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

Part of the debate – in the Senedd at 2:59 pm on 20 May 2020.

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Photo of Ken Skates Ken Skates Labour 2:59, 20 May 2020

Russell George has asked a number of really significant questions there that I'll try my best to answer succinctly. First of all, the eligibility tool will be available before the scheme is open, so any business that is considering applying will be able to check whether they're going to be eligible. All the criteria will be available online. I will endeavour, as soon as possible, to launch that fund, but we have to do so knowing that all of the systems are in place and that we have the full support of our colleagues in local government in any hardship bursary scheme that we introduce.

And in terms of a time frame for the reopening of certain sectors of the economy, I think it's important that we all operate our best endeavours in trying to get to grips with the pandemic and trying to kill off the virus right now. Setting an artificial, even an aspirational time frame, may lead to people being a little more relaxed about the need to actually kill the virus. If people know that business will only resume as normal as a consequence of killing the virus, I think the effort will be so much more intense, and that's why I'm keen to make sure that we just focus on controlling the virus.

In terms of the support that's being offered to the coach and bus sector, we established a £29 million hardship fund for the bus service providers. Now, the fund was financed through a consequential from the UK Government, but it only lasts until the end of June. We've been clear in our correspondence and our discussions with UK Government counterparts that there needs to be longer term surety funding for the bus sector to ensure that bus providers don't walk away, that they don't hand over the keys. So, I'm hopeful that the UK Government will listen to what we've called for and we'll be able to provide a much longer term support package for the bus sector.

But in addition to that, the economic resilience fund has been operating for businesses across all sectors, and I'm pleased to say that we have been able to support coach and bus operators with that particular fund. Offers have been made to some major employers in the bus industry and the coach industry. And I do welcome very much the paper that was produced by the Federation of Small Businesses. We published the 2m regulations. The advice and the guidance for safely operating at work for both employees and business owners will be published. That will be an enhanced version of what's already been provided by BEIS, adding in Welsh regulations on social distancing. And I've raised already with UK Government Ministers the need to consider a grant in order to help businesses adapt to what will be the new normal. I'm hopeful that the UK Government will be able to provide financial resource in order to be able to administer grants to businesses, particularly small businesses where the costs could be overwhelming. 

In terms of the tourism industry, we have asked UK Government to consider a VAT holiday in the tourism sector. I think this could be very beneficial, particularly in the recovery period, but equally, my friend and colleague Dafydd Elis-Thomas has been having numerous calls with UK Government counterparts and with the trade bodies concerning longer term support for the industry to do exactly what you've suggested, Russell, which is to ensure that they can hibernate through the worst of this crisis.