4. Statement by the Cabinet Secretary for Economy and Transport: Transport for Wales

Part of the debate – in the Senedd at 3:46 pm on 23 January 2018.

Alert me about debates like this

Photo of Ken Skates Ken Skates Labour 3:46, 23 January 2018

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.