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Wales Beyond Brexit

Plaid Cymrus Positive Post-Brexit Plan


General Election 17| Wales Beyond Brexit

Introduction / Cyflwyniad
Wales Beyond Brexit Giving Wales the money,
power and respect it deserves
Plaid Cymru accepts and always has accepted the result of the Referendum. Wales is going to leave the
European Union. It is now about looking at the kind of Wales we want beyond Brexit.
Plaid Cymru continues to support Waless membership of the Single Market and Customs Union. However,
with the Conservatives and Labour parties resigned to leaving both, it is our responsibility to the people of
Wales to outline a contingency plan to show how we can mitigate the risks and capitalise on the
opportunities of Brexit. It is time to move on and face the political realities of the situation.
The only people that are trying to relive the Referendum are the politicians that falsely claim that we are
denying it. However, in reality, this is nothing short of an attempt to divert voters attention away from the
fact that they have no vision for Wales beyond Brexit.
Their dangerous ignorance is evident in their willingness to walk away from the EU with no deal with no
deal to protect Welsh jobs, with no deal to protect Welsh wages, with no deal to protect Welsh agriculture,
with no deal to make sure Wales prospers beyond Brexit.
Plaid Cymru will not let this happen. Plaid Cymru will only work towards a good deal for Wales. A deal
where Wales can maximise the opportunities and minimise the risks of Brexit.
Since the day after the Referendum, Wales has been forgotten. Its needs and wants tossed aside as
Westminster and Whitehall struggles to manage the fallout from the vote to leave the European Union. It
is imperative that we make Wales matter. That we make sure London knows it cannot ride roughshod over
Wales.
Wales needs the money, the powers and fundamentally the respect it deserves to succeed. And it is only
by electing Plaid Cymru MPs that we will get it. The money to keep the cogs of our economy turning; the
powers so that we can take decisions into our own hands; and the respect to ensure that we can hold our
head high as a nation and make sure Wales can succeed throughout Brexit and beyond.
Plaid Cymru is the only party with a plan to protect, promote and project Wales on the global stage
throughout Brexit and beyond. In Cardiff Bay, Westminster, and Brussels, Plaid Cymru has been fighting
Waless corner. We have been making your voice heard, making our nations voice heard. This plan builds
on Plaid Cymrus work in every parliament in which we are present, representing and championing the
Welsh national interest putting our nation and our people above all else.
This positive post-Brexit plan, based around five key policy areas, will allow Wales not only to survive, but
thrive after Brexit. We will allow the Welsh economy to stand on its own two feet, give workers and
communities across Wales the dignity of well-paid work and create an internationally competitive business
community that works for Wales.
By mitigating the risks and seizing the opportunities created by Brexit, we can ensure Wales prospers. With
this plan we can make Waless voice heard. By electing Plaid Cymru MPs you can make Wales matter
throughout Brexit and beyond.

Introduction
General Election 17| Wales Beyond Brexit

Cymru y tu hwnt i Brexit Rhoi i Gymru yr arian,


y grym ar parch maen haeddu
Mae Plaid Cymru wedi derbyn canlyniad y Refferendwm, ac yn wastad wedi gwneud hynny. Mae Cymru yn
mynd i adael yr Undeb Ewropeaidd. Maen fater nawr o edrych ar y math o Gymru sydd arnom eisiau y tu
hwnt i Brexit.

Mae Plaid Cymru yn parhau i gefnogi aelodaeth Cymru or Farchnad Sengl ar Undeb Dollau. Ond gydar
Toraid a Llafur wedi ildio i adael y ddau, ein cyfrifoldeb ni i bobl Cymru yw i gyflwyno cynllun wrth gefn i
ddangos sut y gallwn fynd ir afael r peryglon a chymryd mantais or cyfleoedd mae Brexit yn ei gynnig.
Maen amser symud ymlaen ac wynebu realiti gwleidyddol y sefyllfa.

Yr unig bobl syn ceisio ail-fywr Refferendwm yw gwleidyddion sydd yn gwneud honiadau ffug ein bod yn
ei wadu. Fodd bynnag, nid yw hyn mewn gwirionedd yn ddim ond ymgais i dynnu sylw pleidleiswyr ymaith
oddi wrth y ffaith nad oes ganddynt weledigaeth dros Gymru.

