9. 8. Debate on the Economy, Infrastructure and Skills Committee Report: ‘On the right track? The Rail Franchise and South Wales Metro’

Part of the debate – in the Senedd at 3:26 pm on 27 September 2017.

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Photo of Ken Skates Ken Skates Labour 3:26, 27 September 2017

I would agree entirely that the Welsh public would expect nothing less of us, and that will certainly happen. I’d just like to also address a number of points raised by Vikki Howells, Dawn Bowden and David Melding, and also Jeremy Miles. Both Vikki Howells and Dawn Bowden raised the important point that the metro must be a piece of infrastructure, a public service, that spreads wealth-creating opportunities across all communities. It is a multimodal service, and will comprise more than just rail services. Where rail services are unable to reach, we anticipate new bus services to be able to carry passengers to and from services and to and from places of work. And, further, through reforms to local bus services, we would aim to improve the delivery and the accountability of bus service managers to the communities that they serve.

David Melding raised the point that many of our railways across Wales, and indeed the UK, were designed for freight, especially the movement of industrial goods to ports, and also munitions to and from factories at times of war. We have an ongoing programme of liaison with businesses, such as Tesco and Aldi, as well as with freight operators, to discuss the modal shift opportunities and how we can help, including the potential for public subsidy.

However, there are major challenges in persuading the market to shift to rail generally, and specifically to Wales, because of the relative lack of critical mass, even in south-east Wales. That said, accommodating existing freight needs and future growth in freight is an integral part of the procurement process for the next franchise, including metro.

Jeremy Miles and Hefin David made important contributions, offered a fair, accurate, and objective analysis of the frustrations that we have encountered over recent months, and also identified the need for us to have the powers that we’ve been pressing for and will continue to press for. Should we be successful, in particular in seeing the repeal of section 25 of the Railways Act, as has been the case in Scotland, we would take steps to ensure that future franchises are developed on a not-for-profit model. Whilst I recognise the obstacles and the risks that need to be overcome to achieve my ambitions, it’s important to appraise the benefits that vertical integration of the core Valleys lines can provide. It opens a range of long-term opportunities for us to develop a railway that meets the needs of passengers and provides important links between communities and connectivity to employment opportunities.

So, while reflecting back on the hard work that has been done to date, there is more work to be undertaken if we are to realise our heroic ambition. This is the largest procurement exercise the Welsh Government has undertaken, and I realise the challenges this brings, including the complex negotiations that remain, but I hope that I can rely on your continued support in delivering a vastly improved transport system that will benefit every citizen in Wales.