Supporting the Manufacturing Sector in Wales

1. Questions to the First Minister – in the Senedd on 20 November 2018.

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Photo of David Rees David Rees Labour

(Translated)

5. What action is the Welsh Government taking to support the manufacturing sector in Wales? OAQ52975

Photo of Carwyn Jones Carwyn Jones Labour 2:03, 20 November 2018

Since 2011, the Welsh Government has supported over 16,200 jobs in manufacturing. Through the economic action plan, we will support futureproofing business investment to help companies sustain, compete and grow.

Photo of David Rees David Rees Labour 2:04, 20 November 2018

Thank you for that answer, First Minister. Clearly, the advanced materials and manufacturing sector discussed in the economic action plan is one of the areas where we're going in the future—very modern technologies. But, we still have many manufacturing sectors that are still relying on older technologies that need updating—Tata being an example of one of those plants. The Welsh Government committed millions of pounds of investment into the power plant. Can you give us an update as to where that money is? Can you also look at what other actions you might be able to take to help companies like Tata, which want to improve productivity and efficiency, but are having difficulties, perhaps, in sometimes getting that extra support?

Photo of Carwyn Jones Carwyn Jones Labour

Well, the investment in Tata is going well. Of course, Tata themselves have invested in blast furnace 5. We continue to talk to them about what kind of package would help and what would be lawful, of course, under state-aid rules. In fact, I had a meeting some 10 days ago with a representative of Tata as we look to take things forward. Tata are definitely keen, of course, to stay in Wales, and particularly in Port Talbot and the other plants around Wales, and we will continue to work with Tata, as we always have done, to secure Welsh jobs. 

Photo of Mohammad Asghar Mohammad Asghar Conservative 2:05, 20 November 2018

In June, the annual Barclays and SPTS Technologies' Voice of Welsh Manufacturing event was held in Newport. One of the topics of discussion was skills shortages and the shift from vocational qualifications to university degrees. First Minister, what is the Welsh Government doing to tackle the misperception that exists regarding the well-paid and rewarding roles that careers in engineering and manufacturing offer in Wales?  

Photo of Carwyn Jones Carwyn Jones Labour

We are seeing the growth of apprenticeship schemes. I think in the 1990s the UK lost interest in apprenticeships, and concentrated overly on academic courses. We now see, of course, not just bigger companies but smaller companies offering apprenticeships. Jobs Growth Wales was an example of that to give people the training they needed to get a job and, of course, we have a commitment to create 100,000 apprenticeships for all ages across Wales. It's through creating those apprenticeships that we create the opportunities for people, and show them that there is a worthwhile alternative to the academic route and, of course, in ensuring that, making sure that people have the skills they need to be employable in the future. 

Photo of Caroline Jones Caroline Jones UKIP 2:06, 20 November 2018

First Minister, my region has lost far too many manufacturing jobs in recent decades, and while I welcome your Government's actions in securing new manufacturing investment, such as the Aston Martin deal, this doesn't replace the loss of manufacturing output in South Wales West. First Minister, how will your Government ensure my region benefits from such investment, particularly as the region has excelled in the automotive supply chain in the past?  

Photo of Carwyn Jones Carwyn Jones Labour 2:07, 20 November 2018

Tata is one example, of course, and Ford is another one. We've work very, very closely with the companies through some very difficult times, at times, to make sure that Ford with its 1,700 jobs in Bridgend is still there and looking to the future. What we have done, I believe, is replace many jobs that were low paid, low skilled, with jobs that are higher paid and higher skilled. That's where we need to be. Competing with those who have low labour costs is not Wales's future. It was tried in the 1980s and 1990s, and unless you are willing to pursue lower and lower wages, then that is not something that is an option to you. That has meant an emphasis on skills. It's meant an emphasis on attracting high-quality investment and high-quality jobs, and that will continue to be the aim of the Government.