– in the Senedd at 3:22 pm on 23 January 2018.
We move on to a statement by the Cabinet Secretary for Economy and Transport on Transport for Wales, and I call on the Cabinet Secretary for Economy and Transport, Ken Skates.
Diolch, Dirprwy Llywydd. I welcome this opportunity today to update you on a number of developments with Transport for Wales. Transport for Wales was established in 2015 as a wholly-owned, not-for-profit company to provide support and expertise to the Welsh Government in connection with transport projects in Wales. My aspiration, however, for Transport for Wales is that it should develop and take on a much wider range of transport functions, similar in nature to the operations of Transport for London.
Traditionally, different modes of transport have been considered distinctly, with separate policy, separate funding and separate providers. Whilst this reflects, arguably, how the industry operates, it does not reflect the way that people think about their journeys. When planning the commute to work or a long-distance trip, people think about the cost, the convenience and complexity of the entire door-to-door journey.
To maintain and improve services in a changing world, and with challenging priorities, there is a need to consider innovative delivery arrangements for transport functions, including those that could generate external income streams. 'Taking Wales Forward', 'Prosperity for All' and the economic action plan identify the need to drive a step change in the way we understand, the way that we plan, and the way that we use and invest in transport here in Wales.
Together with the improved devolved settlement offered through the Wales Act 2017, the Welsh Government will put in place a framework for the delivery of transport services that can improve network quality, frequency, reliability and punctuality, and provide more integrated and reduced carbon public transport. Utilising the new powers for rail that are also being devolved, we can now more than ever ensure that people are central to transport policies here in Wales, so that we can deliver a safe, efficient, cost-effective and sustainable transport system for the benefit of the whole of the country.
The economic action plan commits that Transport for Wales will work with the Welsh Government’s new regional teams, the emerging regional transport authorities, and partners to create an integrated public transport network, covering the rail and bus networks. Following the successful model of acquisition of Cardiff Airport, our aim is that the public transport network will be increasingly directly owned or operated by Transport for Wales.
For the first time, we have committed to a five-year programme of transport capital funding through Transport for Wales for both transport maintenance and new projects. This will ensure that these projects will be delivered in the most efficient and effective way, and with a headline target of driving 15 per cent to 20 per cent efficiencies across the five-year investment portfolio for new projects, which means we can make our funding deliver even more. This will also enable the construction supply chain to invest with confidence in the future in terms of both capital and skills. Furthermore, wherever an acceptable business case can be made, the economic action plan commits that the Welsh Government will seek to consolidate current supply arrangements directly into Transport for Wales.
In relation to the new Wales and borders rail service, we have made significant progress with the UK Government since last summer. The Secretary of State for Transport and I have discussed and reached agreement on the way forward on a number of issues and I am pleased that officials are making good progress. Chief among these issues was the financial implication of a complicated devolution context for rail. Discussions between officials, including from Her Majesty's Treasury, continue and the process for transferring the core Valleys lines railway asset is taking shape.
The agreed programme of activity has led to the procurement process for the new service continuing at pace and in line with our plans. Arriva Trains Wales withdrew from the bidding process back in October. As was stated at the time, it is not uncommon for bidders for major projects to withdraw during the tender process and Arriva were clear that their withdrawal was due to their own commercial reasons. The recent Carillion issue has been discussed in this Chamber and I issued a written statement on 17 January.
Transport for Wales had received three bids to operate and develop the next Wales and borders rail service and metro on 21 December last year. They'll be continuing to evaluate these bids over the coming months. By the end of May this year, our process will culminate with the award of the first rail services contract made here in Wales. This follows intensive evaluation and post-tender discussions, led by Transport for Wales, to ensure the contract fully captures the quality service and commitments offered at final tender.
Both the Welsh Government and Transport for Wales are geared up to deliver against these dates, allowing proper time to transition to a new operator and a new way of operating through Transport for Wales in October. However, it must be remembered that until the full transfer of powers has taken place we will still require the timely approval of the UK Government to allow us to both reach preferred bidder stage and to award the contract.
