– in the Senedd at 3:07 pm on 22 March 2017.
So, then we’ll go to item 4, which is a debate by individual Members under Standing Order 11.21 on the blue economy, and I call on Jeremy Miles to move the motion.
Motion NDM6259 Jeremy Miles, Lee Waters, Simon Thomas, Jayne Bryant, Rhun ap Iorwerth, Angela Burns
To propose that the National Assembly for Wales:
1. Notes that Wales benefits from a long coast line and the second highest tidal reach in the world.
2. Further notes that economic activity related to the sea is already valued at around £2.1bn in Wales, supporting tens of thousands of jobs.
3. Believes that a strategic commitment to the blue economy will enable Wales to turn our seas into one of our biggest economic assets.
4. Further believes that Wales can be a leader in marine renewable energy, tourism and sport, fishing, food and aquaculture, and marine manufacturing and engineering.
5. Calls on the Welsh Government to bring forward an ambitious Marine Plan to support the sustainable development of the blue economy and to make it a central plank of its new economic strategy.
Diolch, Ddirprwy Lywydd. I welcome the opportunity today to bring forward this debate on the blue economy in Wales, together with Jayne Bryant, Lee Waters, Angela Burns, Rhun ap Iorwerth and Simon Thomas. The ‘blue economy’ refers to a broad range of economic activities linked to our seas—marine renewables, maritime transport, ports, tourism and marine sports, fishing and aquaculture, marine biotechnology, engineering and manufacture amongst them. Wales is a coastal nation and the seas are already an important part of our economy. We have a growing aquaculture sector, including the largest mussel fishery in Britain. We have innovative marine renewable developments, including the Swansea bay tidal lagoon. We have significant coastal tourism, and our wonderful coastal path, and I’m sure we’ll hear more about these later in today’s debate.
The Welsh Government’s figures estimate the value of economic activity in the maritime economy of Wales at around £2.1 billion GVA, supporting 31,000 direct and 56,000 indirect jobs. It’s worth noting that the Government believes that these figures are an underestimate, and, of course, the sector, in many respects, is still in its infancy. Ocean economies of all sizes around the world are looking to their seas to bolster slowing growth in their terrestrial economies. China, which along with GDP figures also publishes GOP figures—gross ocean product—now believes that its ocean economy accounts for 10 per cent of GDP. The blue economy is an opportunity, of course, for our coastal communities, but let’s be clear: it’s also an opportunity for our inland communities all across Wales, and I would echo calls by my local authority, Neath Port Talbot, for blue economy procurement to come with social benefit clauses, with recruitment, skills, and training obligations, as well as targets for local sourcing. But the blue economy is more than simply the ocean or marine economy. The term itself, blue economy, has its origins in the broader green movement and a growing recognition of the damage to marine ecosystems from overfishing, pollution, and from climate change. So, sustainability is at the heart of the blue economy. A recent review by ‘The Economist’ journal of various countries’ blue growth plans, including those of the EU, found that the principle of sustainability ran the risk of taking second place. In the words of ‘The Economist’, it seems clear that neither the conservation or sustainability component is the primary nor even necessarily the ultimate goal.’
The blue economy is about developing the economic uses of the sea only within the long-term capacity of the sea to support it and to remain healthy. What we must avoid is blue washing conventional economic activity where the commitment to sustainability is superficial or an afterthought. So, I would urge the Welsh Government to keep the principles of sustainability at the heart of its policy on the blue economy.
But the other side of the coin to sustainability is innovation. The UK trawl-fishing fleet today has to work 17 times harder to catch the same amount of fish that it did in 1889. So, even huge leaps forward in technology are not able to keep up with the extent of overfishing. The leading-edge research role of the higher education sector in Wales is crucial to the kind of innovation integral to the future of our blue economy. Most of our universities are, of course, located near the coast, and much of our marine-based research is world-class, but Dr Ian Masters of Swansea University speculated that the Edinburgh university’s marine research group probably has more research capacity than exists in the whole of Wales. We must address this if we’re not to lose out to Scotland and to Ireland in particular. Research should, of course, be industry-led but we also need to be creating the graduates we need in this sector to develop its full potential. Also, as the SEACAMS project—involving Swansea, Aberystwyth and Bangor universities—has shown, there is a key role for partnerships between industry and higher education, where scientific research can remove risk barriers to investment. Science is the key to understanding the potential and, importantly, the limitations of the seas, be that in biotechnology or aquaculture and elsewhere.
Much of the research into our oceans is international for obvious reasons. The scale of resources required for many projects is often prohibitive for individual countries. Our departure from the EU puts access to vital research funds in jeopardy unless alternative arrangements can be agreed, and I hope that the Welsh Government will continue to press the UK Government on this important priority.
I welcome the fact that the Welsh Government earmarked €100 million of structural funds for marine energy—the largest investment of its kind in the European Union. More broadly, one of the potential obstacles for the development of the blue economy is the relative lack of private investment finance tailored specifically to the sector. So, I would urge the Welsh Government to look, as a priority, at some of the international developments in financing the sea economy. The recent world ocean summit, held in February, was dedicated to that very subject. There is innovative work under way by some of the countries of the Pacific and the Caribbean in particular—small countries with big coasts—to launch blue bonds to invest in the sustainable marine economy and tackling climate change. I would ask the Cabinet Secretary to consider directing the Development Bank for Wales in due course to look at innovative financing products with the private sector, and also, perhaps, with the European Investment Bank to create a blue investment fund for Wales.
