Orthios

3. Topical Questions – in the Senedd on 30 March 2022.

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Photo of Rhun ap Iorwerth Rhun ap Iorwerth Plaid Cymru

(Translated)

2. Will the Minister make a statement on the announcement that Orthios has been placed in administration and the impact of that on the 120 local jobs? TQ616

Photo of Vaughan Gething Vaughan Gething Labour 3:22, 30 March 2022

Apologies, I don't have my translation, but it's written down. Can I get a headset for the follow-up? Sorry.

Photo of Jane Hutt Jane Hutt Labour

Do you want to borrow mine?

Photo of Vaughan Gething Vaughan Gething Labour

No, it'll go in my ears.

Thank you for the question. I understand that this will be a deeply concerning time for workers, their families and the wider Holyhead community. My officials have reached out to the company and stand ready to offer support to those affected at this distressing time.

I'll have to wait for the headset for the moment, because he asked the question in Welsh.

Photo of Elin Jones Elin Jones Plaid Cymru

I think the question is in English.

Photo of Rhun ap Iorwerth Rhun ap Iorwerth Plaid Cymru

This has come as a terrible blow to the island's economy, and I'll say more about that in a moment, but more immediately, of course, to the workforce, and my thoughts are with them today. One told me they'd been informed through a WhatsApp message group. A member of my team has been taking part this afternoon in a meeting of a taskforce set up to help workers, and I'm grateful to Citizens Advice for convening that, to Anglesey council and other agencies for the part that they're playing too.

Now, one obvious priority is to make sure that staff get paid. I understand that it was tomorrow that they were due to be paid. Some say they won't be able to pay their rents next month. Now, will the Minister make this a priority in discussions with administrators and will he outline other steps that Government officials are ready to take to support the workforce at this time? The other element here is the importance of this site—the old Anglesey Aluminium site and its jetty for cruise liners, a rail hub, a power hub, so many aspects to it. We're told that the problems we're facing today are linked to the financing of the Orthios project. We'll no doubt come to understand more and be able to talk more about those issues in due course. So, (a) can I ask the Minister if he will meet with me to discuss the current situation and the future of the site? And (b) can I have an undertaking that no stone will be left unturned, working with Orthios, its investors and other partners to ensure that the potential of this site can be maximised and in a sustainable way? There have been many questions asked and real frustrations at the pace of development since Orthios took over the site, but more recently, there had been investment and jobs created. But in seeking a way forward now and seeking the re-employment of the workers very, very soon, we owe it to them to ensure that there is genuine sustainability to development going forward.

Photo of Vaughan Gething Vaughan Gething Labour 3:24, 30 March 2022

Thank you for the question and the series of points. Starting with what I said in my opening response, my thoughts are with workers at what will be a distressing time. It's always difficult when you lose a job when you don't want to, but in particular to lose a job in dramatic circumstances, where you're unsighted and not forewarned. And there's a good reason why employment law in this country requires employers to consult with the workforce before redundancies are made. Now, we've had other examples of really poor employment practice. I'm keen to understand what has happened here. Has there really been an event that has taken place so rapidly that there could not have been consultation? I'd be very surprised at that. And I think that also turns on your second point about pay. In a former life, what I used to know at the redundancy payments office was the sorts of claims you could have if you didn't receive pay, but, actually, that isn't the same as receiving your contractual pay, and workers could well lose out on money if they do need to fall back on the statutory provision that is available as well. And that often takes time, and that is almost always not likely to happen unless people do have the support of their trade union. I understand Unite is the on-site union. It's worth pointing out that Welsh Government officials are also looking to have conversations with the trade union, to gain their understanding of what has happened on the site too.

On the point about no stone being unturned, I'm more than happy to confirm that that will certainly be the approach of this Government, working together with the council and the Department for Work and Pensions. There's a multi-agency team that is already being co-ordinated to look at the different sorts of support that the two national Governments can provide, together with the council, to support workers to look to find alternative and sustainable employment.

And I think that goes on to your final point, where I'm happy to meet the Member to discuss not just the current situation, but, actually, the longer term for this site. It is a key employment site, with the power connections and our ambitions for the future economy in this area, with good employment that we think could and should be created, and I'm keen that the site isn't lost to fruitful future development, as well as trying to address the current situation. My office will be happy to be in touch to arrange a convenient time for us to meet.

Photo of Sam Rowlands Sam Rowlands Conservative 3:27, 30 March 2022

Thank you to the Member, also, from Ynys Môn for putting this really important question forward today—not just the effect in Holyhead and Ynys Môn, but the north Wales region, because of the significance and the potential significance of the site. The announcement that Orthios has been placed into administration is clearly extremely worrying, and I fully share the concerns made by the Member for Ynys Môn, and by you, Minister, as well. This will and has come as a shock to many people, and it's so sad seeing the potential of many people losing their jobs. And the significance of the site has been mentioned already, and I'd certainly like to join the calls from the Member for Ynys Môn to see a real clear plan made for that site, because the opportunities are incredible there, and it's a shame they haven't been realised yet. There's a huge amount of work that can be done.

But, Minister, you know you have obviously responsibility in terms of support and advice for business growth and development of business, business information, business support, so in light of this, I'd be grateful to understand what support the Welsh Government has provided to Orthios over recent months, before this announcement was made, and what steps had you made to reach out to them over recent months as well. Diolch yn fawr iawn.

Photo of Vaughan Gething Vaughan Gething Labour 3:28, 30 March 2022

Well, there have been regular attempts to reach out to the company, and we've had conversations with them about the jetty and the position for cruise ships. You will recall that we reached an alternative arrangement to make sure that the season wasn't cancelled last year. Our challenge is in ensuring that the conversation is a genuine dialogue rather than an offer of support, where there isn't—. We can't force the company to take up support, so they do need to respond to us, and my officials are waiting to hear from the company. There have been regular attempts to call the company over the recent months and recent days, and I'd say again we'd want the company to engage with us on what they propose to do, what they propose to do with the workforce, and how we can actually look at the site to make sure that the significant opportunities—and I recognise right across north Wales, and across parties for this site—are actually realised, and I don't want to lose sight of either of those, the immediate position, but also the longer term potential for the site.

Photo of Jack Sargeant Jack Sargeant Labour 3:29, 30 March 2022

I thank the Member, Rhun ap Iorwerth, for tabling this important question today, and I'm very much in line with what he has said already. Minister, can I slightly change the question a bit? And the announcement is clearly worrying for many individuals and many families across north Wales, and these are quite clearly tough times, and it's very difficult to absorb shocks like this in the current climate. But can I ask you what support and advice the Welsh Government can offer to businesses who are owed money by Orthios, like the one in my own constituency that has contacted me and Carolyn Thomas, in her role as Member of the Senedd for North Wales, just this week?

Photo of Vaughan Gething Vaughan Gething Labour 3:30, 30 March 2022

Thank you. It's an important point. It's often the case that, when larger businesses do cease or significantly reduce their operation, there are often other businesses in their supply chain who are left in financial distress as well. So, the ripple effect from a significant event like this can be sometimes hidden. So, I'm grateful to the Member for raising it.

In terms of practical support, I'd be very interested if he could share the details with us. Other businesses, they can always contact Business Wales in terms of the advice and support that we can provide to make sure they get to the right point, depending on what's happened in the supply chain and what the contractual arrangements are in place between them and the main company. But I'm acutely aware this will likely affect a number of other businesses, not just the more than 100 workers who appear to have lost their jobs overnight.