12. Statement by the Minister for Environment, Energy and Rural Affairs: The Impact of a 'No Deal' Brexit on the Environment, Agriculture and Fisheries

Part of the debate – in the Senedd at 5:46 pm on 22 January 2019.

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Photo of Lesley Griffiths Lesley Griffiths Labour 5:46, 22 January 2019

I thank Andrew R.T. Davies for that series of questions. I'm very intrigued by your optimism in the Prime Minister's deal. It doesn't really matter what I think because that deal was rejected by a very large majority of 230. But the deal that she placed on the table certainly doesn't protect our jobs and our economy in the way that we would want to.

You mentioned Jeremy Corbyn not engaging, well, frankly, I think it was a cynical ploy. She didn't want cross-party discussions at all. They lasted for a couple of days, and I think he absolutely saw through that. It's the inflexibility of the Prime Minister and the complete rigidity not to be able to move away from the deal. It's been wholly rejected, as I say, by one of the largest majorities I think we've ever seen in Parliament, and now is the time for her to be far more flexible and look to coming forward with a better deal.

I accept what you were saying about the NFU and the FUW saying that they would rather the Prime Minister's deal than a 'no deal'. It was really interesting last night at the NFU dinner, at which you and others were present, when it came through that the Prime Minister said she had spoken to Welsh farmers who were enthusiastic about a 'no deal'. And you heard the president of the NFU say he would die in the ditch rather than accept a 'no deal'. He was absolutely horrified that the Prime Minister could possibly say that.

You ask about preparedness, well, you will know, and many other Members here will know, that I think it was two weeks after the EU referendum vote I set up the Brexit ministerial stakeholder group, which I chair. We have met very frequently and we are now meeting monthly. The last meeting was last Thursday here in Cardiff, and, round that table, I have everyone right across my portfolio. Nobody works in silos, we all work together. So, everybody has been included in that, and I will continue to include members of that round-table. There's been a variety of sub-groups, and one of the areas that one of the sub-groups looked at was scenario planning. So, we looked at no deal. I have actually been preparing for a 'no deal', but even I—. Last summer, I remember being asked at the Royal Welsh Show did I think a 'no deal' would come forward. Even though it's obviously the default position, if there is no deal by the end of March, I could not believe that the UK Government and the Prime Minister would allow that to happen. So, of course we've had to start now to move towards a 'no deal' much more seriously. But you have to remember, we only have one set of officials; they are doing their day job as well, but there is obviously more of a focus now on no deal. And some things will—you can't have business as usual and prepare for no deal and do everything else.

I know you were there this morning as well as last night, and I said that I had hoped to bring forward the next stage of the consultation around 'Brexit and our land' by late spring, certainly, but I have now committed to early summer. It will be well ahead of the Royal Welsh Show and the summer shows, because I think that's really important, because that's certainly my chance to engage with so many people on a large scale. I have assured farmers that I will do basic payment schemes for 2020 as well. Obviously, we went for that further year, and I hope that's provided some reassurance to them.

In relation to funding, last week I attended a quadrilateral meeting in London, and it was made very clear to Michael Gove by myself and by my Scottish counterpart that we expected a 'no deal' to be taken off the table completely, and if that was the ultimate outcome, we would expect the UK Government to pay for a 'no deal', and, certainly, businesses are now telling me that already the prospect of a 'no deal' is costing a great deal of money. So, that message was given wholly to Michael Gove, and I know the Minister for Finance has now received a letter from HM Treasury around that.