5. Statement by the Cabinet Secretary for Economy and Transport: The Recent Airbus Group Announcement

Part of the debate – in the Senedd at 3:41 pm on 26 June 2018.

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Photo of Llyr Gruffydd Llyr Gruffydd Plaid Cymru 3:41, 26 June 2018

We all remember, I'm sure, back in 1980, when Deeside saw the worst mass redundancy of modern times when Shotton steelworks axed more than 6,500 workers in a single day. Of course, it took the area a generation to overcome that. In fact, I'm sure the effects are still being felt. But it has re-established itself—the area—as an industrial powerhouse in the north-east of Wales, but, of course, last week's intervention has cast another shadow that is causing huge concern in terms of the jobs, in terms of the impact on the wider economy and in terms of the wider supply chain, certainly. And were Airbus to abandon its operations in Broughton, then I fear that the effects wouldn't be as bad, they would probably be worse than those experienced back in 1980.

So, this is a real Brexit wake-up call for people in all parts of the UK. This is the reality check that many of us have been warning about for a long, long time, and it leaves highly skilled and well-paid workers facing huge uncertainty. It won't happen overnight. Whatever the circumstances, it'll take years, if this is to happen, for investment to disappear, but it certainly casts a shadow over those hard-working, dedicated and loyal workers at Airbus, the youngsters who are currently there, studying their apprenticeships, and the thousands of workers, as I said earlier, in the wider supply chain who fear the impact Brexit will have on their jobs. 

I'd just like to refer to a press article that I saw in The Leader where Shaun Hingston, a 15-year-old youth council representative from Saltney—you've seen it; I'm glad. He raises some real, pertinent points about how Airbus leaving the UK would be devastating for young people in Wales, and he really reflects the angst felt by the younger generation, who, of course, will be the generation that will live longest with the legacy or the consequences of Brexit, and he says that

'The moving or closure of Airbus in the UK would result in huge job losses, that would start a negative multiplier effect, businesses in the local area would relocate or close.'

By moving, of course, that would mean that people don't have the opportunity to go on work experience at Airbus or to complete apprentice programmes—the programmes that hundreds of young people across the area are doing and want to do, and are aspiring to do because they see Airbus as one of their dream jobs. 

Now, Shaun clearly understands the effects of the chaotic Brexit policies currently being pursued by this UK Government, even more so, I venture to say, than some UK Government Ministers. And that's the underlying issue here, I think, isn't it, that the current Brexit policy being pursued by the UK Government to leave the EU single market and the customs union—? I recognise, as you referred to, I think, earlier, that the Welsh Government's position on Brexit is to maintain membership of both. It was certainly detailed in the White Paper, 'Securing Wales's Future', that was co-authored with my party, but I have to say that the actions by the UK Labour Party have contradicted that. I'm just wondering whether the Cabinet Secretary shares some of my frustration at how ineffective Labour MPs have been in stopping this prospect of a hard Brexit.

We've seen the banners at Labour Live, we heard the chants and the singing at the rally at the weekend. Does he not feel a smidgen of regret that Labour opposition at Westminster is failing to change this trajectory that is leading us down this horrible path? And does he not wish that things were being done differently by his own party, whilst not letting the Conservatives off the hook? Because if that trajectory isn't successfully changed, then I fear, as many other people have said before me, that this Airbus example is just the tip of the iceberg. 

Usually, when I respond to a statement, my first questions is, 'What's the Government going to do about this?' But, of course, the scale of this prospect is so huge, it's so unprecedented in the devolved era, that it's quite a difficult question to ask, let alone answer. But I would like to know, and following on from the questions asked previously, what scenario planning the Government has done. Have you plotted out what the impact of a hard Brexit would be and what action you would consider to try, as much as you can, to mitigate those impacts? 

You mentioned your economic action plan, 'Prosperity for All', are you revisiting that in any way in the light of this? Because the thrust of it, and it's one that many of us support, is that we need to grow more well-paid and highly skilled jobs here in Wales. But, of course, this will require a rearguard action, because we're moving in the wrong direction. It will be about consolidation, as best we can, let alone growth in that particular respect. 

Airbus, of course, has its risk assessment, as we've all read. Where is the Government's risk assessment? Have you done some of that work? Maybe you could let us know. 

And, of course, the impact that this will have on further education and higher education is significant. Both the Cabinet Secretary and myself were at a meeting of the cross-party group from north Wales, last week, where we were left in no uncertain terms about the impact on important institutions in north-east Wales, such as Coleg Cambria. It would be significant, and I'm wondering what discussions the Cabinet Secretary has had with his Cabinet colleagues about maybe how some of those impacts could be mitigated and managed if they were to be realised.