The UK Government plans to lay an Order in the UK Parliament shortly to transfer rail functions to the Welsh Ministers, and, as a fall back, we have also agreed an approach to put further legal agency agreements in place to enable us to award, manage and deliver the next Wales and borders rail service. It remains imperative that the UK Government works at pace with us to deliver against the agreed programme.
Transport for Wales will shortly begin the process of appointing infrastructure delivery partners that will work with the operator and development partner to deliver areas such as station improvements, electrification and signalling for the south Wales metro. Transport for Wales is working closely with Business Wales to make opportunities available to local small and medium-sized entreprises and third sector enterprises. They have already hosted a number of well-attended awareness events relating specifically to the IDP procurement, most recently in Wrexham earlier this month. This is one illustration of how Transport for Wales is entering a new stage of mobilisation to allow it to proactively manage both the new rail service and the different metro schemes.
James Price is in post as chief executive officer, bringing over 15 years of experience of operating and delivering at a senior level. In addition, we have recently appointed independent non-executive directors Martin Dorchester and Nick Gregg to the team, addressing recommendations that have made by the Auditor General for Wales. Martin Dorchester is an experienced executive, having been group CEO of one of the largest logistics companies in Scotland, and Nick Gregg has been appointed as chair of the Transport for Wales board, initially for a period of 12 months. Nick has the skills required to be a highly successful chair, and brings extensive business experience to the board. Transport for Wales will shortly advertise for two further independent non-executive directors to join the board, and this will ensure a diversity of experience and views in decision-making.
I am mindful of the need to make sure that Transport for Wales can deliver effectively for the whole of Wales, and, following my announcement last month of the intention to set up a Transport for Wales business unit in north Wales, I have now instructed Transport for Wales to bring forward proposals for a north Wales office, and I expect this to be delivered at pace too. Meanwhile, in south Wales, good progress is being made towards the construction of the Transport for Wales offices in Pontypridd, led by Rhondda Cynon Taf County Borough Council, with whom we continue to work very closely. Looking ahead, once the new operator and development partner has been appointed, we will enter a period of mobilisation for the new service. Transport for Wales will work with the successful bidder to help ensure a seamless transition from the current franchise to the new arrangements, in the interests of passengers and staff. The travelling public should see no disruption to services in October when the new ODP takes over. Then, over the coming months and years, Transport for Wales, working with the operator and development partner, will transform the transport network, putting the passenger at the centre of their plans.
Can I thank the Cabinet Secretary for his statement this afternoon? Of course, Transport for Wales is currently managing the procurement of the new Wales and borders rail franchise. The oversight of the awarding of this contract, I would argue, is the most important transport-related project managed by the Welsh Government to date.
Going forward, the Cabinet Secretary has outlined an ambitious expansion of the work of Transport for Wales, as he's outlined in 'Prosperity for All', the economic action plan. Now, I would support the expansion of Transport for Wales, over time. There are I think some immediate serious questions that need to be asked regarding the current level of capacity that Transport for Wales has at its disposal. I'm sure the Cabinet Secretary will agree with this, but without the right capacity and skills, Transport for Wales of course runs a real, serious risk of not being able to effectively manage its current remit, nor any expanded role. So, in that guise, can I ask the Cabinet Secretary to perhaps outline some of the staffing capacity, how many current full-time employees does Transport for Wales currently employ, how many of these individuals currently have full-time contracts, and what the level is of external consultants working and employed by Transport for Wales?
I wonder whether you could also expand on your plans for the workforce, going forward, of Transport for Wales. What timescales have you got linked to additional staff coming in to Transport for Wales, and do you expect this expansion to take place in the coming months ahead as well? You've also mentioned that the chair of Transport for Wales, Nick Gregg, has been appointed for an initial 12-month basis. Can you commit to a pre-appointment hearing, prior to Mr Gregg, or any other candidate, being made a permanent chair of Transport for Wales, perhaps via a committee of this Assembly?
