Last month news broke of job losses at firms in Newport.
First, Coilcolor announced it was going into administration with fifty people being made redundant.
This was hugely disappointing news for me as I had received an assurance from the Cabinet Secretary that the Welsh Government were ready to help in whatever way they could.
The company was critical of the Welsh Government’s response to the crisis, accusing them of a two-month delay in giving promised financial support.
However, the Welsh Government denied any such promises had been given.
I did ask if the Cabinet Secretary would launch an investigation into how such a serious misunderstanding could arise between his Department and Coilcolor but to no avail.
The Company was also critical of the response of Finance Wales, which arranged a loan for the firm, but only at an “extortionate” rate of 11%.
I urged the Cabinet Secretary even at such a late date to confirm that the Welsh Government would make every effort to support those affected, and to help the company secure a buyer for the site.
Then it was announced that around 150 people face losing their jobs at a packaging factory, Essentra, following the announcement of a consultation on plans to stop production at the site.
Again, this disappointing news will understandably be causing great anxiety and concern amongst the affected employees and their families.
It is always extremely difficult for those affected by the prospect of redundancy, and this is sadly another blow for the area with plans to cease trading at the site by the end of the year.
The Essentra cartons plant has received substantial investment from the Welsh Labour Government to help expand its operations in the city.
This has clearly not succeeded and, once again, there will be some serious questions for Ministers to answer.
In the meantime, the Welsh Government must step in immediately and consider what packages of support they will be able to offer the workers who have been made redundant, both in terms of retraining and support in securing new employment.
The National Assembly is in recess at present but the issue of Welsh Government support for businesses that subsequently announce job losses cannot be ignored.
I intend to raise this at the earliest opportunity when the Assembly reconvenes in September.
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