But we also face competition for investment from other parts of the UK. Perhaps the most obvious area in which this is true is in the marine renewables sector. We are—yes—at the early stages, but the flipside of that is that people are watching us, and they’re weighing up how things proceed, and they’re comparing that with how they proceed elsewhere. As we know, investors are mobile. We make the case rightly for being a small, well-networked nation, and we need to make sure that that means agile and responsive, as well as easy to access.
Most major energy projects will require development consent and a marine licence. England has a streamlined development consent order and marine licence process, where a developer gets a deemed licence when the order is granted. In Scotland, the two processes run in parallel. In Wales, the DCO is reserved and the marine licence devolved, but Ministers should look at directing that they work in tandem, taking into account the same evidence, where that’s relevant, and working to the same timescales. We should change regulations so that Ministers can intervene and—in relation to larger projects—can be much more hands-on. We should change regulations so that there are binding statutory timelines for Natural Resources Wales to act. By the way, that isn’t a question of levelling the playing field. In fact, it would provide Wales with a competitive advantage over other UK nations, and why should we not want that?
Finally, we should move away from an overly technocratic interpretation of legislation. Yes, there is obviously a place for detailed analysis of impact, but it surely cannot always be the overriding feature. This, to be fair, requires clear policy guidance, so I’d urge the Government to bring out new policy guidance on how legislation can be interpreted. Unless we do that, the risk is that the default position is going to be caution. I hope, then, that we see in the new marine plan and new policy proposals the solution to these challenges, and I hope as well that the marine plan will support a whole-Government approach to the blue economy. By its very nature, it touches on a range of different portfolios, and what we need is a champion to co-ordinate, on a cross-portfolio basis, Government action on the blue economy and to chase delivery right across Government.
Twenty-eighteen is the Year of the Sea. That is a great opportunity for Welsh tourism. Let’s also make it the year when our seas and our blue economy start to realise their full potential. I move the motion.
I’m pleased to be a supporter of this motion today. As a nation, the sea is in our blood. It’s part of our fabric, part of our history, our culture, our literature even—from Cynan’s wild waves of the sea in ‘Aberdaron’ to Ceiriog inviting us all to row with the waves to Ynys Môn. But, just as the sea has provided inspiration to poets of the past, the question for us as we stand on our shorelines looking to the sea today is: how are we going to be inspired anew to take full advantage of that resource as a foundation to create wealth for this generation and future generations?
Now, in our sea and on our coastline there is beauty and leisure to improve the quality of life for the citizens of Wales and to attract visitors. There is food and endless energy. The seas offer a challenge to develop technology and new manufacturing skills, to release all of that potential, and all of this contributes to our blue economy. But, are all steps being taken? That’s the question in terms of taking full advantage of that promise.
It is five years since the Irish Government introduced its strategy to develop its marine economy, ‘Harnessing Our Ocean Wealth’. It is a nice title. If I can refer to Natural Resources Wales, the Welsh name, ‘Cyfoeth Naturiol Cymru’, is a better name. The literal translation of ‘Cyfoeth Naturiol Cymru’ is ‘Wales’s natural wealth’ and it refers to the natural wealth of the wider benefit of protecting our environment. We can also look at it as a reference to economic wealth, because, certainly, as we look towards our coastline and seas, then there is a natural source of resource there, which can assist in putting Wales on a firmer foundation in economic terms for the future.
What Ireland did was to look at the marine sector in its entirety and that’s exactly what I think we need to do here in Wales. The enterprise committee in the previous Assembly called for a marine strategy, and I look forward to seeing a consultation on a first Welsh marine and maritime strategy starting this year. But certainly, this is something that should have happened many years ago.
We’ll hear a great deal of talk today about the most prominent element in terms of the potential provided by our seas, which is renewable energy. But, of course, that potential isn’t going to release itself. It’s not going to volunteer itself. It’s the work of Government, working with business and with higher education in terms of pushing the boundaries and seeking new opportunities. It is a cause of great frustration for me that the UK Government still can’t make a decision on the future of the Swansea bay tidal lagoon. Is it the risk element that’s holding them back? Well, we do have to take risks. There is an opportunity for Wales to innovate here and let’s not wait for action from the UK Government alone. Plaid Cymru has called on the Welsh Government to take a stake—£50 million possibly—in this initiative so that the whole of Wales can then benefit as that technology develops and finds its way from Swansea bay to the rest of the world.
There is innovation in my constituency, too, in this area. Menter Môn, through the Morlais enterprise zone, is attracting companies from across the world to experiment with the next generation of marine energy production technology off the western coast of the island. I’m very confident that Minesto and their innovative, incredible underwater kite will create a new industry that will not only employ local people but will also export globally.
