Questions now from the party spokespeople. Plaid Cymru spokesperson, Dai Lloyd.

Diolch, Llywydd. Whilst the new Welsh Secretary, Simon Hart, last week stated that the UK shared prosperity fund, about which we've heard a fair amount already would not, I quote,

'drive a coach and horses through the devolution settlement', he has, unfortunately, not given a firm assurance as to whether the Welsh Government would control this new fund. Any loss of control over European funding, of course, would be a power grab. This week, local government leaders in Wales have also expressed concern about the uncertainty around the level of funding within the fund, given its importance in terms of regeneration plans in many parts of Wales. So, can I ask: have you spoken to the Welsh Secretary since last week? What is your latest understanding of the UK Government's proposal, and will you give a commitment to ensure that the voice of local government leaders in Wales is heard?

I thank Dai Lloyd for that question and I welcome him to his new role. I have spoken briefly with the Secretary of State in relation to another matter in the context of a larger meeting, but not specifically about that point. We still await, as I mentioned in my earlier question, details in relation to the acknowledgment, effectively, that those funds are the subject of devolved powers. It's a very simple point to agree and to acknowledge. The point simply is that the equivalent sums currently received through Wales should be passed on to the Welsh Government by way of an adjustment to the block grant and at the full disposal of the Welsh Government to be able to deploy those funds in the way the Member's question implies, with other partners in Wales—so, with local government, which is itself a significant investor in the jobs and infrastructure that benefit from that sort of investment. And that is the opportunity, certainly important from a devolution point of view, but it's also important from the point of view of being able to integrate that investment with other investments that the Welsh Government makes.

Can I thank the Minister for his welcome to my new role? Plainly, I won't be as dazzling as my colleague Delyth Jewell in the role, but I hope to muddle through in my usual understated sort of way anyway. [Laughter.]

In your written statement yesterday, you noted that you're due to host the next Joint Ministerial Committee (EU Negotiations) meeting later this month in Cardiff, and that your hope was for that meeting to focus on finalising proposals, including reaching a firm conclusion on the role of the devolved Governments in future EU negotiations. So, have you had any signs from the UK Government that they are prepared to listen to or accept any of your suggestions to ensure that the Welsh Government has some sort of seat at the table, if not the whole table itself, or any other article of furniture?

I'm going to resist the temptation to extend that particular metaphor. But I think what I will say to the Member is, yes, it is the case that I'll be hosting the JMC(EN) here in Cardiff next week. At the last JMC(EN), I took the opportunity, as I have, and as other Ministers have, over many, many months, of making clear our position about what we think is the appropriate role for the Welsh Government in the context of the negotiations that will follow in the months ahead. So, I think it is absolutely the case the UK Government can be in no doubt of what our, I think, very reasonable expectations are of our role, i.e. that the UK Government should not advance a negotiating position that relates to a devolved competence other than having normally sought to agree that position with a devolved Government in advance. I think that is a practical way forward. It gives confidence to our negotiating partners overseas that the UK Government is able to deliver on the commitments it makes in those negotiations and, of course, importantly, it recognises the role of the Welsh Government and the devolution competence and settlement.

With regard to what I expect from the next JMC(EN), I hope that that will be an opportunity for the UK Government to respond substantively to those proposals and bring forward its own proposals for involving us in the months ahead. At the last JMC(EN), the indications in the discussion were that they were planning to do that and had heard, certainly to some extent, what we have been advocating for for many months. I hope very much they will take on board fully what we and the other devolved Governments have been pressing for now for a very long time.

Minister, in pushing ahead with clause 21 of the EU withdrawal Bill and in ignoring the Sewel convention, the UK Government is showing exactly what it really thinks of devolved legislatures in the United Kingdom. Coupled with the fact that the Conservative Party does not enjoy a majority in Scotland, Wales or Northern Ireland, do you not share my concerns that this UK Government only speaks for one nation within the United Kingdom, and what do you think that this means for the future of the union?

