2. 1. Questions to the Cabinet Secretary for Economy and Infrastructure – in the Senedd at 1:39 pm on 21 June 2017.
Questions now from the party spokespeople. Conservative spokesperson, Suzy Davies.
Diolch yn fawr, Llywydd. Good afternoon, Cabinet Secretary. Under the Historic Environment (Wales) Act 2016, from 30 May this year, local authorities can register a local land charge to protect their position in the recovery of costs and interest for emergency repairs to listed buildings. Obviously, I have the Swansea Palace Theatre in mind, which has benefited from that in the past, but there are other buildings at immediate risk in other Members’ constituencies and regions as well. When councils were setting their budgets this year, did you receive or did you seek any indication that they were more willing now to proceed with emergency repairs, confident that this new power would help get the reimbursement?
This power was designed to enable local authorities to do all they can to protect the historic environment in those areas of Wales that they represent. I’ve not had an opportunity yet to ascertain whether it’s been effective in the short period that it’s been available. But it was our expectation, based on the consultation that we had with stakeholders, in particular with the Welsh Local Government Association, that local government was satisfied that these tools would enhance their position in being able to protect the built environment.
Thank you for that answer, and I hope that the confidence is justified. It might be worth, six months down the line, asking whether they’ve decided to use those powers on the basis that they’ve got them and that they are there for their protection.
Moving now to the national library, obviously, it’s got an expanding role at the moment, taking on the BBC archive and helping this Assembly approach the huge task of archiving our own work. I think also that its outward reach is much more visible than it used to be—the online service that it’s producing is burgeoning. I’d like to just briefly draw Members’ attention to the new website, which allows free access to over 450 Welsh journals published since 1735. So, if you’ve got five minutes today, you’ll find that it turns into five hours, so watch yourselves.
The library benefits, of course, from public investment, and I acknowledge the recent additional money that it’s had in the last budget. But no investment is condition free and I understand that you’re looking for the library to attract more visitors. By that, will you accept that more online visitors would count towards an overall total, or are you looking at visitors through the door? Because, as we follow that new funding, and maybe it doesn’t appear in next year’s budget, we’d like to be absolutely certain as to the reasons why.
The Member raises a very good point actually, because one of the key strengths of the national library is the exemplary level of skills in digitisation that is so apparent at the Aberystwyth library. In terms of visitor numbers, I wish to see an increase in both online visitors and visitors to the actual library itself. The advantage of online visitors is that they can be used to push up the income that can be generated through the purchase of digital archives. That is proving to be one of the primary areas of growth in activities for the national library.
In terms of driving up visitors to the actual library itself, I do believe that the outreach work, in terms of education, has a magnificent effect on schools and colleges and universities, but it would be advantageous for more people to visit the library, not just because it is a unique and magnificent place, but also because commercial activities of libraries, through sales of goods purchased, is incredibly important in terms of the revenue that it raises.
Thank you very much for that answer. I’ll see what happens this time next year.
Finally, the Year of Legends, of course, has hopefully sparked great interest in Wales as a film and TV location. I’m already aware of their back catalogue, so I don’t particularly want to hear about that, but I am keen to know what Welsh Government is doing to support the future for the two main film studios in my region.
The creative industries in Wales are an incredible success and we should applaud the leadership within the sector. The sector is growing faster here in Wales than it is anywhere else in the UK, and that’s down to a relentless focus in promoting Wales and the skills within the sector for, in particular, television drama. In the future, we are looking at a huge slate of activity through Bad Wolf. We are also looking at utilising some of the greatest outdoor facilities that we have across Wales as filming space. In terms of other studios, it is our understanding that there is considerable demand for studio space, but our particular focus now is on making sure that we have the crews available to meet the demand. Demand is exceptional right now. Our focus is on making sure that we’ve got the individuals with the skills who can ensure that television and film production is achievable.
The UKIP spokesperson, David Rowlands.
Diolch, Llywydd. Continuing on the earlier theme of staging events, Cabinet Secretary, would the Cabinet Secretary update us on his proposal for the construction of a multipurpose arena with a capacity of, perhaps, 20,000, and which would host a multiplicity of smaller events?
I believe that the facility the Member refers to is the proposed Cardiff arena. This is not a proposal from Welsh Government. I think there’s been some mischief made by one of the opposition Members—not in the Member’s party—regarding the proposal and who it comes from. It’s actually a proposal Cardiff council is looking at at the moment, and they’re examining the potential of a number of options. It is my belief that, as we seek to host more events, as we seek to attract more business events to Wales, we do require twenty-first century facilities. And I do not believe it’s in the interest of our nation to have politicians turn the regions against each other, when talking about what facilities we need.
In my view, we need a major arena in the south, and Cardiff is perfectly situated, as the capital city, for an arena. But equally, I understand the need for upgrades to facilities across Wales, and for that reason, my officials met with Wrexham Association Football Club officials, just last week, to discuss the Racecourse ground. They’ve met with a number of sports and cultural organisations across the length and breadth of Wales to ensure that we do have facilities fit for the twenty-first century.
