4. Statement by the Cabinet Secretary for Economy and Transport: The Swansea Bay Tidal Lagoon

Part of the debate – in the Senedd at 3:03 pm on 26 June 2018.

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Photo of Ken Skates Ken Skates Labour 3:03, 26 June 2018

Can I thank Caroline Jones for the contribution she's made today, her comments and her questions? First of all, with regard to the speculation that has appeared over many weeks now in the press, it would appear to me—perhaps I'm just becoming more cynical, but it would appear to me that a decision perhaps was reached some time ago and that an opportunity was being looked for in order to conceal this decision behind it. And yesterday, with the vote on Heathrow, does appear to have been a great opportunity for the UK Government to have buried the Swansea bay tidal lagoon beneath a third runway at Heathrow.

It's also ironic and tragic that, yesterday, Welsh Government was able to announce a hugely ambitious world-first proposal for test facilities for the rail industry here in Wales and, at that same time, the UK Government was turning down an opportunity to develop a new world-class industry for Wales—incredibly ironic that these two decisions came on the same day, but tragic also.

As I've said, we will not give up on the sector in Wales and the Member is absolutely right that offshore wind power generation, in its inception, was very expensive, and costs have been reduced over time as it's been mainstreamed. In terms of energy security and whether this was a factor in their decision, as far as I'm aware, it was not. However, as I say, the detailed appraisal was received just today. I'm going through it currently—I've asked officials to analyse it as well.

I think what's important, as we move forward, is that we continue to engage with the sector, even if the UK Government turns its back on the sector. It would appear, based on what Tidal Lagoon Power have said, that discussions broke down some time ago between them and the UK Government, in which case I must come to the conclusion—it's the same conclusion that Charles Hendry has reached—that, actually, the UK Government could have said that they weren't going to support it many, many months ago and saved the company and saved an entire region the heartache of the decision being delayed and delayed, and hopes being raised in the intervening time.