs. I'm sure you won't be surprised to hear that. Obviously, trade policy is wholly devolved to the UK Government, but we've made it very clear that we need to be around the table from the start, and I think they are realising that. Certainly, last Thursday, I held a joint meeting with Alun Cairns, the Secretary of State for Wales, with my round-table stakeholder group, where we were hearing that the UK Government, for instance, are planning for a 'no deal' scenario, making sure they've got the legislation et cetera. It was very apparent that people sitting around the table were very, very concerned about this, because I think that's the first time they'd heard that.

I think you're right that there is scope, and part of our supporting the agriculture sector and the food sector at the moment to prepare for Brexit is in relation to this—looking at the gaps, looking at the opportunities. Last week, I was out in Catalonia and in the Basque Country with the food cluster teams, and there are clearly opportunities that we have not got the most benefit from. Certainly, the Basque Country are very keen to build on their relationship with Wales.

That was a very informative reply, and I'm very glad to hear that the Cabinet Secretary has taken those steps. The other area that the industry is very concerned about, of course, is the impact of controls on the movement of labour between the EU and the UK. We all want to see the maximum degree of flexibility in this respect, without prejudicing overall immigration controls. Where skilled workers are concerned, nobody in his right mind would want to see the opportunities diminish to have people from abroad to plug the gaps in skills that we have currently. Sixty-three per cent of abattoir staff, I gather, come from the EU, and about 90 per cent of slaughterhouse vets are European. So, these people do play a vital role in the UK and Welsh agricultural industry and every encouragement should be given to them to remain in employment. Regardless of one's views on the desirability of Brexit, I think there'd be a widespread consensus for that view.

But, as in relation to import substitution with goods and food products, clearly, we do have the opportunity with increased training and so on to kit out our own people with the kinds of skills that currently we don't have enough of. So, can the Cabinet Secretary also tell us what she's been doing recently to prepare, again, for a Brexit where we don't have a sensible deal with the EU because they won't come up with one and because the British Government has made its policy perfectly clear that they want to see as little friction as possible both on movement of labour as well as on movement of goods? It's the EU that is currently the impediment, and Monsieur Barnier himself is a personal roadblock to agreement, and that is part of its negotiating strategy. But it is vitally important—I don't want this question to turn into a speech—it is vitally important that the Welsh Government should do what it can to improve training opportunities, particularly in those areas where there are currently skills gaps, and if the Cabinet Secretary could give us an update on that I'd be grateful.

I think you make a very important point about workforce, and all aspects right across my portfolio are very concerned about the workforce. You mentioned that 90 per cent of vets in relation to, I think you said, abattoirs are EU graduates; 100 per cent of Food Standards Agency vets are EU graduates—100 per cent. So you can see why we're so concerned. And then, apart from the skilled labour, there's the unskilled labour. We're already seeing a drop, farmers are telling me, in the number of EU nationals who are coming to do seasonal work ahead of the summer. So, it's clearly a matter of great concern and something where we went into in great detail with the Secretary of State for Wales. I don't think he was left under any illusions about the concerns that we have to take back to the UK Government. It's very hard—. Some of the abattoirs have about 80 per cent of their staff who are EU nationals. It's very hard to make those jobs more attractive, so it is about making sure that we help to upskill, and this has been part of the work for the past two years, really, since the EU referendum vote, to make sure that our sectors right across my portfolio are prepared.

Plaid Cymru spokesperson, Simon Thomas. 

Diolch, Llywydd. Before I start, can I associate myself and Plaid Cymru with the condolences expressed by the environment Minister to Martin Bishop's family? He was only here, I think, about three weeks ago helping me set up a cross-party group on forestry and his enthusiasm and advocacy will be sorely missed by many of us.

If I could turn now to the entry scheme for young farmers. This is the result of an agreement between Plaid Cymru and the Government, and £6 million has been allocated for this. It’s open at the moment, and I know that many people have applied, and many people are discussing this scheme. Generally speaking, there’s been a warm welcome to it. Now, a few questions have arisen in response to the adoption of this plan, and I’d just like to mention these to the Cabinet Secretary. First of all, people are asking whether it’s possible to have more of a conversation and more of a response from Government in terms of submitting an application and how applications develop, to understand whether that application would be appropriate. People are also raising the desire to ensure that the plan focuses specifically on young farmers, some of them a year or two into their business, but able to benefit from this scheme to develop their business, and in so doing, as we discussed in the Assembly, developing a cohort of people that will lead the industry as we face some of the challenges that have already been discussed here. Could the Cabinet Secretary tell us whether she is content just to keep an eye on this programme as it gets towards the closing date and ensure there is sufficient flexibility within it to meet the needs and objectives agreed?

