9. What additional financial provision has been made to the economy and transport portfolio to support the development of the south Wales metro?

Llywydd, the 2018-19 budget includes an additional £173 million in capital allocated to the economy and transport main expenditure group to support the development of the south Wales metro. This brings the total allocated in this term to £433 million towards the total expected project investment of £734 million.

Cabinet Secretary, we're aware that, of course, the funding of major infrastructure projects is going to be very adversely affected by the uncertainty over Brexit funding we might have expected in terms of structural funds, and also issues such as access to the European Investment Bank and sources such as those. What steps have been taken to actually either find an alternative for sources of funding, and what longer term steps have been taken in terms of the longer term funding of the metro project, which was originally estimated in terms of around £3 billion?

Well, Llywydd, the Member is right to say that the sums of money that I have outlined—the £734 million, which is planned investment in the south Wales metro—include £106 million expected through the European regional development fund, and the Welsh Government is working very hard to bring that expenditure within the guarantees provided by the Chancellor of the Exchequer as we leave the European Union. I continue to work with officials, and with the Cabinet Secretary for Economy and Transport, to make sure that we are able to use every penny that we are able to draw down from the European Union while we are in a position to do so.

There is £125 million beyond that that comes from the UK Government, which we have had guarantees we will receive, and £503 million of the £734 million will come directly from the Welsh Government. Provision for that has been made in this Assembly term, and the remainder of it will be required beyond it.

The Member is, of course, right that, as we leave the European Union, we argue very strongly that that should not mean that Wales is unable to benefit from key European institutions, which have done so much good in Wales. The European Investment Bank is certainly in that category. The United Kingdom has been a major contributor of capital to that bank, and we argued that we should remain a subscribing partner to it. I do know that the Chancellor of the Exchequer has also said that he wishes the United Kingdom to go on having a strong relationship with the EIB, and if a subscribing partnership isn't possible, then he will look for other ways in which we can continue to have a productive relationship.