Item 7 is a statement by the Minister for Economy, Transport and North Wales: the economic resilience fund—phase 3. And I call the Minister, Ken Skates. 

Diolch yn fawr iawn. As we have said before, the economic picture is stark and unstable, and its future path is intrinsically linked to that of the pandemic and, indeed, the end of the EU transition period. As the picture of the economic position emerges, this intricate balance between public health and the economy has been brought into even sharper focus over recent days, with the announcement of further national and local restrictions to control the spread of the virus as we enter the autumn and winter period. Given this fluid and rapidly evolving context, and as we look to find the balance between rescue and recovery, it's clear that there is a strong rationale for continued support for businesses, for people and for communities in Wales to help improve their short to medium-term prospects.

The UK Government's coronavirus job retention scheme, which will end next month, has been essential in protecting Welsh jobs, and it's delivered support at an unprecedented scale that can only be provided by the UK Government. We've consistently urged the UK Government to put in place new arrangements in parallel with the coronavirus job retention scheme being wound down. In particular, we've pressed for increased support for those sectors hit hardest, for greater efforts towards job creation as well as job security and more investment in training and skills, all of which would assist the economy to recover more rapidly. 

Support should be offered to help workers who are being made redundant now, and those who will be made redundant in the weeks ahead, as current employment subsidy schemes disappear. More needs to be done to help people find new jobs and incentivise employers to hire workers. So we welcome the Chancellor's decision to extend the value added tax reduction for the hospitality and tourism sector until March 2021, to extend repayment deadlines for businesses that have deferred VAT and to provide more flexible terms for businesses that have taken out Government-backed loans. However, overall, the measures announced, unfortunately, are unlikely to be sufficient to prevent a large rise in unemployment in the months ahead. More needs to be done, and we will continue to press the UK Government to take bolder steps to assuring our economic recovery and supporting future prosperity for businesses and for people across the UK.

To date, our economic resilience fund has already supported 13,000 businesses, helping to secure more than 100,000 jobs for our citizens. Our £1.7 billion business support package, equivalent to 2.6 per cent of our gross value added, aims to complement and supplement other UK Government schemes, and means that companies in Wales have access to the most generous offer of help anywhere in the United Kingdom.

Now, following the principles of providing enhanced support, yesterday I announced that the Welsh Government is making an additional £140 million available to businesses to help them deal with the economic challenges of COVID-19 and the UK's impending exit from the EU. The funding from the third phase of the ERF will see wider support being provided to secure jobs and help businesses develop, as well as additional help for firms affected by local restrictions. This new phase of the ERF will see £80 million being made available to help businesses develop and secure the employment of their workforces, through business development grants, but they will require firms to commit some of their own resources in return. Some £20 million of this budget will be allocated to supporting tourism and hospitality businesses that I know are facing particular constraints and challenges as we enter the winter months. The scheme will also reward those businesses that create new job opportunities for under 25-year-olds. Meanwhile, an additional £60 million will be allocated to support in areas that are subject to local restrictions. 

Finally, I am considering how to use the Development Bank of Wales to consolidate and secure long-term patient capital to small and medium-sized enterprises in Wales as we navigate through the coming months. The business development grants will be open to businesses of all sizes. Microbusinesses, those that are employing between one and nine people, will be able to apply for up to £10,000, on the condition that they match this with their own investment of at least 10 per cent. SMEs, those businesses that employ between 10 and 249 people, will be able to apply for up to £150,000. Now, small businesses will be required to match this with their own funds of at least 10 per cent, and medium-sized businesses with at least 20 per cent of their own funding. Large businesses, those that employ over 250 people, will be able to apply for up to £250,000, on the condition that they match this with their own investment of at least 50 per cent. There will be an element of discretion in the fund to enable higher levels of support for microbusinesses and SMEs in the tourism and hospitality industries.

The eligibility checker, for companies to find out if they can access funding from the third phase of the ERF, will be live next week. Companies that received grant funding through phase 1 and/or 2 of the ERF, or non-domestic rate-linked grants, could also be eligible for further support through the third phase of the ERF. A further £60 million, as I've said, will be provided to support companies that are forced to close or are materially impacted by the current local restrictions.

The nature of local restrictions may vary according to differing circumstances, and may create a financial pressure for the Welsh Government if it is not mitigated in full by any UK Government response. I can say, in designing this next phase of support, we carefully analysed the economic data and incorporated learning from other areas of the UK that have been subjected to local restrictions, including, importantly, Leicester and Aberdeen. We are conscious that introducing local restrictions will impact on local economies, on businesses and employees alike, and we are working with our local partners to explore ways in which businesses may need to be supported during this time to meet their needs and those of workers and communities.

