3. Datganiad gan Weinidog yr Economi: Rhaglen Porthladdoedd Rhydd Cymru

– Senedd Cymru am 2:50 pm ar 28 Mawrth 2023.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Photo of David Rees David Rees Labour 2:50, 28 Mawrth 2023

Eitem 3 y prynhawn yma yw'r datganiad gan Weinidog yr Economi ar raglen porthladdoedd rhydd Cymru. Galwaf ar y Gweinidog, Vaughan Gething.

Photo of Vaughan Gething Vaughan Gething Labour

(Ddim wedi ei gyfieithu)

Thank you, Deputy Presiding Officer. On 23 March, the Welsh Government and the UK Government jointly announced that the Celtic free port and the porthladd rhydd Ynys Môn Anglesey free port will proceed to the next stage of the Welsh free-ports programme process. This outcome was reached through a transparent and competitive application process, with selection being jointly undertaken by both the Welsh Government and the UK Government.

I am pleased that our negotiations secured the important conditions set out by the Welsh Government. We were clear that free ports in Wales must enjoy funding parity with successful bids in England, that the process must be advanced across a partnership of equals where devolution was respected, and that the prospectus provided protections on our priorities of fair work, sustainability and our net-zero future. Dirprwy Lywydd, we also worked to make the case for an additional free port, securing the opportunity for a strong bid to win designation beyond the initial offer from the UK Government of one site. And I believe it was right for Welsh Ministers to hold to those conditions to ensure fair funding for Welsh free ports, clarity on governance, as well as progress on social and environmental justice. I welcome the positive moves made in response to me by the UK Government to recognise the significance of these matters. I'm also grateful for the work undertaken by officials in both Governments that has allowed us to reach this positive outcome. 

The strength of the bids was aided by an agreement between both Governments that led to the joint prospectus and a clear path for businesses and communities to plan against. The First Minister has called again for the UK Government to learn from this positive and constructive process. It offered a level of clarity that is badly needed at a time of such economic uncertainty.

Dirprwy Lywydd, both the Celtic and the Ynys Môn bids are clearly aligned to our economic mission and have the potential to play a key role in creating a stronger, fairer, greener Welsh economy. The Welsh model that we have developed for free ports will ensure that Wales is not set at a disadvantage as compared to English and Scottish sites as they move ahead. At the same time, it should bolster our long-term investments across both sites. 

The Celtic free port will be based around the port of Port Talbot and the port of Milford Haven. I was in Port Talbot yesterday, in the Deputy Presiding Officer's constituency—I understand he won't be asking questions today from the chair—and the plans there focus on low-carbon technologies, such as floating offshore wind, hydrogen, carbon capture and utilisation, and storage, and biofuels to help support the accelerated reduction of carbon emissions. The Welsh Government has already intervened to support the proposed tax sites of Pembrokeshire Science and Technology Park and the Baglan Energy Park because we recognise the long-term role that these assets will play in supporting high-quality jobs.

The Anglesey free port will be based around the port of Holyhead, the Anglesey prosperity zone, Rhosgoch and M-Sparc. The free port will develop the energy island programme by focusing on marine energy technology testing on the seabed—that's both tidal and wind power. The bid focuses on Morlais and M-Sparc as innovation priorities, both of which, of course, have been backed by major investment from the Welsh Government in recent years.

Dirprwy Lywydd, these are not fly-by-night projects based on low-value rental income. The bids demonstrate how the model we have developed in Wales will add to, rather than take away from, the long-term plans we are building for a just transition that delivers the jobs dividend that Wales deserves.

I'm very pleased that both bids demonstrated sufficiently strong cases that allowed Ministers here in the Welsh Government and in Westminster to designate two free ports for Wales to proceed to the next stage. Both bids provided a compelling narrative of how they intend to boost the distinct strengths that both sites boast, harnessing the unique opportunities from offshore wind and marine energy to advanced manufacturing and innovation. With sites in north and south Wales, progressing two free ports is a real win for Wales and, indeed, the whole of UK, with the opportunities for regeneration, the embedding of fair work, the establishment of hubs for global trade, and fostering an innovative environment to be felt in both north and south of our country.

