5. Will the First Minister provide an update on the latest preparations for leaving the European Union? OAQ52585

Yes. There are three things that I can refer to. First of all, we are keeping a very close eye on what legislation might be needed and the timing of any such legislation in advance of Brexit. Secondly, we're working on, for example, providing support through our £50 million EU transition fund. We will launch a new business portal shortly, and, on top of that, we're expanding our overseas operations to protect existing markets. We will also be recruiting more officials. Thousands have been recruited in Whitehall. We can't reach that level, but we are looking to recruit an extra 198 members of staff in order to deal with what is the most important issue that we've faced in the last 20 years. Indeed, it's 21 years ago today that the referendum took place. 

I thank the First Minister for that answer. Of course, crucial to preparations for leaving the European Union will be future migration policy, and today the Migration Advisory Committee has published a report. They say that EU migrants paid more in tax than they took in benefits, contributed more to the NHS workforce than the healthcare they accessed, and they had no effect on crime rates. Sadly, of course, the latest migration figures show that net migration from the EU is at its lowest level since 2012. As the First Minister stated yesterday in front of the external affairs committee, we have, effectively, full employment in Wales, but growing demands on public services and, of course, labour needs in the wider economy. So, as the Tories pull up the drawbridge on fantasy island Britain, is the First Minister any closer to progressing the suggestion for a Welsh work permit system?

As he will know, I've not been opposed, in principle, to such a system. There have been no further discussions on it since it was last raised by David Davis with me. I think today is a timely opportunity to look at that once again. But I don't agree with the findings of that report. Everybody says, 'We need to attract professionals.' No-one disagrees with that. But the reality is we need to attract people in many areas of the economy. The reality, if we look at food processing, if we look at our abattoirs, which are not everyone's cup of tea in terms of somewhere to work, is that huge numbers, if not the majority of the workers in those industries, are actually from other countries. If they weren't able to come here, those abattoirs would close and local people who worked there would lose their jobs. That is something that's often overlooked. It's not a question of, 'Well, let's just get the most highly skilled people'; we need the people that the economy needs in order for the economy not just to prosper, but to function.

First Minister, would you agree with me that Wales needs to take advantage of the opportunities presented by Brexit, as well as dealing with the potential adverse consequences? One of those opportunities, in addition to the overseas trade opportunities—which you've already identified, to be fair, as a Government, and you've invested in your overseas offices—is changes to the procurement processes that the Government might use in Wales. Now, clearly, the EU regulations at the moment cause significant problems, particularly for small and medium-sized businesses, which very often want to do business with the public sector. What is your Government doing to look at the procurement processes that are at large here in Wales in the public sector in order to take advantage of the opportunities of leaving the EU?

Can I thank the Member for his praise for the overseas offices that in previous years we were roundly criticised for opening? But I welcome the conversion. The National Procurement Service has, for some years now, provided an excellent service for businesses to take advantage of procurement opportunities. We've seen, for example, the amount of locally procured services increase in local government and in terms of what we actually procure. Yes, we have to be prepared for what Brexit might throw at us, but, two years on, I can't see exactly what the advantages of Brexit are. I don't see any trade deals on the table, I don't see any opportunities for Welsh exporters that would replace the barriers that we're putting up to the European market, so let's hope that in November there is a deal that's reasonable, a deal that is agreed, and a deal, importantly, that works for Welsh workers.

First Minister, do you agree with the Trades Union Congress general secretary, Frances O'Grady, who said last week that workers' rights and employment protection are at risk under Brexit and the alarming prospect of a 'no deal'? Do you agree that a 'no deal' would be disastrous for workers in Wales?

Well, of course, the deception is that, two years ago, at the time of the referendum, nobody said—nobody said, even those staunch leavers—'Of course, there'll be no deal'. No-one said that. Everyone said that of course there'll be a deal, the EU will fall over itself to give us a deal and the German car manufacturers will ride to our rescue—I met with some of them a fortnight ago, and they're not going to do that—and force the hand of the German Government and, therefore, the European Union. It hasn't happened. It hasn't happened, and this is what we all feared, at the time, two years ago. If we cannot strike a deal with our closest, biggest market that we already have substantial regulatory alignment with, we've got no chance of doing it with anyone else—no chance. People talk of a free trade deal with New Zealand; well, fine, but New Zealand is a market with only 4.8 million people and it's 12,000 miles away. It will never replace the European market of 450 million, with whom we have a land border, and that's sometimes overlooked. So, yes, by all means, look at other free trade agreements, but the reality is, unless we get our relationship with Europe right, nothing else will work.