The North Wales Economy

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

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Photo of Mandy Jones Mandy Jones UKIP

(Translated)

6. What assessment has the Welsh Government made of the impact of lockdown on the north Wales economy? OQ55819

Photo of Ken Skates Ken Skates Labour 2:14, 11 November 2020

As I mentioned in response to question 1, the pandemic and, of course, the imminent end of the EU transition period is causing deep uncertainty and a worrying period for businesses across north Wales, and that's why we continue to offer the most comprehensive and generous package of support for businesses anywhere in the United Kindgdom.

Photo of Mandy Jones Mandy Jones UKIP 2:15, 11 November 2020

Thank you, Minister. As you know, our region's economy relies heavily on tourism and the hospitality sector, as other people have said as well. Thanks to the hard work of the hospitality sector, test and trace data suggest that just 1 per cent of people who've caught COVID-19 have caught it in pubs, restaurants or cafes. So, it appears to me that pubs and restaurants are exceptionally low risk. I congratulate them on their fortitude and support during this time. Minister, will you please make the case that any further restrictions, including curfews, are based on solid evidence of transmissions? I suggest that your Government focuses its attention where it is warranted and not on businesses that really are doing everything possible to support your aims and make an honest living. Thank you. 

Photo of Ken Skates Ken Skates Labour 2:16, 11 November 2020

Can I thank Mandy Jones for her question and say that I entirely agree that the fortitude and innovation and the responsibility of businesses within the tourism and hospitality sector has been quite astonishing during the course of this pandemic? We wish to support businesses in every way that we possibly can to remain viable, to get through this pandemic. Of course, the risk of transmission in a regulated space is now less than the risk within a domestic dwelling, where there is the risk of multiple households mixing. Nonetheless, there still is the risk. And during the firebreak in particular, we had to make sure that any areas of activity where there is a risk involved in transmitting the virus—that that risk was either eliminated or brought down to an absolute minimum. That's why we took action for a very short period of time. It was based on the scientific evidence from the technical advisory cell, which publishes the documents that provide the evidence to Ministers. And, of course, as we now move forward following the firebreak, those businesses that have shown responsibility are now back operating again, and we hope that that short firebreak has given us headroom to get through to the end of the year.

Photo of Darren Millar Darren Millar Conservative 2:17, 11 November 2020

Minister, those businesses may be allowed to operate, but 90 per cent of their customers live in a part of the UK from which they are not allowed to leave and come into Wales. Do you accept that the travel restrictions are having such an impact, particularly on our tourism-related businesses—and any business, in fact, that relies on the visitor economy such as those in my own constituency of Clwyd West? Do you accept that they do need specific additional and extra support, over and above that which is currently provided by the economic resilience fund? You'll be aware that those businesses in that particular corner of north-east Wales not only faced the firebreak lockdown, they also faced three weeks' worth of local restrictions on top. So, that's five weeks' worth of severe restrictions, travel restrictions, that have eaten into their businesses. They need all the support that they can get, and I'm afraid that, in spite of the generosity of the Welsh Government through its economic resilience fund, that support is not yet sufficient.

Photo of Ken Skates Ken Skates Labour 2:18, 11 November 2020

Can I thank the Member for his question? The problems highlighted could've been avoided had the Prime Minister agreed to a short firebreak alongside us, just as the scientific experts were recommending. It's my view that a 17-day firebreak is far more desirable for businesses than a four-week circuit break, which is now in action in England. I regret that the Prime Minister did not see fit to action a firebreak at the same time as the First Minister in Wales. But looking forward, I am pleased that discussions are under way regarding Christmas, and I think that that's absolutely vital that we adopt a common approach across the UK.

In terms of the financial support that's available to businesses, I've already said on numerous occasions now that we are delivering the most comprehensive and generous package of support to businesses anywhere in the United Kingdom. The latest phase of the economic resilience fund has included a ring-fenced £20 million fund for businesses in tourism and hospitality. And I also recognise that, in those border areas—the sort of area that I represent—there is difficulty for businesses that rely on custom from across the border. Equally, though, they now have a captive market within Wales as well, given that the firebreak is over in Wales and people can't travel to England in order to access pubs, cafes or restaurants. And so, there is an opportunity for those venues in Wales to thrive based on Welsh custom. But, of course, moving forward, we would wish to see the UK, the devolved administrations and the UK Government agree on a common approach, and that approach must be based on the science that is presented to Ministers.