Business Wales remains the first port of call for advice for businesses, and our existing range of financial support options for businesses still remains in place. COVID-19 is an issue affecting the whole of the UK. The UK Government has a continued role to play in shaping and providing local economic support. I'm in active dialogue with UK Government Ministers on this.

We are going through a time like no other. Coronavirus and the increasing risk of the UK reaching the end of the European Union transition period without a deal have placed incredible challenge on our businesses. This announcement, though, provides the reassurance that our businesses need at a time they need it most, that further support will be available. It also leaves us with the flexibility to respond to circumstances, as they may arise, which will be important over the coming tumultuous months. As a Welsh Government, we continue to do all that we can to back our businesses, our communities and our workers.

Can I thank the Minister for his statement this afternoon and for, also, the additional support that he has announced to support businesses here in Wales? I do appreciate, Minister, as well, in your statement, your welcoming of the various schemes that the Chancellor has announced to support businesses across the United Kingdom. I'm sure that you will also agree with me, Minister, that measures such as the job support scheme will give employers the breathing space that they need to protect employees' jobs whilst navigating what is likely to be, as you have said, Minister, a very difficult winter. A subject to further protect businesses by extending loan deadlines and deferring VAT for tourism and hospitality sectors I think will also provide welcome benefit to many businesses here in Wales.

Turning to your statement, Minister, it's been my view that the funding that was provided by the UK Government to the Welsh Government should be allocated directly to businesses sooner rather than later to prevent businesses falling through the gap. I do appreciate that the Welsh Government has sought to mitigate some of the gaps and tailor certain policies with policies that have been brought forward by the UK Government. As of last month, I think I'm right to say—you will correct me if I'm wrong on this, but—only half of the £500 million from the economic resilience fund had actually been distributed. So, it would be useful to have a breakdown of that £500 million allocation: what was spent on phase 1 and phase 2, what was left over from phase 2, and how much, if anything, you expect to be left over at the end of phase 3.

I also welcome the news that £60 million will be specifically for areas where lockdowns have been reimposed, because I think businesses, specially smaller businesses and SMEs, need clarity on how to access the funds. I think it's crucial that those funds get to those businesses as soon as possible. If the funding is there, then it should certainly be distributed as quickly as possible, and perhaps you could tell us more about how these particular funds will be getting to the right businesses in a timely manner.

The Treasury announced that businesses in England that are required to shut because of local lockdowns will be able to claim £1,500 per property every three weeks. Now, I do appreciate that businesses are not required to close as part of local lockdown measures here, but that may be necessary, and also, effectively, some businesses are shut down by the restrictions in place. So, have you given any consideration to the introduction of a similar scheme here in Wales? I can see that wasn't mentioned in First Minister's questions and it wasn't mentioned in the statement, but I'm hoping that you might be able to give us some more information in that area.

We do need some targeted economic support for communities and different business sectors that are most adversely affected by the pandemic, and I appreciate you've ring-fenced funding for the tourism and hospitality sector, but I do wonder if you've considered specific support for other specific sectors.

I was a bit concerned—I've had some correspondence in regards to businesses being concerned that they have to, effectively, be unionised before receiving some funding. So, it would be helpful if you could perhaps allay some concerns of businesses in that regard, because, clearly, being part of a union is not always suitable for some businesses, employers or employees, and that would, obviously, disenfranchise quite a number of businesses across Wales.

Finally, I wonder what consideration has been brought forward for a more comprehensive spending review of priorities, perhaps looking at other areas within your portfolio that are perhaps less essential during this particular period in order to redirect funds appropriately during the pandemic, and I wonder what spending considerations you've given over the recent months in that regard. Thank you, acting Presiding Officer.

Can I thank Russell George for his questions and very constructive and positive response to the statement today? Can I put on record my thanks to Russell George and all opposition spokespeople for the regular opportunity to discuss the economic crisis that we face? I find their contributions, their ideas and their critique very welcome indeed. There were a number of important questions that Russell George posed, but can I just say that he was absolutely right in identifying the Welsh Government's role as being a supportive role in terms of the work that we do with the UK Government in trying to save jobs? We are all in the business of trying to rescue businesses and save jobs right now. We are working closely together. I have very regular calls with UK Government Ministers, and I have to say that, on occasions, the UK Government has responded to the Welsh Government's critique and to the Welsh Government's calls for changes to systems, and they've done so in a positive way. I can identify one specific case where that's happened, and this is important in regard to the jobs support scheme. With regard to the coronavirus business interruption loan scheme, we called for a number of changes to be made and those changes were made, and, as a consequence of that, more Welsh businesses were able to secure support through that particular scheme. 

