6. Statement by the Minister for Economy: Wales and Europe — Managing a new relationship

Part of the debate – in the Senedd at 4:42 pm on 1 February 2022.

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Photo of Paul Davies Paul Davies Conservative 4:42, 1 February 2022

Diolch, Dirpwy Lywydd. Can I start by welcoming the Minister's, on the whole, constructive statement this afternoon? I'm sorry to hear from the Minister's tweet this morning that he's tested positive for COVID-19, but I'm pleased that he's feeling fine and I wish him well.

The Minister is right to say that it has been two years since we left the European Union, and in that time there have been a number of developments, some within the Welsh Government's scope and some, of course, outside its remit. Nevertheless, it's vital that Wales has a successful trading relationship with Europe, given that the EU is the main international export market for Welsh goods and agricultural produce.

Of course, trade is a reserved competence, and so it's crucial that there are strong inter-governmental relations between the Welsh Government and the UK Government in this area. Therefore, I am pleased to read in today's statement that engagement with the UK Government at official level has been generally good, and I agree that devolved nations should be as involved as possible in discussions going forward. For example, I know the ministerial forum for trade has been productive and has given the Welsh Government an opportunity to feed into trade deals in a way that was positive and beneficial for Wales. Perhaps the Minister can provide an update on the latest discussions of the ministerial forum for trade, and, in particular, what discussions have taken place in relation to trading with European partners.

Today's statement refers to the Northern Ireland protocol and the recent comments from Stena Line that Welsh ports have seen a 30 per cent fall in traffic as a result of the new trading relationship with the European Union and that the logistics industry has been hit quite hard following our departure from the EU. Whilst this is clearly disappointing, Stena Line made it very clear that

'If we look at the Irish Sea in its entirety, the freight volumes are roughly the same. What has been adversely affected is really the Welsh ports and the Welsh routes so far.'

Therefore, perhaps the Minister can tell us if he has met with shipping operators recently to discuss the impact of the new relationship on the logistics industry and outline what steps the Welsh Government is taking to support the sector going forward.

I'm heartened to hear that Stena Line have reiterated their long-term commitment to Welsh ports, and that they expect the situation to improve, and so perhaps the Minister could tell us whether he agrees with Stena Line that things are expected to improve, and will he publish the Welsh Government assessment of the new relationship with Europe and explain what modelling it's using to forecast future predictions for the Welsh economy? This is also important in terms of setting up border control posts, and the Minister and I have had several discussions regarding this matter in recent months. And I, of course, declare an interest, Dirprwy Lywydd, as there is a possibility that a border control post could be located in my constituency.

Now, the Minister has previously said that if there is a permanent or future reduction in trade, then it would affect the size of border control post, and so can the Minister provide an update on where we are with border control posts and what developments have been made? Of course, it's crucial that the site of a border control post is decided carefully, and I know from the representations that I've received in my constituency how controversial the location is. The Welsh Government must take into account the impact that a border control post will have on local communities and on local infrastructure, and so perhaps the Minister can tell us how he'll be ensuring that local voices are heard when deciding on specific sites. I know the Welsh Government is in discussion with the UK Government in relation to funding the operation of border control posts, but perhaps the Minister can update us on the latest discussion on this matter as well. 

Now, as the new relationship with Europe takes shape, it's vital that the Welsh Government prioritises exports and trade, and the export action plan shows some of the activity taking place to support Welsh exporters going forward. The export action plan looks to build capacity and capability for exporting to ensure Welsh businesses have the right skills, know-how and confidence to be successful exporters. Given that the export action plan was published over a year ago, perhaps the Minister can provide an update on whether that capacity has been built, by confirming exactly what new action has been taken to address any capacity and capability issues. And perhaps he can also tell us whether he's confident that Wales now has enough capacity and capability to drive the growth of Welsh exports in the longer term and increase the contribution that exports make to the Welsh economy.

Finally, Llywydd, today's statement talks about that

'the influence of the EU on policy making and the regulatory framework in Wales will remain significant for the foreseeable future.'

I know that the Welsh Government has been developing a diaspora initiative, which will include a small number of hand-picked envoys, as well as businesspeople in key markets who can support opening doors to export opportunities for Welsh businesses. Therefore, perhaps the Minister can confirm how many in-market opportunities in the EU have been identified so far and also tell us how much has been spent on these envoys.

Therefore, Llywydd, in closing, can I thank the Minister for his statement this afternoon and say that I look forward to working with him constructively to ensure that Wales has the best possible relationship with Europe so that our businesses can continue to trade successfully in the future? Thank you.