Businesses in North Wales

1. Questions to the Minister for Economy, Transport and North Wales – in the Senedd on 11 November 2020.

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Photo of Mark Isherwood Mark Isherwood Conservative

(Translated)

1. What assessment has the Welsh Government made of the impact of the COVID-19 pandemic on businesses in north Wales? OQ55812

Photo of Ken Skates Ken Skates Labour 1:31, 11 November 2020

The pandemic, along with the imminent end of the European Union transition period, is causing a very uncertain and worrying period for businesses across north Wales. The greatest risk, of course, to the economy is in not doing enough, soon enough, which is why our £1.7 billion package of support is the most generous anywhere in the United Kingdom.

Photo of Mark Isherwood Mark Isherwood Conservative

Thank you. Last week, a survey on the impact of lockdowns on the tourism, hospitality, retail, leisure sectors and their supply chains in north Wales, conducted by North Wales Tourism with support from the North Wales Mersey Dee Business Council, was published. Carried out over four days, from 21 October, with 364 businesses responding from across the region, this found that 31 per cent would be making further staff redundancies before the end of March 2021, that 39 per cent would cease trading if there are any further national or local lockdowns before then, and that 81 per cent of respondents stated that their mental health had been negatively impacted running a business under pandemic circumstances. How do you therefore respond to their call for meaningful regional and local business engagement with you, across all sectors, before any more lockdowns come, to include the outlining of the process of entering the next new lockdowns, the evidence for the decision making, operational guidance for businesses and details of the business support available, before any lockdowns begin?

Photo of Ken Skates Ken Skates Labour 1:32, 11 November 2020

Can I thank Mark Isherwood for his supplementary question and say that we are acutely aware of the very severe effects of coronavirus not just in terms of public health, but also in terms of the mental and emotional resilience of citizens and, of course, those people in charge of businesses across the length and breadth of Wales? The survey does point to many factors that need to be addressed not just by the Welsh Government, but also, of course, by the UK Government. And in my engagement with representative organisations and businesses direct, the primary call in recent months has been for the furlough scheme to be extended through to March. That has now happened. We wish it would have happened earlier because, of course, businesses need certainty.

I can say, with regard to tourism and hospitality businesses in north Wales, that more than 1,200 micro- and small and medium-sized enterprise businesses in those sectors in north Wales have succeeded in drawing down funding from the first two phases of the economic resilience fund, and in north Wales, a further 105 businesses within tourism and hospitality have been successful in drawing down funding from the Development Bank of Wales. This points to the most comprehensive and generous package of support anywhere in the United Kingdom. Of course, the 17-day firebreak was difficult for businesses, there is no doubt about that, but it's better to have a 17-day firebreak than a four-week lockdown, which was necessitated by the UK Government delaying its actions.

Photo of Rhun ap Iorwerth Rhun ap Iorwerth Plaid Cymru 1:34, 11 November 2020

(Translated)

I welcome the funding provided to businesses across north Wales, and in my constituency, through the various phases of the economic resilience fund. But I still see businesses who can't access support because, for example, they aren't registered for VAT or because they don't employ people through PAYE. Now, I welcome the fact that there will be a fourth phase of the ERF, but can the Minister tell us what assessment he wants to see made of those businesses, or those business sectors, who have lost out on all opportunities to access support to date? And will it be possible to change the requirements in the future so that those businesses can bid for funding from the next rounds of support available?

Photo of Ken Skates Ken Skates Labour

Can I thank Rhun ap Iorwerth for his question? A number of Members have asked similar questions in recent weeks, and I can confirm that there is discretion within the third phase of the economic resilience fund, within that £200 million of lockdown business grants that are available across Wales, to enable those businesses that have fallen through the gap, so far, to get necessary support. I'm also pleased to be able to tell the Member for Ynys Môn today that, with regard to the third phase of the economic resilience fund, more than 940 awards have already been made to businesses in his constituency, supporting and securing work for more than 3,500 people. That shows the value of the latest phase of the economic resilience fund, a fund that is part of the most comprehensive and generous package of support for businesses anywhere in the UK. 

Photo of Jack Sargeant Jack Sargeant Labour 1:35, 11 November 2020

Minister, coronavirus has, quite clearly, taken its toll on businesses in north-east Wales, and I have been calling on the UK Government to support the industry in this area, and their failure and slowness to react has cost jobs. Now, the Welsh Government must do all it can to continue to help. Since being elected to this Senedd, I've been a big supporter of the Heathrow logistics hub, that could be sited at Tata steelworks in Shotton, and the advanced technology research area and the Northern Gateway at Sealand. Can you update the Chamber on how the Welsh Government can support projects such as these? 

Photo of Ken Skates Ken Skates Labour 1:36, 11 November 2020

Well, can I thank Jack Sargeant for raising the potential of his constituency in important sectors within the Deeside and wider Flintshire area? I can also confirm to Jack Sargeant today that more than 3,500 awards have been made to businesses as part of our £1.7 billion package of support. That's a huge reach across Flintshire in supporting businesses and working people. There are a number of exciting projects that we are leading on as well. With regard to the advanced technology research centre, we are leading a cross-Government team. That team comprises of, obviously, Welsh Government, but also the Defence Electronics and Components Agency, the UK Government and the Defence Science and Technology Laboratory. A hugely important programme of work is under way there regarding ATRC. We're also working with Airbus on the Wing of Tomorrow programme, and Jack Sargeant will be aware of the value of the advanced manufacturing research centre in capturing that vitally important programme of work.

I am extremely excited by the proposed logistics hub at Tata in Shotton. A master plan of the Deeside site was commissioned by my officials to support the Heathrow development, and that's now being used by Tata Steel as a prospectus to attract investment not just from Heathrow, but from a number of investors across a number of different sectors. My officials are working very closely with Tata, I can tell Jack Sargeant, to understand some of the barriers to developing such a facility, and they're also looking at how they may be able to open up a third access to the site. 

And, then, finally, with regard to the Northern Gateway site, we are working towards an agreement with landowners on the Northern Gateway site, with the intention of investing key infrastructure, which will facilitate access to 200 acres of commercial development land, and those negotiations are at a very advanced stage. It's expected that this agreement will then be followed, very swiftly indeed, by private investment and employment projects, and I'm looking forward to making a very positive statement regarding that in the near future.