Mae eu hanwybodaeth beryglus yn amlwg yn eu parodrwydd i gerdded ymaith or UE heb fargen - dim
bargen i amddiffyn swyddi Cymreig, dim bargen i amddiffyn cyflogau yng Nghymru, a dim bargen i
amddiffyn amaethyddiaeth Gymreig, dim bargen i wneud yn sir y bydd Cymru yn ffynnu wedi Brexit.

Fydd Plaid Cymru ddim yn gadael i hyn ddigwydd. Bydd Plaid Cymru yn gweithion unig am fargen deg i
Gymru. Bargen lle gall Cymru fod ar ei hennill o Brexit.

Ers y diwrnod wedir Refferendwm, anghofiwyd Cymru. Cafodd ei hanghenion ai dymuniadau eu lluchio or
neilltu wrth i San Steffan a Whitehall ymdrechu i reoli canlyniad y bleidlais i adael yr Undeb Ewropeaidd. Maen
hollbwysig ein bod yn gwneud i Gymru gyfrif. Ein bod yn gofalu y gyr Llundain na all sathru dros Gymru.

Mae ar Gymru angen yr arian, y pwerau ac, yn y bn, y parch maen haeddu. A dim ond trwy ethol ASau
Plaid Cymru y cawn hyn. Yr arian i gadw olwynion ein heconomi yn troi; y pwerau fel y gallwn gymryd
penderfyniadau ein hunain; ar parch i sicrhau y gallwn ddal ein pennaun uchel fel cenedl a gofalu y gall
Cymru lwyddo trwy Brexit a thu hwnt.

Plaid Cymru ywr unig blaid gyda chynllun i amddiffyn, hyrwyddo a chanmol Cymru ar lwyfan y byd trwy
Brexit a thu hwnt. Ym Mae Caerdydd, San Steffan, a Brwsel, bu Plaid Cymru yn brwydro cornel Cymru.
Rydym ni wedi gofalu bod eich llais yn cael ei glywed, fodd llais ein cenedl yn cael ei glywed. Maer cynllun
hwn yn adeiladu ar waith Plaid Cymru ym mhob senedd ller ydym yn bresennol, gan gynrychioli a
hyrwyddo buddiannau cenedlaethol Cymru - ein cenedl ni an pobl ni yn anad dim.

Bydd y cynllun l-Brexit cadarnhaol hwn, wedii seilio o gwmpas pum maes polisi allweddol, yn caniatu i
Gymru nid yn unig oroesi wedi Brexit. Byddwn hefyd yn caniatu i economi Cymru sefyll ar ei thraed ei hun,
gan roi i weithwyr a chymunedau ledled Cymru urddas gwaith syn talun dda, a chreu cymuned fusnes syn
gystadleuol yn rhyngwladol syn gweithio i Gymru.

Trwy liniarur risgiau a manteisio ar y cyfleoedd a grir gan Brexit, gallwn sicrhau y bydd Cymru yn ennill.
Gydar cynllun hwn gallwn wneud i Gymru gyfrif. Trwy ethol ASau Plaid Cymru gallwch wneud i Gymru
gyfrif trwy Brexit a thu hwnt.