Each free port would be supported by up to £26 million of seed investment funding. That's confirmed parity with England free-port sites. Each site would be able to access a range of customs benefits and tax reliefs. The next phase is an important one, with the development of an outline business case that, again, must be agreed again by both Governments. A package of trade and innovation support will also be available to each free port. Through their outline business cases, the currently successful bids will now need to articulate their overarching strategic vision. This will involve significant development of the content of the original bid.

Dirprwy Lywydd, unfortunately, the Newport free-port bid was unsuccessful. I know this will be very disappointing news for all involved, and I do appreciate the huge amount of resource that went into the development of their bid. We are keen to build on that in any way that we can outside of the free-port process. I continue to recognise the pivotal role that the semiconductor industry plays in the area and how crucial that sector is to both the Welsh and UK economy, now and in the future. It was a particular focus of my time in California last week, and I will be remaking this case to the UK Government, who urgently need to bring forward a funded strategy for the semiconductor sector. This would deliver a major boost for Newport, a city that with global standing in this sector.

Dirprwy Lywydd, people and businesses across the UK remain under intense pressure from the cost-of-living crisis and subdued economic growth. This is all in addition to the ever present geographical inequality, which is why a place-based policy like free ports is an important lever for the Welsh Government to have as part of our economic tool kit. We worked extensively with the UK Government to ensure that the Welsh free-port programme was designed to help deliver our ambitions for fair work. This includes engaging the voice of workers and their trade unions in future governance arrangements, alongside driving a prosperous, green economic future for Wales. Free ports can act as drivers of growth and employment in their areas and, collectively, the bidders estimate that their proposals could create as many as 20,000 high-quality new jobs.

As well as maximising the growth potential of the local area, we also set out that proposals needed to embody the values in the Well-being of Future Generations (Wales) Act 2015 and ensure dignity and fairness for people are at their core. Prioritising the social and environmental needs of Wales and building a more prosperous and resilient well-being economy were essential. That is why the Welsh Government's economic contract was included in the prospectus. This is another distinctive feature of the Welsh model, based on our values and priorities.

Dirprwy Lywydd, I would like to note again the constructive engagement and working relationship that has been developed between the UK Government and the Welsh Government on free ports. Through that engagement with the UK Government, we have been clear that any proposals for investment zones in Wales should follow the same principles and design as outlined for Welsh free ports. Investment zones too would need to align with our policies on fair work and net zero, as well as representing value for money for the people of Wales. I look forward to working with all partners as we move to the next phase of work and to exploring the opportunity to turn the current choice and the next phase of bidding into a catalyst for major investment in high-quality jobs and, of course, a just transition.

Photo of Darren Millar Darren Millar Conservative 2:59, 28 Mawrth 2023

(Ddim wedi ei gyfieithu)

Can I thank you, Minister, for your statement today? It is indeed wonderful news that Wales is getting two free ports, not just one, and I'm delighted that there's been such close and effective working between both the Welsh and UK Governments in delivering this objective that all of us in this Chamber, I know, shared a passion to achieve. I have to say as well, my colleague Paul Davies, the Chair of the Economy, Trade and Rural Affairs Committee, isn't here today, but I know that he was leaping for joy as well with the announcement of the free-port bids being successful, particularly, of course, the one that affects his own constituency, the Celtic free-port bid, with Milford Haven being sited in his constituency.

Photo of Darren Millar Darren Millar Conservative 3:00, 28 Mawrth 2023

(Ddim wedi ei gyfieithu)

They do have a huge opportunity to drive significant growth across Wales, make that huge impact as well on the UK economy as a whole, levering in billions of pounds worth of investment and creating at least 20,000 jobs overall. It was obviously a disappointment for Newport that their free-port bid was not successful, but I was very pleased to hear you refer to the need to look for other opportunities to support Newport, particularly that all-important semiconductor industry, and I think that you'll certainly have support on this side of the Chamber in order to achieve that end, because that is going to be important for delivering growth, particularly in south-east Wales.

