2. Will the First Minister make a statement following reports that Ineos is reconsidering its decision to build a new plant in Bridgend? TQ468

I was extremely disappointed at the way that the news was relayed to Welsh Government, following all of the incredibly hard work in partnership that had been built over a number of years. The Welsh Government has invested time, energy and money into this business.

Thank you, Minister. Sorry, Llywydd—are you calling me back?

Yes. Please—Carwyn Jones.

Thank you for that answer, Minister. This is a great disappointment, of course, to the people of Bridgend—both the town and the surrounding area. Minister, do you agree with me that where businesses make a case for Brexit, there is an extra responsibility on them to invest in the UK and not invest in the single market purely because it may be more convenient? Do you also agree with me that those who are passionate Brexiteers should be angry at what has happened here, because this undermines their passionately held belief that the UK would be better outside the EU? And do you further agree that those Brexiteers would be welcome to join me in expressing my great anger, really, that, when a firm decides to build a British car, decides that it wants to build in the UK, it then decides to change its mind and build in the EU? That is not, is it, Minister, a way of expressing confidence in Brexit?

I'd agree entirely with Carwyn Jones and say that this decision is somewhat perplexing given that the business in question has been such a supporter of Brexit, and there is no doubt whatsoever that Brexit is doing immense damage to the automotive industry and the economy in general. And, essentially, what they've decided to do—fact—is go to France just at the point that we're reaching the end of the transition period, with no light at the end of the tunnel. And they are taking to France an icon of British automotive history and they're going to build it in Europe rather than in Britain where the company had promised to construct it. That will be very disappointing, I'm sure, to all of those fans of the product—the old Defender, or what will become known as the Grenadier—who had celebrated the fact, back in September last year, that it would be built in Britain.

We are going to do all we can to ensure that those alternative options, which we've been examining for Bridgend, are delivered for the community of Bridgend and the surrounding area. And I'd like to thank Carwyn Jones for the work that he has done in leading one of the work streams that was created as part of the Ford taskforce in ensuring that we have a focus not only the people who are going to be affected through the loss of Ford, but also the places that are going to be affected as well. And through the hard work of the former First Minister, we've been able to identify opportunities to invest in more enterprise hubs in the regeneration of Porthcawl, and we're supporting businesses in the north Bridgend valleys as well.

But this disappointing news, I'm sure, should be reflecting the poor performance of the UK Government in terms of the negotiations with our European colleagues to date, and should also send a very real warning about the state of the automotive sector as we reach the end of the transition period.

Suzy Davies. Suzy Davies, we can't hear you at the moment. Can you—?

Just a sec. 

Yes, I think we can hear you now. 

Yes? Thank you very much, and sorry. Thank you for calling me on this topical question. I'm sorry that it seemed to have been so wasted by the individual who actually asked the question originally, because it's quite clear that this company chose Bridgend not only over three or four other UK sites originally, but a number of European sites as well. And it's worth remembering that there's another factory in Portugal, which, as far as I know, is still within the EU, that has also been let down by this company. So, I feel that the question so far has been a complete distraction from trying to resolve this problem for the people of Bridgend who, of course, have been relying on this not just financially, but emotionally. 

I wonder, Minister, if you can tell us, looking back at the last 18 months, about whether there were any indications that Ineos may not be as committed to this project as you'd hoped. In March 2019, actually, I raised with you the fact that the company had gone to BMW to get the engine for the Grenadier, when we were still hoping that Ford might have attracted the company. And when we heard nothing, then, for six months, I think we were all as excited as you were when Ineos said that they were coming to the site at Brocastle. Now, at that time, you said that the Welsh Government—and I'm quoting—'has been critically important to attracting this business to Wales'. So, presumably, you are critically important to pinning them down to their commitment in the first place as well. You also said that the arrangement allowed you to secure European funding to facilitate further road and utility infrastructure on the site.

