Job Losses at Airbus

7. Topical Questions – in the Senedd on 1 July 2020.

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Photo of Jack Sargeant Jack Sargeant Labour

(Translated)

1. Will the Minister make a statement on discussions held between the Welsh and UK governments following the announcement of job losses at Airbus? TQ465

Photo of Ann Jones Ann Jones Labour 3:21, 1 July 2020

Thank you. Minister. Is the Minister there? It doesn't appear that the Minister is either picking this up—. So, we seem to be having quite a lot of problems with the technology this afternoon. I wonder whether we could postpone this and we'll sort out why the Minister is not able to communicate with us. So, if we could then go on to the next item on our agenda, which, again, I see—. I'm wondering whether there is a fault. Shall we have a five minute technical break just while we sort this out? So, we'll have five minutes and we'll reconvene in five minutes. Can you just wait so that broadcasting can switch everybody off and then we'll come back?

(Translated)

Plenary was suspended at 15:22.

The Senedd reconvened at 15:23, with the Deputy Presiding Officer in the Chair.

Photo of Ann Jones Ann Jones Labour 3:23, 1 July 2020

It appears now that we're back on, broadcasting. So, Jack Sargeant's topical question was asked, Minister, and you're aware of it, so could you answer it and then we'll go back to Jack for his supplementary?

Photo of Ken Skates Ken Skates Labour

Thank you, Deputy Presiding Officer. Last night's news is clearly devastating for all of the workers at Airbus in Broughton, their families, and the local communities surrounding the plant. Throughout the pandemic, we've called on the UK Government to work with us on a support package and to provide a clear route map to a recovery for the aerospace sector. 

Photo of Jack Sargeant Jack Sargeant Labour 3:24, 1 July 2020

Thank you for that answer, Minister. I spoke earlier about the need for an aerospace bailout from the UK Conservative Government. That, unfortunately, is in their hands, and they must decide whether they act and support our communities or let us down once again. There are measures, however, that this Welsh Labour Government can take to continue to support the industry.

Minister, you'll be aware that employees at Airbus and their families will be extremely worried and wondering where to turn. We need a Welsh Government supporting and working with them and their unions immediately. Minister, can I ask you what your plans are for Airbus, for the supply chain, and for the wider local economy, and also what the UK Government must do to support our communities in north-east Wales?

Photo of Ken Skates Ken Skates Labour 3:25, 1 July 2020

Can I thank Jack Sargeant for his supplementary question and say that we are determined to work with Governments in Westminster and in Flintshire, and across the region, to ensure that we get the best possible prospects for those people who are affected by today's announcement? Of course, we would wish to minimise the numbers that have been announced, and we will seek support from the UK Government in striving to achieve that.

As you'll be aware, Jack, we've invested millions upon millions of pounds in the Advanced Manufacturing Research Centre to ensure that we capture the Wing of Tomorrow programme, and that remains our long-term strategic aim to ensure that the future of wing making is secured for Broughton.

In the very short term, in order to create a bridge to the point where Airbus in Broughton has that strong future prospect—[Inaudible.]—has to be given by UK Government to supporting those workers with a prolonged furlough scheme so that, if at all possible, a shorter working week can be implemented at the site.

Now, in addition to this, recognising that aviation is a reserved matter, the UK Government should look very closely at recommendations made by the Aerospace Wales Forum and Airbus, and others, including the potential for an air scrappage scheme, which could stimulate activity within the aerospace sector. And also, the need to recognise that additional research and development funding is required for the sector.

Now, we are offering up a unique opportunity, with the advanced research and technology centre that is planned for the Deeside area. That gives the UK Government an opportunity, through the Ministry of Defence, to invest in the site, in that particular facility, and to ensure that we can capture and hold on to the best skilled people, possibly, within the sector.

Photo of Mark Isherwood Mark Isherwood Conservative 3:27, 1 July 2020

I'll just unmute. Thank you. Yes, this is dreadful, dreadful news for north-east Wales and the wider region and economy. I attended a briefing last evening with Airbus, alongside north-east Wales Conservative MPs, who explained that they're facing the most serious global crisis in the history of our industry and that the more formalised announcements on where the job losses will fall will come tomorrow. I hope that you'll tell us what plans you have in place—I'm sure you have—for tomorrow to be ready to respond, once the gaps are filled in, and, obviously, building on the assurance that this will be focused on voluntary rather than compulsory redundancies.