I think what this whole thing shows us in terms of being able to secure two free-port bids is that, when the Welsh and UK Governments work constructively together and in a collaborative way, we really can achieve great things for our nation, and for me, it's music to my ears hearing a Government Minister, instead of criticizing the UK Government, cheering on the fact that there has been such a close working relationship. 

Now, as you would expect, I've got a few questions that I wanted to ask you about the next steps forward, because we do know, of course, that the Welsh Government has got its enterprise zone initiative and that there is already an enterprise zone in the Haven—Haven Waterway enterprise zone—and that Anglesey's got its own enterprise zone, alongside the energy island sort of focus. So, to me, it's really important now that these are strategically aligned with the free ports so that we can maximise the delivery of all of those programmes. So, can I ask you, what work are you going to do to make sure that they are properly aligned, so that they're not working against one another but that they're working in concert to deliver and squeeze out the maximum possible benefits from these opportunities now that we have these free ports here in Wales?

In addition to that, of course, we're going to need to have the right skills for the individuals who are going to work and hopefully glean the benefits of these incredible new jobs, which I hope will be well-paid jobs across the whole of Wales, as a result of the zones. And, therefore, there's going to need to be a very close working relationship with the higher education sector and the further education college sector as well. So, I wonder what action the Welsh Government is taking to make sure that there is a dialogue and an alignment with our education system so that we can make sure that it is reflecting the needs of these new free ports as they go forward.

You mentioned green technology; we do have ambitious plans to reach net zero by 2050, and obviously, the contribution that these free ports can make, particularly given their focus on green energy and renewables, is going to be huge. But given that you published your net-zero strategy before the free ports were announced, will you now review that strategy to make sure that it reflects perhaps a little more broadly the opportunities that the free ports can bring to contribute to achieving that 2050 goal?

Just finally, if I may, can I also ask what's next from the Welsh Government's perspective? You've hinted at the fact that there's further work to do, obviously, to develop the overarching strategy in each free-port area, but what is the Welsh Government going to do in collaboration with the UK Government to track progress, to make sure that these opportunities aren't missed, that we are holding people's feet to the fire to deliver against the promises that people are expecting to be delivered about growth, about investment, and about jobs? Thank you.

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

(Ddim wedi ei gyfieithu)

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.

Photo of Rhun ap Iorwerth Rhun ap Iorwerth Plaid Cymru 3:08, 28 Mawrth 2023

(Ddim wedi ei gyfieithu)

I thank the Minister for the statement, and I'd also like to place on record my thanks for the Minister's approach on this issue. We've come on quite a long journey, I think. When the UK Government announced its free port prospectus, it was clearly unacceptable that they proposed to offer £26 million for English free ports, only £8 million for one in Wales, and some may have been happy to roll over and say, 'Just take what you’re offered and be grateful for it'. Others of us could see that this lack of parity, this completely unjustified difference, had to be addressed, and I am grateful to Welsh Government for sharing that view, and also the view that we needed assurances around workers' rights and on environmental regulations.

The result, as the Minister said—we got that funding fair play. We'd have been short-changed by £18 million under those original Conservative Government plans. We also got those further assurances. So, when Plaid Cymru-led Anglesey council and Stena put together their plan—and I was only too happy to work with them and support them—they were working from a much stronger, I think, Welsh free-ports prospectus. We were in a much better place.

Now, the Minister also heard my numerous appeals for two free ports to be considered. Again, I congratulate the negotiators on both sides for making that happen. Why did I think two would be valuable? Because I think there were real synergies between the proposals to develop offshore energy proposals in particular, major decarbonising schemes in the north-west and the south-west, and I think the Welsh economy as a whole can benefit from that.

So, now we move forwards; we need to do so with purpose, but with care also. So, a number of questions. How does the Minister intend to work with the winning bids to ensure that jobs created are truly sustainable, because that has to happen, and also, that our social and economic values are respected and pushed forward, as those jobs are created? Also, what opportunities—? Or, how will he ensure, rather, that opportunities for the local workforce are maximised through the skills agenda and through effective upskilling? Because it’s got to be about employing our local workforce. And also, does the Minister agree that there needs to be honesty around the impact of this? This is a valuable economic tool, but there’s never one single lever, so we have to be driving forward with other opportunities too, and here, Government has to work across departmental boundaries.

