Hi-Lex

Part of 4. Topical Questions – in the Senedd at 3:49 pm on 16 October 2019.

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Photo of Ken Skates Ken Skates Labour 3:49, 16 October 2019

Well, can I thank Dai Rees for his questions? And I'm sure that Dai Rees will share my concerns about the future welfare of those workers as they face a very anxious time between now and 2020 or possibly 2021, when the site is due to close. We will, of course, press the company to ensure that there is at least 12 months of work for those people who are affected by today's announcement. Those 12 months will give us sufficient time to ensure that the ReAct programme is enabled and that we have full access to all workers on site. The ReAct programme has a very strong record of supporting individuals, and I'm pleased that we do have good relations with Hi-Lex. So, I am confident that the company will enable access to be established for those ReAct teams. 

I'm also confident that we'll be able to work very closely with the local authority in identifying other employment opportunities. We in Welsh Government have set up regional response teams ahead of Britain leaving the European Union, should Britain leave the EU, and those regional response teams will include individuals from within local authorities across Wales. Dai Rees identified the primary cause of the loss of this company, and it is, of course, Honda’s announcement that it would be closing the Swindon facility. After Honda made that announcement, I asked Welsh Government officials to convene a round-table discussion with businesses in Wales in the Honda supply chain. That summit was very well attended by pretty much all of the 20 supply-chain businesses that we have in Wales. I can tell Members that the vast majority of businesses within the Honda supply chain here in Wales rely for only a small proportion of their work on Honda. However, there are a very small number that rely to a significant extent on Honda. We’ve been working with them very closely, including Hi-Lex.

Since we had that round-table discussion, I can also tell Members that we’ve been assisted by officials within the Department for Business, Enterprise and Industrial Strategy in the UK Government, and by the Welsh Automotive Forum. But Dai Rees makes the very important point that the UK Government must step up to the mark on this. I’m due to meet with the Secretary of State for BEIS tomorrow, in London, where I will be making the strongest possible case for the UK Government to allocate funding to the Kingfisher programme, which is looking at businesses that are at risk as a consequence of Brexit uncertainties.

We have stepped up to the plate in rolling out Brexit business resilience funding to a significant number of businesses across Wales. We stepped up to the plate in establishing the Ford taskforce, and in attracting INEOS Automotive to Wales. It’s time for the UK Government to do so likewise.