1. Questions to the Cabinet Secretary for Finance – in the Senedd on 18 July 2018.
6. What plans has the Cabinet Secretary put in place for a possible no-deal exit from the European Union? OAQ52556
I thank the Member for that question. The damage caused by a 'no deal' exit from the European Union cannot be eliminated, but contingency planning is being carried out across the Welsh Government and with our partners in order to mitigate the impact of what would be a catastrophic outcome for Wales.
Yesterday, Labour MPs voting with the Tories ensured that a critical amendment to the trade Bill fell. The amendment guaranteed, if negotiations failed, that the most basic customs union would still be an option, protecting our steel and agricultural industries, Welsh jobs and wages. A 'no deal' Brexit now looks more likely than ever. European nations have been told to step up planning for a 'no deal' scenario and drug companies are stockpiling medicine for the same reason. Cabinet Secretary, I have twice asked the First Minister what the Welsh Government is doing to ensure similar measures are being put in place, and twice—rather irresponsibly, I have to say—the First Minister has said that it's not possible to put plans in place to mitigate a 'no deal' Brexit, yet you say here this afternoon that you have contingency plans. Given that there are two contradictory positions given to us from the Government, will you now commit to publishing a 'no deal' mitigation plan for the sake of Welsh jobs and wages?
Well, Llywydd, there is no contradiction in the position of the Government. The First Minister has said—and I entirely agree with him—that anybody who regards a 'no deal' Brexit as just another point on a continuum, and that you can plan away the downsides of that, is simply offering a false prospectus to the Welsh public. So, I say again: a 'no deal' Brexit would be catastrophic and no amount of planning can eliminate that catastrophe.
But you can mitigate it.
But you can carry out contingency planning, and there's no contradiction between those two positions. That's what I said in my answer to the Member. She will have drawn some comfort, I'm sure, from what the auditor general said in his valedictory letter. He said that
'it is apparent that work is getting underway within the Welsh Government and many other public bodies across Wales to manage some of the more immediate challenges that the Brexit process and its continuing uncertainties are posing'.
So, it was apparent to the auditor general that that work is going on. I give her an assurance that it is. We discussed it in some detail on the floor of the Assembly yesterday. Those are plans of a contingency nature. There is no plan that can simply wipe away the effect on Wales of a catastrophic 'no deal' exit.
Can I talk about Brexit in terms of organisations that rarely get mentioned, namely local government? How is the Welsh Government helping local authorities prepare for Brexit, including the possibility of a 'no deal' scenario? Because local authorities don't often get mentioned when we talk about Brexit, but they will, in many cases, be at the front line when we come out.
I thank Mike Hedges for that question. I want to assure him that local government plays an important part in our planning and that it is very ably represented on the European advisory group by the leader of Swansea council, Councillor Rob Stewart, who regularly reports at that group about issues of concern to local authorities and action that is being taken. I was very pleased earlier this month to be able to confirm £150,000 worth of support for the WLGA from our £50 million European Union transition fund, and that's there to help local authorities in the vital work that they do in preparing for Brexit.