We heard from Airbus that they are talking to the Department for Business, Energy and Industrial Strategy, and have been for some time, as well as yourselves, asking, in particular, for support for a shorter working week. I'd welcome your understanding of the position on that, at present, and what the Welsh Government's view might be.

Simon Hart, the Secretary of State, has said that there's been £10 billion' worth so far of UK investment in the aviation industry and that they'll keep doing that because they want it to survive. Again, I'd be interested to know what engagement you have, or will be having with your colleagues in BEIS regarding those comments.

And finally, if you could just mention the apprenticeship scheme. I know that Airbus has acknowledged positively the support that Welsh Government is providing for the apprenticeship scheme and that it's moving to staggered start dates and reduced class sizes. But, what could the Welsh Government do to support extended schemes in the future to enable new-start entrants to be hopefully there for recovery in the future? 

Photo of Ken Skates Ken Skates Labour 3:29, 1 July 2020

Can I thank Mark Isherwood for a number of constructive questions? And can I assure him, first of all, that I've been in very regular dialogue with Ministers within BEIS and the Wales Office? Indeed, weekly conversations have taken place during the course of the pandemic. I hope that they will continue once we're through this as well.

We haven't had the same degree of engagement with UK Treasury, and, of course, it's Treasury that will make the ultimate decision over whether to support Airbus workers with the financial support required to introduce a shorter working week. It is something that I've spoken with Ministers in BEIS and the Wales Office about, and I believe that we have unanimous support across Welsh Government and those departments in the UK Government for such an intervention. But it will require UK Treasury decisions to be made in a positive way, and I understand that they're considering this proposal at this present moment in time.

In addition, there are actions that the Welsh Government will be taking forward in the immediate future and in the short and longer and, indeed, medium term, including the creation of a rapid regional response team. That's up and running now. It will be operating on a cross-border basis as well. We'll be liaising with stakeholders right across north Wales and north-West England, recognising there is a huge issue concerning manufacturing on both sides of the border, not just aerospace, but other key sectors.

We'll also be hosting a summit, which will give many of the businesses within the supply chain an opportunity to determine what other prospects there are with other original equipment manufacturers within the aerospace industry. And, of course, we stand ready to support supply chain companies through the economic resilience fund.

Consultation on the specific number of jobs that will be announced at Broughton will take some time, as I'm sure you recognise, and we'll be working throughout that period with the company in making sure that anybody who finds themselves redundant following the consultation has support there through Working Wales to get training or further employment opportunities. As I've already said, the potential for an advanced technology and research centre will further attract investment into the Deeside area, and that is a vitally important facility.

Now, in terms of the apprenticeship provision at Airbus, we are proud to have supported thousands upon thousands of apprentices at Airbus. They are amongst the very best apprentices anywhere in the UK. It is a stellar scheme, and we are very proud of it, and we are pleased that we are able to be funding, right now, in these difficult times, completion of year 3 apprentices, and we are finding a model of supporting financially new starts. Mark Isherwood, I'm sure you're aware of our continuing target of creating 100,000 high-quality all-age apprenticeships. That will continue, in spite of coronavirus. We expect to meet that target, and we will do all we can to ensure that the maximum numbers can be delivered through Airbus.

Photo of Llyr Gruffydd Llyr Gruffydd Plaid Cymru 3:32, 1 July 2020

Thank you, Minister, for your responses so far. It certainly is gut-wrenching news, and I very much align myself to the comments you made around looking at the four-day week and extending the furlough, and, certainly, the importance of the apprenticeship provision at Airbus. It's renowned and highly coveted across north Wales, and we really need to do everything we can to try and retain as much of those opportunities as possible.

Could you tell us a little bit more about what work you're looking at in relation to developing alternative works at the site? Clearly, there's reference in your statement issued earlier about maintenance, repair and overhaul work potentially being located on the site. You touched on research and innovation; I'm particularly keen to see, maybe, innovation around more environmentally friendly aspects of potential within that kind of technology and industry. It's certainly somewhere where we need to be pushing the sector. So, I'd like to hear about what your proposals are in terms of maybe trying to start to pursue some of those areas.

Also, of course, we have to remember—and I know you are aware of this, and you've already acknowledged this—that there's a big, big supply chain and a plethora of local businesses that are very dependent on the site at Broughton. So, could you tell us a little bit more about how you intend to engage with and support the wider supply chain that will be affected by these proposed redundancies?