It’s important to talk of the work of the excellent SEACAMS department at Bangor University in Menai Bridge. Wales can innovate and lead. Talking of SEACAMS endorses what we’ve already heard. I welcome the funding that has been invested in marine research in Wales, but of course European funding has been crucial to that. There is no assurance from the UK Government that they will make up that funding in the future and that uncertainty—let’s be clear about this—threatens to undermine much of the good work that has been done already.
I will briefly mention a few other elements of the marine economy that we could develop. Tourism, for example. We need to take the cruise ship industry to the next step on Anglesey by investing in resources. The food sector in also important on Anglesey. Halen Môn/Anglesey Sea Salt is an example of the purity of our seawater. But, we also produce the best mussels in the world and all of that is exported. So, let’s invest in processing resources so that we can develop that even further.
To close, it’s a strategy that’s needed here and I’m pleased that we today have an opportunity to air out views on what should be the various elements of such a strategy. Our marine economy, as we’ve already heard, is already worth over £2 billion and I believe that there is potential for huge growth and that we would all benefit from that.
I’d like to thank Jeremy Miles for bringing this important debate forward today. Our coastline around Wales is one of the most valuable natural assets we have. My constituency of Newport West is a constituency where the river is prominent, running through the city and into the Severn estuary. The tidal reach of the River Usk has been crucial to Newport’s development from a settlement in the Bronze Age to the city it is today. Historically, the tidal reaches of the Usk have been used as a major shipping port for much of the last millennium, mostly because of its wide and deep mouth, and good navigable access. The northern section of the river is home to the village of Caerleon. In 2011 archaeologists discovered a 2,000-year-old port built by the Romans. The Norman Newport castle stands on the west banks of the Usk, where it was built to guard the settlement and control the river crossing. Further evidence of the Usk’s long-standing use as a major shipping route came when the remains of a fifteenth-century ship—most likely a merchant ship—was discovered, and throughout the nineteenth century the docks played a significant role in igniting the industrial revolution.
The rise and fall of the tide around our coastline has huge potential still after all these years and there are new ways to harness it. Earlier this month I was pleased to join a majority of Assembly Members, cross party, who wrote to the Prime Minister to urge the UK Government to give the green light for the tidal lagoon in Swansea bay. The project would make Wales a renewable energy leader. The potential of this scheme is hugely exciting and I hope that this will be the first of many, harnessing the ebb and flow of the tide. Indeed, following a Swansea lagoon, there are proposals for Newport and Cardiff tidal lagoons, both located in the Severn estuary. The tidal lagoon between Newport and Cardiff would harness the second highest tidal range in the world. The project could comfortably meet the equivalent of the annual electricity requirements of every home in Wales, and the lagoon could represent a significant economic opportunity to the Cardiff capital region. Early independent estimates suggest that over 3,000 construction workers would be required on the build, with the potential to create and sustain over 8,000 Welsh and UK manufacturing jobs in the project’s supply chain. By enclosing approximately 70 km sq of the estuary, the project would be able to pass over 800 million cu m of water through its turbines on each tidal cycle, more than 11 times the volume of water available to the pathfinder project at Swansea bay. The tidal lagoon between Cardiff and Newport could generate the cheapest electricity of all new power stations in the UK.
Tidal lagoons are green, entirely predictable, carbon free, Welsh and eternal. Lagoons could store up surplus energy at times of peak production or low power demand, to provide abundant power when it’s wanted. Importantly, the power of the tide can be tapped with proven technology. A world-beating tidal power sector promises new market opportunities for business in Wales, and as Charles Hendry suggested, it could be a lifeline for some. It will help to decarbonise our economy, replace ageing power stations and revive economies and traditional industries.
The value of the tide and our beautiful coastline is staggering. Opportunities for tourism around our coast are growing, particularly with the wonderful coastal path, which attracts visitors from around the world and throughout the year. In 2014, walkers spent £84 million in Wales and supported more than 1,000 jobs. That is something we should all be proud of and determined to support. So, Deputy Llywydd, for centuries, the tidal flow has been crucial to Wales. There are exciting opportunities for us to become world leaders with tidal lagoon projects, benefiting the people of Wales economically, environmentally and socially. We must do all we can to use our wonderful coastline sustainably to the best of our advantage for future generations.
Can I thank Jeremy Miles and the other AMs who brought forward this very important debate? UKIP acknowledges the huge contribution our coastline contributes to the prosperity of Wales and, as has been mentioned earlier, its future of potential with regard to the Swansea and subsequent lagoon projects. Of course, much of our tourist industry is linked to the quality of our coastal waters. However, in my input to this debate I wish to highlight the impending positive impact for the Welsh fishing industry post Brexit. We are, after all, a country surrounded on three sides by the sea. Ever since we entered the European Union, there has been a catastrophic decline in the UK and Welsh fishing industry. Where we were once huge exporters of fish, we are now large importers. The irony, of course, is that those imports are largely made up of fish caught in what were formally our own waters. There can be no more eloquent an epitaph on the destruction of the UK’s fishing fleet than the fact that 23 per cent of the entire fishing quota allocated to Britain by Brussels now goes to a single Dutch fishing trawler and is landed in Holland. Under the EU’s—
Will you take an intervention?
Yes, of course.