I would invite the Minister to encourage looking again at how funding could work for strengthening the Menai crossing in response to the free-port designation. That should be another opportunity looked into. And also, we have to see pressing by Welsh Government for UK Government to look again at the issue of consequentials from English rail projects. The fact that we have HS2 and now Northern Powerhouse Rail being designated as English and Welsh projects when they’re clearly England-only projects, leading to the loss of many, many millions of pounds—hundreds of millions of pounds that could be spent on improving Welsh rail that could feed into this free-port project—I would suggest that we use this designation as a springboard to encouraging the UK Conservative Government to look again at that, rather than short-changing Wales.

Photo of Vaughan Gething Vaughan Gething Labour 3:12, 28 Mawrth 2023

(Ddim wedi ei gyfieithu)

Thank you for the comments and questions. Look, on your point around the approach we took, we were very clear that parity had to be delivered for Wales or we wouldn’t be prepared to sign up to a free-ports programme. I think we wasted the first year in a rather circular argument where one of the previous Secretaries of State for Wales said that there would be a free port whether the Welsh Government liked it or not, and that we'd have to take the money that was offered. I wasn’t prepared to do that, and I can certainly tell you that the finance Minister was giving me significant encouragement not to agree to anything less than exactly the same funding settlement that English free ports had received as well.

Having got there now, we do need to see that the detail in the delivery plan is to deliver sustainable employment, but actually, the money, the seed capital and the release are there to try to advance and expand the rate of growth in a sector that we think will need investment in any event. If you’re going to exploit tidal and wider marine power, including floating offshore wind, the jobs we’re talking about are not small or time-limited jobs. There’ll be jobs, of course, in the construction phase, but we’re actually talking, though, about a long-term deployment of manufacturing to go into the Celtic sea. So, these jobs aren’t going to be for two or three years if we get it right, and actually, both free-port bids looked to try to take advantage of the first-mover advantage that is still available in the developing and yet-to-mature sectors of floating offshore wind and tidal energy. Both north and south have something clear to offer on that, and that will help to deliver us a greater economic return, with more jobs being created there rather than things manufactured in other parts of Europe and then put together in Wales at a much later stage.

On skills, there is still a need to see—the construction sector is actually quite resilient, actually, there is still lots of opportunity, but think of the construction that will be required around both of the current free-port bids if they proceed to the final stage, and then, also, the skills for those jobs. I think I covered some of that in answer to Darren Millar as well, but it’s definitely a key focus for us to understand the skills need and be able to plan and to deliver those as well. A more coherent approach and the ability to work with different regions in Wales would help with that. So, there will be a need to try to knit together the way that some of the skills landscape has been pulled apart in the way that different funding streams are put in place. The shared prosperity fund does not allow for that sort of strategic joined-up approach in regions, let alone across the whole country, so there is definitely work to do to take proper advantage of that. We're already seeing that, in this area, a number of Ministers have an interest—so, not just the finance Minister—when it comes to the sort of tax reliefs and what's on offer from Wales as well as the UK. The climate change Minister has an obvious interest in this as well, as, indeed, does the Minister for north Wales. So, we do have a number of departments and we want to see how we can take proper advantage of the opportunity that's there. Regardless of free-port status, I want to see that investment made in the future of the economy and a low-carbon economy, and this, I think, helps us on the way.

Finally, I completely agree with you about HS2 and Northern Powerhouse consequentials. I don't think the Government here could have been any clearer: they're England-only projects, where there should be a consequential for Wales, and that would make a significant difference to our ability to invest in transport infrastructure. To be fair, I think there is a gathering of people who have recognised that and agree with it. Even the Welsh Affairs Select Committee have agreed that HS2 is plainly an England-only project, and that's a committee with a majority of Conservative members. I look forward to more Conservatives joining the cause in both Parliaments to make it clear to the UK Government that we want the rules to be respected and the consequentials that Wales is plainly entitled to to be delivered. 

