1. Questions to the Cabinet Secretary for Economy and Transport – in the Senedd at 1:37 pm on 26 September 2018.
Questions from the party spokespersons now. The UKIP spokesperson, David Rowlands.
Diolch, Llywydd. Cabinet Secretary, I have congratulated the Government on Cardiff Airport several times in the past, but I feel compelled to bring to your attention and, therefore, hopefully to a wider audience, a facility offered by the airport under its hidden disabilities facility, which prioritises people with such disabilities. My comments are prompted by information I received about a couple who had an appalling experience at another UK airport with their autistic child, but who had then used the above facility at Cardiff Airport. They were overwhelmed with the quality of the service they received. Does the Cabinet Secretary agree with me that it is innovations such as these that will help to expand Cardiff Airport's reputation just as much as its economic performance?
I would entirely agree with that very point, and it's very well made by the Member. Can I thank him for raising an essential point about access to public transport? And, in terms of Cardiff international airport in particular, the Member will be aware that a new masterplan for that particular asset is being unveiled, which will enable the airport to cope with significantly more passengers and aircraft in the future. And can I also take this opportunity to congratulate the Member on being reappointed to this particular position?
Thank you very much for that answer, Cabinet Secretary. I move quite a way away from Cardiff Airport with my next question. It has been brought to my attention, Cabinet Secretary, that the public transport users of the Trevethin area of Pontypool are virtually cut off from 7.30 at night. This appears to be the last bus taking people from the town centre to this estate. There is, of course, an impact on the businesses in the town, particularly the public houses, given that their patrons either have to leave in time to catch the last bus or pay a taxi fare. Many of them cannot afford the latter and so leave early. The landlords thus lose valuable custom and the town centre becomes deserted after this time. This may of course be the situation in many of our Valleys towns. Does the Cabinet Secretary think this is an acceptable state of affairs?
No, I don't, and it's a point, again, that's very well made. I'll be raising this point both with Transport for Wales and with the transport department in Welsh Government. But I think it's important to just identify two significant interventions and investments that will be made in the coming months and years. First of all, of course, is the south-east Wales metro, and, secondly, radical reform of local bus services in Wales, between them forming a vastly superior integrated public transport service that will serve communities such as those that you've identified today.
I thank the Cabinet Secretary for that very positive answer. Can I now turn, Cabinet Secretary, to project scrutiny? As Cabinet Secretary, you've initiated a number of projects and initiatives designed to deliver on the economic performance of Wales. What is of concern is that many of these do not appear to have specific timelines or targets against which progress can be evaluated. Surely, Cabinet Secretary, it is a fundamental requirement of any project that such measurement tools are included so that true scrutiny can take place. Open-ended policy frameworks are not the sign of good governance. Does this not give the appearance of little confidence that the said projects and initiatives will deliver as envisaged?
I think it's important to have agreed outcomes for any project that receives public funding. But, in Welsh Government, we also have well-being indicators, which are consistent indicators applied across Government, and, with regard to economic development programmes, I hope I was quite clear in committee just last week in assuring Members that we will also be seeking international challenges and scrutiny from the Organisation for Economic Co-operation and Development and other well-recognised and well-renowned international bodies.
The Plaid Cymru spokesperson, Adam Price.
Diolch, Llywydd. Has the Welsh Government entered into a guarantee fee arrangement with Aston Martin in relation to its St Athan facility?
I can't disclose any commercially sensitive information with the Member. However, what I can assure him is that I've asked officials to review all correspondence and all agreements and ensure that as much detail can be shared with Members as possible. That will be done speedily and as soon as possible.
Can I also take this opportunity to wish the Member well in Friday's election announcement and, if he is not successful in winning that particular election that he's taking part in at the moment, then I hope he will be reappointed to this position?
I'm grateful to the Cabinet Secretary for his kind words, but maybe we can return to the matter in hand. That was a nice deflection device there, because, actually, the company does not have a problem in relation to the commercial confidentiality in this case, because they have confirmed the existence of a guarantee fee agreement with the Welsh Government in the prospectus that they have just published in relation to their proposed flotation on the London stock exchange. That document specifically refers to, and I quote, on page 188:
'a guarantee fee arrangement that was entered into with the Welsh Government in respect of Aston Martin Lagonda's occupation of the St Athan plant'.
Now, you previously refused in written questions to confirm the existence of this arrangement. You've not taken the opportunity to confirm it now. Given that it's now been placed in the public domain by the company, can you confirm who is guaranteeing what, for whom in this arrangement, and to whom are the fees being paid? Are we right to assume that the Welsh Government has guaranteed a proportion of Aston Martin's debt in return for which the Welsh Government is receiving a fee—the kind of agreement that was involved in the Circuit of Wales proposal? And why is a private company being more open with the public about the use of public money than the Government that is meant to be the guardian of the public interest?
Now the Member has identified the very agreement that he refers to in that document, I'm more than happy to work with Aston Martin to ensure that as much information is provided as possible. But I don't think that we should lose sight of the fact that it's as a direct consequence of the skilful negotiations of Welsh Government officials that we were able to attract Aston Martin to Wales. It's as a result of our ability to attract Aston Martin to Wales that we now have Aston Martin agreeing that St Athan should be the home of electrification. It's important to celebrate great success when it arrives on our doorstep and when it's hard fought for. That's exactly what we've done. Aston Martin Lagonda could have gone to numerous locations with their investment. Instead, they chose here—Wales—in order to invest and create valuable jobs and to enhance the brand of Wales internationally.
