1. Questions to the Minister for Economy and Transport – in the Senedd on 12 June 2019.
5. Will the Minister provide an update on support provided following the announcement to close the Rehau factory in Amlwch? OAQ53996
We are continuing to provide full support. Four all-day staff sessions have been held, the most recent being on 3 June. Feedback from the company and from staff has been very positive. They are being proactive in engaging across all options, including staff with professions considering setting up their own businesses.
Thank you very much. May I say thanks for the letter from the Minister on 5 June in reply to an e-mail from me on 9 May regarding support for the economy of north Anglesey? There is a reference there to the taskforce that has been established following the announcement from Rehau. Yesterday, in the context of the announcement about the Ford factory, we heard the Minister say that he would want to go further than the taskforce model because of the size of the threat there in Bridgend, and I agree with that, certainly. I would argue that the Rehau announcement on top of the negative announcements recently regarding the economy of northern Anglesey is also especially serious, considering the population and the rural element and so forth. So, I would welcome a promise to look at going further than the taskforce model in the case of north Anglesey as well, and to look at special investments in developing the economy there.
I would like to respond to a comment by the Minister on that, but also, on the specific question of what will happen to the Rehau site, I'd like to hear a word of support for the idea that the site would be left as a legacy to the local economy in order to ensure that what was an important economic hub can continue in the future.
Can I address that point first and say that we are continuing to discuss with Rehau what future plans there may be for the site? It is an incredibly important site, and if it cannot be used for other employers or manufacturers as a key location, then we wish to ensure that it is used for alternative use and that we get agreement from the company to use it in a way that serves the interests of not just the people who have been employed there, but also the wider community.
With regard to the place-based intervention in Bridgend, I took this decision to expand on the normal working practice when decisions of this nature are taken because of the huge financial contribution that Ford makes to the surrounding community—a £3.3 billion contribution per decade. The scale of that investment, of that amount of resource being lost, means that many businesses—many, many businesses—will have their futures hanging in the balance, and therefore a place-based approach is absolutely vital, alongside the other taskforce operations. I would happily speak with the Isle of Anglesey council about introducing a specific place-based focus in the work of the taskforce. I think it is absolutely essential—and I've said this to the local authority serving Bridgend, that it's absolutely essential that the local authority comes forward with proposals for both stimulating the local economy, the community economy, and also for ensuring that it is stabilised through the difficult period of jobs being lost. It can't just be left to Welsh Government. We have to work in collaboration and in partnership across all Governments if we are to get the best outcomes for the people we all serve.
When I questioned you at the end of January, after Rehau's initial announcement that they may be closing the site in Amlwch, you replied that you were looking at diversifying to other products within the group that could be diverted temporarily or permanently to the site, or indeed third parties. You also said that this would require a degree of investment, which was what Welsh Government was specifically working on with the company at that point. When the chief executive of Rehau announced the closure on 23 April, it said: 'Careful consideration at board level' had been given to
'proposed alternatives put forward by employees', but they would be not sufficient to secure the long-term future of the facility. Putting all that together—the reference to your talking to third parties, your then declaration that you were considering investment, and the proposals by employees themselves—what consideration is being given to bringing all those factors together as this moves forward?
I do regret that the company chose not to diversify, because I'd restate the position that we took earlier in the year, that we were ready and willing and enthusiastic about supporting the business. The decision has now been made, and we are keen, through the taskforce, through the regional economic development unit, led by the chief regional officer, Gwenllian Roberts, to examine all alternative options for employment of the people who are going to be affected and alternative uses for the site. We're working—. I should say we are working very well with the company in identifying alternative opportunities. Trying to find alternative major employers in a semi-rural area is very difficult, and therefore it requires additional attention to be given to the potential of supporting workers in starting up their own businesses, and that's why Business Wales are playing an integral part in the support that's given to them.