Photo of David Rees David Rees Labour 3:16, 28 Mawrth 2023

(Ddim wedi ei gyfieithu)

Before I call the next speaker, I want to remind Members that most of the time allocated has already been used up. I have seven speakers who wish to speak. Make sure you ask your question within your time limit, otherwise, you may not be able to get to it. Mike Hedges.

Photo of Mike Hedges Mike Hedges Labour

(Ddim wedi ei gyfieithu)

Thank you, Deputy Presiding Officer. I welcome the statement today. Anything that helps the economy of the Swansea bay city region I will support. Using the site of Port Talbot to build and then take out to sea offshore wind turbines will benefit our fight against global warming and create well-paid jobs. I agree with the Minister that, as well as maximising the growth potential of the local area, proposals need to embody the values of the well-being of future generations Act and ensure dignity and fairness for people. Levelling up must be about increasing average wages. How is the Welsh Government going to ensure that employment rights, environmental standards and health and safety rules are followed in the free port?

Photo of Vaughan Gething Vaughan Gething Labour 3:17, 28 Mawrth 2023

(Ddim wedi ei gyfieithu)

We've been very clear in the bidding process, and in going through all of these stages, that the bids have to be able to match that—we've been very clear. That's why the regard to the future generations and well-being Act is in the bidding process—you won't find that in England—it's why the points about fair work—you won't find those in England—you won't find the points about the economic contract in Scotland either—that's a unique phase here in Wales—and the workers' collective forum as well. So, we're very clear about the sort of free-port activity that we're prepared to support and not, which is why we're at this point and why we don't have the same outline of what might happen in England.

For example, DP World, which is the company that was behind the sacking of all of those people in P&O Ferries—the unlawful sacking—well, they're apparently going to run a free port in Wales. I don't think they could demonstrate they'd meet all the criteria that we have for a free-ports process here in Wales. We're also going to benchmark where we are with economic activity, so we can actually understand where there's genuine growth and not simply displacement of jobs and other opportunities.

Photo of Jane Dodds Jane Dodds Liberal Democrat 3:18, 28 Mawrth 2023

(Ddim wedi ei gyfieithu)

I recognise and welcome this really positive statement, but I would like to remind Members that, of course, this doesn't replace the unfettered access we had to the world's largest single market prior to us leaving the EU. But this is a reset for some of our coastal communities that have really struggled. I wondered if I could focus just on one specific question to you, Minister. There are significant concerns about the opportunity and significant risks around money laundering and the trafficking of goods and people. May I ask you what discussions you are having with the UK Government and other agencies to minimise these risks? Thank you—diolch yn fawr iawn.

Photo of Vaughan Gething Vaughan Gething Labour 3:19, 28 Mawrth 2023

(Ddim wedi ei gyfieithu)

Well, there'll still be customs arrangements in place; these won't be customs-free places. Part of the challenge will be, like I said, reliefs and incentives, rather than saying that rules simply don't apply. I have the fortunate responsibility within the Welsh Government of having borders as part of my suite of responsibilities. So, I'm very much looking at arrangements with the island of Ireland, which I hope we'll be able to take a step forward with in the near future as well, and that's really important for the economic potential and the continued survivorship of a number of our ports as well. We have a particular interest in westward-facing ports here in Wales. So, that will form part of the discussions about what we'll look at when it comes to final bids and the process that should be in place.

I should make it clear that I have never advocated free ports as somehow replacing the way that we were able to trade with our nearest European partners. It's a matter of fact, not opinion, that Wales has more traders reporting overall trade with the European Union than other parts of UK, and, of course, there were free ports whilst we were members of the European Union. This is a new version, and I'm looking forward to seeing what we can do to deliver on the promises that we have been made and the criteria that Welsh Government have set out for what a successful free port should look like.

Photo of David Rees David Rees Labour 3:20, 28 Mawrth 2023

(Ddim wedi ei gyfieithu)

Sam Rowlands.