Introduction
General Election 17| Wales Beyond Brexit

Plaid Cymrus five-point post-Brexit plan

1. Protecting Welsh Jobs and Wages


A Foreign Trade Deal Shield

2. Give Wales the fiscal firepower it needs


A tax system that works for working Wales

3. Buy Welsh
A Welsh procurement policy

4. A New Welsh Deal


Guarantee the future of funding for Wales

5. A migration system that works for Wales


Creating a Welsh Migration Service

Contents
General Election 17| Wales Beyond Brexit

Protecting Welsh Jobs and Wages A Foreign


Trade Deal Shield
The UK Government is expected to leave the EU to greater private sector involvement, as was the case
Customs Union. This means the responsibility for with the Transatlantic Trade and Investment
striking foreign trade deals will fall to the UK Partnership (TTIP). TTIP put Welsh hospitals at greater
Government for the first time since joining the risk of private sector involvement and would have likely
European bloc in 1973. made re-nationalisation of services, in health or any
other sector, impossible.
Leaving the Customs Union will not only mean the
prospect of tariffs on trade with the EU, but also the 56 Across Europe sub-national and regional parliaments
other nations the EU Customs Union has negotiated are able to vote on trade deals to ensure their interests
free trade deals with both bilaterally and unilaterally. are considered. It is even possible that aspects of the
This means the UK will have to negotiate new deals on Brexit withdrawal will have to be agreed by the
its own with countries it currently has agreements in regional parliaments of many EU nations.
place with, such as Mexico, South Korea and Chile, as
well as the EU Customs Union bloc itself. Plaid Cymru will ensure that our vital industries and
public services will be defended from foreign trade
Alongside these existing trade relationships being re- deals which could decimate the Welsh economy and
negotiated, it is expected that the UK Government will undermine our NHS. This will be done by creating a
seek to agree quick trade deals with countries it has not Foreign Trade Deal Shield ensuring the National
previously had trade deals with, for example the Assembly for Wales has to endorse any trade deal,
United States of America and India. making Waless voice heard in the Brexit negotiations
and beyond.
The UK will be in a significantly weakened position
when negotiating such trade deals, as it will no longer Unlike the UK as a whole, Wales is a net exporter,
be a part of the largest trade bloc (the EU Customs meaning Wales sells more than it imports. Now more
Union, even minus the UK), and account for only than ever Wales needs to demonstrate its credentials
around 2.4% of global GDP, 2.1% of global trade in as a global trading nation to allow existing businesses
goods, and 4.3% of global trade in services. to access markets across the world and attract new
businesses to Wales.
In this weakened position and in desperation to seal
trade deals, vital restrictions on foreign produce which This is why Plaid Cymru will push to create a Welsh
protect domestic Welsh producers could be dropped. Development Agency (WDA) for the 21st century. The
Key industries such as agriculture could face being function of the Welsh Governments Trade and Inward
undercut by bans on genetically modified food being Investment Team will be absorbed into the new Welsh
lifted, in turn harming Welsh agriculture and public Development Agency, as well as its current budget
health. allocation of 2 million. Alongside its budget being ring-
fenced, we will provide a further 8 million from the
Argentinean and American beef, as well as New Business Wales budget that currently holds
Zealand lamb, which would fail to meet our current responsibility for Welsh exports and trade activities.
safety standards, could be imported at cheaper costs This creates 10 million in total.
and greater volumes, undermining our farms and rural
communities. Chinese and Korean steel dumped on our However the agency will not be fully funded by the
economy could put our factories in Port Talbot, Welsh Government it will be a partnership between
Llanwern, Trostre and Shotton at risk again. Public the public and private sector in order to fund
services such as the NHS are also likely to be opened up
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General Election 17| Wales Beyond Brexit
Foreign Direct Investment (FDI) activities and expand develop a more focused economic plan by assessing
and diversify Waless exports. the needs of our nearest neighbours and the
opportunities for Welsh firms to increase exports to
This new WDA for the 21st century will be working England, the rest of the UK and beyond.
closer than ever before with businesses and we will

Plaid Cymru will defend Waless businesses and public services from dangerous UK Government negotiated trade
deals, as well as promote Welsh producers globally by:
Making all foreign trade deals subject to scrutiny and endorsement by the National Assembly for Wales, as is the
case with many sub-national parliaments across Europe.

Stop any foreign trade deals that would allow for cheap foreign imports to undermine our core industries such as
steel and agriculture.

Promote Welsh businesses through representation in embassies worldwide and a Welsh Development Agency for
the 21st century to encourage international investment and domestic innovation.

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General Election 17| Wales Beyond Brexit

