Industry in North Wales

2. Questions to the Counsel General and Brexit Minister (in respect of his Brexit Minister responsibilities) – in the Senedd on 6 November 2019.

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Photo of Jack Sargeant Jack Sargeant Labour

(Translated)

3. What discussions has the Counsel General had with industry in north Wales following the announcement of a Brexit extension until 31 January 2020? OAQ54631

Photo of Jeremy Miles Jeremy Miles Labour 2:22, 6 November 2019

My ministerial colleagues and I have engaged widely with businesses on Brexit issues as part of our engagement with stakeholders across Wales. Most recently, the Minister for Economy and Transport led a round-table meeting on small and medium-sized enterprise access to finance on 24 October in Wrexham.

Photo of Jack Sargeant Jack Sargeant Labour 2:23, 6 November 2019

Diolch yn fawr, Minister, for that answer. Alyn and Deeside is home to some of Wales's most high-tech and advanced industry and the dedicated and skilled workforce that are within that area. For these employers and those employees, planning is key. Can the Minister detail further the contact he and his officials, and any other ministerial colleagues, have had with the major employers within the area and the associated trade unions, like Unite the Union, to ensure that they can continue to plan? Can he also spell out what other support is there available to them? And, finally, how confident is he that the UK Government, the Tory UK Government, are listening to these groups and these employers for the sake of their families and are sharing the relevant information with them?

Photo of Jeremy Miles Jeremy Miles Labour 2:24, 6 November 2019

I thank the Member for that question. Since his time in the Chamber, he has always sought to understand the impact of Brexit on his constituency and on employers there, so I appreciate his continuing concern in relation to that.

The Welsh Government continues to engage with businesses in a variety of different ways, either face-to-face direct engagement, round-table sessions, which both the Minister for the Economy and Transport and I and others have led on, communications via Business Wales and the business support networks, as well as a range of media channels. He'll know that the Government is providing ongoing business support through the economy futures fund and the work of the Development Bank of Wales, and the Minister for Economy and Transport most recently announced a further £6 million for the Brexit resilience fund, announced at the end of last week, which consists of a blend of grant and loan funding that companies can apply for. And in addition to that, we continue to do everything we can to publicise and promote the information that we have on the Paratoi Cymru/Preparing Wales website, which includes the Brexit portal, which has had, I think, 39,000 users to date.

Photo of Mark Isherwood Mark Isherwood Conservative 2:25, 6 November 2019

In September, the CBI director general Carolyn Fairbairn said:

'So many businesses here in Wales are full of optimism and enthusiasm. They want to be talking about—and acting on—Welsh strengths. To signal that Wales is open for business. But desperately want to put an end to uncertainty.'

Quoting businesses in north Wales at the start of October, the Daily Post said:

'Uncertainty fuels uncertainty. We need an end to all Brexit uncertainty.'

In mid October, the chair of Ocado and the former Marks and Spencer boss, Stuart Rose, said he now supports the new UK Government deal, saying he was involved in the original 'remain' campaign, but he's also a realist, and he said he hoped he's a pragmatist and a respecter of the democratic process.

And, finally, the chief economist and strategist at city investment firm Schroders said passing the new deal could unlock stronger growth in the economy:

'if the deal passes through Parliament on Saturday', which it didn't,

'we should see stronger growth in the UK economy as the cloud of Brexit uncertainty lifts.'

What action are you taking to listen to industry and business, whose key concern is that lack of certainty, and to avoid, therefore, dragging this out for months more as parties seek to renegotiate, re-referendum or what have you. The future growth of the Welsh economy and the well-being of employment and people in Wales depends on that certainty, articulated so effectively by business. Uncertainty needs to end.

Photo of Jeremy Miles Jeremy Miles Labour 2:26, 6 November 2019

Well, I welcome and appreciate the Member's concern for the interests of business. If only that was shared by his parliamentary party in Westminster who have ridden roughshod over the concerns of business since the beginning of the Brexit debate.

I, too, heard the remarks of Carolyn Fairbairn, and I think I also heard her say that business investment was 26 per cent under trend as a consequence of Brexit. And also, business growth was several percentage points beneath what would we expect it to be.

He's right, in fact, to identify the question of uncertainty. We hear every day in Wales the impact that Brexit is already having on businesses and employers and livelihoods right across the country. But the alternative universe that he's positing is one where this deal is good for business, and it just is not. And the notion that this deal draws this matter to a certain close is complete fiction. This is a bad deal and it gives us the certainty of a bad deal for businesses right across Wales. We are looking at substantial additional costs for small businesses that export that they can barely afford to pay. Maybe he'll confirm to me if the UK Government is planning on compensating them for that. But otherwise, these are significant burdens that businesses in Wales can ill afford to have to take on.

Photo of Rhun ap Iorwerth Rhun ap Iorwerth Plaid Cymru 2:28, 6 November 2019

Uncertainty needs to end, yes, but for very many businesses, the very threat of Brexit needs to end. Let me read to you from an e-mail I've received from a constituent who runs a small consultancy from Anglesey, with the majority of the business's money coming from the European Union:

'The damage that Brexit so far has done to our business is significant', he says,

'mainly due to the ill feeling that other countries feel towards the UK. We have been excluded from several projects because of risk or other such excuses. This is a real pity for what was a growing business providing income, tax and jobs in the area. Now we're stagnant and waiting for all this to pass so that we can resume growth.'

And he was asking for my reassurance that I'd campaign for 'remain'. I can certainly give him a categorical assurance on that front. But what countless companies like that can see is that the delays of a few months here or there aren't really what's relevant—it's that threat of what they lose from not being within the European Union, and there is no deal, they see, that is as good as the one that they have now.

Photo of Jeremy Miles Jeremy Miles Labour 2:29, 6 November 2019

I will, if I may, echo the points the Member has just made. I mean, his experience and the issues that his constituents have raised with him strike a very clear chord with what we hear from businesses all the time. It was only last week, I think, or the week before, that I had an e-mail from a leading figure of the business community saying the notion that the Boris Johnson deal is the solution to business uncertainty is complete fiction. And I think, and I share with the Member his conviction, that the best way of getting the certainty that businesses in Wales have been able to flourish under, as a consequence of our membership of the European Union, is for us to have a referendum where we can campaign to remain and win that argument.