Photo of Sam Rowlands Sam Rowlands Conservative

(Ddim wedi ei gyfieithu)

Thank you, Deputy Presiding Officer, and thank you also, Minister, for your statement today, and I join you, certainly, in welcoming the news that the UK Government plans to establish the two free ports in Wales, and also join the Member for Ynys Môn in highlighting the free port in Anglesey, and also in paying credit to both the work of the local authority and to Stena Line, and also to applaud the efforts of my Conservative colleague Virginia Crosbie, the MP for Ynys Môn, in championing the Holyhead free-port bid in Westminster. Minister, you will be aware, of course, that good transport links will be vital to make sure that the new free ports achieve their potential, creating new jobs, attracting the new investment we want to see and spreading prosperity as well. So, in light of the announcement of the free ports, in particular for Anglesey, what assessment have you made of the roads review on the current and future transport links between Ynys Môn and the rest of Wales? Also, I'm not sure if you answered Rhun ap Iorwerth's question earlier on the third Menai crossing, so what assessment would you make, also, of the third Menai crossing as a result of the announcement last week?

Photo of Vaughan Gething Vaughan Gething Labour 3:21, 28 Mawrth 2023

(Ddim wedi ei gyfieithu)

We're not going to be able to make a formal announcement on the basis of the free-port bid moving forward to the next stage. Understanding the level of economic activity that the free port can deliver—we'll have greater clarity on that once the outline business case is returned. So, we're going to do exactly what we said we'd do, in understanding whether it moves through the next stage successfully, as I hope it will do, and the sort of economic activity that will get generated, the time frame for that, and we'll, of course, need to take infrastructure choices around that. We would be in a better position to make infrastructure choices, of course, if we had the consequentials from HS2 and Northern Powerhouse that were referred to earlier on. I look forward to Sam Rowlands joining and giving his voice to that call as well on the new free ports that are being jointly established by the Welsh Government and the UK Government, and I look forward to making decisions in the next stage of that process.

Photo of Luke Fletcher Luke Fletcher Plaid Cymru 3:22, 28 Mawrth 2023

(Ddim wedi ei gyfieithu)

I'm sure the Minister won't be surprised to learn that my opinion hasn't changed when it comes to free ports. This is nothing more than an abdication of power to companies through creating deregulated zones—trickle-down economics in its purest form, extractive by design. Now, there are a number of questions that need answering in detail. I'm really interested to know how the Government will monitor the free ports going forward. For example, we've talked about safeguarding workers' rights and a living wage. How will the Government ensure that companies operating in a free port zone will meet the requirements in the first instance, but, equally, in the long term, once they're established, what are the mechanisms available to Government to enforce this?

I also think it's important for Government to further elaborate on the role of trade unions. In his statement, the Minister referred to engaging worker voice and trade unions in future governance arrangements. Will they have genuine power and ability—actual decision making—or will their role be merely consultative? Because, if it is the latter, we know how that story goes.

As I said, my view on the concept of free ports remains the same, but my challenge to the Minister, Welsh Government and other Members is to prove me wrong and prove communities wrong. Because time and time again, Welsh workers have been fed the promise of regeneration, and, time and time again, little has changed.

Photo of Vaughan Gething Vaughan Gething Labour 3:23, 28 Mawrth 2023

(Ddim wedi ei gyfieithu)

With respect, I think the Member is being consistent in his broad scepticism over free ports, but I think he's judging them on a model that has existed previously, and not the one we've been talking about, the one where we've got into the prospectus that everyone has to bid against and succeed against where fair work is not negotiable, it is part of the expectation that you have to deliver; where not regressing on our environmental standards is part of what has to be delivered. The economic contract that everyone will have to sign up to is part of what has to be agreed to. So, it's a very different type of economic development tool, and, in the next stage, we're going to have more on how we measure a baseline of activity and understand, from each of the bids, how they can demonstrate that they will grow, not displace, the economy. That was one of the concerns we had at the outline of this process, and it's a fair one, as well. But, of course, the seed capital and the devolved reliefs that are coming in have actually got to help deliver much more significant investment—not just sums of money spent, but what that will mean in terms of the number of jobs and the quality of jobs we want to see created.

