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Commitments to work together on childcare, apprenticeships, a New Treatment Fund for the NHS and a plan to increase the number of GPs and primary healthcare workers form the basis of the agreement between Labour and Plaid Cymru that will see Carwyn Jones re-nominated as First Minister today.

The two parties have also agreed on the establishment of a National Infrastructure Commission and a Welsh development bank.

There will also be three liaison committees on finance, legislation and the constitution where Plaid will have an input.

Read more: A deal's been done, but it remains to be seen how sustainable the Plaid-Labour agreement will be

Negotiations between Labour’s Finance Minister Jane Hutt and Plaid’s Shadow Cabinet member Simon Thomas took place between Friday and Monday to resolve the stalemate created by a tied vote between Carwyn Jones and Plaid Cymru leader Leanne Wood last Wednesday.

Labour and Plaid Cymru joint statement

“We are pleased to confirm that the Welsh Labour and Plaid Cymru groups have contacted the Presiding Officer in order to recall the Assembly, and proceed with the nomination procedure for First Minister,” the statement said.

“This will allow the successful nomination of Carwyn Jones as First Minister, and the establishment of a Labour Minority Administration.

“This follows constructive and positive talks about the parties’ shared priorities for the coming Assembly, and future working arrangements.

“The basis of the agreement reached, a Compact to Move Wales Forward, is the establishment of three liaison committees – on Finance, Legislation and the Constitution.

“This will allow formalised joint working on future priorities. However, this does not constitute a coalition, or a formal confidence and supply arrangement and both parties reserve the right to respectfully agree to disagree.

“The two parties have also committed to working positively together in the next six weeks to secure a Remain vote in the European referendum.

“The First Minister will today set out the next Government’s intentions for the first 100 days, including a commitment to prioritise those areas that enjoy support from across most of the Assembly.

“This will include work on: childcare; the delivery of new all-age apprenticeships; work on a New Treatment Fund for the NHS and a plan to increase the numbers of GPs and primary healthcare workers in Wales.

“There will also be a commitment to establish National Infrastructure Commission and a Welsh development bank.

“Both Welsh Labour and Plaid Cymru have also agreed to work on bringing forward proposals to re-structure the scrutiny and committee process to better reflect the institution’s Parliamentary responsibilities.

“We believe the Fifth Assembly can be more open, transparent and democratic and we’ll work together towards that aim.

“We believe this represents an approach that will enjoy the support of the majority of people in Wales.”

Unions back deal

Sources said no agreement had been possible on the route of an M4 relief road, so discussions were not pursued. The talks had concentrated on “quick wins”.

Unite, one of the biggest trade unions, welcomed the agreement.

Its Wales Secretary Andy Richards said: “While we await full disclosure of the agreement between Labour and Plaid Cymru, this afternoon’s announcement will hopefully lay the foundation upon which a stable Welsh Government can be built.

“Lessons must be learnt from the past week where political posturing has denied Wales a voice while the steel crisis continues.

“Our members within the steel industry can ill afford to go a day, never mind a week, without the apparatus of Welsh Government being in place to ensure their interests are upheld.

“Unite now calls upon all Assembly parties to work collaboratively to Save Our Steel.

“They must collectively hold the UK Government to its promise that it will facilitate a successful sale of Tata’s UK operations to a responsible buyer, and further create an environment in which any future owner can trade and operate on a level playing field with its competitors”.

What's in the deal? These are the details we know so far in the Plaid-Labour agreement

But Welsh Conservative leader Andrew RT Davies said: “For all the talks of change and a new era of politics, all we’ve seen in recent days is same old Plaid Cymru, locking themselves away and doing a cosy deal with their old friends in the Labour Party.

“Only days ago, Plaid Cymru’s leader claimed she didn’t see how Wales could progress with the same party in charge after 17 years of the same. Indeed, less than 16% of people in Wales voted for that status quo.

“However, Plaid Cymru have shown a distinct lack of appetite and ambition in exploring a new kind of collaborative politics. They have instead battened down the hatches and paved the way for yet more Labour failure, showing a distinct lack of transparency in the process.

“This whole episode clearly demonstrates that Welsh Conservatives are the only alternative to Labour. We stand ready to offer robust, constructive and detailed scrutiny to this minority Labour administration and their Plaid Cymru helpers.”

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Leanne Wood responded by vowing that her party would offer “real opposition” during the course of the upcoming Assembly term, holding the Welsh Government to account with robust scrutiny.

Leanne hits back at Tories

She condemned the Conservative Party as “ineffective” after they criticised discussions between Plaid Cymru and Labour, saying that in the last term its group offered no meaningful challenge to the Labour Welsh Government despite spending five years leading the official opposition.

Ms Wood pointed out that in 2011, the First Minister was elected with Tory abstentions with no concessions made to any party.

Now, she claimed, Plaid had secured more concrete gains for people in Wales in one agreement on one vote than the Conservatives achieved throughout the course of the entire last Assembly.

Ms Wood said: “Plaid Cymru has concluded constructive and positive talks with the largest party and we look forward to offering robust opposition over the next five years.

“The Conservatives failed to make a single gain, or to get a single manifesto commitment implemented during their time as the main opposition party in the last Assembly term. Perhaps that’s why their seat share went down.

“During the course of the election campaign, Plaid Cymru outlined an ambitious, transformative and deliverable programme designed to change Wales for the better.

“We still believe that Wales needs an alternative government in order to progress, but we recognise that the people have decided not to give that mandate to a different party at this time. Our aim remains to use the next five years to implement as many of our policies as possible.

“With Plaid Cymru ready and eager to hold the next Welsh Government to account through robust scrutiny, the Tories look set to become as irrelevant in this Assembly as they were ineffective in the last.”

Neil Hamilton: Carwyn got what he wanted

Ukip group leader Neil Hamilton said: “Plaid are all mouth and no trousers. Carwyn Jones got what he wanted and gave next to nothing in return. It is the biggest non-event since the Millennium Bug.

“M4 road improvements will have to wait, the undemocratic voting system in council elections stays unchanged. Wales will carry on stagnating under Labour’s palsied hand as in the last 18 years.

“Labour lost the election and should be turfed out. It is unhealthy for democracy to have one party in office for 18 years. Ukip will be the real opposition today. We will oppose the coronation of Carwyn Jones by Plaid and force a vote in the Senedd.

“Two thirds of Welsh voters rejected Labour. Rhondda voted for Leanne Wood to get rid of Labour. Ukip would support her as First Minister in a broad-based coalition.

“Instead of walking tall and leading from the front, she will just be Carwyn’s crutch. Rhondda’s voters might as well not have bothered.”

Mr Hamilton’s wish to force a further vote in the Senedd on the First Minister could, however, be scuppered.

A briefing note produced by the National Assembly suggests that if, as expected, Leanne Wood withdraws her nomination for the post, Mr Jones would be re-nominated automatically.

Any attempt by Ukip to nominate Mr Hamilton as First Minister could be ruled out of order.