And finally, public confidence, of course, in Transport for Wales is absolutely essential if the organisation is to succeed going forward. Now, just prior to you standing up to give your statement, I did a Google search of 'Transport for Wales', and noticed direct contact details now on the Government's website to Transport for Wales, which weren't previously there. So, I'd be grateful if you could perhaps detail and provide some confirmation that Transport for Wales does now have a public-facing function, which it didn't have previously. Perhaps you could also confirm whether contact for Assembly Members is via yourself, or whether Assembly Members can contact Transport for Wales staff directly and meet with them directly, rather than, of course, going through yourself.
Can I thank Russell George for his comments and for his questions? I'll deal with that final question first. I've actually asked today for Transport for Wales officials to offer a briefing session to Assembly Members and a familiarity session as well so that you're able to make direct contact with individuals responsible for various areas of delivery within the organisation. It is now public facing, with the logo, the staffing element of Transport for Wales is building up, and the whole design of Transport for Wales is being delivered with the intention of offering full agility and flexibility in order to scale up or, indeed, scale down to meet project needs. The workforce within Transport for Wales should be demand led, and this will include the recruitment of the skills that are necessary from the marketplace quickly, rapidly, and it will be an incredible resource for Welsh Government to call on. The way that we've configured Transport for Wales provides the opportunity for Welsh Ministers to take a bespoke approach to the transfer of control and risk depending on the specific project, the specific expertise that's required, the timescales, and also the desired outcome.
I very much welcome the Member's support for the idea of expanding out the role and remit of Transport for Wales in the years to come. A business case is actually being developed right now to determine what opportunities Transport for Wales could offer Welsh Ministers in delivering transport infrastructure and services, including the cost benefits to the taxpayer in our country. This might include bus services, it could include rail services, the construction of capital transport and improvements for walking and cycling. It could include capital projects for rail and, of course, for roads as well. It might also, though, include branding and marketing of services, and I know from my time on the backbenches that this is very much something that passengers would value. There is a plethora of transport service providers, all with their distinct logos, websites and information pages. Transport for Wales could offer a single brand and a single point of contact and resource, and I think that would be something that passengers across the length and breadth of Wales would welcome.
In terms of the contract for the franchise, it is huge, as the Member says. It's the biggest procurement project that the Welsh Government has entered into since devolution, and it requires a top team of skilled executives. James Price brings with him immense experience and intelligence, and he will be backed by a board that is skilled and experienced. The Member is right; Nicholas Gregg has been appointed to begin with for one year in order to allow the recruitment process for a new chair to be completed in a timely fashion. Now, whilst appointments to the Transport for Wales board are not regulated public appointments under the code of governance, given the profile of Transport for Wales, the Welsh Government has decided that it would be appropriate for the recruitment process and materials to comply with the public appointments code of governance.
I'm grateful to the Cabinet Secretary for his statement. In it, you said that the UK Government plans to lay an order to transfer rail franchising functions to Welsh Ministers shortly. Could you say a little bit about—how shortly is shortly? And the fallback that you refer to if those functions are not transferred—under which circumstances can you envisage that having to be utilised? Is it the circumstance in which you're not able to reach a final agreement on some of the issues that you refer to in your statement where work is ongoing, and, indeed, some of the further issues that were covered in the UK transport Secretary's letter to you in August? Could you shine a bit more light on how far away are you from reaching agreement?
You said you've reached an agreement on a way forward, which can mean a number of things, but specifically, has an agreement been reached with the UK Government as to who will be responsible for the section 30 operator of last resort? Have you reached an agreement on the quantum of funding that you referred to in your statement, around which there's been some disagreement with the UK Government, or the means by which that figure can be worked out? Have you reached agreement over a protocol of how the Welsh Government will exercise powers over English railway stations served by the franchise?
