3. What assessment has the Welsh Government made of the potential to attract international businesses to Wales now the UK has left the EU? OQ56357

The trade and co-operation agreement has addressed some of the uncertainty that has deterred investment since the referendum in 2016. But Wales and the UK no longer offer barrier-free access to a single market of 450 million people, and that may well dampen, to some extent, inward investment from overseas.

Thank you for that answer, Counsel General, but I'm not really surprised since you're a remainer. Since a deal with the EU has been implemented, you've said that there are problems with international trade because the UK Government has put sovereignty before well-being. The image of Wales you wanted to leave people with was of a country that would be difficult to do business in and with, and which couldn't even look after its own people's health because we're not in the EU. Yet here we are, the UK leading the world in vaccinating against COVID, second only to Israel, and with more than 1,000 EU businesses opening offices in the UK for the first time ever. Whilst you cherry-pick news to suggest that Amsterdam will somehow replace London as Europe's finance capital by only talking about share trading, actual businesspeople like the head of Barclays, Jes Staley, are saying that Brexit will be of benefit to the UK because of our ability to attract global capital. Even the remain-loving The i newspaper agrees with him.

Surely, you're aware that constantly claiming that we got a bad deal just because it's not the Brexit-in-name-only deal you wanted, and talking down Wales's future and potential because you wanted to stay in the EU is only going to put people off investing here. Wouldn't you agree that the best start to attracting international businesses to Wales, especially in light of the news that 1,000 finance firms are poised to open UK offices, often for the first time, is to change tack and start concentrating on the many benefits and opportunities that Brexit has brought us, and how that will benefit companies that invest here, rather than continuing to fight a referendum that's long been decided?

So, what efforts is the Welsh Government making to attract some of these 1,000 businesses to open offices in Wales, and how effective will that be when the UK Government keeps talking up the future of the rest of the UK, while your Government keeps talking it down in respect of Wales?

I'll try and relate my response to some of the evidence, which I think is probably a helpful way of looking at this. The reality is that there was a significant downturn in inward investment following the 2016 referendum. I'm pleased to say that through the good efforts of an awful lot of people, last year saw an increase from that reduced level, so that is positive and we absolutely welcome that. But it's a positive from having a drop down as a consequence of that uncertainty, which as a Government we certainly don't welcome and neither did business at large in Wales.

Throughout the pandemic, in particular, we've undertaken a very significant engagement programme, both with our current inward investors to ensure that they have the support that they need, but also to identify other opportunities, in a way that has been very productive. The international strategy very clearly identifies the sectors where we feel we can make a real attractive offer, if you like, for inward investment—for compound semiconductors, cyber security, in the renewable space, in the fintech space that she talked about, and in terms of life sciences—and we've developed, I would suggest, a very sophisticated and comprehensive suite of propositions in those areas, and our engagement with clusters, stakeholders and various market channels in those sectors has borne fruit. I welcome that and want to see that continue. 

But I think it is also important for the Member to acknowledge that the consequence of the negotiation that the UK Government have undertaken and their approach to negotiations is to be regretted, because if they had taken a more constructive approach, the story would be even better.

The WDA brought in a number of basic assembly plants—often described as 'screwdriver plants'—from all over the world. Many came, and they've mostly gone. Does the Minister agree that we need inward investment that will bring high-quality and high-tech employment that will last, no matter where it comes from, and that the last thing we want is a number of post office box investments, where they pay to have a PO box in Wales without employing anybody?

Can I thank Mike Hedges for that very important question? I think he identifies a very significant issue and sets the right direction of travel in his question. Through the international strategy that I mentioned just a moment ago, we've been very clear that what we are seeking is value-added investment, if you like, into the Welsh economy, in the way that the Minister for the economy was talking about in his questions earlier. We will continue the work of proactively promoting the part of the economy that can help us deliver that. And in addition to some of the sectors that I already mentioned in my response to Michelle Brown, whether it's marine energy or the medical technology space, there are a number of areas where we can draw investment, and we continue to want to do that, but, in the way that his question implies, to ensure that that investment is value added, and therefore can deliver long-term, sustainable, productive economic activity in Wales and decent jobs.