Thank you. I'm very happy to be working on this scheme alongside Simon Thomas. The expressions of interest—the window actually closed yesterday. I am keeping a very close eye on it. I actually attended the second meeting of the young people in agriculture forum, where, I'm sure you can understand, I was questioned in great detail about this scheme. As you said, there's £6 million being made available. I'm really keen to make sure that we target the funding where we're going to have the greatest impact. As you say, it's about making sure we've got the next young leaders, so we're going to offer them—. Alongside other advantages of the scheme, we're going to work with them, in respect of the agricultural forum, to make sure that they have access to myself and to my officials. I think a couple of them are shadowing me at the Royal Welsh Show. It is about making sure that we encourage them going forward. As you know, the funding's going to be offered in the form of working capital, and again, that will offer the new entrants that flexibility with their business.

I thank the Cabinet Secretary for that response. I am pleased to hear, in particular, that there will be no stop to the way that we’re collaborating with young people. Some will have been disappointed by this programme, but I hope that the Cabinet Secretary will still keep an eye on the possibilities of including young people in developing the future of the industry in Wales.

Could I now turn now to the question of the Swansea bay tidal lagoon? Of course, in drawing up my question today, I had anticipated that we would have heard an announcement, but we’re still waiting. What we don’t know, of course, is whether we’re waiting because a decision is yet to be made, or whether we are still waiting because they haven’t decided when to release this information quietly. And in that context, can I ask the Cabinet Secretary, as the Government has made it entirely clear now that there is £200 million on the table from this Government to assist and promote that scheme, has that offer been taken seriously by the Westminster Government? Have they responded? Have they offered negotiations? Have they invited you or any other Member of the Government to London to discuss how that money could bring the tidal lagoon to fruition? And in that context, have you made any decision on how to push this proposal forward, so that a decision that will be beneficial to Wales can be made?

Thank you. Well, I too expected a decision to be made. We were told that probably a decision would have been made last Monday, then we were told today. My latest intelligence is probably 10 days, so we just really don't know. Obviously, I have to be very mindful again about discussing a particular project because of my role in relation to planning and, obviously, marine licensing. You'll be aware that the First Minister wrote to Greg Clark last week. To date, he's not received a response. So, I think the funding offer has been taken seriously, and I know the First Minister has discussed it personally with the Prime Minister. I'm not sure if he's discussed it personally with Greg Clark, but certainly he has written, and we are awaiting a response.

I thank the Cabinet Secretary for that not wholly encouraging news, I have to say. From her perspective, I understand she's not the one responsible for this, but it's coming and going like the tide itself, actually. If we could harness the energy from the indecision of the Westminster Government, we'd be doing very well here in Wales at the moment.

But I think it was a serious offer, and it was an opening bid by the Welsh Government, and it could've opened all kinds of discussions around co-ownership, taking the technology forward, Welsh Government co-investing in a brand new technology in Wales. If the Westminster Government can co-invest in Hitachi in Wylfa, then there's no reason why the Welsh Government can't do something similar for the tidal lagoon. I think the Welsh Government, I discern, is up for discussions around these in order to get the project going.

Since we don't yet have a decision, and since my own personal view is that we are being softened up for a bad decision, can the Cabinet Secretary tell us whether any of this money that has been promised to the tidal lagoon can be made available for other renewable energy projects in Wales, whether she has in mind other things that we can take forward with our own powers, and our own planning powers, particularly under the new Wales Act 2017, and whether she has the opportunity now to reconsider her decision around a Wales national energy company, which £200 million would set up very nicely, thank you, to take forward a lot of ideas that I think Wales is ready for? If we are going to be disappointed by Westminster, our best response for that rejection is to show that we are better than them and can do better here in Wales.

I do admire the Member's tenacity around the Wales energy service. I know there was a debate last week in my absence that the Minister for Environment responded to. You make a very good point about the £200 million. Of course, there are lots of other renewable energy sectors we could put that funding into—onshore, offshore. I haven't had any detailed discussions as yet, because, obviously, that was a very serious offer that the First Minister made around the £200 million. So, we do need to await a decision, for however long it takes, from the UK Government, before I have those discussions.