Finally, you mentioned the fact your aspiration is that Transport for Wales will be responsible for as much as possible of the public transport infrastructure as a public sector body. Could you say what specific representations the Welsh Government have made to amend the Railways Act 1993, which has been amended in the case of Scotland, giving them powers to have a public sector franchise operator, in effect? That hasn't happened in Wales. Have you made specific representations in that regard to the UK Government?
Can I thank the Member for his questions and say at the outset that we've been absolutely consistent in calling for amendments to the railways Act to be made? I believe it was also part of the UK Labour Party's manifesto that would enable us to see public bodies bid for current franchise opportunities and future franchise opportunities as well. That consistent demand by the Government has been rejected, but we continue to press for the Act to be amended.
Constructive discussions have taken place on a whole raft of measures that need to be agreed prior to the functions Order being laid. The UK Government has delayed delivering that Order—tabling that Order—in a timely fashion, but we have been assured that that will take place by May, following the agreements that are due to be completed next month on the funding of the franchise, and also on the transfer of power over the assets. This will include a whole range of agreements that have previously been acting as a stumbling block for progress to be made, but progress, as I say, is being made in a timely fashion now.
In terms of cross-border services, this is something that I'm particularly keen to ensure can be resolved amicably, and I and the Secretary of State have been able to agree on ways that will ensure that passengers on the English side of the border have equal treatment and an equal experience in terms of the journeys that they take on the trains in the next franchise, so that nobody is left disadvantaged under the next franchise. This is something that is particularly relevant given the mass of train journeys that take place in and out of Wales on a cross-border basis.
I would happily bring forward, after the discussions with UK Government have concluded in February, the affordability issues presented as a result of the outcome of the discussions that are taking place. We have engaged the UK Treasury, we've also engaged the Secretary of State for Wales in our discussions, and I'm confident that by the end of February, we will have concluded those discussions in a satisfactory manner.
Cabinet Secretary, thank you for the statement—hopefully, the first of many more. Transport for Wales, of course, is very tied up not just with the rail franchise but also with the metro; in fact, the two very much go hand in hand. Can I first of all welcome the basing of Transport for Wales in Pontypridd? The partnership between Welsh Government and Rhondda Cynon Taf council is already a significant catalyst for the regeneration of the area. There's also the proposals that may lead to jobs, training and apprenticeships with regard to the maintenance of rolling stock at places like Taff's Well, and also the development of and Welsh Government funding for apprenticeships in Coleg y Cymoedd related to railway engineering.
But can I say from your report that there are a number of things I'd like you to consider that concern me, to some extent? One is the five-year capital funding that's referred to. If you could, perhaps, provide a bit more detail about that, because this is obviously an area of considerable concern. Secondly, the area of 15 to 20 per cent efficiencies—precisely what that means. We know that when the Tories talk about efficiencies, they're talking about cuts. What exactly do we mean by 15 to 20 per cent efficiencies? Certainly, Chris Grayling has basically told us that not only are we not going to have the electrification of the Valleys lines and the line to Swansea, but we should be jolly well glad that we're not having it because it's actually going to be so much better without electrification. What are the implications of that in terms of the planning and the five-year capital programme because of the issues to do with trains and the types of train stock that we were going to have?
My fourth point is really this: an essential part of all this is the extension of the lines, extension into areas, breaking the stranglehold of traffic, enabling the development of public transport and people to travel across, around, through the Valleys to wherever without going on the roads. Of course, I've raised with you many times the issue of the railway line from Creigiau to Llantrisant and the importance of that, yet we still have very little clarity about where that may fit within the capital programme and in fact whether it will be this phase, whether it will be the next phase or whatever. I think the point is that there is growing interest about the whole importance of this to the development of the economy and south Wales society, as far as my constituency is concerned—Taff Ely. But there is a need for much greater clarity. When are we going to be able to receive that clarity and that sort of detail that people want to see?
