1. Will the Minister make a statement on the announcement by KASAI that it will close its Merthyr Tydfil plant in 2021? 397

Yes. Kasai has started a 90-day formal consultation period with the staff. This is clearly extremely disappointing news and my thoughts are with all those directly affected by this uncertainty. My officials visited the company earlier this week and we will continue to offer support as appropriate. 

Thank you, Minister. Clearly, the announcement from Kasai about the statutory consultation process with its employees is disappointing, particularly on the back of job losses and closures that we have recently seen announced in Merthyr at Hoover and Triumph. This particular announcement reflects, I think, the ongoing pressure on the motor manufacturing sector at this time, especially given the links between this factory and the Honda plant in Swindon. I do, however, note that there will be a continuing need for production at the Merthyr plant in the months ahead in support of the Honda contract, but around 180 loyal and hard-working employees could be affected in Merthyr Tydfil. Along with Gerald Jones MP, I will be meeting with the workers in the near future for a discussion about the next steps. So, can you reassure me that, once the statutory procedures are complete, the Welsh Government, along with local partners, will do all they can to consider all the options for the workforce and for this site? Furthermore, what is the Welsh Government's most recent assessment about the health of the motor manufacturing sector in the south Wales Valleys and whether this means that we need to reassess the types of businesses and companies that we support to ensure longer term commitments to our Valleys communities?

Can I thank Dawn Bowden for her questions and assure her that, through not just Welsh Government, but our partners in the Wales automotive forum, we are assessing every opportunity for existing automotive businesses and for emerging businesses in the automotive and mobility sector? Last autumn, I hosted an automotive summit, which looked at opportunities for Wales. That was incredibly well attended and we'll build on it by hosting the manufacturing summit on 2 April in Venue Cymru. The automotive sector will be present and we will be examining the very latest opportunities and, indeed, threats to the sector in Wales and across the UK.

It's worth saying that, over the last five years, automotive companies in Wales, including those supporting the supply chain, have had help to the tune of £200 million in supporting their growth and in supporting the 12,000 jobs that are contained within the sector. It's also fair to say that there has been, until very recently, a renaissance in UK car production. For a variety of reasons, the sector right now is facing considerable difficulty and transformation. We're assisting in the transformation through focusing our resource on those automotive companies that clearly have the best prospects of succeeding in the transition to low- and zero-emissions vehicles. And we have an incredibly strong record in attracting investment, including from Ineos Automotive most recently. As part of the support that we were offering to Kasai we, through the Wales automotive forum, introduced the company to Ineos and to Aston Martin Lagonda and to others in the hope that alternative work may be secured in order to avoid closure. Unfortunately, the bridge between the closure of Honda and the work that would come from other manufacturers was so great as to necessitate the announcement that has been made recently. However, the company is not due to close, if it decides to proceed with closure, until July 2021. This gives a significant amount of time for us to assist, through our regional response teams, through Careers Wales and so forth, every single individual that might be affected. But it also gives us, during the consultation period, an opportunity to say to the company once again, 'Reconsider the announcement. Please, if there is any way possible, maintain your operations in Merthyr.' 

The Deputy Presiding Officer (Ann Jones) took the Chair.

Minister, news that around 180 jobs will be lost due to the impending closure of the Kasai plant in Merthyr Tydfil is a devastating blow to the workers and their families. My thoughts go out to them at this difficult time. Kasai provides highly-skilled jobs, producing internal parts for Honda, Jaguar, Land Rover and Nissan. It is a real loss to Merthyr Tydfil, which was recently ranked at the bottom of a league table ranking economic competitiveness in the United Kingdom. So, can I ask, Minister, what assistance the Welsh Government will provide to these workers so they can seek new employment? And can you also confirm that prompt action will be taken to help those affected so that their skills and talents are not lost, but can be redirected to contribute to growing the economy of Merthyr Tydfil? And, finally, Minister, what measures will be taken to assist those workers who are able to relocate to find jobs outside Merthyr and outside Wales?  

Can I thank Mohammad Asghar for his questions and say, first and foremost, it would be our hope that we'd be able to secure alternative employment for the workers affected within the Merthyr area? I don't see why people should have to move out of their community in order to maintain employment if they wish to remain where they live. And so we'll be doing all that we can to identify job opportunities within the Merthyr area. We will be deploying support services, including ReAct and Careers Wales advisers, at the earliest opportunity to carry out an audit of the skills in existence within the business and to match those skills to job opportunities within the area. There will be, for example, vouchers available for skills training if anybody requires upskilling in order to take on a new job opportunity. 

