Welsh Government statement: Preparing the economy in Wales for a no deal Brexit - Oct 1

We have already suffered the consequences of three years of uncertainty which has translated into outcomes such as delayed investments and a steady reduction in inward investment - all an avoidable consequence of the tragic mishandling of Brexit.

Businesses I speak to tell me about the crippling impact that uncertainty has on their operations. Rather than bringing clarity, a no deal prolongs this uncertainty as we will have no basis from which to negotiate a new trade deal and the EU are unlikely to be a willing negotiating partner as relationships with the UK Government reach a new low.

The decision to shut the Ford engine plant at Bridgend (with 1,700 job losses); the closure of Schaeffler in Llanelli (with more than 200 job losses), and the insolvency of the two construction companies, Dawnus (700 jobs lost) and Jiscourt (60 jobs lost) can all, at least in part, be attributed to the uncertainty generated by the Brexit negotiations.

Our published No Deal Action Plan sets out a range of interventions and actions that support Wales’ response, addressing impacts already being felt and those we anticipate will be realised in the event of a no deal Brexit. These measures encompass our contribution to actions needed to keep transport moving through our ports as well as the essential support and advice we are providing to businesses across Wales. 

Almost immediately a no deal Brexit could cause severe disruption to the transport network and connected services within Wales.

We are already seeing this impact as we have to make decisions on the assumption that we will crash out of the EU without a deal at the end of October. Whilst emergency works cannot be discounted if necessary, there will be no planned daytime lane closure roadworks on the westbound A55 between 31 October and the end of the year. This will ensure that any disruption as a result of customs checks at Holyhead will not be compounded by any works on the A55. However, it will have an impact on our programme of roadworks, which could easily have been avoided without a devastating cliff-edge Brexit. 

We cannot address all the causes of this disruption, with border arrangements and customs processes the responsibility of the UK Government. However, we are working closely with  ports in Wales, the ferry operators and local partners to manage any knock-on traffic disruption safely.

We are aiming to minimise the impact of disruption at the port on local traffic around Holyhead and ensure local people can continue to travel.

For Pembroke Dock and Fishguard, our analysis suggests delayed vehicles could be managed within the port. We are keeping this under constant review, in case extra contingency measures are needed.

It is vital, to ensure the flow of traffic at the border is as smooth as possible, and that hauliers have the right documentation upon arrival at ports to allow them to travel. We have been working with ferry operators to ensure their customers are aware of the documentation they will need and are encouraging all hauliers arriving at Welsh ferry ports to have the right documentation ready, and not risk being turned away.

I have outlined our ambitious plans for the transport network many times in this Chamber – I do not want to see them derailed by a no deal by default.

However, despite the challenges a no deal Brexit would pose, it will remain crucial to invest in our transport infrastructure and press our vision for an integrated public transport network -  providing vital stimulus to the Welsh economy at a time of economic turmoil.

Turning to the economy and business preparedness, Brexit effects have been felt for some time now – and will continue to impact business confidence after the point of departure. This is not just a day one issue.

But in terms of day 1 preparedness, I am assured that our frontline services for businesses and indivuals are ready to respond,  with for example, Business Wales and the Development Bank of Wales both now positioned to mobilise human and financial resource flexibly and at pace. 

Leading up to exit day, we continue to highlight “low cost, no regret” actions for business. We are cascading information through business networks and have also written directly to over 18,500 businesses. I take this opportunity to urge all businesses to register to receive regular communications through Business Wales, to utilise our Brexit portal and diagnostic tool and to engage with their trade bodies and representative organisations. 

I recognise how vital it is that we orchestrate a coordinated, sustainable approach where businesses and their employees face downsizing and or redundancy events. Drawing on lessons learned from past and present interventions, going forward our response will be led on a regional basis – aligning with the regional economic development model set out in the Economic Action Plan.

This Government is clear that continuing to support, and indeed strengthen, our employability and skills interventions will be critical in our response to Brexit. We want to ensure that Wales has the skilled workforce to meet our economic ambition as set out in the Economic Action Plan and a Brighter Future. Our approach builds on the proven and respected mechanisms to support businesses, individuals and communities. We will be responsive and supportive to the needs of people who lose their jobs and employers who have opportunities so the people and skills are matched up as quickly as possible; and provide support to employers who need to develop their workforce.

Working Wales is our new single entry point and will ensure individuals are directed to the right place at the right time.

In addition, I have established Regional Response Teams, working with Regional Skills Partnerships and partners such as Local Health Boards, DWP and local government, to take a cross-government, collaborative approach to ensure access to a regional response at community level.

The support we are giving to business continues to be well received and I am grateful to all those business leaders and their representative organisations who continue to inform and bring constructive challenge to our approach.

A suite of actions using European Transition Funding have been approved to support business resilience. £9.2 million has been made available across 6 projects providing support and advice around trade and exports, enabling capacity building and communications activities, as well as offering financial support via the Business Resilience grants to eligible businesses.

Furthermore, as I engage with businesses across Wales it gives me great assurance that more and more SMEs are discovering how working with the Development Bank of Wales can help them realise their ambitions and overcome their challenges. The Development Bank of Wales now has over half a billion pounds across various funds accessible to small and medium sized businesses and is now positioned to play a key role in our Brexit response.

The overall resource available to us in Wales to address Brexit challenges is dependent on funding released by the UK Government. I am impatient for progress on the now long-overdue Quadrilateral with Secretary of State for Business Energy and Industrial Strategy Andrea Leadsom. It is imperative that the UK Government takes into full account the views of the DAs and can only do this through structured engagement. I am therefore disappointed that the meeting scheduled for Monday – so long in the planning -  has now been postponed. When we do meet I will be pressing for clarity and funding support in the event of a significant economic shock and to object in the strongest terms against the UK Government’s proposals for a proposed Shared prosperity fund.

My commitment is to do all within my powers to nurture inclusive growth in Wales, creating an environment where businesses thrive and communities across Wales benefit.