And you'll be aware, I'm sure, that Plaid Cymru published last week our proposals for an economic renewal plan, which includes proposals such as a reskill Wales package, an employment guarantee scheme for young people, which clearly is part of a wider approach to the post-COVID development we'd like to see. I'm wondering whether you'd be willing to certainly look at and consider some of those as potential interventions from Government.

Finally, we're talking about, mostly, economic impacts and the impact on businesses and employment, but there will clearly be an emotional, well-being impact, and an impact on people's mental health, people who have already been furloughed for many months now facing the prospect, of course, of not potentially having a job to go back to. So, can you assure us that not only will the support be there in relation to business advice and support around finding jobs and reskilling, but also the support that people might need in terms of their emotional and mental health and well-being?

Photo of Ken Skates Ken Skates Labour 3:34, 1 July 2020

Can I thank Llyr Gruffydd for his questions and perhaps answer that last one first? Because I think it's absolutely vital we recognise the mental and emotional toll that this could place many people under. It's absolutely vital, therefore, that the support we offer is not just concerned with employment matters and skills opportunities, but also support for mental and emotional health. I have to say that the company itself has shown remarkable responsibility over many years in providing support and advice for workers who face mental health issues, and we will ensure, through the Working Wales programme, that we take care of individuals who are facing particular emotional strains right now. Working Wales was set up with the purpose of ensuring that it identifies all of the challenges, all of the barriers that individuals face when they are out of work, and that we put in place guidance, advice and support for them to overcome each and every barrier, including mental health.

Llyr, you raised a number of questions about alternatives, and it is vitally important that we look for every possibility to invest in jobs and businesses within that geographical area, recognising that it will be some time before the aerospace sector fully recovers. The Advanced Manufacturing Research Institute will provide a unique opportunity for collaboration and co-location by a number of primes that are interested in research and development around particularly electronics and electronics repair work. That will be very complementary to the aerospace presence at Broughton.

We're also looking at some other complementary sectoral activity that could be introduced within the Deeside area, and of course you'll be aware of the Heathrow logistics hub potential for the Tata Steel site. That could prove to be vitally important in providing alternative work for these incredibly skilled individuals. We believe that there are around 150 businesses within the Airbus supply chain that could be affected by the announcement overnight. We've already had discussions with them, and we've asked the Wales aerospace forum to carry out an audit of the likely impact of the announcement by Airbus overnight. As I said to Mark Isherwood, we're looking at opportunities through the forthcoming summit to introduce a number of businesses within the supply chain to other major manufacturers that they could supply goods or services to.

Photo of Russell George Russell George Conservative 3:37, 1 July 2020

Thank you, Deputy Presiding Officer. I align myself with others that have commented. I think it's clearly disappointing news and a real blow for the aviation sector in Wales, and I think thoughts are with all those staff that have been affected. Some of the key questions have been asked, but I think it is concerning that the Welsh Government wrote to Ryanair to ask the airline to postpone a flight scheduled for this Friday from Cardiff Airport. If the Welsh Government don't allow flights, and don't believe that they should take place, then there's going to be an obvious knock-on effect for the aviation industry. So, it would be helpful if the Government could set out in this context what can be done in terms of changing the public health rules, as has been done in other parts of the country, the UK, to pass on a message that we're open for business here in Wales.

Photo of Ken Skates Ken Skates Labour 3:38, 1 July 2020

Can I thank Russell George for his question and say what I said at the press conference this morning—that we look forward to ensuring that Cardiff international airport strengthens its relationship with Ryanair, resumes flights as soon as possible, as soon as it is safe to do so? But we must also recognise that the UK Government's advice remains in place regarding foreign travel, and that only essential travel should take place, and that the UK Government's quarantine measures remain in place. So, I would urge all of those individuals who have purchased tickets—and I recognise that many purchased them several months ago—to think incredibly carefully before flying on Friday, and if possible not to do so, because we still have this terrible virus that we have to deal with. If air bridges can be created, and when the Foreign and Commonwealth Office changes its advice, then we will be celebrating the fact that we will be able to deliver more flights in and out of Cardiff Airport. But those two flights we would wish to see postponed for the time being. However, we are very supportive of Cardiff Airport's efforts to attract more airlines and to develop more routes in the long term.

Photo of Ann Jones Ann Jones Labour 3:39, 1 July 2020

Thank you very much, Minister.