Give Wales the fiscal firepower it needs A tax


system that works for working Wales
Plaid Cymru has long advocated for the transfer of The Holtham Commission recognised the immense
responsibility over taxation from Westminster to benefits of devolving Corporation Tax in its 2010 report
Wales, ensuring taxes paid by people and businesses in on finances in Wales. It argued that Corporation Tax
Wales stay in Wales. Following the UKs departure from devolution could be a critical part of the
the EU there will be no legal or legislative barriers to transformational change the Welsh economy
the Westminster Government devolving the taxation needed and that no other single change would be
powers that would allow each nation of the UK to have likely to be as effective.
the fiscal arrangements that suits its needs, not those
of the domineering London and the south east of Northern Ireland already has some responsibility over
England. Corporation Tax and Plaid Cymru remains supportive of
its devolution. However, we would seek to a more
There are three key taxes that Plaid Cymru has
innovative and progressive system of business taxation
identified as critical for the Welsh economy that could
across the UK, that would not affect the Welsh Block
be devolved and managed by Wales for Wales
Grant. Our proposals stem from the Holtham
following Brexit Value Added Tax (VAT), Corporation
Commissions recommendation that a varied system of
Tax and Air Passenger Duty (APD).
Corporation Taxation should be instituted whereby
rates are determined by reference to relative Gross
VAT is particularly important to the Welsh economy.
Value Added (GVA).
Welsh VAT revenues have been far more resilient than
other major taxes, with around 5.2 billion raised in
In other words, our proposals seek to create a link
VAT revenue in Wales in 2014-15. VAT has become the
between the size of the economy and rate of taxation,
largest source of fiscal revenue in Wales. This stands in
with a discount rate applied to areas with lower GVA.
contrast to the rest of the UK, where income tax
For example, regions with a GVA per head of between
remains the dominant tax in terms of revenue.
70% and 80% as is the case for Wales of the UK
average could have Corporation Taxes discounted by
Scotland already retains half of its VAT take; however
25%. We would also look at the possibility of varying
Wales must rely on HM Treasury for collection and
rates within Wales, to ensure this benefit filters down
redistribution of VAT revenues. It is clear that the policy
to regional economies across Wales.
on retention of VAT revenues must be equalised across
the UK, however in the post-Brexit legal landscape the
In turn, this means poorer areas would benefit from
devolution of rate-setting powers must also be brought
lower Corporation Taxes whilst richer areas would pay
forward.
more. This would be a fairer and more sensible system,
incentivising businesses to invest in areas where
By devolving the power to set VAT rates, the Welsh
investment is most needed, and could lead to
Government would have a key macroeconomic lever to
increased wages across Wales.
encourage growth. For example, according to expert
forecasts, cuts to VAT onhouse repairs and renovations
GVA linked Corporation Tax rates would also have the
could create over 1,100 construction jobs in Wales, an
benefit of being self-stabilising, as when an economy
additional 868 in the wider Welsh economy and add
grows, the tax rate would increase proportionately.
over 47 million to the economy in a single year.
Long-haul APD Duty is also already devolved in
Cutting VAT in the tourism sector is also an area that
Northern Ireland and Scotland. Once again, Waless
greater fiscal devolution could allow. Sector experts
fiscal firepower is constrained when compared to its
estimate this could add 170 million to the Welsh
devolved contemporaries. This means unlike
economy and create upwards of 6,000 jobs.
Scotland and Northern Ireland, Wales is not

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General Election 17| Wales Beyond Brexit
able to vary its key air travel transport tax to compete those between north and south Wales are being
with other airports. made even less so through our inability to create fiscal
conditions to suit them.
This means the competitiveness of Waless publicly
owned national airport in Cardiff is being constrained At a time when Wales needs to be more connected
by the Westminster Governments refusal to give with the world, we must ensure taxes on flights suit the
Wales the tax powers to compete. It also means that particular needs and conditions of Wales. Plaid Cymru
flights that are less commercially attractive such as therefore advocates the devolution and cutting of APD.

Plaid Cymru would make sure Wales has the fiscal firepower to make sure it can help itself throughout and beyond
Brexit by:
Utilising powers over VAT to encourage investment and growth in areas such as home renovations and repair,
and tourism.

Allowing the Welsh Government to set Corporation Tax rates linked to regional economic performance, creating
a fairer, more competitive tax system that would direct investment to areas which need it most.

Gaining control over and cutting APD to allow Welsh airports to compete and ensure crucial air-links, which may
not be commercially attractive, are able to continue.

