The House of Commons Transport Committee has recently concluded that the Department for Transport’s current decision-making processes and existing systems for scheme appraisal currently work against regions outside the south-east as they are weighted heavily towards the reduction of existing congestion. It is important, I think, for all governments, including here in Wales, to ensure that investment is planned and delivered in all parts of the economy. Through the economic action plan, I've committed to working with colleagues to ensure that we balance infrastructure investment to support regional growth in the Welsh economy and it’s important the UK Government shows a similar and meaningful commitment across the United Kingdom. I have, and will continue to, set out a broader vision for a successful rail network, one that helps us to meet our obligations to the environment and responsibilities for well-being and future generations, that delivers the goals of the economic action plan, and meets the UK Government’s commitment to rebalance the UK economy.

This week marks a year since the cancellation of electrification to Swansea. The Welsh Affairs Select Committee called on the UK Government to work closely with us to develop transport projects on which the money saved from the cancellation of electrification could be spent. A new process for rail enhancement schemes has been developed by the UK Government and we will continue to engage with this new approach as we try to secure funding to improve journeys both within Wales and across the border. However, if the UK Government cannot help us to meet our objectives and deliver investment in Wales on an equitable basis, alternative arrangements for the prioritisation, for funding and for delivery of enhancements to the rail infrastructure in Wales will need to be followed, following a fair devolution settlement in this area. The investment required to meet standards set for the core trans-European transport network routes through Wales to Milford Haven and Holyhead by 2030 would deliver significant progress and Wales must not lose out on this investment as a consequence of any decisions taken in the context of Brexit. 

I'd now like to turn to cross-border train services in Wales. Following the transfer of rail franchising functions to the Welsh Government, a co-operation and collaboration agreement is now in place with the Department for Transport. This agreement sets out how the Welsh Government and UK Government will actively engage when procuring and developing the franchises that operate services across the border in a way that takes full account of both Governments’ interests and accountabilities. This is an important period for those services and an opportunity to deliver improvements that meet the needs of travellers on both sides of the border. The Wales and borders rail service contract delivers important cross-border connectivity. However, these services are only a part of the picture. The Department for Transport is currently going through its own processes for awarding new contracts for the West Coast, CrossCountry and Great Western franchises. I've made my expectations of these franchises clear to the Secretary of State. They include: integration between the north Wales metro and services to London at key hubs including Wrexham, Shotton, Bangor and Chester; a direct hourly service between north Wales and London; direct services in the CrossCountry franchise between key centres in Wales and all of the UK’s core cities; faster and more direct services between south Wales and London; and of course additional and faster services between south Wales and Bristol.

There is now an overwhelming case for applying the model developed for procuring and managing cross-border services under the next Wales and borders franchise to the procurement and management of other services between Wales and locations in England. This would involve remapping all services operating into Wales to a franchise procured and managed by the Welsh Government. Passengers, operators and the taxpayer would benefit from the integration of local and long-distance services in Wales. This would enable the Welsh Government to have the role that it needs to ensure that services are designed and delivered in a way that will take full account of Wales’s interests and would, I believe, result in real competition and genuine choice for passengers in England.

The Secretary of State for Transport has made it clear, though, that he does not share this view. He believes that these are UK services to be operated on a UK basis. But, if that's to be the case, then the responsibility for realising this vital ambition lies solely with the Secretary of State. The UK Government needs to set out a clear, fully funded action plan showing how it will correct the decades of underinvestment in infrastructure and rail services in Wales. It's clear that the current capability of the rail infrastructure and the services offered through the cross-border franchises is inadequate, and it's vital that Wales is provided with the level of rail connectivity that the UK Government has provided for many other parts of the UK so that the people, communities and businesses of Wales are offered a level playing field on which to compete in a post-Brexit environment. 

In the absence of a coherent and acceptable action plan from the UK Government, I'll continue to develop on the work carried out by Professor Barry, to set out a clear vision for the improvements that the UK Government must make if it is to fulfil its promise to rebalance the UK’s economy. Programme business cases will be completed over the summer and will be made available to Network Rail and the Department for Transport to frame the development of an ambitious, realistic, and equitable rail investment programme for Wales.