6. Will the First Minister provide an update on funding for the South Wales Metro? OAQ(5)0317(FM)

Yes. The phase 2 project of the metro has been estimated at £734 million and the final cost will be determined during procurement negotiations. That funding does include match funding from the European regional development fund, which we expect the UK Government to honour in terms of providing this funding.

Yes. Thanks, First Minister. I’m glad you referred to the pledge by the UK Government to match the funding. Paul Maynard, the UK’s transport Minister, specifically advised the Welsh Government to apply for the ERDF funding, so would you agree that the Brexit vote is not necessarily any impediment to going ahead with the south Wales metro project?

Not to going ahead with it, but in terms of its scope, yes, potentially it will reduce its scope. If the European funding element of £125 million is not made up by the UK Government, then clearly the metro cannot go ahead at the same speed and in terms of the same ambition as it otherwise would have done. So, yes, there is a £125 million gap that the UK Government has to make up, otherwise the metro project cannot be as ambitious as we would want it to be, although, clearly, it can move forward but not in quite the way that we would have wanted.