5. 5. Debate on the Economy, Infrastructure and Skills Committee Report on the National Infrastructure Commission for Wales

Part of the debate – in the Senedd at 3:53 pm on 15 March 2017.

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Photo of Ken Skates Ken Skates Labour 3:53, 15 March 2017

Thank you, Deputy Presiding Officer. Can I begin by thanking the Chair and members of the Economy, Infrastructure and Skills Committee for their inquiry and their report? The inquiry was both thorough and inclusive, expertly chaired by Russell George, and members of the committee took a very deep and inquisitive interest in the subject. I do appreciate the strong contribution that their findings have made to the development of the national infrastructure commission for Wales. Ensuring people are united and connected is a fundamental part of this Government’s work, and a key part of ‘Taking Wales Forward’. Our success will be measured by the economic growth and stability that we are able to provide to communities across Wales in the years to come, and that’s why we must focus on developing a stronger and fairer economy.

A fundamental element to improving economic stability is the range and the quality of a country’s infrastructure—the physical systems and services that we need to have in place in order to ensure that Wales works effectively. Individuals, families, communities and businesses all need to be supported by sustainable services that meet the needs of today, but which also prepare us for the challenges of tomorrow. This will be particularly crucial because we know how tough the next few years are going to be. So, our challenge is to create the stability needed for the long-term well-being of our people and communities.

We are living at a time of particular financial uncertainty, which makes it even more important to act now and strengthen the way we consider and prioritise future infrastructure needs. We must create the conditions for sustainable, long-term investment and there is no question that getting the right infrastructure is vital. It’s for this reason the Government is committed to moving towards a better informed, longer term strategy of investment in infrastructure, which enshrines the principles of the Well-being of Future Generations (Wales) Act 2015.

The establishment of the national infrastructure commission for Wales will be a critical step towards achieving this ambition, and I was encouraged that the committee recognised the importance of the commission by making it the subject of one of its very first inquiries in this Assembly. The timing couldn’t have been better as, last year, I launched a 12-week public consultation on the commission, which ran alongside the committee’s inquiry. I very much welcome the committee’s report and the opportunity today to discuss it further with Members.

The report, which echoed many of the views expressed during our public consultation, was very constructive in helping to shape my considerations of the commission. I was pleased to accept, or accept in principle, almost all of the recommendations. One of the most prominent emerging themes from the report and from the consultation exercise was the pressing need for advice that is strategic, that is cross-cutting and that takes a long-term objective view.

The remit of the commission will be tailored towards ensuring focus and resource are directed towards strategic infrastructure needs. It will be critical, also, to protect the independence of the commission. So, I welcome suggestions for the National Assembly to take an active role in scrutinising the independence and recommendations of the commission, as well as how Welsh Government responds to these recommendations. So, to facilitate this, I plan to lay the annual report of the commission in the Chamber. I also agree with the committee’s suggestion for a three-year state of the nation report to provide an effective framework for the reporting arrangements.

Now, although the committee’s recommendations align mostly with our thinking, there are some areas where more time is needed to assess the benefit and the potential impact. I view the establishment of the commission as the first stage of a developing process and I was encouraged by the clear support in the committee’s report and the consultation responses for a review of the commission’s status and remit towards the end of this Assembly term. We’ll establish the commission on a non-statutory basis to ensure that it is able to provide advice and recommendations as soon as possible.

I agree with the committee that the remit should not extend to social infrastructure in general, and have accepted in principle the recommendation to extend the remit to include land supply for housing developments. I recognise the clear links between housing supply and economic growth, but I’m minded to give this more careful consideration given the pre-existing mechanisms in this sector. Furthermore, more time is needed for strategic development plans to mature and for their effectiveness to be assessed. I therefore consider the scope of the commission to be a focus for planned review before the end of this Assembly.

However, from the outset, the commission will be expected to consider the potential interactions between its recommendations and social infrastructure, as many Members in this Chamber have spoken of today. This will ensure that the commission’s recommendations take a holistic view of infrastructure needs, but also maintain its primary focus. Furthermore, through its advice and recommendations, the commission will be expected to fully reflect the obligations on the Welsh Government in respect of the environment Act as well as the goals and principles of the well-being of future generations Act. Another key aspect of the consultation was the importance of having a close working relationship with the UK National Infrastructure Commission. We’re committed to building on and developing a constructive and mutually beneficial relationship with the UK commission on such key areas as rail connectivity and energy, and this was strongly supported by the committee and responses to our consultation.

The UK commission has liaised closely with us on engaging with stakeholders in Wales to help inform its first national infrastructure assessment. We are co-hosting a visit by the UK commission to Wrexham this week with round-table discussions for politicians and for businesses.

I’ll pick up on the small number of additional points that were raised today during the debate. I do believe that, as Members have indicated, the commission should be based outside of Cardiff, but in an area, in a building, that sufficiently removes it from any organisations that might benefit from its considerations. I also believe, as Members have highlighted, that there should be a fairer allocation of resource for projects right across Wales. We shouldn’t just look at a fairer share of resource, though, for the regions, but also within the regions. Because, quite frankly, if we were to follow the suggestion that has been posed by some to reduce spending dramatically in south-east Wales without looking at how that spending within south-east Wales is proportioned, then—