Ford's Bridgend Engine Plant

Part of Emergency Question – in the Senedd at 1:50 pm on 11 June 2019.

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Photo of Ken Skates Ken Skates Labour 1:50, 11 June 2019

I thank Suzy Davies for her contribution and her questions. I must say, it's simply not possible to ignore the impact that Brexit is having on the economy of Wales and will continue to have on the economy, and the dire consequences of a 'no deal' Brexit that Ford and many others have repeatedly issued. There are two challenges facing the automotive sector in the UK; one is Brexit, the other is the decline in the internal combustion engine. In terms of the internal combustion engine, some manufacturers had not seen the pace at which it would decline coming, and I think Ford is one of them. That's why they are perhaps behind the curve.

In terms of the question that the Member asked about why we didn't see it coming before now, well, we'd set up a taskforce that was meeting very regularly until recently that was looking at opportunities for the site, working with Ford and with the unions. And we were looking at the opportunities that could stem from Ford's electrification programme that was announced in April, and the potential for hybridised engines to be manufactured at the Bridgend plant. At no point did Ford indicate that the future of the plant was in question; indeed, we were working with the company and with others, with BEIS, on opportunities to invest in the Bridgend plant. And I would agree with Carwyn Jones that this decision appears to have been made very recently, and is something of a reaction to recent events that the Member for Bridgend outlined. Therefore, I really do strongly feel that Brexit should not be ignored as a contributing factor.

In terms of the conditions that have been attached to the support that we have given Ford over the years, as I've already identified, £143 million of taxpayers' money has been invested in the site, and I believe that we were right to invest in the plant, not least because in the space of just the last 10 years, it's contributed £3.3 billion to the local economy, keeping many, many small, micro and medium-sized businesses alive. The conditions applied to the support that we have put on the table for Ford still do exist today, but much of the conditionality by September of next year will have expired. That is why we are saying to Ford that there should be a very substantial legacy investment back to the people who have contributed to the company's existence in Bridgend. I would very much welcome any involvement that the Swansea bay city deal partners could contribute to the endeavour to get people into high-paid, decent jobs.

With regard to the other opportunities that could come to Bridgend, I won't be giving an ongoing update on all of the commercially sensitive discussions that are taking place with potential investors—the Member has identified one—but I can assure Members of this Chamber that there are many interested parties looking at the Bridgend facility. It is an enormous facility; it's very much a factory within a factory at the moment, producing the Dragon engine in one part but with available space for other businesses. And it may well be that the site could be used for multiple businesses. The priority, I believe, should be given to manufacturing, because the 1,700 people who currently work there would be ideally suited to such employment. But we would not rule out alternative and additional uses for what is an exceptional asset.