Well, I think yesterday was an important constitutional moment because all three devolved legislatures have now expressed their clear opinion in relation to the withdrawal agreement Bill. The debate that we had in this Chamber yesterday I felt set out very clearly the case for defending the constitutional rights of this establishment and the Welsh Government, and those of us who voted against the LCM yesterday did so for that reason. And I'm very pleased that the Assembly of the Senedd was so clear in its view. I think the UK Government should take note of that and should not proceed in the teeth of that opposition.

The Sewel convention provides, of course, that there were circumstances that may be not normal, and I'll take some comfort from the words in the Secretary of State's letter of Monday of this week that he would regard the circumstances as 'specific'. But I think it's undoubtedly the case that the Sewel convention is an important convention that, as currently designed, is not exactly fit for purpose. It provides too much discretion to the UK Government; it doesn't provide a sufficiently clear understanding of when it applies and when it should not apply. I think there's a case for going further than the convention to make it clear that the UK Parliament should never legislate when a consent has been withheld in relation to a devolved matter.

What I will say about the future of the union, and I've said it before—I think there are choices that lie ahead in the coming months, and the nature of those choices will affect the capacity of the union to survive. I very much hope that the Prime Minister will follow the direction of travel that we as a Government outlined in our publication earlier this week, because I fear that if we head down the road of a very hard Brexit, a very, very minimalist free trade agreement, the pressures that currently exist on the union will just be exacerbated.

Conservative Party spokesperson, Darren Millar.

Diolch yn fawr, Llywydd. Minister, what analysis has the Welsh Government made of the opportunities arising to Wales as a result of Brexit?

Well, the Member opposite will be aware that earlier this week we published our view of the kind of relationship that Wales and the UK should have with the European Union, recognising that the Prime Minister has won a mandate in the recent general election and will begin those negotiations from the perspective of a free trade agreement. Our view is that a free trade agreement, as contemplated in the political declaration, is damaging to Wales, and we are hoping to steer the direction of travel away from that to an area where there are more opportunities for Wales to continue to benefit from that kind of relationship with the European Union.

I think sometimes we are invited to the view that the freedoms that exist, so to speak, to negotiate deals with other countries, as a consequence of the sort of description of the relationship that the Prime Minister has set out in the political declaration, is a huge prize for us. Whilst we will always take the opportunity on behalf of Welsh businesses and exporters to develop new markets, the reality of the situation is that the benefits to the Welsh economy of those deals is marginal compared to the loss of market, if that should happen, to the European Union.

Minister, thank you for your answer, but for me, like the majority of people in Wales and indeed across the whole of the United Kingdom, I'm really looking forward to a week on Friday, at 11 o'clock, when there will be a bell ringing in my house to celebrate the fact that Wales will be leaving the European Union, along with the rest of the United Kingdom. And it will be leaving the European Union in spite of the best efforts of the Welsh Labour Government, of the Liberal Democrats and, indeed, Plaid Cymru, all of whom have been trying to put obstacles in the way of the democratic will of the people being implemented in this country. And as we move on to the next chapter in our nation's story, we see, in the Conservative Party, that Brexit is an opportunity, and it's an opportunity to deliver for Wales in a way that your Government, frankly, hasn't for over 20 years. There are people, businesses and public services that will benefit from the free trade arrangements and deals that we will now have the freedom to strike with different nations and trading blocs around the world. And, of course, we will not just be limited to having deals with the European Union. Like you, I want a decent free trade agreement with the European Union. And, of course, we'll be able to spend our own taxpayers' money on a new and ambitious regional investment scheme that doesn't just favour certain parts of Wales, like west Wales and the Valleys, but also we can focus attention on other areas of deprivation outside of those places.