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General Election 17| Wales Beyond Brexit

Buy Welsh A Welsh procurement policy


Directives governing procurement rules will no longer
apply upon Waless exit from the European Union. This protections and ensure industrial standards of good
means we will have more freedom to tailor practice are followed.
procurement policy to focus on boosting Welsh
businesses. Furthermore, our Welsh procurement legislation will
ensure that all recipients of Welsh Government funds
Currently, the Welsh public sector spends (suppliers, grant recipients and other public sector
approximately 4.3 billion procuring goods from bodies) must institute a Welsh supplier development
external organisations. Around half (53%) of that programme, with a commitment to support local
spending currently stays in Wales. This means over 2 companies wherever practically possible.
billion in Welsh money is being spent in other
countries, supporting jobs and wages outside of Wales, According to the Welsh Governments own formula,
when it could be being spent in Wales. every 1% increase in public procurement spending will
create 2,000 full time equivalent (FTE) jobs. This means
Other countries have much better rates of our realistic and achievable 25% increase in Welsh
procurement spend staying in their economies. For contracts going to domestically based companies
example, Germany at has a staggering 99% and France would create 50,000 new jobs.
a similarly impressive 98% of procurement spending
staying within its economy. This means more jobs, Wales is home to many world-leading products,
better wages and a more resilient economy. whether it is in the food and drink sector, industrial
products, steel, electronics or a range of other sectors.
Plaid Cymru will legislate to make it mandatory for We must recognise, celebrate and promote these
public sector bodies to follow Welsh Government brands and products both at home and abroad to
policy on procurement. This legislation will set targets ensure Welsh businesses have the visibility they need
of keeping 80% of first-tier Welsh public procurement to compete in the competitive globalised marketplace.
expenditure within Wales, with locally-owned or
locally-controlled firms. Our procurement legislation Plaid Cymru will therefore also launch a Welsh
will also contain provisions requiring the ethical Government backed 'Buy Welsh' campaign which is
treatment of workers, environmental currently not possible under EU regulations with an
official 'Made in Wales' kitemark on all certified
products.

Plaid Cymru will ensure that Welsh public money is spent in Wales and that Welsh businesses are supported and
celebrated at home and abroad by:
Bringing forward new legislation to ensure 80% of first-tier Welsh public procurement expenditure within
Wales, in turn creating 50,000 new Welsh jobs.

Require that all businesses that receive Welsh Government funds must institute a Welsh supplier development
programme, with a commitment to support local companies wherever practically possible.

Launch a Welsh Government backed 'Buy Welsh' campaign with an official 'Made in Wales' kitemark on all
certified products.

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General Election 17| Wales Beyond Brexit

A New Welsh Deal Guarantee the future of


funding for Wales
Plaid Cymru will fight to secure the money pledged to ensure that this is replaced by the UK Government, so
Wales by the Leave campaign and Westminster. Wales that vibrant rural communities, built around farming,
was promised the current levels of funding from can continue to be successful.
Europe by the UK Government, and extra money for
the NHS as a result of no longer paying into the EU. Welsh education and science has also received some
183.4 million in total between 2002 and 2013 and a
Leaving the European Union, Single Market and further 29 million from lifelong learning funds in 2007-
associated institutions means Wales will lose the 680 13. Bangor University has received almost 100 million
million a year it receives in funding as a result of EU from the EU and has warned that they expect to lose
membership. During the Referendum, the Leave around half of their total research income if current EU
campaign promised there would be an additional 350 funding streams are not replaced.
million a week to be spent on the NHS following Brexit.
This amounts to 17.5 million a week for Wales, and At a time of unprecedented uncertainty Wales needs
means Wales must receive 1.5 billion a year to ensure an investment plan to sure up its economic
it receives the money it was promised. foundations. That is why alongside ensuring that the EU
money promised to Wales continues, Plaid Cymru is
Despite the UK being a net contributor to the EU, Wales calling for a Marshall Plan for the Welsh economy.
is a net beneficiary, meaning Wales receives more Under our plans, 1billion in UK Government funding
money than it pays in. This is through a combination of would be invested in Wales. Wales has suffered from
European Structural Funds, the Common Agricultural chronic underfunding by successive UK Governments
Policy and several other funds, supporting everything it is crucial now more than ever for Wales to get its fair
from the arts to biodiversity. share. Our fair share of railway investment, research
council funding and innovation grants to stimulate and
The European Structural Fund was set up to implement safeguard Welsh economic growth.
the EUs regional policy with the aim to reduce regional
disparities in income, wealth and opportunities. Being Plaid Cymru believes the growth, prosperity and future
one of the poorest nations in the EU, Wales receives of Wales depends on upholding the levels of funding
315 million a year to improve impoverished currently received from the EU to sustain the farming
communities. Evidence shows that this has resulted in industry, our research institutions and our poorest
the creation of 36,970 jobs and 11,925 communities. The money promised to Wales during the
businesses across Wales. It has also helped 72,700 referendum amounted to 1.5billion a year Plaid
people into work, 56,055 into further education and Cymru will not accept a penny less.
234,335 to gain new qualifications.
Plaid Cymru also believes that if Wales is going to
By leaving the EU, Welsh farms are set to lose European survive and thrive throughout Brexit and beyond, the
grants that account for up to 80% of their income. The UK Government must show its commitment to Wales
200 million a year Common Agricultural Policy through a 1billion investment programme in
provides payments to more than 16,000 Welsh farms. infrastructure and innovation. Fundamentally, we
Farming unions in Wales have warned that leaving the want to see a New Welsh Deal, that would see a total
European Union could signal the demise of their investment package of 2.5billion for the Welsh
industry, as many farmers will not be able to survive economy, boosting jobs, wages and growth.
without this level of funding. Plaid Cymru seeks to

