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 5:17 pm on 22 January 2019.

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Photo of Ken Skates Ken Skates Labour 5:17, 22 January 2019

Diolch. I think there are a number of really important points that Rhun ap Iorwerth has raised this afternoon. First of all, on the potential of co-investment, the Member is absolutely right that the potential 'no deal' scenario would lead to questions about investment in TEN-T routes. However, I've asked my officials to meet with potential investors next week who are looking at Holyhead port, who are showing very great interest in improving the infrastructure at the port and its attractiveness to not just tourism visitors, but to businesses as well. I think our efforts are going to have to be redoubled in the years to come if we are to maintain Holyhead's position as a premier roll-on, roll-off ferry port. The Member is absolutely right as well that we will be inhibited in terms of how we develop routes from all of the Welsh airports to outside of the UK, and so there would be questions about whether we could develop the airport in Anglesey further. This would be most disappointing given the increase in passenger numbers that we've seen on the intra-air service in recent times and what I think is a growing recognition that that the airport in the north-west of Wales, which is now very well used, is something that has a bright future if we get a decent deal on Brexit.

There is of course a select committee inquiry taking place at the moment at San Steffan concerning air passenger duty. We look forward to the outcome of that inquiry. We've given evidence; so too Cardiff Airport. We will continue to lobby the UK Government to create a level playing field. Of course, our campaign so far has not been successful, but we would urge UK Government, in order to assist with the competitiveness of the Welsh economy, to revisit this important issue. Some of what I've outlined today in terms of solutions for Holyhead port could be developed as longer term solutions. The development of policy and interventions by UK Government has focused largely on day one preparedness, but of course it's essential that we look to the medium and longer term. So, the assessment of the various options that we've undertaken in and around Holyhead has included medium and longer term solutions.

In terms of the resources that we have within my department, all officials are sharing the burden of this challenge. We have officials that are specifically allocated to developing policy in regard to our exit from the EU. However, largely, all officials are turning their heads towards dealing with Brexit. Additional recruitment is taking place at the moment for Welsh Government and, of course, in terms of financial resources, there is the £50 million EU transition fund and, within that, a £7.5 million business resilience fund. Of course, the business resilience fund is very much tied to the diagnostic toolkit hosted by Business Wales, which can signpost businesses to the relevant support and the relevant funds that we are able to offer them at this difficult time.