2. What work is Welsh Government doing to support the economy in Newport by bringing employment to the city? OQ58348

The Welsh Government will continue to work collaboratively with partners, such as the capital region, and, indeed, Newport City Council, to bring forward economic benefits to the area.

Minister, thankfully, Newport enjoys many advantages in terms of economic development. I think its geographical position between the powerhouses of Bristol and Cardiff, and its communication advantages in terms of the rail system and the motorway, for example, are very important strengths. And being part of the capital region, and also the western gateway, cross-border, are very important indeed. I wonder if you could tell the Chamber, tell me, how Welsh Government will continue to work with those regional groupings to develop that work and make sure that it really does produce the sorts of dividends we all want to see for Newport and the surrounding area.

I think one of the key aspects is the fact that, this side of the local authority elections, there is stability and continued leadership from Jane Mudd and her team, and that's important for us—about having trusted and stable partners. It's also their work as part of the wider capital region. We do see a future for high-quality jobs within the city, and there's a vision, again, that the council and the region have to be a part of delivering together with the Government. That partnership is really important. And, indeed, the economic framework for the region recognises opportunities within Newport, from digital technology, including the cyber sector, fintech and AI, life sciences, and of course the compound semiconductor cluster. I would like to see—again, thinking about a previous question—some certainty in the way that that cluster will be able to develop. So, a UK decision on Nexperia within the next 45 days would be most welcome, so that there's certainty about investment. That would also help us with choices across the western gateway area, where elected leaders here in the Welsh Government, and local authorities within the region, need to work with colleagues across the gateway because there is definitely a synergy of economic interest, and we look forward to playing a constructive part in that, with you, with your constituency colleague and neighbour, and, indeed, with the council and our colleagues in Westminster. 

Minister, I recently visited Newport docks to discuss the potential of a bid by Associated British Ports for a free port to be established in south Wales. As you know, in May, it was announced that the UK and Welsh Governments had come to an agreement to collaborate and deliver a new free port in Wales, backed by £26 million in UK Government funding to support the regeneration of communities by attracting new businesses and jobs and investment. Having met Michael Gove to discuss levelling-up in the United Kingdom, I explored the possibility of Associated British Ports making a bid for a free port based in Newport. Believe it or not, I actually did. For such a bid to succeed, it will require all stakeholders, namely ABP, local authorities and the Welsh Government, to work closely together in developing the best possible case for a south Wales free port. Minister, will you commit to working closely in partnership with these stakeholders to progress a bid, and what discussions have you already perhaps had with ministerial colleagues about bringing these new jobs and opportunities to Newport that you just spoke of? Thank you. 

Of course I'm aware of the announcement on free ports. I was the Welsh Government Minister who made that announcement with Michael Gove in his then role at the time. And that's because, from the noise that existed before, where the previous Secretary of State had regularly said a free port can't go ahead and it's the Welsh Government's fault, we eventually got the decision-making department in the UK Government talking directly to us. And we were able to move fairly rapidly then to have agreement on a joint prospectus for bids, where the Welsh Government and the UK Government will be co-decision makers. That includes things that are important to us like, if your remember, our agenda on fair work and environmental protection. So, that's important. 

The challenge, though, is that, having secured agreement on funding parity for a free port, which was a previous sticking point, we now have a different Minister in post, in Greg Clark. And this is no point of aspersion about Mr Clark, but the reality is I don't think we're going to make all the progress we might otherwise have done, because I would be surprised if the UK Government were able to make decisions on this until the leadership contest within the Conservative Party is finished. In the interim, though, Welsh Government officials will continue to work with the UK Government to make progress on the work of what the prospectus would be like. That will mean talking with a range of stakeholders, a range of interested parties in the industry, but also trade union colleagues, and then we should be able to move, as soon as UK Government have the stability to match our own in the Welsh Government and they can make choices about the bidding prospectus. 

I won't, of course, be involved in putting together individual bids, as I will be a decision maker in determining the bids coming from a range of areas in the country and I know there will be backers for different bids right across the geographic chamber.