Would you recognise that the shellfish industry is also a very important part of our fishing industry, that some 97 per cent of shellfish from the Menai strait is exported to the European Union and that they are very frightened about the possible effects of World Trade Organization tariffs of maybe 40 per cent on their exports?
Well, of course, that’s why we’re saying that we’re not going to have free access to the European market. It’s typical, I’m afraid, of the attitudes of those who were against Brexit to try and bring out all the negative possibilities from us coming out of the European Union. That’s an example of exactly what I’m saying.
We now understand, from sources in the European Parliament, that there are moves afoot to deny the UK the right to the fishing grounds that were ours prior to entering the European Union. One can quite understand their concern, given that 80 per cent of the Danish fleet catch is in former British waters. The French have 84 per cent of channel cod whilst the UK has only 9 per cent. Add to these the figures of the Spanish fishing fleet plundering our waters, of course, ably abetted by enormous amounts of European funding—€5.8 billion since the year 2000—it is small wonder that Brussels is desperate to carry on exploiting our rich fishing grounds. The UK had some 80 per cent of Europe’s fishing grounds before Ted Heath decided to give it away as part of our entry agreement. Would the socialist parties in this Assembly join me in condemning any move by the Tory Government to negotiate away our rightful fishing grounds for the second time in our history? We must demand that our fishing grounds are restored in their entirety, so that UK and Welsh fishing can start to be restored to its former glory, and Welsh fishermen can once again contribute substantially to the Welsh economy.
I’m delighted to speak in support of this motion today. Indeed, I can do so from a unique position, being the only Assembly Member who sits on both the Economy, Infrastructure and Skills Committee, and the Climate Change, Environment and Rural Affairs Committee. Together, the work of these committees gives me a cross-cutting overview of the significance of Wales’s blue economy.
During the last Assembly, there was an excellent report by the Enterprise and Business Committee into the potential of the maritime economy in Wales. Its contents powerfully support today’s motion. As the report states, there is considerable potential for Wales, both to grow its maritime economy, which we know is already valued at over £2 billion, and to be a leader for the blue economy in our corner of the globe. To quote the report:
The water that surrounds Wales on three sides is a natural resource that could be as valuable for Wales future, as the coal beneath our valleys was in centuries past. But harnessing that potential will not happen by accident. It will need strategic thinking and leadership from the Welsh Government, and coordinated action across departments to deliver the vision.’
A strong and ambitious marine plan is vital to achieving this. But that co-ordinated action cannot just take place within Welsh Government. It must also occur across and between Governments and countries. For example, tackling the barriers facing the development of the ocean energy sector necessitates a more coordinated approach throughout the Atlantic area. We must also work to continue to work with European bodies, such as the Conference of Peripheral and Maritime Regions, and this work must feature as a key part of any Brexit negotiation.
This also makes sure we don’t miss the opportunity to take a co-ordinated approach to our stewardship of the waters around us. As part of this, we also need to develop holistic data collection projects, so that we can monitor changes in our maritime environment effectively. As the motion notes, renewable marine energy is one area where Wales really can become a world leader. We can do this by adopting foundational economic principles, and making the most of the resource all around us. Foundational principles of long-term economic stability can contribute to tackling the vulnerability of coastal communities to economic change.
But the benefit of developing marine renewable energy sources extends beyond this. For example, plans for a network of six tidal lagoons around the UK, with a pathfinder at Swansea, could involve a £40 billion investment. This would see the creation of 6,500 long-term jobs, and could generate nearly £3 billion of gross value added annually. To maximise the benefits of the sector, we need a proactive engagement of local Welsh firms within the supply chain.
Would the Member give way?
Yes.
Thank you. I thank Vikki for giving way, and congratulate her and other colleagues, and Jeremy, for introducing this. Would she agree with me that because of the potential, the very potential of the renewable energy sector, whether it’s tidal lagoons, whether it’s other floor-bed renewables and so on, but also dredging, pipe laying et cetera, in concert with taking forward the potential of the blue economy, we also need to understand the carrying capacity of the different parts of our seas, and we also need marine spatial planning now to be bolted down, so we don’t have piecemeal development, we have planned development, knowing what the capacity of our seabed, and our hidden blue yonder actually is?
Yes, I fully agree with what the Member said there. And I think that that’s what the marine plan really needs to encompass. And also, linked to that is my call for better data collection as well. I think that all those things need to work together.
Going back to the supply chain, then, Tidal Lagoon Power have referred to there being a Welsh core within their planned supply chain, and I’ve been impressed in my discussions with them about the range of local and regional firms that could be involved in producing components for the turbines and generators. By drawing companies throughout Wales into the procurement process, we can then use the blue economy as a driver of prosperity, not just in our coastal communities, but in parts of the northern Valleys, like my constituency of Cynon Valley, too.
