2. Questions to the Minister for Economy – in the Senedd at 2:29 pm on 19 October 2022.
Questions from party spokespeople now. Conservative spokesperson, Tom Giffard.
Diolch, Llywydd. Good afternoon, Minister. This is my last opportunity to question you before Cymru begin their historic first world cup campaign in 64 years. I wanted to highlight though what Nasser Al Khater, the chief executive of Qatar 2022, recently said in a media interview. He suggested that Governments should focus on the football and leave it at that. We all know that Qatar has, at best, a patchy record when it comes to human rights and its treatment of the LGBT community. And we have a duty, I think, to highlight these issues to fans making the trip to Qatar and not prejudiced for just being themselves. They've even suggested that Welsh captain, Gareth Bale, doesn't wear the rainbow OneLove armband. I know that you, the First Minister and the Deputy Minister for Arts and Sport all plan on going to Qatar to watch Wales's group games, so I wanted to give you the opportunity to respond to those comments by the chief executive of Qatar 2022 world cup before you go. And can I also ask you whether you'll be raising the issues regarding LGBT rights and human rights more generally whilst you're out there?
I want to start by recognising, of course, that I am looking forward to the men’s team taking part in the finals of the football world cup. I want to start by recognising the achievement of the women’s team though. Albeit they’ve not qualified for the finals, the significant progress they’ve made has made everyone right across this Chamber and outside it tremendously proud and there should be real hope for the future. And I certainly hope the Football Association of Wales continues to invest in the women’s game at all levels, so that there are more Jess Fishlocks playing in our national team in the future, and I think it’s good for all of us to see our women’s team being generally competitive.
On the men’s world cup, I have already highlighted the issues that you’ve raised in my previous visit to Qatar. It was part of the engagement with the British Embassy and the organisers. I know that there are times when people say, ‘You should keep politics and sport separate’, and there’s a good reason why politicians in this Chamber don’t get to decide issues about the running of sports that are quite properly the remit of those governing bodies, but it is entirely appropriate for us to have conversations with governing bodies and international ones about our expectations for fans and for players. It is entirely appropriate to recognise the context in which games are being played.
So, yes, I have already raised those issues directly. I hope people do enjoy the football well beyond the group stage—I certainly hope so. But you can expect us to have constructive conversations, as I’ve outlined in my previous statement in this place, about being proud of the Wales that we are today and the values that we have, and engaging with the rest of the world on that basis. And I hope that there is an attack of common sense from FIFA’s point of view in not trying to prevent captains of teams from wearing the rainbow armband or others. I think it’s a mark of where we are that our football captains from across these islands think that’s a positive thing for them to do for the game and beyond.
Thank you, Minister. I'm grateful to you for making that clear and I think the Senedd stands united in distancing us from those comments as well. As you say, sport and politics are intertwined and it's very important that we make that very clear to those travelling Cymru fans who will be going out to Qatar as well.
It's my first opportunity also to question you as the Minister responsible for tourism since you took on the role 18 months ago. Since that time, the Minister for finance has made four statements here in the Senedd on tourism; you've made none. Why?
Well, actually, you have had opportunities to ask questions on tourism, and you simply directed them to the Deputy Minister. I'm glad you've rediscovered the ministerial responsibility sheet. [Laughter.] Look, when it comes to statements and work, the statements we make in the Chamber are about work as we're progressing it and I am working closely with the Minister for finance on some of the measures that we're looking at around our tourism sector, in particular on delivering our manifesto commitment around a visitor levy. I have regular engagement with the sector and it is an important sector for me.
In fact, yesterday, I was at the British tourist board's meeting in Wales at the International Convention Centre, making points to VisitBritain that it's important that, in their work, they promote all parts of the tourist offer we have within the United Kingdom. The merger between VisitBritain and VisitEngland is something that I still think is challenging and doesn't necessarily give all of the right messages. But we have a unique offer within Wales—the culture, the linguistic heritage, our own history, where we are today with smaller cities to visit than some parts of England, for example. There is lots and lots that we have to offer and lots that we do discuss, both with those strategic national bodies on how they're presenting Britain to the wider world as well as within Britain and indeed directly with the sector here itself, which I recognise is one of the largest private sector employers within the economy.