Now, part of that will be in areas of devolved levers—so, non-domestic rates and our understanding in conversations with the free port bids around how that will be deployed, what that will look like, and what we expect in return. So, there is an active conversation to be had that we'll go through in the next few phases of the process.

And when it comes to trade unions, it was a specific area that we wanted inserted into the prospectus, so there's a workers' collective forum mentioned—that's a work council by any other name—and the challenge and the strength in the trade union voice is how successfully they recruit and they organise. We'll be really clear that the sort of union-busting activities, the sort of awful employment practices, that we saw with DP World when they sacked all of the P&O Ferries staff is exactly the sort of thing that we won't tolerate in Wales. The challenge is whether partners in the UK Government are prepared to follow through, because they appeared, in public, to be outraged when all those workers were unlawfully sacked. There's a challenge now on how they choose to behave, but I'll be very clear that all the devolved levers we have will be used to make sure that people bid against what was said in the prospectus, and we'll then be looking to see how we can hold people to those, including the way that devolved levers and incentives are used.

Photo of Carolyn Thomas Carolyn Thomas Labour 3:26, 28 Mawrth 2023

(Ddim wedi ei gyfieithu)

Thank you for clarifying for Conservative Members that it was the Welsh Labour Government who worked hard to ensure we received parity of seed funding with England of £26 million—not the £8 million previously offered—as well as protection for workers' rights and environmental protections. I say this because these made-in-Wales conditions are the reason I also finally agreed to support the Anglesey free-port bid. I am delighted that there will be a focus on green renewable energy. Coleg Llandrillo Menai are currently working with RWE on training apprentices on wind turbine energy and maintenance, and they are concerned that they will have enough apprentices, so could you help promote this sector? And I've also made suggestions that, should there be 106 or social value contributions arising out of planning, it could be used for protecting the Penrhos nature reserve at Holyhead. Would you also support that?

And finally, Minister, please could you ensure that all representatives in north Wales will be involved, and not just those electioneering, as I've had businesses, public sector and constituents making important representations to me? Thank you.

Photo of Vaughan Gething Vaughan Gething Labour 3:27, 28 Mawrth 2023

(Ddim wedi ei gyfieithu)

Yes. On your final point, I'll of course make sure that north Wales Members are engaged. It's been one of the features, actually, that a range of partners from more than one party have been interested in both of the bids, and I want to try to maintain that cross-party support and expectation that the bidders will deliver on what they've promised in terms of the jobs dividend and the quality of work, which goes back to your point—and it's been made by others—about the terms and conditions. It's not just important for Labour Members, but I have deliberately made sure that, in the prospectus, we're clear about the rights of workers and what fair work should look like.

On the possibility of section 106 agreements in the planning process, I'm not the planning Minister now, but I'm not sure that I should give a cast-iron support, but I recognise the point you're making on what can be delivered through the planning process, not just in consenting, but what it means in terms of return for nearby communities to both the north Wales and the Celtic bid as well. I'll certainly continue to promote the sector as an opportunity for apprentices, for new people to come into the workforce. And I'm pleased that we did hold out, as has been recognised. Initially, we were told there'd be £8 million and the Welsh Government would be expected to make up the difference. I was very clear there wouldn't be a free port delivered on the cheap. When we got through that, and we had direct decision maker to decision maker conversations in the UK Government and the Welsh Government, we were able to make progress, and that is what I want to see continue in a pragmatic, constructive way, and I look forward to seeing all Members across north Wales engaged in supporting the next stage in the process.

Photo of Tom Giffard Tom Giffard Conservative 3:29, 28 Mawrth 2023

(Ddim wedi ei gyfieithu)

Can I join colleagues across the Chamber in congratulating the Welsh Government and the UK Government on delivering the two free ports planned for Anglesey and for the Celtic free port, which is situated partially in my region? And I don't need to regurgitate statistics, but it can be genuinely be transformational, not only for Port Talbot, but for the whole south-west Wales region. But, with that economic boost, one of the things I'm hopeful that we'll get to see is an increase in freight travelling across south Wales, and so my mind immediately went back to a visit that Altaf Hussain and I did last year for National Lorry Week with workers in the haulage industry, and they raised two big issues: first of all, they spoke about the lack of adequate truck rest stops along the Welsh portion of the M4 corridor. So, if we're going to see more freight, would the Welsh Government commit to looking at the potential of the improvement in that area?

