2. What discussions has the Minister had with Allied Bakeries in light of the company's announcement that it's to halt production at its Heath site in Cardiff, putting 180 jobs at risk? 328

Well, Llywydd, this is clearly very disappointing news for the company and its workforce, and our thoughts are with the families and the employees at this difficult time. Welsh Government officials spoke to the business yesterday and are ready to support all affected staff through our Working Wales programmes, Jobcentre Plus, and the citizens advice bureau.

Thank you for that answer, Deputy Minister. As you said, this is very disappointing news to say the least in an area that has lost substantial jobs over recent years: Barclays and Tesco, for example, and now this particular site, which has been a bakery for many decades—not just years, but many decades. It is an announcement that obviously they're looking to reconfigure the site and turn it into a distribution hub, so there will be a retention of jobs if the proposals go through the consultation process and are agreed. But can you confirm, Deputy Minister, whether there were any approaches to Welsh Government to see whether there might be support available to retain manufacturing capacity here? As I understand it, the manufacturing capacity is moving to other sites that the company owns in the UK.

Secondly, from those conversations that you have had with the company—or your officials have had with the company—has the company taken up the Welsh Government's offer to support workers in this transition, which I appreciate is subject to consultation, and obviously that process has to be undertaken? But, by the announcement, there do seem to be—regrettably, if it's carried out—significant job losses, so it's important that workers at the plant fully understand that that support will be made available at the earliest opportunity, and that the company is allowing access to Welsh Government support, should it be required.

Thank you for that question. As I said, we share the disappointment of the Bakers, Food and Allied Workers Union, who are deeply disappointed with the news too. As far as we understand it, this is a straightforward commercial decision. The nature of the market for bread has changed. Demand has reduced as people's diets are changing and people are eating less bread. The company, therefore, is looking to consolidate its production on other sites to make sure that all of its units are profitable.

We are pleased that they are, at least, going to be retaining a significant number of jobs on the site to make it into a logistics hub. We will be working with the company, as I mentioned, through our Working Wales and Jobcentre Plus projects to see if we can find employment for those who face redundancy if, as you say, the consultation continues as we anticipate it will. As we do have a developed sector in the Welsh Government on food and drink, we are going to see what we can do to match those people who may be laid off into other jobs in the existing sector, to make sure that those skills aren’t lost to the Welsh economy or to the industry.

Joyce Watson took the Chair.

I'm also very concerned about the workers at Allied Bakeries, where there has been, as we've heard, a very long tradition of baking on and near that site in that part of Cardiff, and I'm pleased to hear the Deputy Minister talking about the need to focus on the skills that the workers have there. While it would be positive if jobs are kept there in a distribution centre, that's not the same as the skills that have been developed over many years in baking. These are very skilled workers.

This is the latest piece of bad news after many instances of job losses and threats to jobs in the south-east of Wales. Even in the capital city, this is a significant number of jobs. One must consider the pressure that this puts on the Government's ability to deal with these announcements by various companies in terms of putting various schemes into place, working with Jobcentre Plus, working with implementing ReAct schemes, and so on. Will the Minister give an assurance that thought will be given—and consideration will be given—to providing additional resources and increasing the capacity within Welsh Government in order to deal with blow after blow, and to make sure that workers, wherever they are affected in the Welsh economy, are given the support that they need to look for new employment?

Certainly, we announced yesterday in the supplementary budget that we are increasing resources to be able to be nimble enough to respond to the changing needs of the economy as we hit increasingly turbulent times. But certainly in this case, this is simply a matter of the market changing. This was a factory, as I understand it, that produced bread. It didn't produce other pastries or higher premium products. As the company made clear in the press quotes, they lost a contract for an own-label bread supply to a supermarket and, simply, demand is shifting, and there is simply not the work for the company as a whole to justify keeping as many bread-producing factories running. So, I don't think that there's a great deal that the Government can do in situations like that. This is the nature of the market. However, there are things that we can do to make sure, as I said, that the skills of the Welsh workers are redeployed to make sure that our food and drink sector remains vibrant and viable.