Can I thank Mick Antoniw for various questions and the fact that he's welcomed the siting of the headquarters of Transport for Wales in Pontypridd? The Member is absolutely right that there is huge potential for the headquarters of Transport for Wales to act as a catalyst for regeneration in Pontypridd. Just as interventions did in Merthyr, I see the basing of Transport for Wales in Pontypridd as something of a magnet for other businesses and other investments to be drawn into the community. I'm pleased that we're making very good progress with the local authority, who I must congratulate for their proactive way of working with Welsh Government and with other stakeholders in the development of this particular site. There's no doubt that, in order to develop an economy, you have to have the right infrastructure in place. You also need the right availability of skills and also the right form of support on a regional basis for economic development. Through the economic action plan, through the creation of Transport for Wales, through an unprecedented investment in transport and through an employability plan being delivered by colleagues in Government, I'm sure and confident that we are addressing those key three needs of the economy.
In terms of the five-year budget, I'm more than happy to share with Members the independent report that was commissioned by the UK Government in 2011, which looked into this. It concluded that creating certainty of funding over a period of five years and developing long-term plans for roads through a five-year budget commitment, savings of 15 to 20 per cent could be achieved. So, moving to a five-year budget makes sense, but it is also a significant step. It won't happen overnight, and we need to be clear that savings will only be deliverable on new and not already-contracted schemes.
Now, in terms of the actual quantum that could be saved, taking the 2018-19 draft published budget figures for transport capital over the next three years as an average annual spend, over a 10-year period that could amount to something in the region of £630 million—a huge saving that can then lead to greater investment in the improvement of our transport infrastructure and service delivery. But, as I say, I'm more than happy to be able to provide that report to Members so that they can scrutinise exactly how such significant savings can be achieved.
In terms of electrification, well, the case for electrification to Swansea was made in combination with the case for electrifying the Valleys lines. It happened back when David Cameron was Prime Minister in 2014, and the terms of this agreement included the UK Government funding the full cost of electrification through to Swansea, providing £125 million for the Valleys lines electrification and modernisation scheme and, in return, the Welsh Government took responsibility for the Valleys lines schemes. Now, the agreement gave the Welsh Government the ability to optimise the Valleys lines modernisation scheme in line with the Treasury Green Book. At the time, the mainline electrification investment using a wholly electric train fleet was assessed to be a more cost-effective option than procuring a mixed fleet of electric and bi-mode trains. The wholly electric fleet also, of course, provided some significant environmental benefits.
My concern with the abandoning of electrification of the mainline project through to Swansea is not just that it will leave passengers potentially worse off than could've been expected with electrification, it also presents a reputational risk for Swansea itself. Many of the world's most advanced economies take for granted the electrification of their rail services, and, yet, this is something that will be denied along south Wales. We are now focused, as a Government, on ensuring that the schemes outlined by the Secretary of State, and to which he is committed, are developed in the wake of the cancellation of electrification, and that they are developed in a timely fashion. They include, of course, improving journey times between Cardiff and Swansea, and also between south Wales, Bristol and London. It includes commitments that are being given to the Swansea area in terms of rail and station improvements, and also improving journey times and connections right across north Wales.
We expect UK Government, having abandoned electrification of the south Wales main line, not to abandon any of the commitments that the Government has since signed up to.
Can I thank the Cabinet Secretary for his full and comprehensive statement? I take this opportunity to acknowledge that May of this year will certainly be an historic date, when the first ever contract with a 'made in Wales' label will be awarded.
Your vision, Cabinet Secretary, that Transport for Wales should take on a similar role to Transport for London is one that I fully support. The Transport for London model is held up as being an efficient and cost-effective way of delivering a modern transport system. It is comforting to know that the Cabinet Secretary is willing to look at and implement best practice wherever it occurs. One question arises following the award of the rail contract, and that is: what sort of delay does the Cabinet Secretary envisage in appointing the operator and development partner, and, following on from that, the infrastructure development partners who will work with the ODP to deliver the substantial infrastructure upgrades and improvements, which will be needed to deliver the transport system envisaged in the Welsh Government plans?