I welcome the jobs support scheme, very much so. It's absolutely vital that we avoided a cliff edge at the end of October. However, in our immediate assessment of the jobs support scheme, it has become apparent that a number of sectors and a significant number of businesses may not be able to draw down the support required in order to avoid job losses—that the intervention rate may not be significant enough. Therefore, whilst I welcome the jobs support scheme, I'd also urge UK Government Ministers to keep an open mind, to be very vigilant as to whether the scheme is operating as intended, and, if not, to make the necessary adjustments to ensure that as many businesses and as many workers as possible benefit. As I say, that happened with CBILS, and I hope that it will happen, if necessary, with the jobs support scheme. 

We always intended to deploy the economic resilience fund in phases. We simply couldn't have spent the £500 million in a single phase and expected businesses to weather a storm that could, and is likely to, last beyond the autumn of this year. It was always our intention, therefore, to retain funding for further rounds of support for business. I believe that is the right thing to do. We've allocated to date £480 million of the £500 million of the economic resilience fund. That, of course, is in addition to the £768 million that has been invested in businesses across Wales through the rates-related grant scheme. That means that we have £20 million in reserve, and that is important for a potential further round of local restrictions-linked support in the winter. I recognise that there's great urgency required in terms of how we deploy our funding, and Business Wales, as I said in my statement, will be going live with their eligibility checker next week. By the end of October, applications will have been made by businesses and I think, as we've shown in previous rounds of support, we'll be getting money out of the door into business accounts in no time at all once those applications have been processed. 

I can confirm as well that we're operating pretty much the same scheme as has been utilised in parts of England in terms of the grants that are being made available. And I should just say that no business is—as Russell George rightly said, no business is forced to close by the regulations, but it may well be that business owners feel that there is no option but to close, because of a loss of footfall and custom, and therefore there is the likelihood of a serious loss of income, of turnover, and therefore, in turn, it's vitally important that we step in and support those businesses on a rolling basis.

We've modelled how many businesses we can support with the £60 million of the local lockdown fund. We believe that, based on the current scenario across Wales, the current landscape, we'd be able to provide two rounds of funding to businesses through local lockdown interventions. That's a very significant period of support, because each period would likely last three weeks, and therefore this takes us through to the new year, when I say—. And I've already said, we've got £20 million in our reserve to deploy potentially a further round. That £20 million could also be utilised for not so much sector-specific support, but any particular sub-regional activity that needs to take place, if there is a significant loss of jobs in a particular area. And we're working with local stakeholders, with local government leaders, to ensure that, where there is a particular challenge, we're able to deploy funds in that area, working closely together with local authority officials. 

But there are other sectors that require urgent support—aerospace is perhaps the most obvious one. We've regularly called for a sector deal for aerospace, in light of the challenges that businesses are facing because of coronavirus. A taskforce has been established, led by Tom Williams, a superb expert in aerospace and aviation, and it's absolutely vital that we as a Welsh Government and the other devolved administrations play a full role in any activity concerning the response to the challenges that aerospace and aviation businesses face. 

Can I just also touch on another important point that was raised? It's not true that union recognition is an absolute requirement of funding, because it's not always viable for union recognition in every instance, but what we have said is that, as a consequence of receiving economic resilience funds, it's absolutely vital that a business has signed up to the principles of the economic contract and then develops a firm economic contract. And, as part of the process of developing that firm economic contract, we have invited trade unions to engage with businesses that have benefited from the public purse. And I think that's absolutely right as we strive to build back better, as we strive to ensure that the recovery is just and fair. We make no apologies for doing all we can to support not just businesses but employees as well.  

I'm grateful to the Minister for his statement today and for the positive engagement that he and Russell George have already referred to, across parties, during this crisis. And I'm very grateful that, in some of the announcements that the Minister has made today, he clearly has actively engaged with those discussions and has taken that on board, and particularly referencing here that I know that we've raised with him the potential impact of local lockdowns, and it's really pleasing to see the investment that he intends to make. 

Can I begin by asking for a little bit more detail on the likely eligibility for local lockdown resources? It may very well be, as the Minister said in response to Russell George, that businesses aren't required to close, and some of them may not close, but the impact on their trading may be really severe. They may feel that it's better to keep going on, particularly if it's only, let's say, a three-week lockdown, but their profits may absolutely fall through the floor. So, is the Minister anticipating that businesses will have to actually close before they can apply for support, or will there be some potential flexibility there? And can he tell us a little bit more about how those local lockdown grants are likely to be delivered? The Minister, obviously quite rightly, says that Business Wales will be the first port of call for the bulk of the economic resilience fund, but I'd submit that there may be a case for local government to be involved there. 

