Honda

Part of 3. Topical Questions – in the Senedd at 3:06 pm on 20 February 2019.

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Photo of Rhun ap Iorwerth Rhun ap Iorwerth Plaid Cymru 3:06, 20 February 2019

Diolch yn fawr iawn. This clearly is a worrying announcement for us. It's thought, I think, that around a dozen companies are direct suppliers, including Kasai—200 workers in Merthyr Tydfil—Toyoda Gosei in Gorseinon—600, I think, there—Mitsui in Ammanford—over 100. It's a very long list and, of course, those companies have their own supply chains as well. So, there's a knock-on. Some companies, no doubt, will be able to transition to new customers, given the relatively long run-in to the Swindon closure. But, certainly, many will find it very difficult to replace their Honda deals, especially if those contracts form a large proportion of their total work. So, could the Deputy Minister outline the nature of the work that will be ongoing now with the sector to assess the impact of the Honda announcement, and outline what kinds of support packages are being considered for development by the Government at this stage? Could he tell us what specific support is being investigated to assist with transition to new contracts, and also transition to new vehicle technologies, including new generation propulsion? Because, in fact, much of our expertise here is in the electronics—in the chips and so on—that could be the smart foundations of a future automotive industry in the UK—an industry that is threatened by Brexit, of course.

Now, while Honda say that their decision is not because of Brexit, there is plenty of evidence to show that uncertainties and nervousness about Brexit have been a significant factor in some decisions taken by car and component makers to de-invest in the UK in recent months. There are, of course, plenty of warnings about the catastrophic consequences of a 'no deal' Brexit for carmaking in the UK. Now, the Deputy Minister will have read reports, as I have, of a fund—code-named 'Kingfisher' by the UK Chancellor—to bolster the economy in the event of a 'no deal' Brexit. Now, were preparations for Brexit transparent, as they should be, I'm sure that the Treasury would already have been having conversations with Welsh Government about how such a fund could work in Wales, what the priorities would be, and so on. I'm not holding my breath, but I'll ask, nonetheless, what discussions may have taken place. Specifically, what level of funding might be available from Kingfisher, or any other fund, for that matter, for the automotive industry in Wales? Also, does Welsh Government expect to have any influence over how those funds are spent? Also, how can different companies and different sectors, including automotive, be expected to access those funds?