11. Statement by the Minister for Economy and Transport: The Impact of a 'No Deal' Brexit on Transportation

Part of the debate – in the Senedd at 5:00 pm on 22 January 2019.

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Photo of Russell George Russell George Conservative 5:00, 22 January 2019

I'd like to thank the Minister for his statement, which was largely helpful, containing useful information and updates to Members, and, no doubt, preparing work for a 'no deal' Brexit is putting that extra level of burden, I think, on Welsh Government civil servants, which I think should also be recognised as well.

Your statement improved as you delivered it, but you did start poorly. You mentioned a difference of view within the Conservative Party, but of course you failed to mention the infighting within the Labour Party. But I'm going to move on to the important and reasonable areas of your statement.

Now, I understand that there was a broad agreement on the approach that the UK Government have advocated regarding transport, so I would—Minister, if you could confirm whether this is the case and provide an update on what arrangements you have had with the UK Government since the joint ministerial forum on EU negotiations that was held on 3 December. Under the deal with the Prime Minister that has been negotiated, the UK Government and the EU had agreed a comprehensive air transport agreement, commitments that can allow comparable access for road hauliers and operation of buses and coaches, as well as a bilateral agreement on cross-border rail services. Now, if the Prime Minister's deal is now in jeopardy, as it is, can I ask what discussions you've had with the EU exit business advisory group and other transport industry groups in Wales on the impact of a 'no deal' Brexit on the sector?

Upon Brexit, UK-licensed airlines will cease to be community air carriers for the operation of air services and will no longer be part of the multilateral agreement on the establishment of a European common aviation area, so what discussions have you had with Cardiff Airport, and airline operators who operate from the airport, in preparation for Brexit? The Welsh aerospace sector is, as I'm sure you will fully agree with me, a high-growth, high-value sector, driven by innovation, and I certainly want to see Wales securing that place as a world leader in the future global market. I understand there has been cross-Government engagement with key stakeholders across the aerospace sector since the Brexit referendum, and I met with Airbus myself, just a few weeks before Christmas, along with the leader of the opposition, Paul Davies, to provide a commitment to do what we can to ensure that Wales is the most competitive location in the world for aerospace and other advanced manufacturing. It is clearly not in the interests of the UK, Wales or the EU to disrupt the just-in-time supply chain of our integrated aerospace sector, and products should only need to undergo one series of approvals in one country. I wonder if I could have your comments in that regard.

The time sensitivity inherent to modern UK logistics and supply chains means that retaining a seamless supply chain process is of significant economic importance, and I wonder what assessment has been made of the effect on our maritime industry, given the importance of our ports to freight. You have mentioned in your statement at some length about the contribution to our economy in regard to our ports and the risk that a 'no deal' poses to our fishing operations. I agree with you on that. I heard what you said in regard to our ports, and I wonder if you've had any discussion on the likely changes in trading patterns that would affect such ports as Holyhead and Fishguard, because, clearly, there'll be knock-on consequences to third party suppliers.

In your statement, you talked about trade with Ireland, and I wonder what discussions you've had, Minister, with your counterparts in the Irish Government to discuss the implications of Brexit for Welsh ports and Ireland-Wales transport links in general, and I wonder what advice you've published as well—if you could let us know what advice you've published to ports and traders and other firms and other organisations that use the border about potential disruptions, so they can get their supply chains ready.

I wonder what consideration has been given to the removal of EU rail legislation on the industry structure here in Wales. Is there any scope at all for any capital transport investment schemes to be brought forward to support the Welsh economy? And, finally, you talked about the potential of the waiting sites for delayed vehicles on Anglesey and in Pembrokeshire, and I wonder if you've had any discussions in regard to security matters with the police in those areas, or your officials have, indeed, had discussions with police forces in those particular areas in regard to security.