The Minister welcomes the job support scheme and, of course, everybody is glad to see the UK Government taking action, but, as the Minister has said, there are some businesses for whom that is not going to be helpful, that putting people potentially onto part-time work won't work.

I very much welcome the Minister's announcement of £20 million for tourism and hospitality businesses, but he also refers to businesses needing to use their own resources. Now, because of the impact that tourism and hospitality businesses faced earlier in the summer when they couldn't open at all, and, when they have opened in a responsible way, the business levels have dropped, and also, I'm sad to say, still some very bad practice by insurance companies of those businesses, some of those businesses, I would put it to the Minister, may very well not have resources that they can invest, and this would also be true for cultural businesses, like venues where gigs are held. So, I wonder if he can provide us with some reassurance that that will be taken into account and that, for those businesses that, for good reasons, don't have resources of their own to put in and may have exhausted their capacity to borrow, there will be some support available for them.

I wonder if he can tell us whether or not microbusinesses and sole traders are likely to benefit from this round. And I'd also like to ask whether the Minister is confident that Business Wales has got the capacity to deal with this new round of very welcome funding. We do need, as the Minister said himself, to get it out of the door. 

Finally, I'm very pleased to hear the Minister say that he's in active dialogue with the UK Government. I wonder if that dialogue—and it might not be his portfolio, but across Government—includes ongoing discussions about increasing the borrowing powers of Welsh Government, because it seems to me that in the longer term—a good partnership with the UK Government is, of course, desirable—but longer term, Welsh Ministers may wish to make substantial investments that their current borrowing powers won't allow. The Minister mentions the specific sector of aerospace, and I wonder if his dialogues with the UK Government—I'm sure they do—relate to support for the steel industry, because that is beyond the current capacity of Welsh Government financially. 

And finally, in those ongoing discussions with UK Government, can I ask the Minister once again if he will consider raising the case of those who have not been helped, particularly the people who were not helped by the furlough scheme? Some of them, of course, have successfully moved on, they're in other jobs, but some of them had to use all their savings. I've dealt with young people who've lost deposits for houses and people who've been partly self-employed who've had to spend their tax savings. So, can I ask him if he will agree with me that the campaign, ExcludedUK, does still have a case to make, and to ask the Chancellor whether there is any support that could be given to those who were not helped? I would, of course, ask if that could be done at a Welsh level, but I do understand what the Minister has said in the past about the capacity of the Welsh budget and needing to target support at keeping jobs going. But I think it is important for those many thousands of Welsh citizens who find themselves in that position at least that we acknowledge in this place that, by us, they are not forgotten.

Can I thank Helen Mary Jones for her questions and her contribution, and can I say that Helen Mary Jones has had a hand in ensuring that the Welsh Government responds correctly and adequately to business needs? The regular conversations that we've had have helped to shape all three phases of the economic resilience fund, and I'm incredibly grateful for not just the support but the constructive criticism that has been offered.

I'm going to try to respond to all of the important queries that have been raised in the order that they were raised by Helen Mary Jones. First of all, with regard to eligibility, some businesses will not require co-investment. The £20 million fund for tourism and hospitality businesses allowed for discretion and therefore an 100 per cent intervention rate. It won't be necessary for all those businesses, therefore, who are applying for this support to co-invest. And I very much agree with Helen Mary Jones that a huge number of businesses in the tourism and hospitality sectors simply do not have any more financial resource to invest, and they've also in many instances exhausted all borrowing as well. Therefore, a 100 per cent intervention level will be required for many, many businesses. 

In terms of eligibility and the question of whether businesses will be required to close, the answer is 'no'. Businesses will not be required to close in order to secure funding. They'll have to be able to prove that they've been materially affected over the course of local restrictions being imposed, and that will amount to a drop in turnover of at least 40 per cent. We're working incredibly closely with local government friends and colleagues in terms of administering this third phase of support. I have to put on record my thanks to local government colleagues for the tirelessness of their endeavours in making sure that the first two phases of the ERF and the rates related grants were administered swiftly, and that support in terms of signposting businesses towards Business Wales was done correctly as well.

I have to say that alongside the support that we announced yesterday, my friend and colleague Lord Dafydd Elis-Thomas also announced a £7 million fund for freelancers in the creative industries. This is proving to be a lifeline for many, many talented creative people, and I was delighted to see Dafydd Elis-Thomas make that announcement. 

