1. Will the Minister make a statement regarding the collapse of Triumph Furniture Ltd in Merthyr Tydfil? 349

Yes. This is clearly a deeply disappointing statement and series of events that have led to the company's collapse. Our thoughts are, clearly, with the employees and their families at this difficult time, and we'll seek to work with the administrator to do all we can to minimise the impact on the local community and the wider economy.

Thank you for that response, Minister. The closure of this company with the loss of 250 jobs is clearly bad news for my constituency, but it's certainly very bad news for those individuals and their families and the local economy of Merthyr Tydfil. Unfortunately, this comes on the back of other job losses, including those at Hoover, and on the proposed move of 250 Department for Work and Pensions jobs out of Merthyr Tydfil. But can I thank your officials for their recent meetings with the company? Clearly, despite attempts at finding a solution, the company's problems were too big to be able to turn around on this occasion.

Clearly, the priority now must be to get as much support as possible in to those people who, I understand, are now dependent on the Redundancy Payments Service for the payment of their redundancy money. So, can you assure me that the Welsh Government and your partners are acting as quickly as possible to assist staff, particularly as I know that some of those redundant workers already live hand to mouth? I know that sounds dramatic, but for many that is actually the reality of their daily lives, even though they are working.

Beyond that, we also need to learn more about the lessons from this situation, so can I ask you to help us to understand the exact causes of the catastrophic collapse in orders since July of this year and to what extent that could have been mitigated? I know my colleague Gerald Jones MP had been in contact with the Department for Work and Pensions regarding the loss of their orders with the company, and it would be good to know why the DWP, apparently without consultation, suspended orders valued at around £400,000 to Triumph Furniture, leaving a big hole in their order book and a major cash-flow problem. Was this linked to a UK Government moratorium on public sector contracts, and, if so, who is taking responsibility for the consequences of that action?

The company have also said that many of their orders from the private sector had dried up because of the uncertainties over Brexit. Do we know how many other companies may face a similar predicament? We must surely look at the whole situation around Brexit and the impact it's having on the general business climate and a reluctance by companies to invest in new equipment and so on. I fear that, with the economy slowing down, we are going to see much more of this as our manufacturing base in the Valleys is hit hard by future uncertainty, so I would welcome a detailed statement from the Government on how it seeks to address this within its economic strategy.

Finally, Minister, can I thank all those many local partners who are now, I know, already working in response to this dreadful situation and trying to help redundant staff? Their efforts are appreciated as we all try our best for these redundant workers in the weeks and months ahead.

Dirprwy Lywydd, can I share Dawn Bowden's thanks to the partners that have been working tirelessly since the announcement was made in supporting the affected workers? Can I also thank Dawn Bowden for recognising the efforts that were made by my officials in trying to save and restructure the company? I really do recognise the closure of Triumph Furniture will have a major impact on the economy of Merthyr and the surrounding area as well.

Now, Dawn Bowden raises a number of important questions, primarily the issue of redundancy payments and how swiftly they can be progressed and processed and also the role that Brexit has played in the company's collapse, as well as other factors, namely the loss of a single major contract. With regard to redundancy payments, I'll be writing to the UK Government's Redundancy Payments Service to ask if claims can be processed in a similarly swift fashion that took place with regard to Thomas Cook, where employees were given redundancy payments swiftly. I think that from what Dawn Bowden said today, and from what I have also been able to ascertain, many, many employees are living hand to mouth and therefore urgently need support. And I will be writing today regarding that matter.

In terms of Brexit and other factors, well, if we deal with the question of the DWP order first, this is a question that needs to be directed to the UK Government and something that we will certainly be taking up. I know that Members of Parliament, primarily Gerald Jones, are raising this question as well in Westminster. I wish to understand the extent to which the loss of this single major order contributed to the dramatic, swift collapse of the business. But there is no doubt whatsoever that Brexit has continued to play a part. Indeed, in the company's own accounts, continuing uncertainty on Brexit was noted, as was the falling value of the pound. The pound has fallen still further as the likelihood of us crashing out of the European Union increases. So, essentially, the idea of 'get it done' has done in this company. I fear that many other companies will face collapse in a similar vein.

Dawn Bowden asks what assessments and what response the Welsh Government is planning on making towards those businesses that are likely to face very grave difficulties in the coming weeks. Well, I can tell Members today that we've carried out an assessment across all 22 local authority areas of jobs that are considered to be at medium to high risk of loss in the event of us crashing out of Europe. In parts of Wales, the risk is as high as 30 per cent of jobs being categorised as medium to high risk. That is a terrible situation to be in. Therefore, I must stress to Members that no amount of preparation by this Government or by the UK Government will mitigate fully against the consequences of Britain crashing out of the European Union.