I'm afraid I have to disagree with you, Minister. The fact that you're the Minister responsible for tourism, but haven't really had anything proactive to say on the topic, whilst the finance Minister has been introducing tourism taxes and changes to self-catering holiday properties, tells us that this is a Government that doesn't see tourism as something to be promoted or enhanced—that you see it as something to tax instead. Frankly, I think that this is a Welsh Labour Government that has run out of ideas when it comes to tourism in Wales. So, Minister, how about committing to a Welsh Conservative idea instead? If the Welsh Government is going to implement a tourism tax—[Interruption.]
I can't hear the questioner. Can we hear Tom Giffard in a bit of silence, please? We need to hear what he has to say.
Diolch, Llywydd. If the Welsh Government is going to implement a tourism tax—and I sincerely hope you don't—what we're calling for is for the Welsh Government to exempt those with disabilities and armed forces personnel, at a minimum, from paying a tourism charge. Is this something you'll commit to today?
I think there are a couple of things I'd say in response to the Member. A range of the statements I've made about the economy has certainly had a direct impact on some of the choices we're looking to make on promoting the visitor economy, which is a significant sector of employment and a sector that is under real pressure. People's discretionary spend reducing, as it's likely to do, further, because of the well-advertised issues following the mini-budget less than four weeks ago, has a real impact on this sector in particular. And when I held the recent economic summit, we certainly did talk about the visitor economy and some of the challenges that it faces.
I think it's also worth pointing out that it may seem novel to Conservative politicians, but, actually, we stood on a manifesto that we intend to implement. We've published a programme for government and we've discussed additions to it with our co-operation agreement partners, and I'm not going to apologise for being a strong and stable Government acting in the national interest, as opposed to the coalition of chaos we see in Westminster. We're going to deliver on the pledges that we made. The big challenge in delivering on our pledges is the significant change in the economic picture and the spending to both support public services and the economy.
And when it comes to your final point, about members of the forces or disabled people, I think you need to reflect that not all of those people need special rates and special treatment. I just think that—. I'll give you an example. I visited tourist accommodation that we've helped the owners to improve, and they actually said that the rooms that they had the most consistent and busy bookings on—and this is a five-star offer—were actually the disabled-access rooms. And that's because the market has both shrunk, in terms of the number of rooms that are genuinely accessible—. And when I visited a four-star offer in Swansea, they also said they'd had lots of interest in their accessible rooms. So, actually, there's a challenge there about having enough access to the sector, not about saying those people need help with the costs. They actually want to be able to go and enjoy themselves as visitors, and have the ability to go to good-quality facilities to do so. And actually, our challenge is having an offer that is varied enough and is sustainable for everyone to have the opportunity to enjoy what Wales has to offer, right across the country.
We'll continue to take forward a consultation on delivering our manifesto pledges, and to do so in a way that balances the interests of the visitor economy and indeed those communities that host significant chunks of our visitor economy, in both rural, coastal, and city and town settings.
Plaid Cymru spokesperson, Luke Fletcher.
Diolch, Llywydd. Yesterday, I raised with the First Minister the crisis facing the energy-intensive industries. I asked about whether the Welsh Government are planning on introducing further support, specifically around helping to reduce energy bills, through supporting businesses like breweries in producing their own green energy, as well as looking at voltage optimisation. I'll put the same question to you, Minister, as it was unclear yesterday from the First Minister's answer. The reality is that current support isn't sufficient, and most energy-intensive businesses, especially breweries, have spent a lot of, if not all of, their reserves surviving COVID, and now find themselves in a position where many don't see themselves lasting beyond winter.
Interestingly, this is an area where I've already been considering what we might be able to do for some weeks, so it's not led by the question, but it is something that we're actively looking at—about how we can help people both to potentially decarbonise, as well as the potential to generate energy that isn't subject to the fluctuations and the upward rise in energy prices that we've seen.