And in response to the question about where additional flexibility is required by the Welsh Government, the Minister for finance has regularly spoken of the need for Welsh Government to be able to operate with a greater degree of flexibility, to be able to borrow more, and so forth, and that position remains the case. 

Steel is hugely important to the Welsh economy, and likewise automotive and aerospace businesses that are facing particular pressure and which require support beyond what the Welsh Government is able to afford. And in our regular discussions with UK Government counterparts, I impress upon Ministers the need to bring forward bold action to support these hugely important manufacturing sectors.

We'll also go on pressing the UK Government to be responsive and responsible in terms of supporting those who continue to fall through the gaps, who have yet to receive support that is absolutely required in order to ensure that their enterprises can survive this pandemic. I have to say that those discussions are not always fruitful, but equally, in many instances, as I outlined in my answers to Russell George, there have been positive responses on a number of occasions from counterparts, particularly within the Department for Business, Energy and Industrial Strategy and the Wales Office.

Thank you, Minister, for your statement, and can I endorse Helen Mary's comments with regard to our ability to have discourse with you, which allows us some input and gives us greater insight into your thinking behind the Welsh Government interventions?

There is no doubt that these interventions will be welcome news for those many businesses who are struggling, not just to stay open throughout COVID, but to survive in the long term. My party acknowledges here that your support over and above that given by the UK Government has been invaluable, and I have had many businesspeople confirm this to me. In fact, I even had one tell me he was thinking of voting Labour for the first time. Of course, I had to talk him out of that one. [Laughter.]

However, figures speak for themselves: phase 1 is said to have saved 56,000 jobs, followed by a further 18,000 in phase 2. I think you may have better figures than that, actually, Minister. However, Minister, do you not agree these are simply short-term measures, a fact which can be seen if we look at the funds available to qualifying microbusinesses—that is £10,000 if they put up 10 per cent themselves? Ten per cent, I feel, is a reasonable figure to ask of those businesses, by the way. But £10,000, even for microbusinesses, will only sustain them for a short period. What they desperately need to do is to carry on trading at the levels prior to COVID.

It is crucial, therefore, Minister, that Government lockdowns are only initiated when absolutely necessary. I'm sure you will agree, Minister, that pressure on all business operations is mounting daily, and we know the consequences will last for a long period of time. So, again, Minister, I thank you for these latest interventions, but if we continue with these lockdowns, I fear a large proportion of the business community will be lost forever.

Well, can I thank David Rowlands for the way that he has endorsed our actions to date? I really am very grateful for the comments that he's made today. And, yes, our actions have led to a very significant number of jobs being secured: more than 106,000 to date through the first two phases of the economic resilience fund and, of course, 16,000 jobs have been secured through the support that was brought forward by the development bank.

Members will be aware of the current rate of unemployment in Wales: 3.1 per cent. That's a full 1 per cent less than the UK average. Now, we know unemployment is going to rise, it’s going to rise sharply, but that 1 per cent difference between the Welsh average and the UK average amounts, in real terms, to about 15,000 people—15,000 people who may well have been unemployed at this point in time had it not been for the added value that we've brought through the first two phases of the economic resilience fund. And as I said just yesterday, to put that into perspective, that's the entire working population of Brynmawr and Ebbw Vale, or of Mold and Buckley. It's a huge intervention and I'm proud of the jobs that we have therefore saved, and I'm proud of the businesses that we have kept alive during this incredibly difficult period. But all of that hard work and investment could have counted for nothing had the job retention scheme ended with a cliff edge at the end of October, and that's why the job support scheme's so very important, and why our third phase of the economic resilience fund has to complement the job support scheme.

Now, business development grants—that £80 million of support that I've outlined—are about building resilience and adapting to the economy of tomorrow, but we also recognise that in order to reach the economy of tomorrow, many businesses required bridges, bridges through the autumn and the winter, and that's why we're rolling out that £60 million of support for those businesses that are going to be faced in the coming weeks and months by local restrictions. As I said in my answers to Helen Mary Jones, we are not requiring any businesses to close in order to draw down that funding, just to demonstrate that they are materially affected, and the amount of support that's being offered is, I think, sufficient for businesses to be able to survive those difficult periods of restrictions.

Business development grants and the ask for match funding, I think, demonstrate our desire to be able to move beyond coronavirus in a way that recognises certain sectors have great opportunities for jobs growth, and therefore the requirement of a contribution from businesses is absolutely right if we are to ensure that we maximise opportunities for growth in those sectors that are resilient and that are able to emerge rapidly. But, equally, there are some hugely important sectors, such as tourism and hospitality, where the intervention rate will be 100 per cent because, as I've already said, businesses are simply not able to borrow any more money or are not able to invest any of their own resources in their survival and their adaptation to the new norm.

