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

Part of the debate – in the Senedd at 4:52 pm on 22 April 2020.

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Photo of Mr Neil Hamilton Mr Neil Hamilton UKIP 4:52, 22 April 2020

The Minister said in his statement that whilst a lot has been done, there's still a lot to do, and that's certainly true. The Government has effectively put most of the economy into a kind of medically induced coma and many businesses fear, with some justification, they're not going to come out of that coma alive, so it's vitally important that we start the gradual process of lifting restrictions as soon as we can and in the smartest way possible, so that we protect the public's health as well as the health of the economy. 

In Mid and West Wales, we've got huge dependence on farming, tourism, hospitality, et cetera, and a lot of these businesses are going to fall through the gaps, which have been mentioned already, in the various funds that are available to try to cope with the consequences of the lockdown. Farms, for example, are excluded from the economic resilience fund, as I understand it, because they are almost, by definition, in receipt of publicly funded grants through the common agricultural policy. And yet we've seen the dairy industry face a 25 to 30 per cent fall in demand for milk, we've seen the livestock sector similarly suffering with high-end high-value cuts of meat no longer being used by hotels, restaurants, et cetera. A lot of these businesses are going to be on the margins, and they can't be helped under the existing schemes. 

Similarly, I was very disappointed to hear that the reason for using the VAT threshold as a qualification for applications for the ERF was due to fraud. There are many, many ways of countering fraud apart from looking at the information that is available to the VAT authorities. So I hope that that's going to be reconsidered. Let me give you one example of a business that is certainly not fraudulent but is a microbusiness: the Penmaenpool toll bridge near Dolgellau isn't going anywhere and the people who own the bridge aren't going anywhere either, but they fall through all these gaps because they're not registered for VAT. They're wholly dependent on income from tourism to keep the bridge going. It's a tourist attraction. A lot of businesses like that are just going to go out of business unless some help reaches them pretty soon. So I hope that the Minister will take a more flexible view of this in his reconsideration of the existing rules and, in a couple of weeks' time, come up with some kind of more flexible discretionary scheme, whereby, because we won't cover every possible example in a set of rules, there'll be some kind of discretionary mechanism whereby businesses that fall through the gaps can be reconsidered.