And, secondly, the other problem they identified was, unfortunately, sitting in traffic in the Brynglas tunnels on the M4, sometimes knocking them over their allotted hours as a result. So, I know the Welsh Government has taken a decision on the relief road—I don't want to go back over that—but has the Welsh Government commissioned any study into the impact that the free port will have on the M4 and the traffic problems that it causes there? Thank you. 

Photo of Vaughan Gething Vaughan Gething Labour 3:30, 28 Mawrth 2023

(Ddim wedi ei gyfieithu)

Well, not only do we have a freight strategy that we're developing, but I'd remind the Member again that we need to get through the next stage in the process. We need to understand whether the headline claims made in the bids—and they are good bids that we've been happy to support through the next stage—to see the detail of that, to understand more about the detail before we make plans on assumptions.

So, regardless of the free-port status, I am confident we'll see more investment in developing and delivering marine energy across our long and windy coastline, which is a natural advantage in, not just power generation, but the economy of the future. And we will, of course, want to take account of what that economic development means for our broader infrastructure, and I'm sure that I, and the Deputy Minister for Climate Change, will be more than happy to take account of that in the future.

Photo of Samuel Kurtz Samuel Kurtz Conservative

(Ddim wedi ei gyfieithu)

Diolch, Dirprwy Lywydd. And, Minister, I was delighted to see on Thursday a very happy and smiling First Minister, and a very happy and smiling Prime Minister up in Holyhead, and yourself smiling alongside the Secretary of State for Wales at Port Talbot yesterday, in celebration of the Celtic free-port bid. And what has been really transformational about this—and I say that—is the cross-party work that's gone on in support of both the bids in north Wales, and the Celtic free port in south-west Wales as well. And although he's not allowed to speak, as he's in the Deputy Presiding Officer's chair, I have to pay testament to Dai Rees for his advocacy in that part of the world, including Stephen Kinnock, Simon Hart, Stephen Crabb, Tom Giffard, Paul Davies as well, who's not here. 

But one of the things in talking about the free-port bid is, now, your assessment of the next part of the process. Given the devolved responsibilities of the Welsh Government, how much of a relationship are you going to have with the two bids now going forward, so that, in delivery of the benefits that these bids have, you're involved with those discussions as to what you need to deliver on within Welsh Government devolved responsibility? Diolch.

Photo of Vaughan Gething Vaughan Gething Labour 3:32, 28 Mawrth 2023

(Ddim wedi ei gyfieithu)

Well, there is more of a practical conversation to take place now. So, I'm the lead Minister in this area, but, as I've said earlier, it does take in a range of other ministerial portfolios as well—the climate change Minister and the finance Minister being the most obvious ones, as well as the Minister for north Wales—because the devolved reliefs and powers that we'd be looking to exercise, we've got to understand the design of those around each of the bids. So, there will necessarily be a need for Ministers and our officials to be involved and engaged in that, as well as then planning for the potential outcome of those as well. If you think about the skills we talked about earlier, the questions about infrastructure, what we actually want to deliver is a real jobs dividend for Wales—a real jobs dividend in sustainable jobs that will help us on our path to a net-zero future. 

It should also mean, if we get this right, that there is greater confidence in the steel sector as well. It isn't just Tata in Port Talbot, but, actually, if we're going to find our ability to build some of the floating offshore platforms, I'd much rather it was British steel that goes into those, and if it's going to be British steel, then a significant chunk of British steel production takes place in Wales, and that's what I want to see as well. So, it's part of the reason I mentioned earlier the need to have conversations with the UK Government about a range of these things as well. Finalising an investment package for the future of the steel sector will give more confidence, and I hope that the fact that the free-port bids are going through the next stage will give greater impetus for that decision to be made.