6. What discussions has the Minister had regarding the impact of Brexit on the automotive sector in Mid and West Wales? OAQ54963

We are in regular dialogue with companies in the sector, with the Welsh Automotive Forum, and with national sector bodies regarding the potential impact of Brexit. Having an ongoing and frictionless trading relationship with the EU is very important for the automotive sector, and indeed for other sectors. 

I'm grateful to the Minister for his answer. Of course, he'll be aware that it's almost a year to the day since the Schaeffler automotive factory in Llanelli announced that it would be closing with the loss of 220 jobs—and not just jobs, but good-quality jobs, jobs that could sustain families productively. The Minister will not need me to tell him there are real concerns in the sector about the access to markets. What further discussions will he be able to have with the UK Government to try and ensure that we do have a voice—the Welsh Government on behalf of the industry—around the table when negotiations are being made, with regard to both the new trade deal that we'll hopefully have with the European Union and any other free trade deals, to ensure that there are no unintended consequences? For example, allowing access to markets for vehicles and vehicle parts from outside Wales that might have a negative effect on the supply chain that companies have put a lot of effort into building up over many years.

I thank Helen Mary Jones for that further question. I think one of the points that is evident from her question is the level of integration in the car manufacturing sector through different parts of the UK. Impacts in one part of the UK can very significantly impact companies in the supply chain that may be in other component nations of the UK. I think this just goes to the heart of the need to ensure that the kind of relationship that Wales and the UK has with the European Union following Brexit is one that—.

And I welcome the indication in the political declaration that the Prime Minister is seeking a tariff-free relationship; obviously, that is to be welcomed. The tariffs, the World Trade Organization tariffs, on cars, as she will know, run at about 10 per cent, and would seriously damage the sector in Wales and across the UK. But it's also important in those negotiations to ensure that non-tariff barriers are also kept to an absolutely bare minimum. That assurance actually isn't given in quite the same way in the political declaration, though I hope that that will be the direction the UK Government seeks to take the relationship.

PwC estimated recently that deliveries to Germany from the UK, which can currently be achieved in 12 hours, could take up to 72 hours when the UK is outside the customs union. Obviously, in a sector where just-in-time delivery of components and so on is so fundamental to productivity, that sort of additional delay could be very seriously disadvantageous. It's those sorts of considerations—which aren't perhaps unique to Wales, but we have companies in the supply chain that cross the UK—that we would wish to advocate if, as we should, we have a role in those negotiations.

John Griffiths is not here to ask question 7. Question 8, Vikki Howells.

Question 7 [OAQ54968] not asked.