7. Statement by the Minister for Housing and Local Government: Preparing our public services in Wales for a 'no deal' Brexit

Part of the debate – in the Senedd at 5:17 pm on 1 October 2019.

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Photo of Mark Isherwood Mark Isherwood Conservative 5:17, 1 October 2019

Thanks for your statement. You referred, I think, near the beginning, to risks of recession. Of course, Germany, which is the motor of the EU economy, has 10 to 15 per cent of its GDP dependent on access to UK markets, including Wales, and we understand from press coverage during the summer that they might be on the brink of recession themselves. So there's clearly mutuality in ensuring that a deal is reached, because 'no deal' isn't going to help our continental friends either. 

You referred to hate crime. Can I just put a plug in? Next Wednesday evening, 9 October, I'm sponsoring the International Integration Day event in the Assembly, in the Pierhead. If we don't sit too late that night, I hope that many of you will come and show your support for that agenda and share in the multicultural celebration that'll be occurring that evening. 

You referred to the Auditor General for Wales's report, 'Preparations in Wales for a "no-deal" Brexit', published last Friday. Of course, he says that

'planning for a no-deal Brexit across Welsh public services has continued to accelerate.'

How, therefore, do you respond to the key challenges that he identified, facing public service leaders across Wales, in this revision of his February report? These being: to sustain collective working; strengthen communication with the public; enhance independent scrutiny, where those charged with the governance of Wales's public bodies need to enhance their oversight and scrutiny of Brexit preparations; to be collectively agreed to respond to the unexpected; and to plan and prepare for longer term impacts.

The auditor general, in his assessment, published last Friday, for a 'no deal' Brexit said that

'most public bodies across Wales are clearly taking their "no-deal" Brexit planning seriously. Many have significantly ramped up their activity since summer 2018'.

What assessment have you and colleagues therefore made of the £4 million from the EU transition fund so far provided to local authorities by the Welsh Government to help them plan for Brexit, both in terms of impacts and adequacy?

Whilst the impact of EU migration on the Welsh public sector workforce is listed as a concern of the Welsh Government in its 'no deal' Brexit preparation document, the auditor general found that the risk of staff suddenly leaving in a 'no deal' Brexit or any other was limited, and that public services,

'thought the workforce risks were more medium to long-term.'

However, the UK Government has been working to minimise any potential medium to long-term risks through the EU settlement scheme, and has been clear that they want EU citizens to stay. The 'no deal' immigration arrangements for EU citizens arriving after Brexit—the 5 September document detailed this. The EU settlement scheme, of course, is a free service that EU citizens living in the UK can access until at least 31 December 2020 in the event of the worst case scenario 'no deal', and will afford them similar rights and services to those they currently enjoy. As such, he said Welsh public services may experience only minimal, if any, disruption to staffing levels. So, what assessment are you making of that potential disruption to staffing levels as a result of the proactive approach taken by the UK Government to reassure EU nationals that they will still be able to access similar rights and opportunities in the event of 'no deal'?

The UK Government has guaranteed, in the event of a 'no deal', to cover all European regional development funding that would have been covered under the 2014-20 programme. This provides certainty and clarity to local communities and will allow them to continue to access important funding routes. So, how will the Welsh Government therefore ensure that local authorities continue to take advantage of this funding?

The Auditor General for Wales states that those local authorities that had adopted a 'watch and wait' approach to Brexit have since started to take action to progress their planning for a 'no deal' Brexit. He also called on public services across Wales to

'start having conversations with the public and key stakeholders, to help avoid unnecessary panic and disruption.'

His words. Of course, such actions will provide greater confidence to residents. How, therefore, will the Welsh Government ensure that the provision of information on Brexit preparedness is available, and continues to be available, in accordance with the auditor general's recommendations?

Public sector procurement rules will largely remain the same, thresholds won't change, but a key difference for contracting authorities will be the need to send notices to a new UK e-notification service, instead of the Publications Office of the European Union. How, therefore, will the Welsh Government ensure that contracting authorities in Wales are aware that similar levels of regulations provide further certainty for public procurement and public services, provided that they make this small change to their practices?