1. What support is the Welsh Government providing to Stadco following news that it intends to close its factory in Llanfyllin, affecting 129 employees? TQ486

Well, can I express my sympathy for everybody working at the site? This is understandably devastating news, and my officials are in direct contact with the company, and they're exploring all potential options and available support.

Thank you for your answer, Minister. This is, of course, the largest employer in the Llanfyllin area, and this has come as a serious blow to Llanfyllin and to all the families that are affected at the plant. My understanding, from speaking to the local county councillor, Peter Lewis, is that the company, which is owned by Magna International, is intending to restructure its UK operations, and this will affect 129 people who will lose their jobs.

What is particularly sad is that only recently the company made a £2 million investment into the factory—that was last year—and had intended to make a further £2 million investment next year. Now, we all know, of course, that the pandemic is drastically affecting the car manufacturing industry, and this has, of course, a knock-on effect on companies like Stadco, but I know that you will agree with me in saying that what was a successful and viable business in 2019 should be a successful business in 2021. Stadco is just too important a company in north Powys to allow it to close without making every effort to find a workable solution.

So often, we hear of redundancies being made immediately. In this case, these redundancies aren't due to come into effect until the end of 2021. So, I am pleased to hear that your officials have already spoken with the company, but I wonder whether you could also outline what else the Welsh Government can do, from your conversations with your officials, what else they can do during this consultation period to ultimately attempt—attempt—to safeguard these jobs at this plant.

Can I thank Russell George for his questions and for the points that he rightly makes about the importance of this site to the community that it serves and the community that relies on it for well-paid jobs? Our regional team is already working to look at how we can support the community. We do have a good relationship with the company. We've offered a joint meeting with them and the Welsh Automotive Forum, and the purpose of that meeting is to explore every possible option for retaining the factory and to identify any alternative work streams.

Our understanding is that the rationale behind the decision is that there's been a general decline in the automotive industry—that there's overcapacity and this has been exacerbated by coronavirus. But, the Member is absolutely right that they recently invested in the site. Of course, just two years ago, there was a similar consolidation effort undertaken by the business when it closed the Shrewsbury facility. They continued operations here in Wales, in Telford and at Castle Bromwich, but my understanding is that, as well as proposing to close the site in Powys, they're looking at cutting staff at the two remaining sites as well.

My officials have already met with senior human resources managers and we've signposted them to relevant support, including, of course, the ReAct funding and wider Welsh Government employability programmes. But, our focus, I can assure Russell George, is on retaining the factory and securing the jobs. We have a 45-day period of consultation taking place and we will explore every single opportunity that there might be for this business.

I should say that I also met with the Welsh Automotive Forum just two weeks ago, where we discussed the state of the industry. Clearly, with multiple challenges, the sector is experiencing deep uncertainty and anxiety, but the manufacturing plan that we've published was widely welcomed; it should serve to support the sector.

But, should the jobs ultimately be lost, then we will be implementing ReAct support, and that will include the offer of grants to acquire new skills; it will offer reimbursement of travel costs and childcare costs whilst training; and, of course, there'll be employer recruitment support, with the offer of up to £3,000 to employers who recruit people who have been affected. But, ultimately, we wish to help the site remain open and we will explore every option for doing just that.

Can I thank Russell George for putting this very important question to the Minister today? I'm grateful to the Minister for all that he's said with regard to what has been done so far. Can I just ask him to be absolutely clear that he and his officials will take the most flexible approach possible to any potential business support to enable these jobs to be retained?

A hundred and twenty-nine jobs in a community the size of Llanfyllin is the equivalent of some hundreds, even thousands, in a larger community. While I understand what he says about ReAct, the chance for people to get alternative employment close enough to their homes is not good at the moment. So, can he give us an assurance today that he and his officials will take the most flexible approach possible, if there is any possibility that additional investment from the Government would enable the company to stay?

Yes, absolutely, I can offer Helen Mary Jones that assurance. Just recently, I was able to point to something of a success in terms of retaining some employment opportunities, that being at the Laura Ashley plant, again in Powys, where I think we were able to look at a number of opportunities and we were able to ultimately support the opportunity that has led to a number of people being retained. And we'll do exactly that with this particular site. It's vital because, as Helen Mary Jones said, 129 jobs within a community as small as Llanfyllin is like a 1,000 jobs in a community as large as a small city or a major town. So, it's vitally important that we do what we can to retain those jobs, if it can be achieved.

Joyce Watson.

Diolch, Llywydd, and I thank you for accepting this question today, because I asked for a statement yesterday. But what's important here is, I think, registering two facts. And the first one, it seems to me, is that the 129 people who are employed here were the last to know, and that should never be the case. So, going on from that, Minister, I heard what you've said, you're working with various people, but clearly there's a role for the trade unions here as well as the private sector.

You say that there's a 45-day consultation period and ReAct grants to acquire new skills, but the one thing that strikes me in this particular area is that there is a huge ability within Powys to innovate, particularly with new skills. We could link that innovation to this particular area with these particular skills through that ReAct programme, looking forward, to prevent further depopulation of this area. Because it is an area that is increasingly becoming depopulated, and all the evidence is there to back that up. So, it would be worse than 129 jobs if the families connected to those had to move out of the area to find work. So, I suppose my question is this: using the innovation that exists within the Powys area to drive forward the change that we've seen that is happening fairly rapidly, which you mentioned in your report yesterday, and using that facility to keep those people there, but, more than that, to grow jobs to prevent that depopulation from going any further. 

Joyce Watson makes a number of important points, and of course the role of the foundational economies can be crucially important within the community. I'm in no doubt there are small businesses that can identify how the company has been supporting them, whether they're directly in the automotive supply chain or whether they're a local newsagents, butcher or baker. This will have an impact, should the facility close and jobs be lost, on a number of smaller businesses within the area. That's why I think it's important that we look at this challenge in the round and deploy the regional team to examine the wider impact on the community and small businesses in the area.

Joyce Watson is absolutely right: the social partnership and the involvement of the unions could be critically important in ensuring that workers get the right support, not just signposting to other opportunities and support in accessing ReAct funding and skills opportunities, but also emotional support right now, because this will be an incredibly difficult time for people. The announcement has come as we look towards Christmas; it's come at a time when, because of coronavirus, there are likely to be significant job losses, so there are going to be greater competition for opportunities out there.

One thing I would say, though, that is something of a positive, is that those affected—should their jobs be lost, should they lose that employment that they've been able to enjoy for quite some time, then they will be able to access support as part of the £40 million employability and skills intervention that I announced recently, and that includes a job matching service. Obviously, there will be fewer opportunities in that rural part of Wales than there might be in a more urban area, but we will endeavour to match as many people as possible—should they lose their jobs at the end of the consultation period—with other well-paid, highly skilled opportunities. 

I thank the Minister. The next question is to be answered by the Minister for health, and is to be asked by Andrew R.T. Davies.