Well, I understand that we do have arenas in Cardiff that host something like up to 80,000 people, but we’re talking about major, say, musical events et cetera. Would the Welsh Government be open to the possibility of helping to fund a major arena for this sort of thing, because it can’t be right that in Cardiff city, which is one of the fastest-growing cities in Europe, we have Welsh people having to go to Birmingham or Manchester or London in order to experience some of the best entertainment—musical entertainment—available?
We do already have a good number of facilities within the capital city and, of course, we will soon have the biggest and best convention centre in the south-west of the UK, but there remains a gap in the market that a new arena could address and could fill, and my officials continue to work with Cardiff council as they scrutinise various options, and in due course, I’m sure that a clearer picture of what it is that Cardiff city council would like to achieve for Cardiff will become apparent.
Plaid Cymru spokesperson, Adam Price.
Could the Cabinet Secretary update us on where we are in terms of a decision on the Circuit of Wales? The First Minister said, on 6 June, that he expected a decision to be made by the Cabinet within two weeks—therefore, by yesterday. If it hasn’t proven possible already, could he give us a date for when that Cabinet discussion will happen, and can we still expect an announcement of that decision before the end of the month? And could he also say if he’s decided whether he’s prepared to share the external due diligence that has been conducted with opposition party spokespersons, as we’ve requested? A positive decision will, of course, bind future administrations of different political colours, potentially, and so it would only seem appropriate to involve other political parties in the decision making over this project. I understand from the company that they would have no objection to this being done on a commercial confidence basis.
The decision will be taken by the Cabinet next Tuesday, and it’s my intention to ensure that Members are informed of that decision as soon as possible thereafter. In terms of the due diligence reports, there’s not just one; there are several. This an issue that we’re currently considering: whether the due diligence can be published, not just for Members but for a wider audience. It is something that, of course, we would wish to discuss with the developers themselves.
I’m grateful for that answer. Could the Cabinet Secretary set out the criteria by which he will arrive at his final recommendation to the Cabinet? I understand his demand of a 50 per cent or less Government guarantee and named investor term sheets has already been met. The external due diligence they referred to has covered a wide range of areas: economic impact, fit-and-proper-person test and various other issues. He’s presumably now seen that due diligence. Can he say if it’s identified any major issues that are a cause for concern? Does he now have an independently verified figure for job creation, and can he tell us what it is? Has the project been subject to any other review, external or internal, of which he has not previously informed us? And given that we’ve had six years of deliberation on this project, can the Cabinet Secretary assure us that when he gets up next week it will be a case of not another delay or a deferral with a further change, potentially, in the Government’s evaluation criteria, but a final and definitive decision in relation to this project?
I think the First Minister and I have been clear that, in determining the Circuit of Wales, the project must stand up on its own two feet; it must deliver for the people of Blaenau Gwent and the Heads of the Valleys; and it must meet the criteria that we set out last summer, where at least 50 per cent of the finance comes from the private sector and at least 50 per cent of the guarantees, or the risk, is shouldered by the private sector as well. We need to examine the value for money, the jobs that are likely to be created, and the viability and sustainability of the project, not just during construction but for several decades. All of those are being considered as part of the work that’s taking place right now in the lead-up to the Cabinet decision next week. The project, as the Member is aware, has evolved many, many times during the last five to six years, and whilst previous reviews have been carried out, and appraisals have been carried out, they would relate to previous business models.
If we could move, finally, to another major project, could the Cabinet Secretary update us on the compound semiconductor foundry and cluster project announced as part of the Cardiff city region city deal? I understand that the city region team are in negotiation with your own property team over the acquisition of the packaging and testing building on the old LG site, which has been empty since 1996. Now, this project, linked as it is, according to industry sources, with a major IQE contract for its vertical-cavity cell technology, which will be intrinsic to the 3D sensing camera in the new iPhone 8 has huge potential—transformative potential—for the Welsh economy. I’m told that haggling and foot-dragging by Government over the terms of the acquisition of this empty building has meant the company has now had to prepare a plan B, which would involve manufacture at its facilities in North Carolina, with a consequent loss, potentially, of thousands of jobs to the Welsh economy. The fourteenth of July—the next meeting of the Cardiff city region Cabinet—is the absolute deadline for a decision. So, can the Cabinet Secretary assure us it’s a deadline that we will absolutely not miss?
This is one of the most important projects on my desk at present. It’s a huge opportunity, not just for Newport, not for the city region, but for the whole of Wales. This represents our move, our transition, to the economy of the twenty-first century, where automation, where robotics, where information technology will become ever more important. My officials are in contact with IQE, but I am personally as well, with a view of ensuring that this incredible opportunity is delivered for Newport and for the rest of Wales.