Part of the debate – in the Senedd at 4:02 pm on 9 November 2022.
I’m going to focus on hospitality in particular. It’s a significant sector in itself, employing at its height 200,000 people in Wales, and it’s a sector that I have a good amount of experience in. However, much of this will be applicable to retail and tourism.
When we first undertook our inquiry into the sector, much of it focused on the effects the pandemic had on it as a sector, and the struggles the sector was having in dealing with the aftermath. I think it’s fair to say that much of that has been completely overtaken by the cost-of-living crisis. All of us get on a daily basis correspondence from businesses in our constituencies and regions who are struggling to stay open. VAT and business rates were highlighted in evidence to us. The Chair has referred to business rates already; VAT was also a particular sticking point of interest, given the desire by the sector not to revert back to the 20 per cent rate. I think the economy Minister was right in what he said: going back to the 20 per cent rate could damage the economy more than help it; more so now, given the cost-of-living crisis.
Thanks to the cost of living, we can now also add to that list of worries high inflation and energy costs. One hospitality business in my region, for example, saw their annual energy bill go from £15,000 to just shy of £70,000. Another more public one, Ristorante Vecchio in Bridgend, shared how their energy bill was now at £8,000 a month. The reality is we need serious intervention from Government now if many hospitality businesses are to survive beyond the winter.
Staffing was also an issue raised with us as a committee, and the real struggle the sector is having with recruitment. We heard from the sector, who were ready to admit that there were long-standing issues that needed to be addressed—such as wages, job security and work-life balance—as a starting point. But there was also a very keen desire to professionalise the sector as well, to show new entrants that there is a progression pathway, as well as training, something highlighted consistently as a desire from the evidence collected from workers. Fundamentally, this is needed, because I would hope it would lead to a change in culture and in how people treat hospitality workers as a whole. The amount of times customers thought it was okay to talk down and patronise me and my colleagues are uncountable; it was an hourly occurrence, if not a by-the-minute one.
I'll always remember one interaction I had. A couple came up to the bar that I was working on at the time. They ordered two espresso martinis. I could tell almost straight away that they were a specific type of people. It wasn't because of the drinks they ordered, because I do actually quite like an espresso martini, but I could tell it by the way they ordered the drinks. I started making the order. They went on about a holiday that they'd been on recently, holidaying on their friend's £1 million yacht, and they turned to me and said, 'I bet that's a bit of a culture shock for you, isn't it?' I think Members know me well enough to know what my reaction to that would have been, but that's an example I have. I have many more examples, but there are also millions more examples out there.
But that's why the culture needs to change, and that's why I was encouraged by the recognition of the sector that there was a need for that change as well. I've given one negative story about hospitality, but I will finish on a positive one, because it is a great sector to work in, again recognised in the evidence from workers. The experiences I had were great, and the friends I made are lifetime friends. As a sector, it's taught me so much about people, how to deal with people, especially how to deal with people with friends who have £1 million yachts. It certainly gave me the confidence and skills to be able to do what I'm doing now. It also taught me how to make a pretty good cocktail, which I'm sure we can agree is a very valuable life skill. But, in all seriousness, I'm glad to see the Welsh Government have accepted fully or at least in principle many of our recommendations, but action needs to follow. Much like the sector, I also see the Welsh Government as a vital partner in the sector's recovery and development.