I associate myself with comments that others have made in regard to our thoughts being with those who were employed at Triumph. Can I ask the Minister—? There have been some suggestions that the financial situation has been caused by delays in new Government contracts affecting profit and sales. I would be grateful if you could comment on that. We have seen a string of, unfortunately, companies fold across south Wales in recent months, and I wonder what steps the Welsh Government is taking to improve transport connectivity in order that companies across south Wales can maintain a competitive edge in comparison with competitors in other parts of the country. I wonder what discussions you have also had with colleagues in the Bank of England and the Treasury to take steps—in conjunction, of course, with the Welsh Government—in mitigating the effect of finances on medium and large manufacturing companies. 

Can I thank Russell George for his comments and his questions? First of all, the media have reported that the collapse of the company was—in part at least, if not largely—due to the loss or the delay in securing Government contracts. That regards the contract, as far as I'm aware, with the Department for Work and Pensions, as the Welsh Government have no contractual relationship with Triumph Furniture. Again, I would stress that these are questions that need to be directed to the UK Government for answer.

Insofar as connectivity is concerned, Dawn Bowden herself chairs a sub-group of the Valleys taskforce, looking at the Heads of the Valleys road and how we can maximise the economic benefits from improved transportation links within the Valleys communities, and I'm sure that Dawn is making good progress in that regard.

And, insofar as finance and rescue and restructuring support is concerned, I have asked the Development Bank of Wales to utilise as much of the funding that it has available to it for that very purpose. But I'd also say, Dirprwy Lywydd, that we now need the UK Government to step forward with hard cash to back up the Kingfisher programme, which is looking at those businesses that are at risk right now and will be at risk as we leave the European Union.

Minister, another week, another announcement of hundreds of job losses in the south-east. It was only last month that we were discussing the closure of Orb steelworks in Newport, and, in June, we discussed the closure of Quinn Radiators. Today, with the closure of Triumph Furniture, that brings the total job loss number over just these four months to 912, just from three closures. That isn't normal, Minister, and it shouldn't be happening. I am yet to hear any sort of definitive explanation from the Welsh Government about the common causes behind all of these closures. I know you've spoken today about some of the reasons why you think this company has folded, but it would be good to hear your analysis of the common causes behind all of these closures. In any case, this obviously can't go on.

I was also glad to hear on this occasion that immediate action was taken by the Welsh Government and the UK Government to support the Triumph workers, and I would urge all affected workers to make use of the support that's available to them. But the Welsh Government must now pull out all the stops to prevent further job losses happening as the Christmas period nears, and to put in place an action plan for the south-east industrial economy. Minister, will you therefore commit today to convening an emergency economic summit to analyse what's going wrong with the Welsh Government's industrial strategy, and to identify potential economic weak points so that you can take action to defend workers and to prevent further loss of skills from the south-east economy?

Can I thank the Member for her questions and say that her party has consistently warned of the consequences of Brexit? Those consequences are now coming to pass, and there is a common cause: it is Brexit. That is absolutely and abundantly clear. It is not because of the Welsh Government's industrial strategy; quite the opposite, actually. We've got more than 250,000 businesses in existence in Wales now, a record number of businesses headquartered in Wales, and unemployment is at an all-time low, inactivity likewise. There is significant churn in the economy, but there is a trend right now because of Brexit that jobs, particularly in manufacturing, are being lost, and are at risk of being lost. Therefore, directly to the Member's question, if there is a common cause, that common cause is surely Brexit. There are other factors at play within the economy. Let's be realistic. There are other factors. For example, the transition to automation is causing difficulties for many businesses, which is why we developed the economic action plan and made one of the key calls to action digitisation and automation and artificial intelligence, to make sure businesses are futureproofed. It's why we ensured, through the economic contract, that businesses need to be able to demonstrate they're investing in the skills of their workforce in order to take advantage of industry 4.0 rather than be left behind. So, whilst there are other factors, the Welsh Government is addressing those within the economic action plan. The big challenge that neither the Welsh Government nor the UK Government under any party—let's be realistic; under any party—can fully deal with and mitigate is a 'no deal' Brexit. That would be catastrophic for the country.