Of course, to get the most from the potential of marine energy, we must make sure that our people have the skills that are needed. As the Enterprise and Business Committee concluded, we need to engage in a systematic study of the future skills the blue economy will need moving forward. Energy is crucial here, but we must also take account of the other economic possibilities noted within the motion, such as tourism and engineering. We know that Welsh ports make a very important contribution to our economy, and we know they are increasingly diversifying into the energy sector too, but any mapping exercise must also consider the skills base of the regions around them. But there is no time to waste, with the RMT speaking of a crisis in terms of a maritime skills deficit. The Welsh Government skills agenda needs to take account of this, along with a focus on reskilling and retraining. Indeed, that will be a powerful way to spread the undoubted economic potential of the blue economy.
I very much welcome this debate, one which would have been utterly pointless had it not been for the ‘leave’ vote on 23 June last year. I’m broadly in support of the motion. However, I’m concerned that the motion itself proposes no ideas about how Wales can exploit its coast and seas. It’s not really surprising that many in this Chamber are a little lost on this subject, since most people here were happy to have our fishing controlled entirely by EU civil servants hundreds of miles away in Brussels. Most in this Chamber will be happy to see the EU remain in control of Welsh fishing, and on an almost daily basis, say how bitterly they regret the result of the EU referendum. EU fishing rules, including sharing our waters with practically anyone who wanted to fish them, destroyed fishing communities in our coastal economy. And whilst Labour were breaking their hearts about the mines closing, the EU were busily destroying our once thriving fishing economy. Funnily enough, I’ve heard lots of vitriol heaped upon those who closed the mines—
Would you give way?
[Continues.]—but where was Labour’s outrage at the destruction of our fishing and allied industries? Go on, Huw.
Thank you. I speak as a former fisheries Minister, and I share some of the frustrations. But could I point out to her that before 2010, we were starting to move towards regional seas management, for example in the North sea, and the cod population there, after using the science, is now actually starting to recover? But could I urge her to be chastened against suggesting that we should go back to the days of gunboat diplomacy in the North sea—
I’m not suggesting that. I’m not suggesting that. That’s what you would like me to be suggesting—
Excuse me. You’ve taken the intervention. Let him finish—he’s going to wind up very quickly so that you can respond.
So, my question would be: would she say, regardless of exiting the EU, we actually need to work with other nations, come what may, to avoid that gunboat diplomacy?
I’m not talking about gunboat diplomacy. I’m talking about taking control back of our waters. It just proves my point. You people are still so fixed in this idea that all these decisions are better off made by the EU. We need to make them ourselves. We’ve got an opportunity now to bring back our Welsh waters, to bring back the UK waters, and to exploit and capitalise on it. I’ll get back to what I was trying to say.
Funnily enough—[Interruption.] Funnily enough, I’ve heard lots of vitriol heaped upon those who closed the mines, but where was Labour’s outrage at the destruction of our fishing and allied industries? Nowhere, that’s where. Our fishing fleet, thanks to EU policies, is a fraction of the size it once was. The number of fishermen and allied trades are also a mere fraction of what they should be. Welsh Government, and the other ‘remainers’ in this Chamber, need to stop moaning about Brexit, and scratching their heads about why on earth the people of Wales voted to leave, and start coming up with serious plans about how to rebuild our fishing and coastal economies. I am delighted that leaving the EU—[Interruption.] I am delighted that leaving the EU means that the debate today is possible and can be meaningful. In campaigning and winning the Brexit debate, UKIP has already done more for Wales’s blue economy than any other party in this Chamber, and I largely support this proposal, with a couple of sensible provisos.
Firstly, I recognise that fishing needs licensing and regulation, to control gang masters, as well as fishing stock, vessel safety and so on. But we must also ensure that fees are reasonable and do not preclude people on low incomes from being able to help make ends meet by fishing what will once be again genuinely Welsh waters. The fees collected in recent years—[Interruption.] You can laugh as much as you like, but you’re just proving my point. The fees collected in recent years went into EU coffers, so it would be wrong to suggest that Wales will lose money by reducing fees once Brexit is here. And remember, I’m talking about reducing licensing fees to the low paid.
Secondly, we must ensure that we never go down the route of trying to control fish stocks by a regime that includes, frankly, an immoral practice of discarding. Discards brought about by EU rules were hugely counter-productive and damaging for fish stocks. Although they are now supposed to have been scrapped, the new regime is still leading to a vast amount of dead fish being thrown back.
And finally on fishing, we have the issue of territorial waters, or rather who is entitled to fish. Any suggestion that we should prohibit or charge a higher fee or tariff for fishermen from other UK countries may create a few cheap headlines about protecting Welsh resources, but in practice would hurt the Welsh economy. Any obstacle in the way of other UK boats is likely to be reciprocated and limit the scope of Welsh fishing crews to work in the larger and rich UK waters. Welsh voters chose to leave the EU, not the UK, and their decision must be respected in every way.
Lastly, on using the sea for energy production, let us make a commitment not to establish or expand offshore windfarms. We must also approach tidal projects carefully and with much detailed consideration of the implication to tidal arrays or tidal barrages on people living and working on the coast and the sea. What our economy gains in energy benefits from windfarms is quickly eroded by potential losses in other areas. Energy production from the blue economy, as you call it, or the sea, as most other people call it, must not be allowed to disturb the beauty of our coastal views or other potential uses of the sea.
