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

Part of the debate – in the Senedd at 4:05 pm on 1 April 2020.

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Photo of Nick Ramsay Nick Ramsay Conservative 4:05, 1 April 2020

Can I thank the Minister for his statement this afternoon. I think those last words he used, of compassion, urgency and care, are well-founded. Minister, you've saluted those running our small businesses, and I think that in the same way that we salute those who've been working in the NHS and the care industry, I think that we should also be saluting those running our businesses at the moment and trying to carry on in very difficult times.

If I can just first of all pick up on an issue that was raised by the leader of the opposition in questions to the First Minister earlier, it's an issue really that's for the finance Minister, but it does touch on your brief as well, and that is this extra money. I think it's around £1 billion that was announced by the First Minister for jobs and supporting jobs. I understand that a good chunk of that money is coming from the EU, from EU funds that were originally designated for supporting existing jobs, but that's now going to be redirected to—. Sorry, that was originally supporting new jobs; that's going to be redirected now to support existing jobs. I'm just wondering about—. I think that's a good idea, by the way. I'm just wondering about, down the line, what this situation is going to be in terms of either paying that money back or arguing successfully for that being used in the right way, so that's probably a discussion that you'll have to have with the finance Minister. It does seem to me that, at this point in time, it is very wise to be redirecting funds as much as possible to support employment, so that when we come out of this, there are jobs there and SMEs capable of carrying out the job of rebuilding the economy.

You mentioned support, a framework for supporting businesses. Clearly, that is incredibly important. It's not just important that we have a framework for supporting businesses, it's also important that we have a framework that businesses are both aware of and they're able to access easily. I'm sure I'm not alone—with other Assembly Members, and I can see them, Minister, nodding—I'm not alone in thinking that. A number of businesses have contacted me and they've not been aware in the first instance where that support can be accessed. In this situation more than any other, it's a very fast-moving situation, so they need to know exactly where those avenues of support are as quickly as possible, so if you can tell us what you're doing to make sure that that framework is broadcast to businesses and they know exactly where those points of call are at the earliest opportunity, so that that can be accessed.

You've mentioned—well, supermarkets were mentioned to the health Minister, but I suppose it comes under your remit as well. I've had two e-mails from constituents today, asking about the situation when it comes to shielded individuals and the fact that there's not a similar register within Wales that there is on the UK level for registering with supermarkets to make sure that deliveries are available at home. People are concerned about that. I know the First Minister mentioned it earlier and the health Minister mentioned it, so I wonder whether you'd like to say something as well about any discussions you've had with supermarkets—they are a big chunk of our economy—about what can be done to make sure that those shielded individuals and shielded families are looked after as well as possible.

If I can just turn to the secondary part of your statement, the second part of which was relating to transport. I've got some questions for you on the bus industry. You've asked local authorities to continue to pay a minimum of 75 per cent of the contract value for school and other contracted local passenger services. Can you confirm that there's no legal obligation on local authorities to do so? And are you aware of any that aren't intending to follow your advice and guidance? I think what we need to avoid is ending up with a postcode lottery across Wales, and it is my understanding that at least some local authorities aren't playing ball in this regard and are saying that when times are difficult, if it's not a statutory obligation to provide that support in the first instance, then do they need to?

You're asking the bus industry, reasonably, to report weekly, showing how every bus has met its obligations with regard to limits on passengers, social distancing and the like. I completely understand that and think that's a good idea. However, again, I understand that some local authorities are asking for personal details upfront before funding is released. I don't think that's in the spirit of the written statement that you issued yesterday, so I wondered if you could give some clarification on exactly how you are intending that reporting process to happen.

Finally with buses, it looks as though the Department for Transport in England are going to provide extra support for the bus industry there—at least that's my understanding. Have you had any discussions or could you have any discussions with your counterparts in England, and indeed the finance Minister, to see if that money is forthcoming in England whether there are going to be any Barnett consequentials for Wales. That's an important aspect for us to understand here. Also, would you intend that to go to public transport within Wales?

Very finally, you mentioned at the end of your statement, Minister, that we are in unprecedented times, and you mentioned aviation and Cardiff Airport. So, if I can just put my Public Accounts Committee Chair hat on for a while, your written statement yesterday referred to the suspension of the Cardiff-Anglesey air link. What's your assessment of the impact on travellers and Cardiff Airport, given the suspension of the public service obligation for three months? I'm thinking particularly of travellers that we talk about needing to travel north-south for essential businesses. I wonder whether you've got any figures relating to those. I think this is something that we'll obviously be looking at in the longer term, and with the aviation industry in the situation it is, this might be lower down on your list of priorities at the moment. But, as I say, as this is something that we've looked at on public accounts, I'm interested to know what the situation is with Cardiff Airport and what assessment you've made.

Very, very finally, you mentioned the £40 million for the rail industry in Wales, and that is to be welcomed. Have you had any discussions with the rail franchise provider about where that money might go to support the industry in the short term? Social distancing clearly isn't compatible with public transport, so I think we all understand that there are difficulties at the moment with public transport. But I'm sure that we all agree with you that when we come out of this crisis, we want to make sure that our public transport sector, and, indeed, our wider economy, are on the best possible footing to deal with the challenges and to come out of this, so that the economy is on a much more solid footing than it does look as though it is on today because of all the understandable pressures upon it.