The Cabinet Secretary mentions using local SMEs for the delivery of as much of the services and infrastructure as possible and I welcome the fact that consultation is already under way with companies who wish to engage in the process. But is the Cabinet Secretary confident that the necessary skills and competences are present in local industry?
As Adam Price alluded to earlier, you mentioned that there are still ongoing negotiations with the UK Government on the transfer of full powers to Wales, and I am sure that all the Members in this Chamber will join me in calling on the Department for Transport to facilitate this transfer as a matter of utmost urgency.
Finally, Cabinet Secretary, it's extremely gratifying to see the holistic approach you are taking in delivering the fully integrated transport system that Wales so desperately needs.
Can I thank David Rowlands for his comments and questions? David is absolutely right: very soon we'll be seeing a 'made in Wales' stamp on Aston Martins, we'll see a 'made in Wales' stamp on TVRs, we'll see a 'made in Wales' stamp on the rail network, and potentially, in the longer term, on a fully integrated public transport network across our country.
There'll be no delay in appointing the ODP, and work is already taking place involving Business Wales advisers with potential IDPs to ensure that, the length and breadth of Wales, small and medium-sized companies have the ability, the capacity and the skills to be able to secure important and, in many cases, vital projects as part of the next franchise. This is a huge programme in terms of the capital spend that will be invested in the south Wales metro and that will also be invested across the Wales and borders network, and of course in the development of the north-east Wales metro.
I am determined to make sure that Business Wales advisers don't just give support in terms of how to win contracts, but also give support in ensuring that small businesses have the right people with the right skills employed to be able to deliver projects that will be transformative for the public transport network. It's absolutely essential that Welsh Government works with businesses, with stakeholders, with the ODP, and I also believe with local government at a regional level, to develop a transport network and to develop an integrated transport system that benefits not just individuals, but also businesses across the length and breadth of Wales.
Thank you. We have had speakers from all of the parties now, so, the next set of speakers, if I can ask you for a very brief introduction to your one question. Thank you. John Griffiths.
Diolch, Dirprwy Lywydd. Cabinet Secretary, you will be aware that there are many issues in terms of rail services around Newport. Commuters are often on grossly overcrowded trains travelling to Bristol, for example. There are issues of people being asked to stand in toilets to allow more people to get on, people fainting, people being left on the platforms, issues of unreliability and, indeed, affordability—prices have gone up substantially by, I think, around a third over 10 years, without a commensurate improvement in quality of service. Understandably, people are often very annoyed, if not demoralised. Groups like the Severn tunnel action group and those campaigning for a Magor station have conducted surveys that clearly demonstrate that level of passenger dissatisfaction and the lack of quality in the services they experience.
So, in that context, Cabinet Secretary, I know many people are very much hoping that the new Wales and borders franchise will include those cross-border services, for example to Bristol. They would very much like to hear from you that you will continue to press UK Government for the inclusion of those services in the franchise, and also to hear from you that if that inclusion does take place, these issues of overcrowding, of unreliability, of affordability will be addressed and effectively addressed in that new Wales and borders franchise.
Can I thank John Griffiths for his comments and his questions? It was remiss of me not to say that we'll also soon have the 'made in Wales' stamp on CAF trains, just as we have a 'made in Wales' stamp on Airbus wings, on Raytheon products. We will have 'made in Wales' stamped all over trains, planes and automobiles for the global market very soon. I think that's important in developing an identity of Wales as a place where high-value manufacturing is taken very seriously.
It's unacceptable to have crowding to such a degree as we're witnessing at the moment on the train network. It is absolutely appalling, at peak hours in particular, on many services—on those already highlighted by John Griffiths, but on services that I'm sure many Members in this Chamber use on a daily or weekly basis. During the next franchise, it's our determined position to ensure that quality improves, that punctuality improves, that the frequency of train journeys improves, that capacity, most certainly, improves noticeably, and that technological solutions also improve. Indeed, we are motivating and encouraging the bidders to utilise new and emerging technologies to ensure that passenger comfort is optimised.
