3. Topical Questions – in the Senedd at on 17 January 2024.
1. Will the Minister make a statement on any discussions the Welsh Government has had in relation to the future of the Gwynedd Shipping company? TQ949
Thank you for the question.
My officials have been in dialogue with the business since reports emerged. They have also made contact with the administrators and union representatives representing some of the workforce, and are working closely with counterparts from the local authority, the Department for Work and Pensions and other agencies to support any affected workers.
Thank you for that response. This is a company that's been operational for 40 years. I think it was 40 years ago this year that Gwynedd Shipping was established, and it's been something that we have taken pride in, in seeing Gwynedd Shipping lorries on the traffic network across the UK and beyond. And this news came, in the past few days, that the company was in difficulty, and that was a huge blow, and the blow was felt most by those who are directly affected, those working for the company.
It has been extremely difficult, I have to say, to try and find information about what was happening exactly. It's been easier to get information through sources on social media—and I'm grateful to those people who have been open on social media and have been in touch with me as a result of that. I certainly haven't managed to get hold of the company directly. And it is extremely important, at a time like this, that a company is as open as possible in terms of their situation and in terms of the challenges that they face, and that for the sake of the community more broadly, but also for the workforce particularly.
We've suffered jobs blow after jobs blow, of course, in my constituency—the loss of hundreds of jobs, of course, at the 2 Sisters plant in Llangefni the most recent and most well documented of those. But this, again, is a significant number of jobs. Again, it's difficult to pinpoint exactly how many, but we need to make sure that support goes now to those who find themselves without work. There are drivers in particular whose skills are very sought after; there are others working in the yard itself in Holyhead, others working on the administrative side, that will need that support too. So, can I ask the Minister what support is being put together, what package is being put together, to make sure that support is as strong as it can be for all those affected? We also need to learn what has happened here. What information does the Minister have about what led to this? Was the Government aware of pressures on the company? We need to hear now that all the different agencies are working together—I'm in contact with the council, of course—so that this other latest jobs blow on Ynys Môn is addressed and that work is found as quickly as possible for all those involved.
Thank you for the series of questions. I'll try and go through, as helpfully as I can, based on the information, which is limited from the Government's point of view as well. Because I saw the reports myself and I immediately asked officials what the position was. Unfortunately, the company hadn't been proactive in contacting the Government in advance, and we've yet to get significant amounts of information from the company and, indeed, the administrators. We understand that two of the businesses within the group have appointed administrators, affecting, as we understand it, the reported figure of 127 potential employees. And you're right, they're in a variety of jobs. Drivers are likely to be able to find alternative work; there's still a shortage in that sector of the economy. The challenge, though, will be, as you put it, the understanding of those people who may need more support to find alternative work. All of them will be living with real uncertainty, following the announcement that has been made, and the fact that I can't give clarity, I think, adds to the uncertainty. I'd like to be able to be much clearer about the contact between the Government, the DWP, the council and the company. We know that there are some trade union members there; it's not clear to us if there is recognition at the site. So, we are trying to work through all of those issues with both the company and, indeed, with the administrator.
In terms of the range of assistance that is available, our ReAct+ programme is the flexible programme that we offer. And in other job challenges in the past, where there have been significant unemployment events—you mentioned 2 Sisters; in south Wales, there have been others as well—what we have been able to do is to work constructively with the DWP and whichever local authority it is. That relationship is a good and practical and pragmatic one. For all of the differences we have on a political level with the UK Government, the DWP locally, I think, have always been responsive and willing partners in trying to help find people work, with the levers that they do have. What I will do is, as we get more information on how that's being pieced together, we'll be proactive about sharing that information with the public and, indeed, with the Member, about how and where that support is to be provided, if there is a need, to provide a jobs fair, and how we do that in a way that works best for the affected employees, to help them to secure alternative employment.
The more positive aspect, though, is that, whilst this is of course disappointing and will be distressing for people who face losing their employment, actually, activity within the port is somewhere we should see an increase in employment in the future. That's what we want to try to do, but that has to be balanced against, as I say, the very real concern that I'm sure a number of families are going to bed with each night until there is that clarity about the future.
Of course, Gwynedd Shipping operate from two sites in north Wales, Holyhead and Deeside, as well as from Birkenhead, Belfast and Dublin. What is your understanding of why the company filed for administration when the company's strategic review of its latest annual results for the year to May 2022, posted last February, said, quote, its directors had a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future, or will you be seeking and sharing this information? What is your understanding of unconfirmed reports that parts of the company are being taken over by another logistics firm, and that other local and regional hauliers were already offering some of the drivers work, or will you be seeking and sharing that information? And finally, given your comments about the DWP, what specific engagement have you and your officials had, or will you be having, with Jobcentre Plus and the DWP regarding help for those who are looking for alternative work or for retraining opportunities?
In respect of the point about DWP, I think I've answered that already. We do work constructively alongside DWP. Locally, every time there has been a significant unemployment event, we have worked very constructively—and my officials are doing that now—together with DWP and the local authority.
On the other points about unconfirmed reports, that's the point—they're unconfirmed reports—and you wouldn't expect me to add to speculation here. What I will do is, as we get information that has not been made available to us thus far, I'll share it with Members, and, crucially, to want to provide some confidence for people that are concerned about their own futures, and will be worried about their own employment futures, to make sure that the opportunities to look for alternative work are made as easily and readily available to them as possible, and to make sure that, whether they approach the local authority, or the Welsh Government or the DWP, that we are working together to make sure that there is a 'no wrong door' approach and we get them to the point where they need to be able to go, to make sure they have the right support for them.
Thank you, Minister. The next question is to be answered by the Deputy Minister for Arts, Sport and Tourism. Llyr Gruffydd to ask the question.