My colleagues and I would like to put on record our sympathy with the 252 employees of Triumph Furniture. It's deeply sad that a family business that has been in existence for over 60 years has ceased trading, and I'd like to compliment Merthyr Tydfil council, who are reportedly working with local employers to host a recruitment day for the workers affected. Such a rapid loss of employment in these numbers can have a real adverse effect on a community, and it is reassuring the council are working proactively to help. With the business losing hundreds of thousands of pounds of profit in public sector sales in recent months, a restructuring or sale of the business would have been essential, and we regret to learn that the attempts to secure additional funding for a restructuring were not successful. It does appear that problems came to light too late for Welsh Government intervention.

We also note that uncertainty around Brexit would have had an effect. We urge our colleagues across the Assembly to make sure that we have a Brexit sooner rather than later so that businesses know their future and can adjust accordingly. Will the Minister confirm that some of the companies that were mentioned earlier with a loss of jobs explicitly said that it was nothing to do with Brexit that caused their collapse? Housing transactions remain stable—[Interruption.] It's a fact that housing transactions remain stable, from the data we have available to us, which would suggest that demand for furniture should also remain stable, but a company that loses contracts worth hundreds of thousands of pounds of profit is always going to face a serious challenge. Triumph did previously enter administration, but at that time were able to be rescued and were able to change their focus. It is deeply unfortunate that the company did not have time to make changes in this instance. Can I ask the Minister to confirm that the usual interventions when a company fails will be put in place in this instance? Again, I would like to finish by saying that the real cost is the human cost to the employees, and I will reiterate that my colleagues and I have the deepest sympathy with the 252 workers affected.

There will be severe problems for many of the families, I’m in no doubt, as a result of the announcement as a result of the collapse of the company, but we stand ready to help every single one of those employees and every family that is affected by the announcement. I can assure the Member that our ReAct programme will be deployed, and it has a strong record of supporting individuals that are impacted by job losses, not just in terms of finding work, but also in terms of support for their emotional integrity and their family well-being as well. Jobcentre Plus and Careers Wales will both be at hand to assist people who are made redundant as a consequence of the collapse.

I met with social partners on the EU exit working group earlier this week—representative bodies from employers, trade unions and the third sector. We discussed at length the current problems that many businesses face because of Brexit, and the unanimous view was that, whilst uncertainty was indeed causing great difficulty for many employers, we should in no way end that uncertainty if it means driving off a cliff edge. And instead, those social partners on the EU exit working group warmly welcomed the clarity that this Welsh Government has given in saying that we would fight to remain in the EU if we were offered a second referendum.

Minister, I heard all my colleagues who put the question—virtually, my speech is there. News that 252 jobs have been lost by Triumph Furniture in Merthyr Tydfil is a devastating blow to the workers and their families. My thoughts go out to them at this difficult time. Triumph Furniture provided highly skilled jobs and exported their produce around the world, not only Europe. It is a real loss to Merthyr Tydfil, which was recently ranked near the bottom of the league table ranking for economic competitiveness in the United Kingdom. I know the Department for Work and Pensions has said that the Jobcentre Plus rapid response service will be working alongside the Welsh Government, Careers Wales and local employers to provide tailored support. So, can I ask what assistance you will provide to these workers so they can seek new employment? And can you also confirm that prompt action will be taken to help those affected today so that their skills and talents are not lost, but can be redirected to contribute to growing the economy of Merthyr Tydfil? Minister, you’ve been saying Brexit is the main cause of this. This company has been trading since 1946, and all over the world it’s got a name. We have to protect our brand—UK brand and UK produced. Have you put any strategy in place for other companies in Wales, not to face the similar fate that this company is facing at the moment? At least we should be prepared, because the people of Wales have voted Brexit and we must make sure that these companies are protected by law in this Chamber and by the British Government. Thank you.

No amount of protection will prevent every single business in Wales from being burned in a ‘no deal’ Brexit. Businesses will suffer. Anybody in industry will tell you that a ‘no deal’ Brexit is dangerous for our economy. We will do our upmost to protect workers during the coming months. We are ready to deploy more than 500 people across the Development Bank of Wales, Welsh Government and Business Wales to assist businesses. But the danger of a ‘no deal’ Brexit is real and will impact on every single community across Wales and across the United Kingdom. And I must say that when we talk about economic competitiveness, our competitiveness will not be improved through a race to the bottom in terms of labour costs. Competitiveness will be improved as a consequence of investing in higher skilled jobs, in the development of systems that enable us to compete more competitively in the age of automation. That is precisely where we are going to be focusing our investment. 

Thank you. The second topical question this afternoon is from Rhun ap Iorwerth.