Welsh Government and the other ‘remainers’ in this Chamber need to stop moaning about Brexit—[Interruption]—and start coming up——[Interruption]—and stop scratching their heads about why on earth the people of Wales voted to leave and start coming up with serious plans. We don’t want more bland statements of broad objectives; we need some practical ideas and proposals. So, I largely support this proposal, but suggest that we proceed with caution and make sure the tide of public opinion is with us at every stage. Thank you.
Before I start with my remarks, can I just express my condolences and thoughts with our colleagues in Westminster this afternoon, where the incident is being treated as a terrorist one for now and our solidarity and best wishes are with them all?
May I congratulate Jeremy Miles for bringing forward this debate? I think these individual Member debates are proving to be a very useful device for introducing new ideas and, for the most part this afternoon, contributions have been thoughtful and well considered. I think, when we do focus on new ideas around the economy, we need to be very clearly concentrated on what domain expertise Wales can bring to bear on new, emerging fields—the importance of leveraging skills, experience and resources that we already have in order to build a competitive advantage or, put simply: what is our unique selling point? The motion notes that Wales benefits from a long coastline and has the second highest tidal reach in the world. So, there is obviously great potential from the blue economy. Just as the City of London and the south-east of England exploit their competitive advantages, or financial muscle, political power and geographical location, we in Wales must leverage our own competitive advantages. We have substantial zero-carbon renewable energy resources. So, how can Wales achieve a competitive advantage in renewable energy, such as we enjoyed when coal was king?
Much mention has been made this afternoon, notably by Vikki Howells, about the potential of the Swansea bay tidal lagoon. I must say, reflecting on the developments, or indeed the lack of developments, on the Swansea bay tidal lagoon, I’m becoming increasingly concerned that we are constraining ourselves from being able to agilely respond to the opportunities that the blue economy offers us. We have managed to give away all the regulatory and legislative powers from this Parliament of Wales to an independent body, which, in itself, I am relaxed about. However, when that independent body is taking so long to reach a decision and is struggling to source the expertise, the implications of that could well be catastrophic for the emergence of Wales as a global player in an industry that could have a huge benefit for climate change across the world. I would say to Ministers that if Natural Resources Wales are not able to respond promptly, we do not want to see the prospect of the UK Government giving all its consents and this project falling over because Natural Resources Wales is refusing to act. So, I would ask Ministers to consider the possibility of reclaiming some of those powers to the National Assembly, should Natural Resources Wales prove unable to discharge them in a responsible manner.
But beyond talk of the tidal lagoon, I think we need, as has been mentioned by Jeremy Miles and Rhun ap Iorwerth—. The blue economy also features less-big-ticket items, if you like, most notably tourism and food. The tourism economy brings about £5 billion a year into Wales and the food industry similarly has significant export potential, notwithstanding the potential trade barriers. They are, of course, as we’ve discussed previously marred by low wages and poor conditions. Part of realising the potential of the blue economy is focusing on these foundational sectors to see how we can lift the skill levels, lift the productivity and the wage levels to make sure that they contribute fully to the Welsh economy and meet their potential.
It’s interesting that mention was made of aquaculture as part of the blue economy and Rhun ap Iorwerth has mentioned the mussel and shellfish production in Wales. It’s notable that the way that we approach this currently means that much of the added value is received by other countries. We export these products, but they’re processed in other countries. It may well be that because of the trade environment we find ourselves in that those dynamics will shift. We should be thinking now about how we can imaginatively respond to that and be able to tackle the issues. We’ve heard this week about the quality of food in our hospitals. We’re debating the potential for procurement reform. Well, we could be looking to capture some of that value internally and instead of exporting and allowing other countries to get the added value from these products, allowing them to be exploited internally where they could be served as high-quality food in schools and hospitals. We need to think laterally around the potential of the blue economy.
I just want to say, finally, Dirprwy Lywydd, about the need for innovation. The development of the fourth industrial revolution is causing great disruption throughout industry and we need to be looking at the development of so-called cyber physical systems, which are growing, where we can bring together the knowledge that we have around algorithms and digital so that the domain expertise that we have in Wales can be applied in a way that meets the challenges of the fourth industrial revolution, so that the marine economy can be part of the future economic development of our country. We have to seize on these opportunities and work is desperately needed to identify where we might offer competitive advantage. Diolch.
I call on the Cabinet Secretary for Economy and Infrastructure, Ken Skates.
Thank you, Deputy Presiding Officer, and can I begin by thanking Members for their contributions to this important debate today, taking place as deeply concerning events are unfolding in London. I’m sure that all Members’ thoughts are with the public around Westminster right now as what appears to be a terrorist attack has taken place at Westminster. We can only hope that these are not life-ending events for innocent people.
Wales is well placed to take advantage of the opportunities associated with the blue economy. We’re very fortunate to benefit from a high tidal range and much of our 1,200 km of coastline are potentially suitable for tidal energy developments. It’s a fact that Wales’s profile as a location for marine energy has increased in recent years. In the case of the lagoon development, it’s put Wales at the forefront of the industry worldwide, as Vikki Howells rightly said. Developers from across the globe are showing an active interest in developing projects in Welsh waters. They are recognising that Wales has one of the best marine energy resources and, indeed, support structures available to them.
