Economic Development

1. Questions to the Minister for Economy – in the Senedd at 2:17 pm on 14 December 2022.

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Photo of John Griffiths John Griffiths Labour 2:17, 14 December 2022

(Translated)

Thank you very much, Llywydd, and merry Christmas.

Photo of John Griffiths John Griffiths Labour 14 December 2022

(Translated)

9. What is the Minister's latest assessment of economic development in Newport East? OQ58872

Photo of Vaughan Gething Vaughan Gething Labour 2:17, 14 December 2022

Welsh Government continue to work collaboratively with Newport City Council and the Cardiff capital region to help build a strong economy in Newport and the surrounding areas.

Photo of John Griffiths John Griffiths Labour 2:18, 14 December 2022

Minister, I've recently met with constituents who work at Newport Wafer Fab and Nexperia, and they're very concerned, along with others in the 600-plus workforce, at the current situation, and particularly, of course, at the UK Government decision forcing Nexperia to sell at least 86 per cent of its stake in Newport Wafer Fab. These are very well-paid and high-tech, highly skilled jobs, as I know you're aware, Minister. The UK Government, having cited national security concerns for their decision, now seem to have walked away from the consequences. I know the workforce feel this very strongly, having met with them onsite and here just this week, along with colleagues such as Jayne Bryant, in whose constituency, of course, the plant is situated. Obviously, what the workforce wants and the company wants, Minister, is for UK Government to engage, to have a dialogue, to be part of finding a way forward that protects these crucial, valuable jobs, and indeed planned investment. So, Minister, will the Welsh Government do all it can to ensure that the UK Government faces up to its responsibility and supports these quality jobs and this high-tech industry in Newport?

Photo of Vaughan Gething Vaughan Gething Labour 2:19, 14 December 2022

Thank you for the question. I recognise what the Member had to say about Jayne Bryant. Nexperia is, of course, in her constituency, but I recognise the Member will have a number of constituents who work there as well. I had the opportunity to meet a group of staff from Nexperia in a meeting hosted by Jayne Bryant, and I know other Members took the opportunity to drop in to listen to them too.

We agree that the UK Government needs to undertake more engagement around the future of this particular business. There are over 600 well-paid jobs at that site in an industry with a very clear future, but an industry that also will, I think, need some time to transition to a future should the divestment and sale go ahead. There are challenges about the order book, because those people are Nexperia customers. There's also a challenge about future investment that would need to be made, and, crucially, about the people. It's not just the 600 people with families and well-paid jobs we should be concerned about, it's about some of those people who, if there isn't a clear plan for the future, may make alternative choices.

That is not what I think lies behind the UK Government's decision on the national security basis following the review, but I'm looking for certainty about what the future means—a plan for the future that involves the UK Government and involves further conversations with the company and other potential investors. Those are points that I've been looking to take up when I meet Grant Shapps, Secretary of State at BEIS. I'm due to meet him before the end of this week. We're certainly looking for an approach together with the UK Government that involves us and our direct relationships with the business and, indeed, the wider sector.