Quinn Radiators

3. Topical Questions – in the Senedd on 12 June 2019.

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Photo of Jayne Bryant Jayne Bryant Labour

(Translated)

1. Will the Minister make a statement in response to the announcement that Quinn Radiators has gone into administration? 324

Photo of Ken Skates Ken Skates Labour 3:33, 12 June 2019

This is clearly deeply disappointing news for its workforce. Our thoughts are with those dedicated and loyal employees and their families at this incredibly difficult time. Once appointed, we will seek to work with the administrator to do all that we can do to minimise the impact on the local community and the wider economy. 

Photo of Jayne Bryant Jayne Bryant Labour 3:34, 12 June 2019

Thank you, Minister. Minister, this has been devastating news, which came out of the blue. It's a blow for Newport, the surrounding area, but especially for the workers and their families. Two hundred and eighty workers turned up for work on Monday morning to find out that they had lost their jobs. They describe being told that they'd lost their jobs as 'gutting', 'shocked' and 'a slap in the face'. They had no warning. Worryingly, as the local Member, who had visited Quinn's on a number of occasions, I was not informed of any difficulties. Similarly, Unite the union was given no prior notice. The facility at Newport was the most advanced of its kind in Europe. The radiators designed and made in Newport boasted the lowest environmental impact of any radiators on the market. Quinn Radiators were the only major manufacturer to produce all their radiators in the UK, and they also sourced their steel from Port Talbot.

I'm grateful for the Minister's quick intervention in setting up today's special meeting with Careers Wales, the Department for Work and Pensions, Citizens Advice bureaux, and potential employers. I visited this morning, and it was clear to see the very human stories behind these job losses. This is a dedicated, hard-working workforce; they're loyal and skilled, and they will be an asset to any company. And this is evident to me by the local employers who have contacted me, informing me of vacancies.

Minister, I hope you can offer your reassurances that ongoing support will be offered in the coming days and weeks, and that Welsh Government will do all it can to make sure these workers get the backing that they deserve.

Photo of Ken Skates Ken Skates Labour 3:35, 12 June 2019

Can I thank Jayne Bryant for her topical question, and also thank her for her speedy response to this issue when it emerged? Immediate contact was established, and I know that Jayne Bryant has been incredibly supportive of those people who have been affected by this decision. And I would echo her comments about the way individuals at the company were informed: it was quite appalling that they turned up at the gate to be met by men in grey suits—as it's been described—to be told that their jobs were gone. That is no way to treat a workforce, a dedicated workforce. We will, I can assure the Member, give all the support possible to affected workers. I'm pleased to say that the taskforce that's been established will meet tomorrow. It will have representatives of a number of organisations able to offer advice and assistance to those affected. It will include, of course, officials from Welsh Government, it will include individual professionals from Jobcentre Plus, from Careers Wales, from Newport council, and also from the Citizens Advice bureaux. This is going to be a difficult period for those affected by the announcement, but we will support those people and their families and their community all we can.

Photo of Mohammad Asghar Mohammad Asghar Conservative 3:37, 12 June 2019

Minister, the announcement of 280 job losses at Quinn Radiators has come as a severe blow to this highly skilled, hard-working, and loyal workforce in Newport. It is also concerning to hear that the company received £3 million in loan support from the Welsh Government as recently as 2016. Can we have your assurance, Minister, that you will give every assistance in finding a buyer for this company, or to provide training opportunities for the workforce to find other employment? And what action do you intend to take to secure the return of the money lent in this case to this company? Thank you.

Photo of Ken Skates Ken Skates Labour 3:38, 12 June 2019

Can I thank Mohammad Asghar for his questions, and begin by saying we make no apology for supporting a dynamic business, an innovative business? And, when my predecessor announced the support of Welsh Government for this company, she rightly identified that this was one of the most advanced companies in that particular business sector, as Jayne Bryant has today repeated. And the fact is that cheaper imports, of a lower quality, not so advanced—in the way that Jayne Bryant has outlined—have led to the company's demise. That is deeply regrettable, because the products were of the highest quality. Yes, the business was secured for Wales through a loan, and we have already recovered approximately £0.5 million of that loan. Of course, every effort will be made to recoup it, and officials will be working closely with the administrator. And we've already met as well with the Development Bank of Wales to discuss how to minimise the potential shortfall. But it's as a result of our investment in businesses in Wales that we have a record number of business births, a record number of businesses in existence, and record low unemployment and economic inactivity. This is desperately, desperately bad news for those workers affected. But it's as a result of the Welsh Government's dynamic means of working that I can say, with confidence, that we will be able to find those people alternative work in the area.