Now, I've got five Labour Members and one more opposition Member who wants to contribute, so just a minute, please. I do intend to call you all, this is an important statement, but we are pressed for time also this afternoon. Dawn Bowden.

Thank you, acting Presiding Officer. Can I thank you, Minister, for your statement and for the additional information you've given us today because I'm sure that the further grants and support that you've announced will assist a number of businesses in my constituency, many of which— particularly in the hospitality sector—have contacted me expressing serious concern about how they can continue to operate within the new local restrictions that now apply in Merthyr Tydfil and Rhymney, however necessary these restrictions might be? So, the £60 million for businesses specifically in these areas is particularly welcome.

However, one issue that I've been considering closely is the plight of major activity attractions in my constituency, like BikePark Wales and Rock UK Summit Centre, given that the local restrictions in Merthyr Tydfil have taken away their customer base, which is primarily from out of county. You've talked about particular support for the tourist industry, so can you tell me whether any consideration is specifically being given to such businesses that provide activities predominantly either outdoors or in facilities that have very large internal spaces? For example, is it possible that some limited easing of travel restrictions could be considered to allow these businesses in the environments that I've outlined to seek some resumption of activity, or are you confident, given the additional information you've given us today, that the additional support measures that you've announced will be sufficient to get these particular businesses through the current phase of new local restrictions?

Well, can I thank Dawn Bowden for her question and say that we start from a position of prioritising public health? We have to ensure that we get the virus under control within those areas that are subject to local restrictions. That's crucially important not just to the well-being and welfare and health of people, but also to the well-being of local economies and the economies of communities that Dawn Bowden has identified.

In terms of support for activity attractions that rely on footfall from beyond their borders, we cannot, I don't think, make exceptions to the rule. It's absolutely vital that we remain consistent because businesses across all sectors, I think, could make a very, very valid case for exemptions from the rules, and once you allow one, then you open the door to others seeking exemption from local restrictions. Instead, we believe that it's more important to offer a pan-economic response, and that's what we're doing with the £60 million of funding, but equally we recognised that businesses such as activity attractions that form part of tourism and hospitality required additional support, and that is why we have a further £20 million available for businesses to be able to get through this difficult period.

But in terms of local restrictions, the support is provided on the basis of this being a short-term temporary measure to see businesses through a period of around three weeks. That is the aim for the local lockdown fund, and it's based on having learnt from places like Aberdeen and Leicester that have gone through the process of applying local restrictions and supporting businesses. We are confident that, based on successful models elsewhere, the model here in Wales will be successful in getting businesses through very, very difficult periods. 

Jenny Rathbone. 

Thank you. I think you can hear me now. Thank you very much. I think manufacturing is absolutely crucial to the well-being of our future economy, and we saw what great work was done with getting manufacturers to make PPE during the pandemic. Most recently, we had the closure of the Ford Bridgend car plant, a victim of the UK's refusal to remain in the single European market, and the American multinational has now taken its investment elsewhere in Europe; our loss, some other country's gain.

So, I want to explore your strategy for redeploying those manufacturing skills of the Ford workforce amid this upheaval. For example, as you may have heard earlier, I today tried out an e-scooter, which has the potential to eliminate 17 car journeys for every e-scooter, and is obviously a great contribution to the climate emergency, because it only uses 2 per cent of the carbon emissions of a car. But it's currently manufactured in China; it could easily be manufactured in Wales, and the sort of skills that the Ford workers have could easily be redeployed.

Equally, I know that secondary headteachers in my constituency are crying out to source bicycles for their pupils who live further afield, to enable them to avoid the risk of having to travel by bus. These are things we could be doing in Wales, so is this something that you are centrally focusing on as one of your top priorities to ensure that we have the things in Wales that are fundamental to our foundational economy?

Can I thank Jenny Rathbone for the important points that she makes about manufacturing? Manufacturing businesses employ 10 per cent of the Welsh workforce. Across the UK, the equivalent percentage is 8 per cent, and so manufacturing is more important to Wales than it is to the UK generally in terms of the value that it adds the economy. Members may be aware that I recently launched a manufacturing plan for consultation. It's out for consultation until the middle of October; I'd encourage all Members to make their thoughts and views known in regard to the plan. It contains proposed actions that directly touch on what Jenny Rathbone has outlined: a need to reskill, a need to identify new opportunities for manufacturing businesses and workers.

I can say that in terms of the closure of Ford, I was listening diligently to questions to my friend and colleague Rebecca Evans earlier. A written statement regarding the closure of the Bridgend plant was issued on 24 September, and pretty much every member of staff at that plant received support from Careers Wales, through the regional employment response team, helping them identify what their skills are and how they might be able to capture employment opportunities at other businesses—or crucially, start their own business, and a good number of people at Ford have started their own businesses.