We’re already supporting large energy investments in onshore renewables, marine, nuclear and so on, including our two largest energy projects: Wylfa Newydd and the proposed Swansea bay tidal lagoon. With the right support and if a strong message is received from the UK Government in support of marine energy, the developers who are actively involved in Wales have indicated an expected investment of £1.4 billion. The total direct investment in marine energy in Wales during 2015 was £45.4 million. By 2017, this had risen by more than 50 per cent to £68.3 million.
Now, Jeremy Miles and Lee Waters talk about innovation as a driver for sustainable growth in the blue economy. We’ve secured over €100 million of EU structural funds to enable innovative developer-led projects that will help drive economic growth in the sector. I do believe that we have a window of opportunity over the next five to 10 years to develop and grow a marine industry in Wales based on the natural resources that we possess. We have opportunities in the tourism sector, particularly the cruise sector, and as has been said, next year has been designated the Year of the Sea in recognition of its value to the visitor economy and also to other crucial economic sectors.
We have, for example, opportunities in our ports. Each year, Welsh ports handle 9 per cent or around 53 million tonnes of UK freight. They provide vital facilities for cruise ships, marine leisure activities and the fishing industry. These diverse and fundamental trades support almost 11,000 jobs at the ports, and sustain other vital parts of the economy. In fact, we have numerous examples that demonstrate how we are already leading the way in marine renewable energy. In north Wales, we have Minesto UK, which recently announced its intention to scale up its Holyhead Deep project by increasing the planned installation of its tidal array to 80 MW. And in south Wales, we have the Ocean Wave Rower scheme. That particular scheme will generate energy from sea waves off the Pembrokeshire coast.
So, from an economic perspective, we recognise how marine energy projects can be catalysts to securing long-term legacy benefits, particularly as we move towards a low-carbon economy. We must gain maximum economic benefits from these projects, and we’ve consistently stated our commitment in principle to doing so by supporting the development of a sustainable tidal lagoon industry in Wales. We’ve conveyed this message to the marine industry. We’ve shown the support that we can give them. We’ve also shown how Wales is ideal for such developments, and we continue to do all of these things.
But the blue economy goes far wider than that, of course, just as Jeremy Miles, David Rowlands, Jayne Bryant and others have rightly said. Many of our industries rely on the sea. We have our ports in Milford Haven, Port Talbot and Holyhead, which contribute significantly to the Welsh economy. And we have Airbus, which transports its wings along the Dee estuary. We have numerous businesses in our successful enterprise zones in Pembrokeshire and Anglesey and, of course, Tata Steel imports raw products required for steel making by sea into Port Talbot, and is capable of exporting steel products as well.
Turning to your call to bring forward an ambitious marine plan, the Cabinet Secretary for Environment and Rural Affairs has already said that she will be consulting on a draft marine plan for Wales this very summer. The consultation draft, which is scheduled for release shortly, will highlight the significance of our tidal resources and provide an integrated framework for the sustainable development of our seas. It will explore options for tidal lagoon policy and guidance on wave, wind and tidal renewable energy, and it will include strong support for marine renewable energy projects. It could include maps showing areas of greatest potential, and policy that safeguards our marine assets for future potential use, because as Jeremy Miles has also rightly said, there can be no blue wash in Welsh Government’s blue economy. We now, of course, are waiting for the UK Government’s response to Hendry’s report.
My colleague the Cabinet Secretary for Environment and Rural Affairs is also setting up a Welsh group to consider that report. Yes, I give way.
I thank the Cabinet Secretary for giving way. In discussing marine plans, and I’m conscious that we do have time because I can see some colleagues complaining about the way that we do it. Could I ask him—? In bringing forward those marine plans, to do it on an all-Wales basis is quite ambitious and I wonder whether, in consulting on it, both he and the Cabinet Secretary for the environment ought to look at those areas where the conflicts are potentially greatest, and where the greatest work needs to be done—those areas where dredging, energy, et cetera, et cetera, are most intense and where the potential is greatest, but also the resolution of them through marine plans could be the most satisfying at an early stage.
The Member is absolutely right. In my early discussions with the Cabinet Secretary for the Environment and Rural Affairs, this very issue was raised as a priority consideration, because we must ensure that those areas with the greatest potential are those areas where there are the quickest wins in terms of being able to bring along the entire community and all considerations with them.
I’ll take Members’ points very briefly. I think Rhun ap Iorwerth made a number of valuable contributions regarding Hendry’s report, which, of course, identified that the Welsh Government’s primary role in supporting the industry will be in supporting the supply chain. Also, Vikki Howells’s point that Welsh Government has a very significant role to play in ensuring that the people of Wales have the skills to fully exploit this growing sector of the Welsh economy. More broadly, in developing our cross-cutting strategies, we’ll be considering how we can better support the sustainable use of our natural resources, so that they deliver economic, social and environmental benefits to our people and our communities.
Presiding Officer, to conclude, we cannot be any clearer in our support of the blue economy and I can assure you that the support will continue.