Photo of Delyth Jewell Delyth Jewell Plaid Cymru 3:39, 12 June 2019

I was deeply saddened to hear the news on Monday that 280 workers in my region faced redundancy as a consequence of Quinn Radiators going into administration. As has been said, they were loyal, hard-working people, who gave the company years of exemplary service. My heart goes out to all of them and their families. I'd like to know, Minister, whether you were aware of the difficulties the company was facing. As has been said, one of the most horrible aspects of what has happened to them was how late in the day they found out. There was one interview with a man on the BBC who had taken out a £6,000 debt that morning. If workers such as he had been more informed, they could have taken that into account when planning for the future.

I'm aware, again, as has been said, that an event was held this morning to offer support to the former workers. Could you please tell us how well attended that was and what plans are in place to make contact with those who were not able to attend?

I'd also like to know how you'll ensure that everyone is made fully aware of the support that is available through the ReAct scheme, for example. Will you be offering support for them in terms of gaining access to lost pay and making claims for redundancy payouts? Could you also commit to investing the money that you will hopefully recover from the loan provided to the company in job creation in the area and upskiling workers who will need to find alternative employment?

And finally, Minister, I'd like to reiterate the call made by Adam Price and Bethan Sayed for an audit to be held of current major employers in Wales so that Welsh Government can take a preventative attitude towards job sustainability by having a clear idea of where problems are likely to develop so that they can act decisively in order to protect jobs rather than reacting when they're lost.

Photo of Ken Skates Ken Skates Labour 3:41, 12 June 2019

Well, can I thank the Member for her questions? I share her anger at what has happened, but I can assure the Member that we've actually been carrying out a risk register process for quite some time. Obviously, we are not in a position—. And we would not wish to publish an audit or risk register of employers in Wales, because, of course, any companies that are identified as being in a vulnerable or fragile position, if that was to be made public, their position would only worsen and in all probability lead to collapse. So, where we have the ability to draw down intelligence, and that intelligence is based on a partnership of information being shared with us, we are able to assess whether a business is in trouble and then we are able to make proactive advances to that business. 

In the case of Quinn Radiators, we became aware of difficulties late last week. We were unable to share that information due to the fact that administrators had to be appointed and the workforce had to be informed as well. But the fact of the matter is, as Jayne Bryant said, she was never informed of any difficulties; Unite the union were never informed of any difficulties. As far as I'm aware, the local authority was never informed of difficulties, nor was the workforce. This came out of the blue for the workforce and for all stakeholders and partners in government at all levels. And, again, I would reiterate what I said about how shameful it was that people were informed of the decision at the gates as they turned up to begin a day's work. 

I don't have the details of attendance at the event that the Member refers to, which took place today. However, I can assure the Member that the taskforce will be meeting tomorrow. The taskforce will have direct access to all those affected by the decision. The assistance that will be offered will include the tried and tested React programme, and I've also insisted that financial advisers should be on hand to be able to assist individuals who have made recent investments along the lines of the individual that the Member has identified today. As I said, this is going to be an incredibly difficult period for those affected, but we will offer all of the support that is available to them.

Photo of David Rowlands David Rowlands UKIP 3:43, 12 June 2019

It is always extremely regrettable when we see a large employer go into administration and we are all aware of the distress and uncertainty this brings to the employees and their families. I'm sure that the sympathy of this whole Chamber goes out to those families at this very distressing time. But, as has been said, what was so distressing about this closure is the way it was carried out. For employees to turn up at the factory to be told that their factory was to be closed is quite unacceptable behaviour, and particularly as this company was in receipt of Welsh Government funds. I was going to say that they should have, at least out of courtesy, informed you, but you say that they did, but at a very, very late stage. Can we have your assurance that there will be full financial scrutiny of this company and the way they operated over the last few months so that we can be assured that it was run in a proper manner?

Photo of Ken Skates Ken Skates Labour 3:44, 12 June 2019

Yes, I can assure the Member of that and, as with other Members, I share David Rowlands's anger at the behaviour that was demonstrated earlier this week by individuals who I'm sure must feel quite ashamed of themselves. But can I just say, Dirprwy Lywydd, that the vast majority of businesses and employers in Wales are responsible employers, are compassionate employers, work with Welsh Government, with local authorities, with other Government agencies? The behaviour and actions that were taken by just a small number of people at Quinn Radiators do not reflect on the Welsh economy as a whole. We have, as a Welsh Government, an incredibly strong partnership with the private sector and with all our social partners, and as we roll out and intensify our actions through the economic action plan, we will develop stronger ways of working that lead to a fair work nation. We will work with businesses and with business representative groups to ensure that we support companies in future proofing themselves and that we support workers in ensuring that they have dignity in work and that they go to work looking forward to a day's work. 

Photo of Ann Jones Ann Jones Labour 3:46, 12 June 2019

Thank you very much, Minister.