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General Election 17| Wales Beyond Brexit
Plaid Cymru will fight to ensure that any Government delivers the Leave Campaigns promises of prosperity made
to the people of Wales by:
Wales is in danger of losing 680 million a year in EU funding. Plaid Cymru will fight to ensure that this
money is replaced by Westminster as was promised.

Wales deserves its fair share of the 350 million a week guaranteed during. Plaid Cymru will hold the
Government to account and ensure the Welsh NHS gets the 17.5 million a week it was promised.

To sure up the Welsh economy at this time of unprecedented uncertainty, the UK Government must invest
a further 1billion in Welsh infrastructure and innovation. Fundamentally, we want to see a New Welsh
Deal, with new funding arrangements worth 2.5billion to the Welsh economy.

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General Election 17| Wales Beyond Brexit

A migration system that works for Wales


Creating a Welsh Migration Service
Immigration policies that arbitrarily seek to bring down workforce with the knowledge and skills necessary to
figures risk jobs and wages in Wales. Targets should be sustain our industries, large fines on organisations
based on growing the economy, increasing peoples employing non-UK workers will harm already struggling
wages and keeping mortgages affordable. Plaid Cymru public services and throttle economic growth, wages
is committed to creating a Welsh Migration Advisory and jobs.
Service that suits Waless needs.
A Welsh Migration Advisory Service is the only way that
Wales can ensure it has appropriate immigration levels
Welsh-specific visas would allow the devolved
and that industries and public services that depend on
administration to plug skills gaps and protect vital
non-UK staff can be safeguarded. This also means
public services from staff shortages. This pledge was
ensuring the rights to remain of current EU Migrants,
recently endorsed by the All-Party Parliamentary
so that they have the security they need to continue a
Group on Social Integration and has clear precedent of
decent life and our economy and public services are not
working in other countries such as Canada.
undermined by their departure.
Several Welsh industries are reliant on non-UK
International students generated 530 million of
workers, and would face severe economic
export earnings in 2014 for Wales, which is equivalent
consequences if arbitrary immigration targets were
to 4% of all the nations exports. This created 7,600 jobs
enforced. This includes the construction sector that has
and added 400 million to Welsh GVA over the same
serious skills shortages reported; with an estimated
period. It is evident that by including international
additional 100,000 construction workers needed by
students in net migration targets will mean not only
2020. Equally, the Welsh agriculture sector is made up
Welsh educational institutions, but the economy, will
of 65% of full-time workers and 80% of seasonal
suffer.
workers sourced from the European Union.

Plaid Cymru believes in a logical immigration policy that


Migrants also continue to enhance and be critical to the
works for Wales, where students and job creators can
public services we rely on. The Welsh NHS is heavily
come, but wages are not undercut and communities
reliant on highly specialised expertise and staff from
are protected.
across the world, and currently employs 1,139 EU
health professionals directly. While we create a Welsh

Plaid Cymru will ensure the implementation of an immigration policy that defends Wales from the UK Governments
London-centrism that would only damage the economy by:
Creating a Welsh immigration policy, with Welsh visas, that is based on growing the economy and increasing
wages, not meaningless numbers that do nothing for our economic or social needs.

Giving current EU migrants the security they deserve and our economy needs that they will be give the right to
stay in the country.

Taking international students out of any net migration targets and offering proper protections for international
students, researchers and lecturers who chose to live, study and work in Wales.

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