Before I call on Angela Burns to respond to the debate, I just want to say that we are aware of the disturbing events at Westminster. I have spoken to our security personnel here in the Senedd and we are taking appropriate steps, and I will be keeping this matter under review as the business of the afternoon progresses. I’m sure that all our thoughts are with our colleagues and all involved at Westminster at this very difficult time. Angela Burns.
Thank you very much, Presiding Officer, for your reassuring statement on the matters that you have just mentioned.
Thank you, Jeremy Miles, for pulling us all together—a disparate group of people—to bring forward a debate on the blue economy. I’m very grateful that you have done so. Our oceans are probably the single most important resource, which is why, in this debate, we are calling on the Welsh Government to bring forward an ambitious marine plan to support sustainable development of the blue economy and to make it a central plank of the new economic strategy.
Evaporation from our oceans turns to rain that waters us and all of life and refreshes our planet. The oceans have enabled trade and fed us for thousands of years, and rightly, now, as populations grow, with resources becoming more scarce and the challenges of climate change and increased food demands, it is only right and proper that we should turn to our coastlines and our seas and seek to maximise the opportunities afforded by a blue economy.
I felt that some of our contributions today, whilst I did not agree with all of them, it is very good to have that debate, because it is by having debate and honing our ideas and our thoughts that we will come up with a really good plan that can move us forward and I’m very grateful for much of the contributions. I thought that Jeremy made a very clear and compelling reason as to why we need to improve and keep sustainability at the heart of our blue economy.
I’m very glad that Jayne and I think a couple of other people—forgive me if I don’t recall all your names—started to talk about ports, because I was beginning to be slightly worried about the lack of mention of our 32 ports in Wales. We have seven major ports. They handle, as the Cabinet Secretary has said, a substantial amount of tonnage. They directly employ almost 3,000 people and support a further 11,000 to 12,000 jobs. I do think that we have an opportunity with our ports to use them as a locus for the development of our blue economy, because we must get away from the idea that ports equal old-fashioned industry. If I look at Milford Haven port in my own constituency of Pembrokeshire, it’s a trust port, I would argue; it’s a national asset and it’s a growing centre for the blue and green economies. The businesses along the Milford Haven waterway have a strong engineering and tourism pedigree and I think, again, it’s really important to recognise how many of these small businesses—the pipe fitters, the welders, the renewable energies, the makers of turbines—they all stem—. They need a key anchor company. All around Wales we need key anchor companies that can act as that locus for the development of our marine economy. I’d like to, for a few moments, though, Cabinet Secretary, just ask you—and I know you can’t really reply, but I just picked up about the fact that the Cabinet Secretary for the Environment and Rural Affairs will be going out to consult on a marine plan, on a blue economy plan, if you like. Well, I would like to argue with you that, unless it has a strong element of a business focus in it, we will miss an enormous number of tricks. Because it is business that we need to drive our economy. We do cleave in this Chamber to green economy all the time, but I would like to say that there are others out there who are way ahead of us on this. Just look to Scotland, look to the Orkney Isles—they claim to be the marine energy island for the United Kingdom, and we can’t just be an also-ran or a ‘me too’. So, I would like to ask you, Cabinet Secretary, to ensure that, when the Cabinet Secretary for the Environment and Rural Affairs goes out for consultation, your department is heavily involved in this and we look at it with the twin angles of building sustainable, marine-based—we’ve talked about tidal lagoons, we’ve talked about the fisheries, everything—. But we actually understand that, unless it develops or delivers real economic benefit, unless people can get a job out of it, earn some decent money out of it, and enjoy living by our coastlands and our seas, then we will have failed. I would not like to see the business element being missed out of that equation and that we end up with something like the green economic strategy that I think was lauded in the second or third Assembly of which I’ve been a Member, and which was basically written by a man on the back of a fag packet in two days. We could do something really, really good with this. I’d just like to finish by—
Will you take an intervention?
Absolutely. Of course, Oscar.
Thank you very much, Angela. I think Northern Ireland we should learn some lessons from—and Ireland. The 200 mile under sea land, actually, was given by the United Nations to the Irish nation to explore the benefit of under sea water. There’s a lot of treasure there for us to also explore. Thank you.
I think you make a very good point. Just to reinforce the business case, Cabinet Secretary, the Milford Haven waterway, as part of the Swansea bay city deal, has got a massive funding project to design the Pembroke Dock marina—it’s to do renewable energy device design, fabrication, testing. The sector that they are aiming for is absolutely vast, they’re looking at bringing a huge amount of good quality, high-quality jobs to that particular area. It’s a very, very clear business plan that we already have an established port, the third largest in the UK, the biggest in Wales, and a very clear focus. The second area is the Destination Pembrokeshire—the development of the Milford Haven waterway, the building of houses and shops and retail, cinemas, fantastic sports facilities, all, again, centred around having those couple of big anchor companies where you can build a worthwhile, strong and sustainable economy, looking in a creative way. So, I just want to re-emphasise again, when you look across the world, there are many nations that have great examples of how they use their seas to really develop a sustainable marine economy or blue economy, and I’d ask you, Cabinet Secretary, to ensure that your voice is not lost in this. Thank you.
The proposal is to agree the motion. Does any Member object? The motion is therefore agreed in accordance with Standing Order 12.36.