Now, I think what has been rather disheartening in recent weeks, since the general election—and there appears to be some changing of the commentary coming from the Welsh Government, certainly today, which I welcome. But there has been, really, a rehashing of the same old arguments, I think, and there hasn't been the sort of positive attitude that I think we really need to have here in Wales about how we can engage with Her Majesty's Government, going forward, to make sure that we are at the table with a strong and powerful voice. So, can I ask what assurances can you give us that you and your colleagues in the Welsh Government will now begin to engage positively and not in a hostile way with the UK Government as it seeks to deliver a positive Brexit for the whole of the United Kingdom, including Wales?

Well, it isn't clear to me the extent the Member was paying attention to what we've been saying over the last few weeks in relation to relations with the new UK Government. I'll remind him, since he invites me to do that, in effect. What we have said, as we have always said, is that the UK Government will find us a co-operative Government, seeking to work in the best interests of Wales, but we will not do that where the devolution boundary is not respected. There is a role for the Welsh Government and there is a role for the UK Government, and the relationship will work best and at its most constructive when that boundary is understood and respected in practice.

What I will say is that I'm not entirely sure that I've heard the Welsh Conservatives's argument descend beneath the rhetoric on any of these points of substance. I'm not conscious of any publication by the Welsh Conservative Party setting out its own view of the kind of Brexit that would work in the best interests of Wales. It has, throughout this process, largely simply trotted the party line in Westminster.

What we have had on this side of the Chamber is a set of reasoned proposals and policy documents that take into account specifically the interests of Wales. That has not been matched by any level of thinking on the opposite side of this Chamber, and it's evident to me that the Member doesn't even actually follow his own Government's analysis, which, on their own numbers, tells us that the free trade nirvana that he is describing brings illusory benefits to the economy of Wales.

Actually, what we've seen from the Welsh Labour Government is document after document with prophecies of doom. Of course, your pessimism around Brexit is completely out of proportion with reality. Where we Conservatives, as set out in our manifesto and other documents, see opportunity and long-term prosperity outside the European Union, I'm afraid that you see short-sighted gloom, and all you seem to be doing is trying to stoke fear and scaremongering. It's like you want Wales to fail in order that you can celebrate that your Nostradamus-type prophecies have come true. But we see a future where businesses in Wales will be able to export goods around the world in a competitive way and be competitive in those markets that the EU has currently blocked off.

And, of course, we'll have a fair immigration system—an immigration system that works for the whole of the United Kingdom, which is fair, which will work for businesses and work for Wales, but also one that is fair to people no matter where in the world they come from, whether that's in the EU or outside of the EU. I, for one, am optimistic. I'm excited about the opportunities that Brexit has to bring.

I know that you don't like to talk about those opportunities, and you don't like to talk about those benefits, but will you at least acknowledge that there are some opportunities, particularly from this new immigration system that we will have, which will be a points-based system that is fair to everybody around the world, where people can come and live and work in Wales, where they can bring a benefit to those communities in which they will live and to Wales as a nation?

Well, I'm not sure if the Member heard the exchanges to the previous questions about the challenges that EU citizens already living in Wales are facing as a consequence of the migration policies of the UK Government. I suggest that he reads the record of the exchange that we had in relation to that. I would be very interested in his views on an immigration system where the salary levels are completely out of kilter with the needs of the Welsh economy, the skills profile doesn't match in any way the needs of our economy and is designed entirely from the perspective of the south-east of England. [Interruption.] I actually think that there is an opportunity here. I actually think here that, for the UK Government, in redesigning—. We would want to see a very different migration system. We would want to see a system—[Interruption.]—that gives preferential arrangements to the European Union—[Interruption.]—and ties that more closely to employment. But if the Prime Minister is bringing forward changes to that system, there is an opportunity here for him to reflect the needs of the economy in Wales in a way that is absolutely not being done by the current proposals.

Can I just make the point that it doesn't help, when a Minister is seeking to answer a question, if the Member who has asked the question is shouting 'Rubbish' across the Chamber—[Inaudible.] It just doesn't help to get good scrutiny in operation.

Question 3—Mick Antoniw.