Hospitality Businesses

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

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Photo of Janet Finch-Saunders Janet Finch-Saunders Conservative

(Translated)

7. Will the Minister make a statement on support for hospitality businesses post firebreak? OQ55818

Photo of Ken Skates Ken Skates Labour 2:20, 11 November 2020

Yes, of course. Our current £200 million package of lockdown business grants is open for applications. Meanwhile, we're assessing applications received for our £100 million business development grants fund, which included £20 million of ring-fenced funding for tourism and hospitality businesses. That fund is intended to support businesses in developing projects for longer-term prosperity.

Photo of Janet Finch-Saunders Janet Finch-Saunders Conservative

Minister, accommodation businesses are in utter despair in Aberconwy. The occupancy rate has collapsed to zero in some cases because it is fact that 80 per cent of trade is from England. Bearing in mind that Conwy had a local lockdown also, the reality is that businesses in Aberconwy will not have been able trade for some eight weeks by the end of England's restrictions. Seventy-five per cent of respondents to North Wales Tourism's survey did not make the sudden cut-off for ERF phase 3—that 75 per cent. What assistance does the Minister propose to support those that are now on a cliff edge? Will you provide financial grants to back tourism businesses that are experiencing a collapse in customer numbers this month? And is there any funding left over from the £20 million ring-fenced to support tourism and hospitality businesses as part of the ERF phase 3? Thank you.

Photo of Ken Skates Ken Skates Labour 2:21, 11 November 2020

Can I thank Janet Finch-Saunders for her question? I'm sure that she would agree with me that the pressure that accommodation providers are under because there is the lockdown in England is regrettable, obviously, but it's necessary. It is necessary that the virus is brought under control in England, as we have been bringing it under control in Wales, in order to secure the rest of the 2020 season for businesses and to ensure that we give the NHS the headroom to get through to the new year. We have been providing, and we will continue to provide those businesses that have been severely affected, with financial support. There's the £200 million lockdown business grants fund that is still available to businesses—those businesses that were affected not just during the firebreak but also during the period preceding that, where there were local lockdown arrangements in place. That fund is still available. I'd encourage all Members to point to that fund when businesses get in touch with them. And whilst it's highly unlikely that there will be a significant underspend in terms of the ring-fenced £20 million development grants fund, we are looking, as I said in response to previous questions, at how we can utilise a £35 million underspend from the first phase of the economic resilience fund to support businesses, and I'm keen to make sure that we give local authorities the discretion to be able to make awards to businesses using that underspend, that £35 million. That's my preference.