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

Part of the debate – in the Senedd at 4:30 pm on 22 April 2020.

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Photo of Ken Skates Ken Skates Labour 4:30, 22 April 2020

Can I thank David Rowlands, Deputy Presiding Officer, for his questions, and again for his kind comments too regarding the discussions that we've had, and the contributions that Members across all parties have made in our fight against coronavirus?

I'll certainly pass on his thanks, which I'm sure are reflected across the Chamber, to local authorities, to the development bank and to Business Wales. The pressure that people within those organisations are under is quite incredible and often they are forgotten. Equally, civil servants—the pressure that they're under is just incredibly intense right now and, again, they're often not remembered amongst the applause for critical workers, but they really are doing their utmost to keep people safe and to keep our economy as healthy as it can be.

So, we're seeing actually that the Business Wales website is getting around about 0.5 million hits a week at the moment. It's quite incredible, the traffic to that site, and their staff are taking around about 250 to 300 calls each day—a really good committed team of over 40 people who are showing incredible compassion to people who are really stressed and anxious at the moment, trying to keep their businesses afloat.

Just moving on to how we spend the money, of course, you're right, we have to be concerned with fraudulent attempts to extract public money from the Welsh Government, and I've highlighted one particular area of support that have the criteria set in a way that would prevent fraudulent applications being made. It was the non-VAT registered group that unfortunately suffered as a consequence, but who we aim to be assisting in phase 2. But then there's the additional question of what sort of value—over and above keeping that company alive, keeping those people in employment—we're actually getting for the investment. 

Well, I'm pleased that we've been able to introduce the economic contract into the grants process. We want to make sure we get maximum value for investment. We will be revisiting those businesses in the months to come, ensuring that they can demonstrate how they've been able to decarbonise, what they've done, in the time since signing the economic contract, to improve the health and mental health and skills of the workforce, and how they've grown as well, because we want to make sure that we invest in those businesses that are viable for the future, that are responsible businesses.

I'm going to turn briefly, if I may, to the construction sector. We've been obviously engaged in discussions across all four nations regarding construction sites and in terms of ensuring that advice for workers is as clear and accessible as possible. But the picture, as you've alluded to, David Rowlands, is not 100 per cent clear and there are currently different interpretations across all four nations, and amongst the companies, which is not entirely helpful.

The regulations that we've published with the supplementary guidance, I think provide probably the clearest guidance anywhere in the UK. And, as a consequence of that, I've had discussions with the likes of the Civil Engineering Contractors Association and skills bodies representing the construction sector. As a result of that, I think we have seen construction in a number of areas being maintained in order to support the health and economic effort that's under way right now. So, for example, construction of the Grange hospital is continuing—it's close to completion. That will provide an extra 350 invaluable hospital beds. It's right that that construction project should be completed; the A465 as well—a vital piece of economic infrastructure that will be at the heart of the regional economy and the resurgence from coronavirus in the years to come.

Other projects such as Caernarfon's Bontnewydd bypass as well, we wish to see delivered in the time frame that it was meant to be delivered, because it is of such importance to communities and to the local economy. However, that guidance must be adhered to at all times on construction sites.

I think it's also fair to say that construction will play a pivotal role in the recovery phase. We know that investment in infrastructure can provide the fastest way to grow an economy out of a recession, and we are now facing a recession. So, we're looking at how we can use not just large-scale construction projects but often smaller scale projects that benefit supply chains a little more in order to maintain work now, but also to expand employment opportunities as soon as we can, once we're through this virus.