It was actually part of the conversation I had at the recent cross-party group meeting on beer and the pub—and I see the Chair is with us; good to see you, Mr Sargeant. And in discussions with brewers who were there, it is one of their real concerns. Brewers, bakers, glass makers—there is a whole range of energy-intensive industries outside the big headline areas of the steel sector, for example, and we're really concerned that their needs are recognised in the UK Government scheme, not just the six months of some support that is available, but in the design of a future scheme that recognises their needs. Because you're right, for many of those people, they're concerned about making it through the Christmas period and then getting to the end of the six-month support and not having to make potentially business-ending choices before then. So, I recognise the real risk that exists in both the brewing sector and beyond.
The shame is that, actually, it's been a sector of real success for Wales with a growth in smaller brewers and indeed a broader growth in the food and drink industry. You may or may not know it, but Alun Davies is not just a supporter of the sector in his own personal conduct. When he was the Minister with responsibility for food and drink, he set stretching targets at the time for growth in the sector. At the time, there were people who derided him for setting those targets, saying that it would never be done. We've actually over-achieved on those targets.
Thank you, Minister. Of course, you are right in saying that there's been great success in the breweries sector within Wales, especially the small independent ones. We're at risk right now of losing all of that great progress in a very short space of time. So, whilst it's good to hear that you're actively considering support, I would hope that the Government would bring forward a statement as soon as possible, because, as I said, winter has always been tough for hospitality, but especially in the last few years. It's where they make their money in order to be able to survive the January and February months, but this Christmas is looking like that's going to be impossible. So, I'd hope that support will be forthcoming as soon as possible.
We've talked about other energy-intensive sectors as well. You mentioned steel. I'd like to touch on steel in particular as another energy-intensive industry. I'm sure the Minister has read UK Steel's report on the future of UK steel. There are some startling figures within. UK steel makers pay 30 per cent more for electricity than their counterparts in Germany and up to 70 per cent more than their counterparts in France. The No.1 priority outlined in the report is competitive energy prices. Achieving this will be key to the longevity of the sector, especially, as the Financial Times reports, in the case of Tata Steel that are looking to move to electric arc furnaces.
In fairness to the Welsh Government, the level and scale of investment needs to come from UK Government. But, unfortunately, the show that has happened in Westminster has left a lot of uncertainty in the Welsh steel sector. The Minister did come to the recent CPG on steel and outlined the then troubles he was having with UK Government, but has the Minister had any recent engagement with the Department for Business, Energy and Industrial Strategy under this new regime, on the subject of Welsh steel, and what assurances can he provide the sector today?
I just want to return to the end point you made about hospitality. I'm very well aware that the summer has been reasonable but not bumper. So, actually, right across hospitality, there are real challenges going into the autumn and the winter. It makes the Halloween budget even more important for them about what that does in terms of our ability to support this sector, but also more broadly the economy moving forward. There are still challenges around staffing, but consumer confidence and discretionary spend is a very real issue that directly affects the business viability. A number of hospitality businesses do make a significant amount of their profits in the period leading up to the turn of the year, but I am very well aware that a number of those businesses are really struggling in the run up to it, and a number are running on shorter hours as a direct result of a combination of all those factors.
When it comes to steel, I met Kwasi Kwarteng when he was the Secretary of State for BEIS, as he then was, at a steel council that we hosted in Cardiff. We were, at that point, making the case for clarity from the UK Government about investment around Tata, and you'll have seen they've publicly surfaced their position, but also the perennial issue in every steel council of energy costs. Because there is a differential in the cost of energy as it's supplied to sectors in Germany and other parts of Europe too. That continues to be an ask. I have sought a meeting with both Simon Clarke and indeed with Jacob Rees-Mogg, who is the new Secretary of State for BEIS. That's yet to happen.
In the initial meeting I had with Simon Clarke about investment zones—he requested a meeting—as I said in earlier answers, we were constructive but clear in our response. I made clear, and indeed in the follow up, that steel is one of the priority areas where I think we could actually do something of real use and value and we would be keen to have a purposeful conversation about how the sector can be supported. There are significant opportunities in the steel sector in Wales and beyond, particularly when we look at opportunities in the Celtic sea, for economic activity. I want that steel to be made in the UK and not imported from other parts of the world, to make sure we get the most out of the opportunities that exist. We'll continue to make the case for both constructive engagement with Ministers and then active budget choices to allow those opportunities to be realised.