2. What discussions has the First Minister had with the UK Government about the future of regional policy in Wales? OAQ52611

Well, we take every opportunity to discuss with the UK Government the interests of Wales, including our devolved responsibility over regional policy, and, of course, it would be important that whatever happens in the future respects devolution. 

I thank the First Minister for that response, and I'm sure the First Minister would agree that European structural funds have been hugely beneficial to Wales, both in helping individuals, helping communities, supporting infrastructure projects, creating jobs and developing partnership working. Does he have any knowledge about how the UK Government plans to operate the shared prosperity fund in the future?

Well, there's been some discussion between officials, but the detail is scant. Our position remains clear that economic policy is a devolved responsibility in Wales. We should be given the replacement funding we were promised two years ago: Wales would not lose a penny of funding. The reality is that the UK Government has very limited powers to directly fund and deliver regional economic development in Wales, in any event, without further legislation. It would drive a coach and horses, of course, through the devolution settlement that people have voted for on two occasions.

Now, we, of course, will continue to develop our own policy in terms of developing our economy, but it's absolutely crucial that there's no attempt at a power grab if the shared prosperity fund fails to respect devolution.

First Minister, I fully appreciate that the Welsh Government is still awaiting details, the finalised details, of the shared prosperity fund, and its vitally important that, within Wales, we do have an effective replacement to the structural funds that we have benefited from, depended upon for a very long time. Albeit we are in the situation we are, can you give us that assurance that your officials are doing their best at this moment in time to develop at least a framework going forward so that when we do have full details of that shared prosperity fund, the people of Wales, and industry within Wales, are best placed and on the best footing to take the most advantage of it and get on with the job for Wales?

The difficulty is, of course, the lack of detail as to how the fund will operate: how much money there'll be in the fund, for example; whether it'll be a fund where there will be a bidding process, which, of course, would cut across devolution; whether it will operate in the same way as the current European funds operate. In the absence of that detail, of course, it's difficult to put forward proposals as to how that fund might operate in Wales, but I can say that the finance Secretary is scheduled to deliver an oral statement next month, which will set out the next steps for the development with stakeholders of a regional policy post Brexit.

First Minister, I appreciate it may be rather difficult to be negotiating with the Brexit process as it stands. Will you agree with me that you could, of course, have strengthened your own hand by rejecting and refusing to accept what you've described as a power grab? Have you any idea—I would fully accept that this is not within your gift—of the time frame by which we will know more about the shared prosperity fund and the extent to which your Government will be able to deliver it in Wales?

I can't give a timescale on the shared prosperity fund because it's not our timescale and not our fund. In terms of the situation that she—. I should welcome her, of course, back to the Assembly—forgive me for that.

In terms of what the Member has described, the Scottish Government now finds itself in court. We don't know what the outcome of that will be, but, of course, if the Supreme Court rules against the Scottish Government, that opens up any number of difficult avenues as far as devolution is concerned.

We took the decision that we did on the basis that we felt that it was a good agreement for Wales—not everything we would've wanted, of course, but that's the nature of an agreement. The Scottish Government at the moment—well, is it in a more powerful position? I'd argue not, because, of course, it's fighting its case in court.