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 4:50 pm on 1 July 2020.

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Photo of Alun Davies Alun Davies Labour 4:50, 1 July 2020

I'm grateful to you, Deputy Presiding Officer, and I'm grateful to the committee as well for the work that it's been doing on this. I think all of us have enjoyed the opportunity of reading through the reports of the committee and are grateful to both them and the staff and witnesses for the contributions that they've made.

We need to look hard at how we're going to ensure that the economic shock that we are seeing at the moment isn't simply an economic shock again for the poorest people in this country. We've seen from previous recessions that it is the poorest people, the poorest communities, that suffer the worst impact of these recessions, and we've seen economic shocks in the past have a dramatic impact on not simply the people who live in these communities today, but their children and grandchildren as well. Generations, as I think has already been described, are still feeling the effect of Thatcher's war against the Valleys of south Wales. We need to be able to look hard at how we do that. We are seeing at the moment the headlines of some really terrible job losses, and we've been discussing Airbus already today. But we're also seeing job losses taking place on a daily basis—smaller in number, but an enormous number of people and families and communities affected. I've seen in my own constituency numbers of people who are already being threatened with redundancy. The impact of COVID isn't going to be seen in the autumn—it's already being seen today.

I agree very much with the points that Huw Irranca-Davies made about the UK Government needing to extend the furlough scheme into the autumn. And I think we've all agreed, over the past two months, that the economic impact of UK Government schemes is something that we have appreciated, and it's been good to see the Welsh and UK Governments working together over the previous months. In that context, the Prime Minister's speech yesterday was all the more disappointing. It seemed to be a UK Government walking away from the people of this country, unable and unwilling to deliver the support that business and industry need. No cash in Wales, no investment for Wales, not a care for Wales—walking away from our key industries, our key employers and our people at a time when they needed that support.

So, I want to see the Welsh Government stepping up to the mark. We did it after the 2008 recession, of course, and saved many tens of thousands of jobs, and we need a real new deal, not the fake new deal that the UK Government were talking about yesterday, but a deal with the ambition and the vision that will invest in people and places. We need to see, I believe, for the Heads of the Valleys, for example, a jobs plan, an industrial strategy for the Heads of the Valleys, delivering on some of the conversations that we've already had, Minister, through the Tech Valleys scheme, investing in the strategic sites, whether it's Rhyd y Blew or Rassau or any of the other industrial estates across the A465 corridor—a jobs plan that brings together the skills and training with investment in connectivity. It's finally time that rail infrastructure was devolved. We saw yesterday that the UK Government are simply not going to invest in our railways. We need to do it ourselves and we need to ensure the devolution of rail infrastructure to let us do that.

But let me say this, Minister: I very much agree with what the Welsh Government's saying about 'build back better', but we need to have something left to build back upon, and we need to be able to have a clear priority—jobs, jobs, jobs. We need to protect existing employment. We need to protect our existing industrial base. We need to be able to protect town centres and industrial estates together. This is the biggest challenge we've faced as a Senedd, as a parliamentary democracy, in 20 years, the biggest challenge the Welsh Government has faced in two decades, and we need the ambition, the vision and the agility to meet that challenge. I want to see the Welsh Government using all the financial instruments and tools available to it, together with that rooted commitment to our communities. I've seen the Minister walk and stride through communities in his own constituency in north Wales and mine in the Valleys of south Wales. I know his commitment to those places and I know his commitment to our people. This is the challenge now, to make that commitment real.