5. 4. Debate by Individual Members under Standing Order 11.21(iv): The Blue Economy

Part of the debate – in the Senedd at 3:48 pm on 22 March 2017.

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Photo of Ken Skates Ken Skates Labour 3:48, 22 March 2017

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.