9. Debate on the External Affairs and Additional Legislation Committee reports on Brexit Preparedness

Part of the debate – in the Senedd at 6:00 pm on 29 January 2019.

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Photo of David Rees David Rees Labour 6:00, 29 January 2019

Llywydd, I will now turn to our three reports in a little bit more detail. The reports being debated today look in depth at some of the issues faced by three sectors—three sectors that are important to the Welsh economy. They also build upon previous reports of the committee. Whilst it would not be possible to consider all of the issues in the time available to me today, I would encourage Members from across the Chamber to study them carefully if you haven't already done so.

Our follow-up report on the implications of Brexit for ports revisits some of the issues we first brought to the attention of the National Assembly in August 2017. We took evidence from stakeholders involved in running Welsh ports, from hauliers, together with representatives from the aviation and tourism sectors. It's worth noting that not only do Welsh ports perform an important function in our modern economy, they actually also support over 18,000 jobs in Wales.

The fundamental issue at Wales's major roll-on, roll-off ports is this: they lack the physical capacity and infrastructure to accommodate new customs and border checks, together with the parking requirements that would be entailed in all of that. That's why we call upon the Welsh Government to publish its contingency plans for managing traffic at Welsh ports should new delays and checks become necessary after 29 March 2019.

While I appreciate that the Welsh Government believes that there may be some aspects of commercial sensitivity in doing this, I welcome subsequent assurances given to me by the Minister for Economy and Transport on this matter. However, it would be helpful if the Government could share this information with us on a confidential basis.

On 'no deal', we heard from port operators and hauliers that a transition period was essential as we leave the EU. In particular, the Road Haulage Association told us that

'UK and EU road hauliers, the majority of their customers and officialdom are not, and will not be, ready for a "no deal", "no transition" scenario.'

They also told us that

'current preparations are insufficient to avoid catastrophic disruption to supply chains' in such a scenario.

We noted this in our report about the proposals for future customs arrangements if we have an orderly Brexit. Widely-held concerns remain about the timescales for transitioning to any new system. We also note the difficulties that may be faced by exporters if they have to operate two complicated sets of systems after Brexit. It is helpful in that regard that the Welsh Government is working with key sectors of the economy to build that resilience.

I also welcome the contribution by the Minister for Economy and Transport last week, which reminded us all of the challenges in gaining heavy goods vehicle permits for Welsh businesses and the impact that might have on our indigenous companies. A simple matter that we all take for granted—that we can transport our goods across Europe without any difficulty—is now one that 'no deal' could severely damage.

Llywydd, our report on the healthcare and medicines sector heard wide-ranging concerns from health sector organisations. These included the implications of Brexit for the continued supply of medicines, access to clinical trials and maintenance of the health and social care workforce. One of the concerns raised with us was around the lack of communication and continuing uncertainty with regard to Brexit. Although much uncertainty remains, the increase in communication with front-line staff, as outlined in the Welsh Government's response to the committee's report, is welcomed, and I thank the Minister for Health and Social Services for his contribution last week.

In terms of the supply of medicines, the Association of the British Pharmaceutical Industry told us that

‘the number one ask is for a deal with regulatory co-operation and frictionless trade and movement across borders.'

We heard that 45 million patient packs of medicine move from the UK to the EU every month, with 37 million packs moving in the other direction. Before someone says that they need us more than we need them, they are different medicines and they have different needs, so it's not as easy or straightforward as people think.

In our recommendation 2, we called for the Welsh Government to share details with us of work under way to ensure continuity of supply. It is reassuring to see in the Minister's response a level of detail in terms of progressing with these arrangements.

Llywydd, when looking at the implications of Brexit for healthcare and medicines, it has been the well-being of patients that has been at the forefront of our minds. In particular, our membership of the EU currently gives Wales access to the very cutting edge in medical research and clinical trials. If the steady progress that we have made in improving the lives and health of our people is to continue after Brexit, it is vital that we secure close regulatory co-operation in the field of healthcare and medicines.

I welcome the steps being taken by the Welsh Government to work with counterparts in the Department of Health and Social Care in Westminster, as outlined in the Minister’s response. However, we do need more certainty from Government at both ends of the M4, and perhaps the Minister can address this in his contribution to the debate today, and I do refer to the Minister for Brexit in that scenario. 

A final issue in relation to the impact of Brexit on healthcare in Wales relates to the health and social care workforce. It's been discussed in many committees, that issue. In its evidence the British Medical Association Cymru told us that approximately 6.5 per cent of doctors currently working in Wales are from the European Economic Area. However, in terms of the wider workforce, we heard that a lack of robust data, particularly in relation to the social care and allied health professionals, is hampering efforts to prepare for Brexit. I am aware that there's been a briefing from the NHS Confederation that gives a bit more figures but the actual robust data is not there as such yet. As a committee we welcome the research work currently under way to assess the scale of the challenge and look forward to its publication in the coming weeks.

Our third and final report looked at the potential implications of Brexit on the food and drink sector in Wales, something which was brought to the fore yesterday by several major companies highlighting the concerns they had if we left without a deal. The key message to us in our inquiry was that to leave the EU without a deal that secures frictionless access to the single market could be potentially disastrous for the sector in Wales. We heard that around two thirds of Welsh food and drink exports currently go to the European Union and that, in 2016, the total value of exports was around £335 million.

Trading on World Trade Organization terms in the event of a 'no deal' would be particularly damaging for the red meat industry in Wales. It would see considerable new taxes placed on the export of red meat to our nearest neighbours, who currently account for about 90 per cent of all our red meat exports. Furthermore, we heard that it would be very difficult to replace the European market with trade to the rest of the world in the short term. It will take a concerted effort over a number of years for rest of the world markets to mature, and the committee welcomes the work currently being undertaken by the Welsh Government in that regard, but it is a longer term solution.

Finally, in terms of the food and drinks sector in Wales, we heard about the EU’s protected food names scheme, which currently gives 15 Welsh products legal protections against imitation. They include Welsh lamb, beef, Anglesey sea salt and Pembrokeshire earlies, just to name a few. It's vitally important that protected status for Welsh food and drink products is secured after Brexit and I welcome the way in which all Governments of the UK are working collaboratively on a successor scheme.

It is vital, with the level of change that we're about to see in the agriculture and food sectors as a result of Brexit, that this Assembly also has ample opportunity to scrutinise policy proposals in detail. I'm sure all Ministers will reflect upon this going forward, so that we are able as a legislature to actually scrutinise the policies that come forward to us.

Llywydd, it's important that we raise this awareness today in our national forum. As you will be aware, Brexit is a complicated issue that affects many aspects of our national life. I commend these reports to the National Assembly for Wales and look forward to other Members' contributions today and will respond accordingly.