3. What discussions has the Counsel General had with the UK Government on support for car manufacturers in Wales in the event of a no-deal Brexit? OAQ53399

We recognise the importance of the automotive sector to Wales and continue to press the UK Government to rule out a 'no deal' outcome whilst providing advice on mitigating actions. We are also in very close contact with the Welsh Automotive Forum and UK-wide sector bodies on Brexit. 

I do hope that the speculation on an overheard conversation in a Brussels restaurant or bar with Olly Robbins is correct and that, indeed, the Government has ruled out a 'no deal', it just isn't telling us that it has ruled out a 'no deal', because the chief executive of the Society of Motoring Manufacturers and Traders has said, in his words, that a 'no deal' 

''would be catastrophic – plants will close; jobs will be lost.' 

Today—this morning—Ford have used the same word, 'catastrophic', to describe the impact of a 'no deal' on the UK and says it will do whatever is necessary to protect its interest in Europe. It's declined to speculate on a report that it is planning to move all its jobs—13,000 jobs in the UK, including in Ford Bridgend—out of the UK in the case of a 'no deal'.

Could I ask the Minister what insight has he had from the Prime Minister and from UK Ministers about the scale of support that the UK Government is going to provide for our car manufacturers in the case of a 'no deal' to persuade them to avoid that situation where plants will close, jobs will be lost, families will see the impact right across the UK, including in my constituency of Ogmore?

I thank the Member for raising this question in the Chamber. It goes to the heart, I think, of the challenge that we face with the sort of deal and the sort of negotiations the Prime Minister has been pursuing, and in Parliament. It completely fails to take account of the sorts of risks to our economy that the Member has outlined in his question.

As a Government, we have taken steps to support the sector here in Wales, but in the context of a 'no deal' Brexit, the tariff barriers and the non-tariff barriers that would come in the context of that, could potentially be devastating for significant parts of the sector, and also, if I may say, the supply chain, which stretches right across Wales—I don't think the impact on supply chains has been appreciated as fully as it needs to be as well.

Obviously, we're still waiting with bated breath to know whether Ineos will be bringing its new vehicle to Bridgend, perhaps, rather than Portugal. But it was concerning to hear the other day that, even if this work does come to the UK, it may not be enough to save the Ford plant; it's a plant, of course, that, being Ford, is also affected by the decision of the United States President and what he's doing in America to support industry over there, which is affecting the potential of both steel and car manufacturing here. Can you tell us what work you'll have done with both the economy Minister and the Minister for international relations to identify what other opportunities will be available for car manufacturers in Wales, but, very specifically, what Wales is doing to push what should be our unique selling points about the steel innovation within the Swansea bay city region, for example; our enterprise zones, one of which is dedicated to automotives; and, indeed, just promoting what we're good at when it comes to automotive research? Because it's that that's going to make us attractive to other global partners in due course, despite the threats that we're facing now.

I agree with the characterisation of the threat that the Member describes. I know that the economy Secretary and the Minister for international relations have this as a key priority. The investment that the Government has made, for example, in further upskilling the workforce in some of these companies is a significant dimension to the attraction of businesses to Wales in these sectors, and also in further enabling these companies to compete within their own international networks for resources, which is a key dimension to some of the issues that we face here.

I know that, in terms of the outward-facing strategy of Wales in the future and identifying opportunities for further investment in these sectors, the Minister for international relations has that as a top priority, but I am bound to say that if we end up with the kind of relationship with the single market that it looks like the Prime Minister is prepared to contemplate, that will not strengthen the hand of the Welsh Government or indeed any of these companies in fighting for resources and fighting for opportunities for their workforces.