1. Will the Minister make a statement on the announcement by Mondi of job losses at the Deeside Industrial Park in Flintshire? 380

Yes, of course. This is extremely disappointing news, and my thoughts and sympathies go to all those directly and indirectly affected. My officials visited the Deeside site yesterday and our focus is now on persuading the company to retain the north Wales site. We are providing every bit of support possible to the employees during this difficult time.

Thank you for that answer, Minister. This is, of course, a very, very difficult time for the individuals, their families and the whole community in Deeside, and it is important now that we do all we can to support the workforce. Minister, you mentioned that you were in communication with Mondi. Can you confirm you are also in communication with the relevant trade unions? Secondly, what support can be put in place for the workforce, and, crucially, can you outline how the workforce can access this support? Minister, this news once again emphasises just how vital it is that we move quickly to support job creation in Deeside. Now, you know, Minister, and Members know across the Chamber, that I've long called for support for the Heathrow logistics hub at Tata Steel in Shotton, and I also believe that we should further invest in a second advanced manufacturing institute within the area. Minister, do you support me in these calls?

Can I thank Jack Sargeant for his questions? First and foremost, with regard to the position at the Mondi site, we'll work with company management—we've already made contact; we've visited the site—we'll work with the local authority, and we're working with staff representatives through the unions, throughout the consultation phase that is now under way, and we are hoping to reach a solution that will see the activities at the site maintained into the future. Now, whilst we hope that closure will be avoided, we stand ready to work, with the Department of Work and Pensions, our own ReAct team and other relevant stakeholders, to provide a comprehensive package of support to employees in the eventuality that the site cannot be saved.

Jobcentre Plus and Flintshire County Council have already been contacted, and they'll provide support and advice through the rapid response service that we've now established in north Wales. I'm pleased to say that Mondi has already said that it will hold a job recruitment day with local employers as part of the rapid redundancy support measures if closure is confirmed. We'll be working very closely to support this, and, if the need arises, to discuss any future use for the Deeside facility.

In terms of wider investment in the Deeside area, of course, the Heathrow logistics hub offers an enormous opportunity to provide sustainable high-quality work for many people in the area, and I would join Jack Sargeant also in saying that the second phase of the advanced manufacturing research centre—that being the advanced manufacturing research institute phase 2—is absolutely vital to promote the area and the region as a centre of excellence in electronics. We are proceeding with those plans for AMRI at pace.

I should finally say as well that in terms of skills demand in the area, employment numbers are such now in Flintshire—Flintshire, Llywydd, has the highest rate of employment in Wales, and it has the lowest rate of unemployment at just 2.3 per cent, which means that there is huge demand within the area for skilled people. As part of the work that we'll be undertaking with the company itself, we'll be carrying out a skills audit of the workforce to ensure that if it should close its doors, those people who are employed by Mondi will be able to be matched up as soon as possible with appropriate work elsewhere—for example, perhaps at KK Fine Foods, where, in the last 24 hours, we've been able to announce the creation of a further 40 jobs with investment of just over £0.5 million from the Welsh Government.

As you'll be aware, the Mondi Group creates paper and plastic packaging products, and its plants at the Deeside industrial park, where 167 jobs are at risk, and in Nelson, Lancashire, where 41 jobs are affected, create flexible plastics packaging—bags, pouches and laminates—for the consumer industry. But the company said that a change in demand for these niche products has led to the potential closures. However, in its statement last Friday, it said it will start a 45-day consultation process, which could lead to the closure of the practices. What is your understanding of the position regarding the change in demand for niche products? What support, if any, working with the other agencies and the UK Government that you described, could be given, either to help stimulate demand for those niche products or vary the niche products, perhaps, into new product lines to ensure that they meet the demand that is out there?

Can I thank Mark Isherwood for his questions in his contribution? My understanding is also that the products that come from the Deeside plant are very much niche products and that demand for them has, in recent times, subsided. As a consequence, the company needs to make a decision over whether to close the site, or whether, potentially, with assistance from the Welsh Government, perhaps the UK Government and the local authority, it could maintain its presence in north Wales by widening and broadening its base of products. That would require, of course, further research and development, and that's precisely why we've encouraged businesses to take full advantage of the advanced manufacturing research centre not far from that particular business. We would encourage the company, if it does decide to retain its presence, which we very much hope it will, to utilise the services and the collaboration within the AMRC.

In terms of the support that we stand ready to offer the workers, I've already outlined the rapid response service that now exists in north Wales and that stands ready to assist employees. In addition, we will look very closely at the pipeline of potential investments and growth that we already have for the region, and ensure that every effort is made to secure investment that could lead to new job opportunities being developed in Deeside and beyond.

It's interesting that the company cite the fact that there's been a change in demand for the niche products. Now, that does beg a broader question, of course—in what ways the Welsh Government might be helping companies to futureproof their business, given, of course, that there are societal changes and demands, and consumer trends, if you like, particularly in an environmental context. I'm just wondering what the Government might be doing to support some of those companies that might see these challenges on the horizon.

I'd be interested as well to hear whether Mondi have given an explanation why they're exiting the UK. Why consolidate outside the UK? What factors have driven that particular decision? Also, was the Welsh Government aware that there was a risk to these jobs, because my understanding is that there were issues there a couple of years ago, where the workforce actually stepped up to the plate? I'm just wondering, in the interim, whether the Government had been working with the company to try and safeguard those jobs. And if you were aware that those jobs were at risk, then maybe you could tell us what you did about it.

I can't reveal what's on our risk register in terms of businesses that we fear may be mobile and would choose to move away from Wales. That profile of businesses remains confidential because we don't want to raise any unnecessary concerns within the Welsh workforce. We maintain a very close dialogue with many of the 250,000 businesses in Wales, and we stand ready to assist any that face difficulties.

In terms of direct support that can be offered to businesses in order to futureproof against challenges such as decarbonisation, automation and digitisation and so forth, we developed the economic action plan, not just the economic contract that stands right at the centre of the economic action plan, but the new economy futures fund, with five areas of activity that allows companies to secure funding. Within those five areas, decarbonisation is one, headquartering in Wales is another, and in terms of research and development, businesses are also able to draw down funding through the economic futures fund.

Now, the example that I just gave in my response to Jack Sargeant, KK Fine Foods—they secured money in order to futureproof their activities within Deeside. They now have an economic contract that promotes decarbonisation, better health and mental health in the workplace, and fair work. They secured their funding in order to conduct more research and development at the Deeside plant, to diversify, and to move towards biodegradable packaging. That demonstrates how the economic action plan and the calls to action in the economy futures fund is working in practice on the ground to support companies transitioning to a new future.

Thank you for responding to that question. The next question is from Russell George.