So, can you tell us, do you think the company is just playing hardball at this stage, and that a deal is still possible here? Has Ineos told you anything about the site's accessibility by road and rail, or, indeed, the accessibility by road and rail to the Portuguese site also affected by this, as compared to that of the French site? Did you get any European funding and will any of that have to go back now? And in the clawback provisions that you'll inevitably have included in any arrangement with Ineos so far, did any of those relate to the £4 million cost of the site preparation at Brocastle, knowing, of course, that Ineos was the anchor business material to your ability to attract those secondary and supply chain businesses to the site? And perhaps I could also ask, as this deal seems to have fallen apart on the day that the lease was due to be signed—  

You can't ask any further questions, Suzy. You're already out of time.   

That's it. Thank you very much, Llywydd.  

Thank you.

Can I thank Suzy Davies for her questions? I'll first of all deal with the accessibility question. Any suggestion that the M4 decision influenced Ineos is nothing more than nonsense on stilts. The fact of the matter is that the M4 decision was made in the summer of 2019, and the Ineos deal was secured in the autumn of 2019. In four years of negotiations with the company, not on one occasion was the M4 raised. It's about as credible a claim as the claim that the UK Government's failure and refusal to electrify the south Wales mainline may have influenced Ineos's decision. The fact of the matter is that a site became available in France very late last week, and in a very, very short space of time, the business decided to go to France, rather than remain in Wales. We will be seeking to recoup the £4 million that has been spent to date. There is the slightest chance that it could still come to Wales, but that would require the deal in France to fall through. But we will go on working to ensure that as many job opportunities come to Bridgend and the surrounding communities as possible. 

Minister, this is yet another devastating blow for my region and it is deeply disappointing. But regarding Ineos's position, the Grenadier had a very short shelf life and as we move to phase out fossil-fuelled engines, and combined with the uncertain economic climate, their future was uncertain. But, nevertheless, it is regrettable for my constituents and region. First Minister, it is clear that the traditional automotive sector is on the way out. Will your Government now concentrate its efforts on attracting the likes of Tesla? And will you commit to invest in training and research and development into the electric vehicle sector, instead of the traditional gas-guzzling one? 

Can I thank Caroline Jones for her question? And just to assure Caroline Jones that the Grenadier project—as a result of the company, Ineos, signing an economic contract with Welsh Government—would have led to alternative propulsion systems being used, in all probability, first for a hybrid engine and thereafter a full electric or even a hydrogen system. The fact that it's now going to France means that there will be no economic contract in place, and so we do not know what the future of the Grenadier will be beyond the diesel engine.

I can assure the Member that we are putting immense energy and effort into securing the gigafactory on the Bro Tathan site, which could create 3,500 jobs, working with Britishvolt. In order to secure that, we need investment from UK Government through the automotive transformation fund. This is a point that I've impressed upon numerous Ministers in Westminster, and as a consequence of the Ineos decision, I would hope UK Government Ministers make a very firm pledge that we will receive the sums needed to deliver the gigafactory in south Wales.

The decision by Ineos truly did come out of the blue, because that site in France only went up for sale on Friday of last week. Everything—everything—we were doing with the company was leading to the successful manufacturing of the Grenadier within Bridgend, and that decision was taken over a matter of just days not to invest in Wales, and it is one that we deeply regret and we are incredibly disappointed at.

Of course, we share the Minister's disappointment and are deeply sympathetic to the community around Bridgend that was, obviously, very much looking forward to the opportunities that this might have provided. May I ask the Minister, should I infer from what he said that this is a decision where we cannot expect Ineos to review their position? I think it would help people to know. And in a situation like this, the last thing we want is false hope.

Is the Minister able to say more today about what further plans for the site—what else the Welsh Government may be considering? And perhaps if he's not able, given what he's already said about this coming as a shock to him and his officials, could he undertake to keep Members updated through the recess about what developments are proceeding?

