Brexit

1. Questions to the Minister for Economy, Transport and North Wales – in the Senedd on 27 January 2021.

Alert me about debates like this

Photo of Llyr Gruffydd Llyr Gruffydd Plaid Cymru

(Translated)

3. Will the Minister make a statement on the impact of Brexit on the economy of North Wales? OQ56190

Photo of Ken Skates Ken Skates Labour 2:05, 27 January 2021

The agreement reached between the UK Government and the European Union on 24 December 2020, following negotiations, makes trading with the EU considerably more complex. We will continue to do everything possible to support businesses, including Holyhead port, as they adjust, whilst working alongside the UK Government.

Photo of Llyr Gruffydd Llyr Gruffydd Plaid Cymru

(Translated)

Thank you for that response, because I was going to pursue the future of the port of Holyhead. It's clearly a cause of concern given the changes we've seen over the last few weeks, with business on the Dublin to Holyhead route having halved from what we would usually see at this time. Stena Estrid has also been shifted to the Dublin to Cherbourg route, although it's back now for the short term; in the longer term, it won't be. So, there is concern, of course, about the long-term impact on the port. What I want to ask is what the Welsh Government is doing to assist with the work of facilitating the use of the port when it comes to working with haulage companies, businesses and, when the time comes, passengers too. Because we do need to safeguard the future of the port, of course, but it does make an important contribution, not only to the Anglesey economy, but the economy of the whole of north Wales.

Photo of Ken Skates Ken Skates Labour 2:06, 27 January 2021

Indeed. Llyr Huws Gruffydd is absolutely right; it makes a very significant contribution to the Welsh economy and, I'd argue as well, to the UK economy as a whole, which is why it's vitally important that the UK Government respond favourably to the letter that I sent just yesterday addressed to Grant Shapps. In that letter, I expressed my very deep concern over the significant bureaucratic pressures that have been placed on businesses and hauliers involved in trade between the UK and the EU, and how it was having a disproportionate impact on Welsh ports, primarily Holyhead, but also Fishguard and Milford Haven. What we are seeing is that there is a significant increase in capacity on certain routes, including from Rosslare port to Europe, where capacity has been increased by over 500 per cent to meet demand. That demonstrates the real risk to Holyhead and other Welsh ports, and that is why we are calling for the UK Government to respond urgently to support our ports. As soon as I receive a response to my correspondence, I'll be sure to share it with Members.

Photo of Darren Millar Darren Millar Conservative 2:08, 27 January 2021

Minister, last week was Farmhouse Breakfast Week, and as you will know, being a representative in north Wales, farming is an important part of the north Wales economy. One of the opportunities presented by Brexit is the opportunity to change public sector procurement rules so that farmers and other producers can get more of their produce purchased by the public sector. What action are you taking as the economy Minister to ensure that this is something that the farming community and others across Wales can take advantage of going forward, and where are we at in terms of the Welsh Government's review of procurement processes, given that we have now left the European Union?

Photo of Ken Skates Ken Skates Labour

Can I thank Darren Millar for his question and say that, first and foremost, it's not just through procurement that we can promote more and better local sourcing? What I've been very impressed by is some of the outcomes of the foundational economy challenge fund, where there are examples, particularly in terms of seafood, of businesses within the foundational economy capturing more business locally, rather than purely relying on exports. That's being driven by collaboration and by the seed funding the foundational economy challenge fund has provided, and, of course, now we're looking at scaling up and learning from those lessons that have emerged as a consequence of the challenge fund. I'll certainly invite my colleague the finance Minister to respond in detail regarding where we are on procurement policy, but, obviously, we wish to see local procurement take place wherever and whenever possible. There are good examples—there are superb examples—of that happening across Wales. We want to make sure that it's scaled up and that lessons are learnt and applied.