10. Economy, Infrastructure and Skills Committee Debate on the effects of COVID-19 on Wales's Economy, Infrastructure and Skills

Part of the debate – in the Senedd at 4:15 pm on 1 July 2020.

Alert me about debates like this

Photo of Russell George Russell George Conservative 4:15, 1 July 2020

Thankfully, Deputy Presiding Officer, due to the hard work of our NHS staff and because Welsh citizens have played their part and stayed at home, we have, we hope, passed the high-water mark. However, as the tide recedes, it is, of course, revealing an economic emergency, which is why I requested this earlier debate. Yesterday's announcement from Airbus is part of that unfolding emergency. I know everyone in this Chamber will want to be thinking about the people affected and will want to be reassured that the Welsh and UK Governments are straining every area to protect our key industries and the jobs that they provide. I also think about those who were affected by the Laura Ashley closures in my own constituency. Airbus, of course, is a big player in north-east Wales's skills sector, and so, as well as job losses, we'll be losing valuable training opportunities, and the pandemic and economic emergency will have an ongoing effect for the whole of Wales's skills sector and transport network, so it's important that this debate focuses on these areas as well.

Deputy Presiding Officer, the committee took evidence from a range of stakeholders, including business leaders, unions, training and transport providers on the effects of the pandemic on Wales's economy, infrastructure and skills, and we have released two reports and issued a number of letters outlining several issues that need, in our view, urgent attention. However, more positively, our work has uncovered opportunities that we as a committee think need to be seized on in order to rebuild our economy. Last month, we saw a record drop in the UK's GDP, and this drop is, of course, a natural consequence of asking people to stay at home. Ground will be regained as we come out of lockdown—of course, that is what we hope. However, even with a bounce-back, we're sadly facing an unprecedented recession. That's the sad likelihood, and, in light of this impending recession, it is vital that the Government acts swiftly to save businesses and jobs. Business leaders warned us about areas of the economy that will need more specific help than others in terms of a sectorial approach and to ensure that support is targeted correctly. A new round of business support is a good opportunity to fill in the gaps in the original COVID support. Although the original offer was very much welcomed, there were, of course, gaps especially felt by smaller businesses and microbusinesses as they fell through some of those gaps. As the Government develops its response to the recession, these businesses, we hope, as a committee, will not be failed again.

Last week's announcement about start-up funding was, of course, a step in the right direction for smaller businesses. When asked about the economy, the Minister told us that he wanted to 'build it back better'. This is a great aspiration, and, whilst the economy is in grave danger, support can be targeted to help rebalance and grow targeted sectors. To ensure that the Government is seizing this opportunity, I would like the Minister to set out what 'build it back better' means to him and what the Government will be doing to achieve this goal.

As Wales unlocks, reopening the economy in a safe way will also be key. Union representatives told the committee that they supported the Welsh Government's inclusion of the 2m rule in regulations, but they were worried about its enforcement, and the Government, I think, needs to explain how safety will be ensured, particularly in the light of the recent outbreaks we've seen at some food plants across the country.