7. Statement by the Minister for Economy, Transport and North Wales: The Economic Resilience Fund — Phase 3

Part of the debate – in the Senedd at 3:45 pm on 29 September 2020.

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Photo of Russell George Russell George Conservative 3:45, 29 September 2020

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.