9. 8. Welsh Conservatives Debate: The Welsh Economy

Part of the debate – in the Senedd at 4:08 pm on 24 May 2017.

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Photo of Nick Ramsay Nick Ramsay Conservative 4:08, 24 May 2017

I’m pleased to support this motion, and in my contribution I’d like to focus on the first part of the Welsh Conservative motion relating to the Severn crossings. The Prime Minister’s commitment to scrap tolls on the Severn crossings is potentially a game changer for the Welsh economy, delivering, as Dai Lloyd referred to, a £100 million boost, potentially. It’s also a very exciting prospect for my constituents in Monmouthshire, which has close cross-border links with the south-west of England, and Bristol in particular—links that have been hampered, suppressed by the tolls for far too long.

Of course, as we all know, the tolls were part of the original agreement with the company that built the second crossing, which opened in 1996—21 years ago, now—Severn River Crossings PLC, and designed initially to cover the cost of construction and maintenance for the new bridge and the existing Severn bridge. But it is the imminent expiry of that agreement that now allows the bridges to come into public ownership, or for the new bridge to come into public ownership and for the original bridge to revert to public ownership. Of course, one of the obvious questions has been, ‘Who will now fund the maintenance of the bridges?’, so we welcome the confirmation that funding will be absorbed into overall maintenance costs for the M4 motorway.

A 2012 report estimated that removing the tolls would boost productivity by the order of 0.48 per cent, and increase the gross value added of south Wales by around £107 million. We know the problems that Wales has had with GVA; we’ve mentioned it many times in this Chamber—the Welsh Government doesn’t like us talking about the GVA figures, particularly in south Wales and the Valleys. We know what problems there have been with GVA, so this decision, or proposed decision, by the UK Government must be welcomed by all parties in this Chamber.

Back in my constituency, in my corner of Wales in Monmouthshire, Monmouthshire County Council has also noted the potential increase in tourism that the removal of tolls could facilitate. Councillor Bob Greenland, cabinet member for innovation, enterprise and leisure, has cited survey evidence that suggests that 22 per cent of residents said they would expect to make trips to Wales in the next 12 months if the tolls were removed. When you consider that tourism was worth £187 million or thereabouts to the Monmouthshire economy in 2015, you realise just what that increase potentially means for people living in my corner of Wales and for the wider south Wales economy.

Of course, scrapping the tolls has received massive cross-party support. In a symbolic vote in this Assembly held back in November 2016, the abolition of the tolls was unanimously supported. So, we do now need the Welsh Government to work closely with the UK Government to deliver the full benefits of this policy. We often talk about the need for the UK Government and the Welsh Government to work closely together, and this is a situation where that close working relationship can really deliver benefits for south Wales and the Welsh economy in general.

Other members of my group and, indeed, other Members of the Assembly will speak, I’m sure, about the benefits of the north Wales growth deal and other parts of Wales, but I would point out, as Dai Lloyd referred to, that there are other bridges in Wales—I think you mentioned the Cleddau bridge—that are currently run for profit. So, we believe that the Welsh Government should look at ways of reducing this burden to the economy in the future, so that all parts of Wales, not just south-east Wales, can benefit from toll-free travel. It’s all well and good for the Welsh Government and other parties, indeed, to talk about the need to reduce profit when it comes to the Severn crossings, but what about those other bridges? When we look across to Milford Haven and we look across to other parts of Wales, what about spreading the benefits of that fairness of scrapping tolls to other parts of Wales? I can see the Cabinet Secretary grinning over there, but I think this requires more than grinning, it requires action from the Welsh Government to—[Interruption.] You have a very nice grin, Alun, but, unfortunately, it’s not enough to deliver full economic regeneration across Wales, no matter how much you sometimes think it is.

For now, let us welcome the UK Government’s commitment to abolish the tolls on the Severn crossings and look at ways that Alun Davies, the Minister and the other Ministers can work with the UK Government to support the delivery of this policy and work to maximise the full economic benefits to Wales now and in the future.