4. Statement by the Minister for Economy, Transport and North Wales: Economic Response to COVID-19

Part of the debate – in the Senedd at 4:26 pm on 1 April 2020.

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Photo of Ken Skates Ken Skates Labour 4:26, 1 April 2020

Can I thank Helen Mary Jones for responding in such a constructive and collaborative way, as is always the case, actually, with Plaid Cymru's spokesperson on economy? The suggestions that Helen Mary Jones have made are very welcome indeed, and, if that piece of research could be passed on regarding the possibility of an emergency basic income scheme, I'd be really grateful. We've run some figures ourselves and found that it would be very considerable indeed and it would be something that would have to be implemented by the UK Government. Indeed, we've called for a universal basic income scheme to be introduced for this period. It would be, I think, an appropriate test of such a scheme as well, for the potential to have it introduced for the long term.

Indeed, for those individuals who have only been self-employed for a short time there is considerable concern, and all of the great minds in Treasury, Welsh Government, we have all considered how we might be able to support individuals who are caught in this particular bracket. We're looking at various options, including the possibility of using the discretionary assistance fund as a means of being able to support them through the next three months. We recognise that further work does need to take place, and we're engaged with UK Treasury, and indeed with the other devolved administrations, in trying to find a consistent approach for a key group of individuals within the labour force.

Helen Mary Jones made a number of important points about the provision of information and the accessibility of important information. We have already begun direct business communications with tens of thousands of businesses that are captured on the Business Wales database, and I'd encourage all businesses to register on that database. Larger companies—so-called anchor companies—are being contacted very regularly indeed by the business development managers within Welsh Government, and our regional response teams are also in contact with them very regularly indeed as well. I'd also urge any businesses that have any ideas—. We've talked earlier—Vaughan Gething in particular talked with Members earlier—about the national effort to produce ventilators and other important equipment. There is a dedicated e-mail address now for businesses to share ideas with us on how we can recover, how we can step up the national effort. That is business.covid-19@gov.wales.

And, in terms of clarification of what 'essential work' actually means in practice, this was discussed just today in our quadrilateral meeting with the Department for Business, Energy and Industrial Strategy and other economy Ministers across the UK. We were all at pains to say we need as consistent an approach as possible, given that the vast amount of information that flows to businesses in Wales actually comes from the UK media. Therefore, if we can have a consistent approach across the UK it would be very helpful indeed. Both myself and Minister Hepburn from Scotland also pressed the point for this to be done at pace, with urgency.

I certainly take the point that Helen Mary Jones made about the advice that is contained on our digital platforms. There's the Public Health Wales advice, and there's also the Gov.Wales coronavirus advice for businesses as well. I'll step away from today and take a look at the advice that was captured on both platforms to see whether it's consistent, and whether we can add information to either or, indeed, both. 

In terms of bad business practices, there is no doubt whatsoever that the vast majority of Welsh businesses are showing great responsibility—supporting workers, communicating with workers, and many are stepping up to help the NHS and care homes as well—but there is no doubt that there are some businesses where good practice is not being shown, is not being demonstrated, and Helen Mary Jones is absolutely right that we will have long memories from this period. 

In terms of enforcement, we're looking at the questions that Helen Mary Jones has raised with both UK Government and with local authorities as well, but I can tell Members today that the criteria for support from Welsh Government—the grants that we've announced that we will be administering and that Business Wales will be administering—will contain an additional line to the economic contract. The economic contract is really simple, it's just got four points to it: decarbonisation; fair work; a commitment to skills, health and mental health in the workplace; and growth potential. We will include now a coronavirus-specific strand to the contract, and any business that is found to have failed to adhere to social distancing will be exempt from getting our support, or that support will be clawed back. So, we'll be using that important tool to ensure that as many businesses as possible are behaving responsibly. 

In terms of rural businesses and, in particular, the farming industry, I had a really good discussion with the president of the National Farmers Union, alongside Lesley Griffiths, just last week to talk about the pressure that the farming community is facing. I believe that a statement from Lesley Griffiths is intended possibly for next week's virtual Plenary session. So, I'm sure she'll cover all of the issues that you've raised when she gives that statement.