3. Statement by the Minister for Economy: The Free-port Programme in Wales

Part of the debate – in the Senedd at 3:05 pm on 28 March 2023.

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Photo of Vaughan Gething Vaughan Gething Labour 3:05, 28 March 2023

Thank you for the comments and the couple of questions in there as well. I should start by saying that I wish Paul Davies well. I look forward to him returning to the Chamber. I also suspect he'll have sent a map to the leader of the Welsh Conservatives. I saw the video in Cardiff Bay that suggested that the free port was in Carmarthen; I think Milford is still in Pembrokeshire.

But actually, I'm sure that there is lots to be positive about and, on that, it does show that, when we do work together, there are things that we can do, which is what I've set out to do in all of the conversations I've had with UK Ministers. We want to have a pragmatic conversation about what we can do, and what the UK Government can do, whether it's on steel, whether it's on semiconductors or here, on free ports. The challenge is that there are times when the UK Government works in this way and other times when there's a less collaborative approach taken. We talked about the shared prosperity fund and others, and I'm sure that we'll spend time talking about those on other occasions.

On free ports, I'm positive that the process now will take us into further alignment with the work we're already doing. It's part of what we expected in the prospectus, it's why it was designed in that way, and if you look at what each of the free port consortia have been suggesting they want to do, it is aligned with what we're doing and, indeed, with what growth deal areas are looking to do as well. It was one of the conditions that, for any bid, they had to secure the backing of the growth deal area in which they were based. The free-port prospectus that we have agreed and published, and the outlined business case with more detail in it, is in alignment with our economic mission. So, I recognise the points that you make and the question you've asked about what we will need to review again what we're doing to align with free ports; I think it's the other way around, actually. The free-ports process has been done in a way that successful bids should align with what we're already intending to do. And it will build on work that's already undertaken. For example, your question about skills; there is work already under way with the consortia of marine energy businesses and bidders, and they've always included the ports, who recognise that significant investment in port infrastructure is essential to unlocking not just the opportunities to generate low-carbon power, but the jobs that should come from that as well. So, we'll build on that work, and the work that we have already set out with further and higher education providers.

One of the things that businesses are already doing is looking at where they think there are gaps and opportunities and the skills base of where they are, as well as a number of people who could come into work there. So, some of that could be transitioned from workers in other sectors, some of that will be people already in the sector and reskilling them to do the sorts of jobs that will be required in the next three, five and 10 years, and some of that also will be with people who are yet to enter the world of work. So, there'll be a period of time where we'll be developing a network with the bidders, with the businesses, not just around the two free ports, understanding what the gaps are and then planning how we can meet those. So, again, I don't think the net-zero strategy is in conflict with where we are on free ports either; it adds to where we want to go.

The free ports themselves are about trying to incentivise more activity and more pace. They're not about trying to set out on an entirely different direction, not the way they've been designed in Wales. And our challenge will be at the next stage of development, which is your point about holding people's feet to the fire. We expect to see more detail in how the headline promises, the headline expectations, are actually going to be delivered in practice. When we're through that stage and when we've made a decision on the outline business case, I'll expect to provide a further statement to Members, following a joint decision between myself and the UK Government.