5. Statement by the Minister for Economy: Economic Priorities and UK Government Relations

Part of the debate – in the Senedd at 4:18 pm on 17 January 2023.

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Photo of Luke Fletcher Luke Fletcher Plaid Cymru 4:18, 17 January 2023

I'll start by agreeing with the Government: it is disgraceful that UK Government would rather attack workers' rights than deal effectively with the economic hardships that are facing those workers.

If I could start with one of those hardships, which is energy, the Minister mentioned that the current UK scheme, whilst providing support some support, does nothing to safeguard against energy price volatility. I don't think we'll be able to safeguard against price volatility fully, and in a way that doesn't subsidise shareholders in the private sector, unless we nationalise the energy sector. I hope he would agree on that principle.

Now, the UK Government has decided to significantly reduce support for small businesses through the energy bill relief scheme, which leaves small businesses in Wales facing sky-high energy costs. We have heard already that one in four businesses are considering closing or selling if there is not a replacement energy bill relief scheme. The announcement from the Government on the green business loan scheme is more than welcome and is something that myself, Plaid Cymru, and significant stakeholder groups such as the Federation of Small Businesses and UKHospitality have been calling for, but, additionally, the FSB has been calling for a 'help to green' voucher scheme to be implemented by UK Government, modelled on the 'Help to Grow: Digital' scheme, to help businesses decarbonise. Given the Minister's recent interministerial meetings, would he raise this issue with UK Government and urge them to implement such a scheme to run parallel to a loan scheme here in Wales?

And of course I know the Minister is already raising the issues surrounding steel. Plaid Cymru stands with him in calling on the UK Government to step in and provide the support needed for decarbonisation of the sector. We know steel is vital to decarbonising the economy; we need steel to build renewable forms of producing energy, like the offshore wind the Minister mentioned. That is why it's vital that funding to support steel decarbonisation is forthcoming. Pursuit of decarbonisation, of course, is made harder by the fact that UK steel makers pay 30 per cent more for their electricity than their counterparts in Germany, and up to 70 per cent more than their counterparts in France. I hope the Minister will be able to provide the Chamber with a more detailed statement in relation to his discussions with the UK Government in regard to the steel sector.

Now, we've heard free ports mentioned in the Minister's statement today, as well as in First Minister's questions. I've been clear on my position when it comes to free ports; I don't believe they're the solution to our issues. The Trades Union Congress back in 2020 were saying there's no evidence that free ports create jobs or stimulate growth. I could go on, but the Office for Budget Responsibility has predicted that tax breaks in English free ports will cost £50 million a year. Has the Government made an assessment of the implications here in Wales?

I was also wondering if the Minister could also provide clarity on his role in deciding on which free port goes forward in Wales, as well as what role the Senedd will have in scrutinising the decision. I know it's a joint decision between himself and a UK Government counterpart, but, in the event of disagreement, will he have the final say? But also will Members in this Chamber get a vote on the decision, or even a vote on whether we want free ports at all?