4. Statement by the Minister for Economy, Transport and North Wales: Coronavirus (COVID-19)

Part of the debate – in the Senedd at 3:00 pm on 17 March 2020.

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Photo of Ken Skates Ken Skates Labour 3:00, 17 March 2020

I'm pleased to say that as a result of the extensive work that was conducted within Government to plan for a 'no deal' Brexit, we have been able to model various scenarios in terms of being able to deploy people to front-line services, and Russell George is absolutely right about the need to reflect in Business Wales the demand that will be coming in the weeks ahead, and the capacity, therefore, will have to be increased.

We've also got good experience of working in various taskforces in intervening across the length and breadth of Wales, and that again stands us in good stead, in terms of being able to get into businesses speedily and offer a full raft of support and advice to get them through this difficult time. We've also been looking internally at how we can, on a temporary basis, reallocate human resource in a way that supports businesses, within my department.

Now, in terms of the role that the development bank has in overcoming this challenge, I'll be meeting with the development bank again on Thursday, and I'll also have—in the same room, or on a telephone conference call—the high-street banks. It's absolutely essential that the development bank's interventions and offers tie in very neatly with what high-street banks are offering as well. And there will be, I hope, as a consequence of an announcement by the Chancellor later this afternoon, additional capital within the development bank available in the coming weeks.

In terms of business rates, I totally accept the point that the Member made. The announcement that Rebecca Evans made yesterday evening concerning the business rate support that we are offering applies to tens of thousands of businesses in Wales. However, this can only be the beginning, and we do desperately need that enormous offer of funding from UK Government that Members, including Alun Davies, have spoken of already this afternoon. That £300 billion that President Macron announced yesterday evening demonstrates why the £12 billion announced last week by UK Government is wholly insufficient, and I am hopeful that, this afternoon, the Chancellor will announce an enormous package of support.

If we do secure further resource, then we will be able to deploy it in a way that benefits businesses of all types and sizes, and I've asked officials to model various measures, including, as an example, a temporary moratorium on all business rates for three months, but it will require a significant financial resource, and that's why I'm hopeful that the Chancellor will be forthcoming this afternoon with the necessary support.

I also agree with Russell George in regard to certain sectors being particularly badly hit. In terms of the Welsh Government's role in supporting businesses, our belief is there will be two phases to this challenge: first of all, the survival phase, and then the recovery phase. In terms of the survival phase, there will be waves in which certain sectors will be in intense need of support. Right now, we are seeing that from the social economy and the social care sector and the self-employed, and that's why I'm keen to model the £100 million of support that was announced by Rebecca Evans for those specific parts of the Welsh economy. And by 'social economy', I mean tourism, hoteliers, restaurants, events, cafes and pubs, as well as, of course, certain parts of the retail sector and some other key areas of the Welsh economy. My determination is that we can utilise both Business Wales and local authorities in order to dispense vitally important money in those businesses that require it.

In terms of train services, Russell George is absolutely right that if we see a significant number of people absent from work because of sickness or self-isolation, then we will need to make very difficult decisions in regard to rail services, and equally, this would apply to bus services as well. Transport for Wales have a strategy group. They are modelling various scenarios, and on a daily basis they are meeting to determine what action may be necessary. But I will endeavour to keep Members up to date on any decisions taken by Transport for Wales. They employ thousands of people, Transport for Wales Rail Services, across the length and breadth of the country, and we are in no doubt that a significant number will self-isolate or become ill with coronavirus. Of course, there are some critical roles that are taken by those employed individuals, specifically the train drivers and the guards, and if there is a significant reduction in the availability of those particular professionals, then it will undoubtedly impact on rail services. But I will be updating Members very regularly on the impact that coronavirus has on our transport network.

Finally, I spoke with the Confederation of Passenger Transport UK yesterday with regard to the bus network, and the point that Russell George made about the workforce, the age profile of the workforce, is something that is causing us concern. We are working with the sector to identify the possibility of cover being supported in the event of many drivers becoming ill or self-isolating, and that is particularly the case, I think it's fair to say, in rural Wales, where we have a large number of small and medium-sized enterprises operating, and so our attention is being focused specifically on those rural areas right now that are already facing other forms of isolation.