In terms of those cross-border services that John Griffiths has highlighted, I noted recently that the Secretary of State believed that Welsh Government could take more control over those particular cross-border services. It's something that we have been asking for, and it's something that we would very much welcome in the short term, medium term and in the longer term, as we seek to improve, noticeably, rail services across Wales and on a cross-border basis.
In your statement, you say Transport for Wales will work with Welsh Government's new regional teams, emerging transport regional authorities and partners to create an integrated transport network. In this context, you'll be aware of the growth deal bid from north Wales that was submitted in a few days before Christmas, with negotiations due to commence with both Welsh Government and UK Government early this year. What, therefore, is the expected timescale for those negotiations?
Given your instruction, in your statement, to Transport for Wales to bring forward proposals for a north Wales office, how do you respond to the growth bid's invitation to the Welsh Government to support the formation of a regional transport body to deliver strategic transport planning and projects in north Wales, on a region-wide basis, with powers delegated to the body from local authorities and Welsh Government to allow it to operate in an executive capacity, with a regional transport fund of £150 million over 10 years, including the Welsh Government's existing £50 million for the north Wales metro commitment?
Would you also tell me why there's been no Welsh Government conversation with Bus Users Cymru regarding rail-bus integration? What is Transport for Wales doing regarding bus passenger representation, as well as engagement with sector providers?
Clearly, you will be aware of D Jones & Son, Acrefair bus operators, ceasing to operate just before Christmas, following the demise of GHA Coaches in 2016. Concerns were raised by Llyr earlier regarding the impact on Wrexham business or industrial park, and employees not being able to get home between 5 and 6 in the evening. How, therefore, do you respond to a concern raised with me, with you in writing, by the lead member for transport at Wrexham, but also by representatives of the Confederation of Passenger Transport Cymru, Bus Users Cymru, Traveline Cymru and the Welsh Local Government Association in the Economy, Infrastructure and Skills Committee last week, that there would be no tangible actions or outcomes coming out from the bus summit in January 2016 and the workshops that followed?
And, finally, it's a question actually from a Flintshire resident and constituent who travels cross-border, and is in the context of cross-border provision: what action do you propose where the integrated conurbation of Deeside and Merseyside is only linked by an 'unlit, single lane trunk road, with the A550 road blocked or choked every day' as people from north Wales travel between Deeside, Flintshire, north Wales and the Wirral and Merseyside? Thank you.
There were a number of questions there, even though I only asked for one now, but never mind.
Yes, a significant number of questions, but I'll try to address all of them. First of all, with regard to the growth bid, of course we'll be scrutinising each of the proposals during the negotiation stage. I'd very much welcome, as I said in my statement, the creation of regional transport authorities to ensure that we've got integrated transport planned on a regional and—in the case of north Wales—on a cross-border basis. We've already established the north Wales and north-east Wales metro steering group and it's developing a programme of work to bring together a package of interventions that reflects not just local, but also regional, improvements. The programme will also include cross-border improvements and the focus will be on creating integrated transport hubs at key employment sites across north Wales and, of course, across the Mersey-Dee area. It's about better connectivity, not just within, but also to, from and between the hubs.
In terms of Bus Users Cymru, I'm surprised that the Member states that, given that we have regular dialogue with them and given that we've currently got a consultation taking place on bus transport, and we've had two consultations taking place in the past 12 months. A further consultation will be taking place this spring concerning the detailed proposals for future legislation and I very much look forward to Bus Users Cymru providing their input into that consultation.
In terms of the fragility of local bus services, the Member must surely recognise that this is in no small part due to deregulation in 1986, and, of course, it's absolutely vital that local authorities take their role and responsibility seriously. Unfortunately, it appears that Wrexham council, which I believe is run by independents and Conservatives, has reduced their support for non-commercial bus services, I believe, to zero, and that's in stark contrast to the £25 million that we, a Welsh Labour Government, have maintained over many years.
