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

Part of the debate – in the Senedd at 2:35 pm on 20 May 2020.

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Photo of Ken Skates Ken Skates Labour 2:35, 20 May 2020

But the conversation needs to begin with the UK Government now about the future, about how economic life will function after the job retention scheme and the self-employment income support scheme have been taken away. In Wales, our priority has not changed. Public health and the control of the pandemic remain our No. 1 priority. That's why, on 14 May, I issued an important reminder to anyone considering travelling to Wales: please stay at home. Visitors will be welcome with open arms to Wales once we are through this crisis, but, for now, we must tackle the virus by staying home.

Now, a major part of our work has been to support businesses through this pandemic, and our package of support is the most generous for businesses anywhere in the UK, and it includes a £100 million loans scheme to help more than 1,000 businesses through the Development Bank of Wales; a £400 million economic resilience fund grant scheme, which, for phase 1, has attracted more than 9,500 applications, with over 6,000 offers already made to date, worth in excess of £100 million; and also, of course, the non-domestic rates-based grant support for small businesses and businesses operating in the retail, leisure and hospitality sectors, awarding to date 51,100 grants worth more than £626 million. It's a total package of £1.7 billion, worth 2.7 per cent of gross domestic product.

On 27 April, we paused the economic resilience fund to give us an opportunity to consider where further support could make the biggest impact, not only to help those businesses we haven’t already reached, but also to consider what support all businesses will need through the ongoing rescue phase, as well as into the restart and recovery phases, as lockdown measures are eased in line with last Friday’s framework. That work is advancing well and we are finalising the details of the next phase of the economic resilience fund. I expect to reopen the economic resilience fund eligibility checker for new applications by the middle of June, allowing companies time to prepare their applications. Following that, I expect to open for full applications later in the month. This will enable access to the remaining £100 million of the £300 million already approved and allocated to support microbusinesses, small and medium sized enterprises and large businesses.

Now, in terms of eligibility, phase 2 of the fund will operate in the same way as phase 1, but with an update to the micro scheme. This will enable limited companies that are not VAT registered to access the fund, something that so many small businesses have been calling for. In addition, we are also working with our partners in local government to develop further support proposals for those not yet reached—for example, start-up businesses. We've also supplemented the Government's discretionary assistance fund, which supports people who are recently employed but not eligible for the job retention scheme, as well as the self-employed.   

I will, of course, Llywydd, continue to keep Members up to date on these matters. In the meantime, the UK Government has a critical role in expanding its support for strategic businesses still struggling to find appropriate support. In particular, I have asked the UK Government to look again at what help it can provide to safeguard businesses critical to our national economic security, such as Tata Steel and Airbus.

Earlier today, Llywydd, the Minister for Education outlined a COVID-19 post-16 sector resilience plan to give education providers a clear framework for planning and delivering our employability and skills response. Employability support is vital in times of economic uncertainty and responding to those swiftly. One year on from its official launch, the Working Wales service has directly supported more than 31,500 adults, and over 6,000 young people, who are looking for employability support. That service has been adapted in response to the pandemic and has extended its web chat, text messaging and call service facilities to best meet the needs of users. 

But this is not the only change that we have made. For apprentices, we have developed online learning modules to ensure they are able to continue to progress through their learning. For our traineeship learners, we have developed digital learning packages and maintained their training allowances. And for those furthest from the labour market, our community employability programmes have adapted their delivery to continue providing outreach in our most deprived and vulnerable communities for young people and adults. For those closer to the labour market, support is being provided through ReAct, Jobs Growth Wales, and the employability skills programme. And for those in work, the Union Learning Fund, with support from the Wales Trades Union Congress, is delivering immediate skills solutions and support to workers during and after the coronavirus crisis.

Now, it has to be said, Llywydd, that none of this would be possible without the support of our social partners. And on 14 May, together with the First Minister, I met members of the shadow social partnership council to discuss the challenges we all face over the coming months, to discuss how we lift the lockdown safely, to discuss how we can take advantage of, and move towards, an economy that sees us travel less, but work smarter.

Last week, I also met transport unions, passenger groups, public transport operators, stakeholder representatives, and Transport for Wales to discuss the guidance we are developing to help prepare our public transport network for the new normal. In the short term, we are considering ways in which we can manage demand for public transport and maintain strict social distancing. Some of the measures that we discussed were the prioritising of public transport for key workers, encouraging greater pre-booking and better planning of travel, and staggering shift patterns in the public sector, and encouraging the private sector to do likewise. We'll publish this guidance in the coming weeks, in readiness for any easing of the lockdown that might occur through the next 21-day review of regulations.

Now, Llywydd, this week is, of course, Mental Health Awareness Week, and we recognise that this is a very uncertain and stressful time for businesses and employees. That's why, as part of our package of advice, we have included information on mental health and well-being on the Business Wales website to help business leaders take care of themselves and their staff. These include the Time to Change Wales programme and the Public Health Wales 'How are you doing?' campaign. Mental health is something that is very important to me, and I'd urge all businesses and employees to make use of these invaluable resources.

And, Llywydd, I'd just like to end by offering my thanks again to Members across this Chamber for the advice, the ideas, and the counsel that they have provided over the last few months. We will get through this crisis, and we will build back better in our economy, in our communities and in our public services, and we will work together to do it. And now I'm very pleased to be able to take questions.