And finally, does the Minister agree with me—and in a sense, this builds on his answer to Caroline Jones—that we should perhaps learn lessons from this experience, and that it is maybe time for us to refocus, as a nation, our economic policies, both into the green agenda, as Caroline Jones has suggested, but also so that we rely less on inward investment, that we are less vulnerable to the vagaries of businesses and individuals like the person involved in this situation, and that we invest more in growing our own business infrastructure, the business who are rooted here who believe in their communities and who will make that work? Of course, that takes longer to deliver jobs, but when those jobs are delivered, they are very much more likely to stay.

Can I thank Helen Mary Jones for her questions? I will most certainly keep Members updated on any developments. We are keeping communications open, of course, with Ineos. But in order to turn that decision around, I think it would require direct contributions from the Prime Minister, given how close the Prime Minister and his colleagues are to the person that owns Ineos. I'm sure that the Prime Minister will be in direct contact with the company in the coming days. I hope that he will be able to secure the project for the UK, but I'm not holding out too much hope that that will happen, and I wouldn't wish to offer false hope to anybody who is aspiring to work within the Ineos factory in Bridgend.

Within the economic action plan, investment in indigenous growth is at the very heart of our attempt to drive inclusive and fair growth across Wales, and we are fully committed to growing the foundational economy, to strengthening it, and to ensure that the missing middle is addressed in a way that has been addressed in other countries, including, for example, in Germany. There are two alternative proposals for the Ford site itself, which we're working through, and in addition to that, as I said in my answer to Caroline Jones, we're also looking at the gigafactory potential for the Bro Tathan site.

I have to say, locally, people are utterly gutted with hearing this last-minute decision, when construction and development was happening there on the ground, and I really do strengthen the call from others here for you, Minister, and the First Minister to make a direct appeal to the Prime Minister, to Boris Johnson, to ask the chief executive and this company, even at this last minute, to think again. Because the idea that the Grenadier, building on an iconic British institution of the Land Rover Discovery, that has been brought forward by somebody who is a flag-waver for Britain and all things British, and also for EU withdrawal on the basis that no jobs would be lost—this is the very moment for the Prime Minister to step in directly and say, 'Think again', because if he does, he will have loyalty and a skilled workforce from people here in Bridgend. We are wondering now, 'What the heck? How is Grenadier pronounced in French or in German?'. This is supposedly an iconic British brand and we are angry locally about this last-minute betrayal.

Can I agree entirely with Huw Irranca-Davies and say that his anger and disappointment is shared across Welsh Government? As I said in my answer to the former First Minister Carwyn Jones, the Defender was an iconic piece of British automotive history, and the fact that it was returning, albeit with a different name and different guise, was celebrated by the automotive press, by automotive enthusiasts and particularly by owners of the original Defender. Sadly, we now know that the last truly British Defender has already rolled off the production lines, and that happened many years ago. This will be an entirely different beast with a different name, built outside of Britain, and that is something that I think thousands upon thousands of potential customers of this product will be bitterly disappointed by.

Minister, I am disappointed with your reaction today, trying to blame Brexit for the position that we find ourselves in, and I'd encourage you to listen to the First Minister's response to me in First Minister's questions about adopting a more positive approach to engage with the company. If I was the company's managing director and I listened to your responses today, I would realise that there was a 'closed' sign for me coming back to Wales, and I think that's highly regrettable. There's the opportunity to build a factory in Bridgend, and that should happen, without a shadow of a doubt, and I want to put my shoulder to the wheel and support that, but your negative tone today will do nothing to reopen negotiations with that company. Last time I looked, Portugal was in the European Union and Nissan just reaffirmed their commitment to Sunderland. So, why on earth is it the case that you're being so negative on this proposal?

I find the question from Andrew R.T. Davies to be somewhat unbelievable. Your energy should be used in directing the Prime Minister to intervene personally and immediately to secure the Ineos factory for Wales. You have not had a conversation with the chief executive officer of the company; I have. I know the reasons why they have decided not to proceed with Wales and with Portugal as centres for the manufacturing of the Grenadier. The Prime Minister could have a critical role to play in ensuring that Wales does have the prospect of securing work from this project, and your energy should be directed towards the Prime Minister himself. 

I thank the Minister.