In addition, I made available £300,000 for the region, for north-east Wales, to be able to deal with the collapse of GHA and the fragility of the local bus network. It's for those three local authorities—Denbighshire, Wrexham and Flintshire—to work together to ensure that bus services are given support by local authorities, collectively and individually, to ensure that communities are served by them. And in terms of the summit that took place last year, one of the main benefits of that summit was—it formed part of the five-point plan—the introduction of bus companies, particularly those small and vulnerable bus companies, to Business Wales advisers and support services. As a consequence of that, a number of companies have been given practical advice on how to weather the storm of austerity and fragility within the deregulated system. But, longer term, that deregulated system has to be addressed, and it will be, through legislation, and we will be consulting on that in the coming months.
I was surprised to hear, also, criticism of a lack of investment in cross-border roads in north-east Wales, given our commitment of over £200 million to the Flintshire corridor, which offers one of the most important arteries. A significant upgrade will relieve congestion between Flintshire and the Wirral.
What is it about the UK Government that makes it so difficult for them to come up with timely decisions in relation to Wales? I don't expect you to answer that, but, you know, the Welsh Government and Transport for Wales are geared up for this, but the UK Government has yet to transfer the powers to enable us to award the preferred bidder status, agree the contract, and still have a new service seamlessly transferred by October.
I am interested in the fact that you talk about station improvements, electrification and signalling for the south Wales metro, but I'm more keen to hear about trams, light rail and integrated ticketing, which seem to me the key issues, rather than getting ourselves in too much of a knot around the electrification of the Valleys lines. We need to have much more effective solutions to produce the outcomes that we need. I wondered if you could say about that.
Yes, I've taken a great degree of interest in Mersey Travel's schemes and the way that they integrate ticketing and ensure that there is a very transparent and sure way of paying for services. Transport for Wales is going to be tasked with ensuring that there is integrated ticketing and affordable, accessible transport for all, and a fares regime that is also fair.
I would agree with the rhetorical question and the basis of the rhetorical question. The UK Government does indeed appear to be struggling to support many parts of Wales in terms of rail infrastructure. We've only enjoyed something in the region of 1 to 1.5 per cent of investment in the Wales and borders route in the previous Assembly term, and that's in spite of it amounting to more than 5 per cent of the overall UK network. We've also seen the UK Government fail, to date, to support the Swansea lagoon, electrification, and I must say that I'm only glad that they're not in charge of Swansea City Association Football Club, because if they were, I don't think there would be any hope of them staying up in the premiership.
Thank you. Lee Waters.
Thank you, Deputy Presiding Officer, and in deference to you, I will be brief and ask just one question. I'm pleased to see in the statement that you say Transport for Wales will be looking at the whole journey door to door. I presume that therefore includes active travel as those key links at either end of the journey. Can you confirm that is the intention, because it's not mentioned in the statement? And if that is the case, will you make sure that the skills and capacity within Transport for Wales exists to be able to take action on active travel, because that is palpably missing at both central and local government level at the moment? Thank you.
Yes. Can I thank Lee Waters for his question and say, yes, potentially, active travel would fall within Transport for Wales, but it would also require additional skills in order to make sure that active travel solutions are fit for purpose and also take account of the door-to-door nature of many journeys that people take?
Cabinet Secretary, I welcome your comments about people being central to the delivery of transport policy. In my constituency, there is a debate as to whether bus or train links would best serve one local community under any future metro scheme. What mechanisms will be built in for community consultation, so that services can be shaped to meet the needs and demands of local people?
Well, the bidders have all been invited to offer the best solutions, not just in terms of value for money, but the best solutions in terms of being able to connect communities and connect employment hubs. Those solutions could combine different forms of travel, but it's essential that, as the design of the metro commences, communities and stakeholders do form part of a partnership approach, so that the solutions that are eventually determined are those that are supported by the people that are eventually going to be using the services.
Thank you very much. Thanks, Cabinet Secretary.