I think it's worth recognising, though, Dirprwy Lywydd, that the people who work at the site are incredibly loyal and incredibly well skilled, and this was something that the First Minister stated to the company when he visited the business headquarters in Japan in September 2019, when he reiterated Welsh Government's commitment to fully support them. That support, still available, comes in the context of huge problems for the business because they were so reliant on Honda in Swindon. As I said in response to Dawn Bowden, we have exhausted many opportunities that we had hoped would provide alternative sources of work for Kasai, including Aston Martin Lagonda and Ineos Automotive, and other automotive companies in Wales and across the border as well. But we stand ready to continue in that search for alternative work to keep those loyal and skilled people within the workplace. 

I'd like to express my heartfelt sympathy with all of the hard-working staff at Kasai who are going to face losing their jobs through no fault of their own after many years of dedicated service. I know this will be an extremely difficult time for them and their families. I'd like to offer my own office's support; in any way that we can help, we want to be able to. Now, as has been mentioned, we've known that this closure has been on the cards since Honda announced the closure of its Swindon plant a year ago this week, and media reports at that time had warned about the knock-on effect it would have on Kasai, and I raised the issue with the Brexit Minister in the Chamber in May last year.

Now, I've listened with interest to what you said, Minister, about what your ReAct programme will be offering to the workers who are going to be possibly having to find new employment, but could you tell us on this point, please, when you expect the Job Support Wales scheme to be up and running? I was dismayed to learn recently that this important employment programme had failed to get off the ground for a second time due to a challenge to the tendering process. Now, I'm afraid I do find it difficult to comprehend how, after 20 years of leading the Welsh Government, Labour is unable to complete a successful tendering process. So, I would appreciate some information about when we can expect this to move forward so that further support can be made available to help workers with skills training when that can become available.

Now, finally, I'd like to ask about your plans for future economic planning, Minister. We currently have people with valuable skills who are losing their jobs in the manufacturing industry and there is a dire need to build up a new green energy and transport economy. It seems obvious that these should be connected and that the Welsh Government should lead the way in building and incentivising industries such as electric vehicles and transport networks that would help with the green agenda but would also provide new, well-paid jobs for people who have valuable skills to contribute.

Now, I'm not saying by any means that the Government will be giving up on the Kasai workforce at all in their current jobs, but, alongside this, Minister, could you tell us whether you have any plans to strengthen our green manufacturing industry to futureproof the economy and provide new jobs for people who are currently being made redundant due to the closure of traditional car manufacturing plants and their suppliers?

Can I thank the Member for her questions and firstly invite her to welcome the success that the Welsh Government has had in attracting manufacturers that are at the forefront of utilising low- and zero-emissions propulsion systems within cars—for example, the success we enjoyed in attracting Aston Martin Lagonda to Wales? Aston Martin Lagonda have made Wales their home for electric vehicles; equally Ineos Automotive, who are looking at utilising hydrogen for future power systems within their vehicles. So, we are already investing very heavily in those industries that will become so significant globally in the years to come.

Now, in terms of the closure being on the cards when the announcement about Honda was made is concerned, there was a Honda taskforce established immediately after the announcement, because it was recognised that many businesses within the supply chain would be adversely affected. There are many businesses in Wales that rely on Honda for work, but Kasai was amongst those that relied the most heavily on that single manufacturer, and that's why the company is in the position that it is in today. However, we will go on searching for opportunities for the business during the 90-day consultation period in the hope that the decision—the announcement, rather—can be reversed and that the decision to remain open will be made. In the event that that does not happen, we will be deploying all of the support services that exist today and that will be formed as part of the Job Support Wales holistic support service—every employment service that currently exists will continue for those people affected at Kasai and for anybody else affected by unemployment in Wales.

Today, we have a record low unemployment rate of just 2.9 per cent, and that's because this Welsh Government is determined to ensure people stay in valuable work, and, when they do fall out of work, that we find them opportunities elsewhere to get back on to the employment ladder.

Thank you very much, Minister.