Jenny Rathbone will be aware that a jobs and skills matching service is being operated by Working Wales and that we recently announced an additional £40 million of funding for individuals to gain the skills or to reskill in areas of activity where we know jobs will be in existence in the years to come. I think COVID has demonstrated how many of our manufacturers are able to turn their hand to new opportunities as well. We know that, for example, at the advanced manufacturing research centre, a very significant number of aerospace workers turned their hands to producing PPE, and as a result of that work, we are now stealing a march on some international manufacturers in terms of producing vital equipment for our domestic market. So within the manufacturing plan, which is out for consultation at the moment, there is a very, very significant focus on shortening supply chains and reshoring manufacturing opportunities here in Wales.

I'm grateful to the Minister for his statement this afternoon. I particularly welcome, like others, the additional £60 million of support for businesses in the areas with special restrictions at the moment, and I know that is something that will be warmly welcomed in Blaenau Gwent. Can I ask the Minister to ensure that this additional support reaches small businesses particularly, and reaches people who are self-employed? I've been contacted by a number of businesses who are really very, very worried about the future, and they need this bridge to get them through these next few months to enable them to succeed in the future. Minister, could you also confirm that this is support for businesses who already comply with all their existing regulatory and legal responsibilities? We want to see a fair recovery from COVID, and we want to ensure that we play fair with businesses who are supporting the community already, and that the economic and social contract you've spoken about remains true as part of this additional support. And finally, Minister, you and I launched the Tech Valleys initiative some three years ago now in Ebbw Vale, to help provide significant investment into the local economy there. Can you confirm that the Welsh Government remains committed to that vision that we outlined some years ago, and that the Welsh Government will continue with that investment programme, through the COVID crisis, to ensure that we are able to continue to build an economic—to ensure that the economy of Blaenau Gwent continues to have this sort of investment that we require? Thank you. 

Can I thank Alun Davies for his comments and his questions? Normally, during the course of a recession, inequalities are blown wide open, and we are working tirelessly to make sure that, as we recover from coronavirus, we narrow inequalities within our regions and across the regions. And so, investment in the Tech Valleys initiative and investment in communities that the Member serves will continue. We are determined to ensure that, as we build back better, we do so in a way that is green, that is fair and is just. Economic contracts will be developed with those businesses that are in receipt of the business development grants, and the UK Government is working on replacement support for the self-employment support scheme. We need to ensure that our support for self-employed people dovetails with anything the UK Government brings forward in the weeks to come. I have to say that businesses that break any restrictions will not benefit from public investment if they are putting public health at risk. And so, there are powers that are available to local authorities; we made them available on 14 September. If they utilise them in regard to a business that is not following the restrictions, then we would refuse support to those businesses, because, as I say, we will not be rewarding businesses that put public health at risk.

Thank you, Minister, for your statement. My entire region is in lockdown now, so they will be very grateful to hear about the £60 million you refer to. But I've got some very specific asks from the tourism sector, the first of which you've already answered. I was very grateful to you for your answer to Helen Mary Jones that these businesses won't necessarily need to comply with certain conditions. But they are called development grants, and I'd be grateful if you could confirm today that they will available for a wide range of needs, not least staff retention and overheads, because this will still be about cash flow, rather than a fundamental flaw in business plans for so many of these businesses, particularly those who've taken a second lockdown hit. But I think the differences matter as well between these organisations, and that's why I raised animal attractions as needing very specific attention when I was speaking earlier today. I don't think the ERF can fully cover the needs of animal attractions without an understanding of animal welfare and additional requirements for that.

Another issue, thereafter, is some certainty. No doubt you'll say that we need to respond to the virus, but visitor attractions are responding to the virus—they're COVID compliant or they're not open, as we were just saying now. So, what can you say to attractions who need to plan now for a COVID compliant Christmas offer, particularly as they may need to turn to the ERF in order for them to prepare for that offer?

Finally, as this is part of your department as well, can you give us a little indication about how you're promoting this message to the public—that the visitor attractions are safe and open outside lockdown areas, and even within lockdown areas residents can still visit them for their physical and mental health? Diolch.

Minister, I do realise the Member didn't hear me stop her after 1 minute and 30 seconds—

Oh, sorry.

—so I do apologise to the other Members, but I was trying to indicate that that contribution was too long, especially the final point that was made. But, Minister, please answer as crisply as possible.

