1. 1. Questions to the First Minister – in the Senedd on 18 October 2016.
1. Will the First Minister provide an update on the funding needed for the South Wales Metro? OAQ(5)0222(FM)
The metro phase 2 project has been estimated at £734 million and the final cost will be determined during procurement negotiations. Funding includes match funding from the European regional development fund that we expect the UK Government to guarantee.
Given that even Alun Cairns now seems to be an enthusiast for the south Wales metro, and has recognised the strategic importance of it for providing jobs and growth for the whole of the south-east Wales area, are you confident that the UK Government will give us the money that we need to ensure that we can deliver this project on time, and to the quality required?
Given the Secretary of State for Wales’s enthusiasm for the metro, I would expect him to be able to demonstrate enough influence amongst his Westminster colleagues in order to deliver the £125 million worth of funding that we will lose as a result of the loss of European funding.
Enthusiasm is one thing, but if the full funding of the south Wales metro isn’t guaranteed, nailed-on guaranteed, what’s plan B?
Well, quite simply, the metro won’t be able to proceed at the same pace, and with the same ambition as would otherwise be the case. There will still be a metro, but obviously, if there’s £125 million less money involved, then the reach of the metro, and the speed of its expansion will be less. But given the fact that we have heard from those who wish to leave the European Union that every single penny of European funding would be guaranteed, we expect that promise to be honoured.
First Minister, I wonder if you could outline what discussions you’ve had with the UK Government specifically, directly with them, in regards to the project going forward.
With regard to?
In regards to the project going forward.
As we’ve said many times to them, we expect the money to be there. If the money is lost through the loss of European funding, at official level, there’s very, very regular contact in terms of how we move forward, especially given the fact that so many of the levers that are required to deliver the metro are not devolved. So, there’s a great deal of official-to-official contact that takes place on a regular basis.
A simple question, First Minister: when will the construction phase actually begin?
Well, of course, at the moment, we are going through the bidding process, and the less said about that, the better, given the fact that it has to go through a proper process. Once that bidding process is actually finalised, then we expect to see phase 2 begin. Much of it depends, of course, on the franchising in terms of the Wales and borders franchise, but as soon as possible after the bidding process has been completed.