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

Part of the debate – in the Senedd at 4:13 pm on 1 April 2020.

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Photo of Ken Skates Ken Skates Labour 4:13, 1 April 2020

Excellent. Can I thank Nick Ramsay for the very kind comments that he made at the outset and for his questions? Can I also just put on record my gratitude for the remarkable efforts by social care workers, NHS workers and other key workers, for the way that they've responded to COVID-19, and say, Llywydd, that it is good to see you yourself recovering so well from this virus? Fear and anxiety are very deep right now, and widespread, so to see somebody in such a position as you hold recovering from it really will provide some hope and optimism to people.

Nick Ramsay raises a number of important points in his contribution, first and foremost, the repurposing of Welsh Government money and EU funds. He is right, this is a matter for the finance Minister, but the challenge of COVID-19 is a problem that the Welsh European Funding Office recognises. It's greater than anything that we've encountered in recent decades, probably since world war two, and so there is flexibility being allowed in terms of how we bring forward that money to use it to sustain employment.

In terms of the framework that we've developed, I think we now have pretty much plugged every gap and provided a safety net for virtually all businesses and self-employed people. I said earlier that if you had a good business in 2019, we will be there to support you to have a good business in 2021. The criteria of a good business are clearly set out in the economic contract that we have: you have growth potential, you look after your workforce through applying fair work principles, by improving the health and the mental health of workers, you also ensure that you're contributing to the decarbonisation effort that we're going through. So, I think we have created now that framework to support all good businesses.

The Business Wales website is the first point of contact that I would urge businesses to go to; the Business Wales website has now been repurposed itself to provide comprehensive information regarding support for businesses throughout this period. It contains links to UK Government-sponsored support, to the Bank of England, the Development Bank of Wales, the British Business Bank and local authorities, ensuring that that is the one-stop shop for all business inquiries.

In terms of supermarkets, my colleague Lesley Griffiths discussed the issues that Nick Ramsay raised. I believe that they were discussed again just yesterday with all of the supermarkets. I'm sure that the Minister will be writing to Members shortly or providing a written statement regarding discussions that have taken place. But I would just like to say one thing: I've personally witnessed shop workers face abuse. It's totally unacceptable at the best of times, it's utterly, utterly reprehensible right now, and I would urge all customers of all shops to be patient and to show respect to shop workers. They are doing vital jobs right now and they deserve our thanks.

In terms of the question Nick Ramsay asked concerning bus support and the 75 per cent contract value, I've got to say this: I would not respond happily whatsoever if local authorities were choosing not to support vital bus services and bus companies right now. The bus services support grant and other funding streams are designed to support bus services and should be used to maintain—even if it's a skeleton service right now—bus services until we can bring forward solutions for the medium and longer term. And we are discussing the possibility of further support from the Department for Transport. Clearly, I would be keen to ensure that any additional support could be used for improving and enhancing public transport for the medium and longer term, and I understand that an announcement from the Department for Transport could come very soon indeed.

With regard to Cardiff international airport, the airfield will absolutely stay open. It must stay open to meet regulatory requirements, so that it can ramp up activity immediately once we're through this difficult period. In terms of the north-south service, I think I've issued a statement that pointed to the fact that more than 90 per cent of passengers were simply not showing up. The service was not being used. It made no sense to continue a service that was draining revenue that could be used elsewhere. But, of course, once we are past this difficult period we’ll be reinstating that service as soon as we possibly can. I've also been in discussions with numerous UK Government Ministers and with Ministers from other devolved administrations regarding support for not just airports but for our other ports as well. Most recently, I spoke with my counterpart in Northern Ireland yesterday about the situation that ferry businesses and ports are facing.

And, finally, in regard to the £40 million that will be made available to support the rail franchise, this revenue support will keep trains operating in the short run whilst we discuss longer term solutions for the franchise and the rail network. I should also say that we've been in regular contact with rail unions regarding the difficult working conditions that some of their members face. And, again, we have heard reports of union members who work, particularly in stations, enduring conditions that would not be appropriate at any time, where customers are invading their personal space and not showing respect. So, I'd again, Llywydd, just take this opportunity to urge all users of public transport to respect those people who are maintaining vital services right now.