Thank you. With regard to tourism-related businesses, we're obviously in ongoing dialogue with the UK Government. My friend and colleague Dafydd Elis-Thomas is in very, very regular contact with counterparts in the UK Government and has been pressing the case for a tourism and hospitality-related support package from the UK Government. Business development grants will require a business to demonstrate how they have a plan to get beyond coronavirus, to survive not just the immediate challenge but to thrive in the future.

I take on board very much the points raised regarding animal welfare issues. We're in discussions across departments within the Welsh Government regarding support that's required by animal visitor attractions. But, it has to be said that through the first two phases of the economic resilience fund we were able to invest very heavily indeed in zoos and other animal attractions.

In terms of the COVID-compliant Christmas offer that the Member suggested, I think it's probably retail that needs the greatest help in this regard. When I spoke to the Welsh Retail Consortium recently, they said that their message to consumers is to buy now and don't wait until just before Christmas—pace your purchasing—and I'd very much support that message to the population of Wales.

In regard to getting the message out more widely regarding attractions that are open, of course, the Welsh Association of Visitor Attractions has an important role in this regard, in making sure that the public are aware that visitor attractions are operating in a very safe, COVID-proof way. Dafydd Elis-Thomas and I both speak with visitor attractions that have shown incredible resource in adapting to coronavirus, that are operating safely and that are enjoying good customer feedback as a consequence of the responsible actions that they've taken. We want to be able to help businesses like those through the deployment of those business development grants, which will not just offer the bridge through coronavirus but an opportunity to bounce back once we're through this pandemic.

Minister, thank you for your statement this afternoon and for the work the Welsh Government is actually doing to support our businesses throughout this pandemic. I echo the concerns of Helen Mary Jones regarding the steel sector. I listened to your answers, but I have lost confidence in the UK Government at this point in time, particularly as Project Birch seems to have come to a halt. Therefore, I ask you not just to speak to them but to actually shout out loudly and call them out on Project Birch.

In relation to phase 3 of the ERF, can you confirm that businesses that may already have applied for support can still apply for more support from this fund? For example, I have a business in my constituency that provides sound engineering for major concerts and outdoor events. Now, they've not had any business since lockdown started, and they're unlikely to have any business for the next several months. They cannot, probably, afford to include funding to support that because they've had no income in that time. Can you confirm that businesses such as that are able to get funding from this fund to ensure that they can survive? Because they offer a fantastic service to the industry and the entertainment sector, but without that support they may not be here in six months' time. 

Can I thank Dai Rees for his questions and assure him that we make the case for the Welsh steel industry every single week that we have contact with the UK Government? It's absolutely vital that support is brought forward for the steel sector and, as I said earlier, for the automotive sector, for aerospace and for aviation.

In direct regard to the question that he raised about support through the third phase of the economic resilience fund, I can confirm that businesses that had previously applied for support, whether they secured it or not, can apply for this third phase of support from the economic resilience fund, because the type of support that we're offering on this occasion is different. It's about making sure that businesses can get through local restrictions and that businesses are able to adapt to the new economy.

And to finish this statement, a final question—Mick Antoniw.

Thank you, Minister, for your statement and for the details on this funding. Can I ask very crisply in respect of the coach and tour industry—? I have hundreds of people employed in my constituency who work in this industry, and I know you're familiar with it—can you consider whether it is appropriate for some of these companies to actually be categorised as transport as opposed to tourism and hospitality, which is as much a part of their business, because not being categorised as such disqualifies them from certain benefits in terms of VAT, in terms of council tax and so on? It seems to me that that would be of considerable assistance, particularly to coach companies in my constituency.

I very much welcome the statement in respect of aviation and your comments there. Keir Starmer, the Labour leader, has called for changing the law to make it unlawful for companies to fire and then rehire on lower terms and conditions. Would you support a call for that law change? And also, in terms of grants, can you ensure that companies that adopt that course of action would not qualify ethically for Welsh Government support?

I thank Mick Antoniw for his questions. We'll certainly look at categorisation of coach companies. Coach companies of course will be able to apply for and, if they meet the criteria, will be able to secure economic resilience funding through the third phase, just as they were able to secure it during the first two phases of support.

I would also echo the comments that Mick Antoniw made in regard to firing and hiring. It's essential, as I said in response to an earlier contribution, that as we look to the recovery we attempt to narrow inequalities, to enhance fair working practices, rather than allow what happens in most circumstances when there's a recession, which is that you see workers' rights being depleted, you see inequalities widen, you see those communities that were left behind before a recession left behind even further once you emerge from it. That will not happen on this occasion. We are determined to ensure that we build a fairer and a greener and a more just economy.

Thank you very much, Minister.