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Present

  • Rt Hon. Mark Drakeford AM
  • Jeremy Miles AM (Chair)
  • Lesley Griffiths AM
  • Kirsty Williams AM
  • Eluned Morgan AM
  • Rebecca Evans AM
  • Des Clifford – Director General, OFM
  • Piers Bisson – Director, European Transition
  • Simon Brindle – Director, Brexit Strategy
  • Andrew Jeffreys – Director, Treasury
  • Carys Evans – Principal Private Secretary, First Minister
  • Gareth Williams – Special Adviser
  • Jane Runeckles – Special Adviser
  • Damian Roche – Cabinet, Plenary and Committee Secretariat (minutes)
  • Sophie Jones – Cabinet Secretariat (minutes)
  • Toby Mason – Head of Communications
  • Hugh Rawlings – Director, CAIGR
  • Chris Warner – Deputy Director, CAIGR
  • Georgina Haarhoff – Deputy Director, ETT Policy
  • Liz Lalley – Deputy Director, European Transition (Preparedness)
  • Emma Watkins – Deputy Director EU Exit & Economic Policy
  • Rhys Davies – Legal Services
  • Leon Griffiths, Head of Communications, European Transition
  • Peredur John – European Transition team
  • Enfys Dixey – Head of Economic Competitiveness Policy

Apologies

Ken Skates AM

Item 1: Minutes of the previous meeting and matters arising

1.1. The minutes of the previous meeting were agreed and all actions noted as complete or in hand.

Item 2: Update on developments

2.1 The Counsel General and Brexit Minister updated the Sub-Committee on the latest developments.

2.2 The new European Parliament had met for the first time yesterday and would be concentrating for the next few weeks on the election of the Parliament’s President, 2 and the confirmation of the European Council’s nominee for the post of European Commission President.

2.3 The Counsel General and Brexit Minister had attended a meeting of JMC(E) on 13 June and JMC(EN) on 28 June, which focused on constitutional issues. An EUXT(P) meeting had taken place on 26 June, which covered ‘no deal’ preparations. In addition, the Minister for Finance and Trefnydd had attended a meeting of the EUXT(P) on 12 June: she stressed the importance of these meetings.

2.4 Discussions had taken place with David Lidington to continue engagement through bilateral meetings and to establish common ground between the Welsh and UK governments.

2.5 On 26 June, the First Minister had written a letter to Welsh MPs, which supported legislation to avoid a ‘no deal’ and prepare a Referendum Bill. It was noted that the letter had outlined the Welsh Government’s position, which would be to campaign for a referendum and to remain in the EU, a position endorsed by the National Assembly.

2.6 The Minister for the Environment, Energy and Rural Affairs gave an update on the sheep sector support programme following a recent intergovernmental quadrilateral meeting with Defra.

Item 3: Intergovernmental relations and common frameworks: update - CSCEU(18-19)36

3.1 The Counsel General and Brexit Minister introduced the paper, which provided an update on the Intergovernmental Relations Review and developments with the Common Frameworks Programme, both of which contributed to the Welsh Government’s wider approach to intergovernmental relations post-Brexit.

3.2 The Counsel General and Brexit Minister and his Scottish Government counterpart were writing jointly to the Chancellor of the Duchy of Lancaster to indicate the need for further rapid progress with the review and frameworks.

3.3 The Sub-Committee noted the paper.

Item 4: A UK Internal Market: Policy and Inter-Governmental Issues - CSC-EU(18-19)37

4.1 The Counsel General and Brexit Minister introduced the paper, which provided an update on recent developments around the concept of the UK’s internal market and future economic cooperation between the UK nations.

4.2 The Sub-Committee agreed the paper.

Item 5: European funding issues: CSC-EU(18-19)35

5.1 The Minister for Finance and Trefnydd introduced the paper, which asked the Cabinet Sub-Committee to note the current level of EU funding and the work being undertaken to support and quantify the ‘not a penny less’ objective for the scenario in which the UK leaves the EU.

5.2 The Prime Minister had been clear when setting out her priorities for leaving the EU on 17 January 2017 that the devolution settlement would be respected. Therefore, the Welsh Government would need to press the point that it would not accept any reduction in its devolved powers.

5.3 The point was made that there would be financial and administrative pressures from replacing smaller EU programmes and new functions and duties returning to Wales from the EU and these should not be forgotten about, as they would require resources to be allocated in different ways.

5.4 The Sub-Committee noted the paper and agreed to the recommendations.Item 5: European Funding Issues - CSC-EU(18-19)35

5.1 The Minister for Finance and Trefnydd introduced the paper, which asked the Cabinet Sub-Committee to note the current level of EU funding and the work being undertaken to support and quantify the ‘not a penny less’ objective for the scenario in which the UK leaves the EU.

5.2 The Prime Minister had been clear when setting out her priorities for leaving the EU on 17 January 2017 that the devolution settlement would be respected. Therefore, the Welsh Government would need to press the point that it would not accept any reduction in its devolved powers.

5.3 The point was made that there would be financial and administrative pressures from replacing smaller EU programmes and new functions and duties returning to Wales from the EU and these should not be forgotten about, as they would require resources to be allocated in different ways.

5.4 The Sub-Committee noted the paper and agreed to the recommendations.

Item 6: Preparedness update: CSC-EU(18-19)38

6.1 The Counsel General and Brexit Minister introduced the paper, which set out recent developments in relation to preparations for a ‘no deal’ scenario, including progress on UK wide projects and on specific action being taken by the Welsh Government.

6.2 It was noted that the risk of leaving the EU without a deal had increased substantially since the statements given by both Conservative Party leadership candidates. On this basis, it was agreed that there would be a need to step up ‘no-deal’ preparations.

6.3 The Sub-Committee agreed the recommendations and noted the paper.

Cabinet Secretariat
July 2019

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