Look, Cabinet Secretary, this really isn't good—. Instead of a few words of congratulations, how about a few words of contrition from the Cabinet Secretary about the failure to be transparent, having, basically, the information dragged out of you because the company has decided it is right and proper to put this information in the public domain, and yet you've stonewalled right throughout? In the economy committee last week, and in response to repeated questions from the BBC, your officials have refused to confirm whether Aston Martin has received additional money for its research and development programme beyond the £5.8 million that you were forced to admit by the Information Commissioner. The reason that was cited by your department was sensitivity surrounding the flotation of the company. Isn't this deeply problematic, Cabinet Secretary? Analysts have specifically said, and have cited Aston Martin's balance sheet treatment of its R&D budget, its decision to capitalise it as an asset rather than registering it as a cost, as a reason to doubt its £5 billion valuation. Doesn't the public, both as citizens and potential investors, have a right to know if public money is possibly being used to inflate the share price? Shouldn't we expect you as a Government to act in the public interest, not in the commercial interests of a privately owned company, in deciding whether to place information in the public domain? Democracy should never be traded, Cabinet Secretary, even in exchange for the promise of jobs.
I entirely agree, but as I've said before, as I've said last week, officials are seeking advice regarding the information that can be disclosed at this stage. I truly hope that we can get as much information out as possible about the latest announcement, because I think the Member will be very, very impressed by it, but I know that the Member is quick to condemn any element of any agreement on jobs creation that's led by this Welsh Government. I do wish he would be a little more speedy to congratulate us when we do land huge investments in Wales—investments that are futureproofing our economy and providing employment for hundreds of people. [Interruption.] There we see a refusal to acknowledge the success of Welsh Government in attracting Aston Martin Lagonda to our country to create hundreds of valuable jobs.
Conservative spokesperson, Russell George.
Diolch, Llywydd. I will feel left out if I don't get congratulations myself, Cabinet Secretary. In just a few weeks, the running of rail services, of course, will be handed over from Arriva to the new franchise operator KeolisAmey. Given the scale of public investment in the new franchise agreement and the importance, too, of rail services for passengers and businesses across Wales, I'm sure you will agree with me that it's vital that we see rapid and sufficient improvements to those services as a consequence of that £5 billion rail contract.
Can I initially ask you in relation to the postponement of the launch of services between Chester and Liverpool Lime Street? Last May, Network Rail completed a £19 million infrastructure improvement to allow the services to begin this December, as has been promised, of course, for several years. Arriva Trains Wales has recruited drivers for the trains, but Transport for Wales has stated, just very recently in the last few weeks, that there were now insufficient trains for those new services and, as a result, the services may be delayed. Can I ask you, Cabinet Secretary, to confirm whether this is the case and, if so, when can commuters expect those services to now commence?
So, I think I outlined in committee last week the reason why we're seeing, not just in this case but right across the rail sector in the UK, a delay in providing new rolling stock, and it's largely because, in the last decade, the UK Government had one campaign, which was to electrify as much of the rail lines of the UK as possible. That was subsequently abandoned, and in that time in between, the diesel supply, or the supply of diesel trains, did not cascade down. As a consequence of that not happening, new orders for diesel units swelled, once the UK Government had cancelled electrification programmes, and that led to a delay, subsequently, in the delivery of them. It's not something that is unique to Transport for Wales. I can say, however, as a result of the delay from December through to spring, we've been able to negotiate successfully an extension for that brand-new service so the trains won't just operate between Liverpool and Chester using the Halton curve; indeed they will come into Wales. So, the first new service to be provided on the Wales and borders franchise, I can assure Members, will serve both Wales and the borders area.
Thank you for the answer, Cabinet Secretary. I think the concern will be that 'transformational change' is a word that has been bandied around, and expectations have been significantly raised. This summer, you stated that the new Sunday and early morning services would be launched this December. Timetables across the UK, as I understand it, change only two times a year, and December 18 is the first opportunity for the new operator to make improvements. Now, in June this year, Cabinet Secretary, you confirmed that Merthyr Tydfil and Aberdare would receive additional early morning services to Cardiff Central on weekdays from December; in addition, a trial service timetable on the Aberdare line would be made permanent; and an extra Sunday morning service would be introduced between Llandudno and Chester, to bridge the gap in the current timetable. Now, we have just a few weeks to go, of course, before that December timetable change, and Transport for Wales are currently stating, 'We will confirm details of these services as soon as we can.' Again, Cabinet Secretary, can you confirm that these improvements in these services remain on schedule?
That's our intention, but I'll ensure today, when I meet with the chief executive of Transport for Wales, that he provides that assurance to Members as soon as possible. I should say as well that the Member is absolutely right: the lessons that we've learned from the timetabling debacle across much of the UK led us to—whilst examining the options for moving forward the introduction of the direct services from Liverpool to Wrexham from spring to December, when it was initially intended, we determined that in order to do that it had to be a robust and reliable pledge. Given the tight timetabling lessons that we've learned, we deemed that it would not be a reliable assurance to give people.
Thank you, Cabinet Secretary. Can I perhaps ask that, if you are meeting Transport for Wales later today—can I ask you to put on the record that you are completely confident that Transport for Wales has the correct managerial, administrative and financial resources at its disposal to ensure the effective delivery and oversight of the new Wales and borders franchise from 15 October?
Yes, and through the remit letter, Transport for Wales operate to strict guidelines. They are currently in the process of recruiting significantly more people with additional skills to ensure that the new franchise will be a success. I've got a particular focus at the moment on ensuring that information about the new franchise is communicated absolutely and thoroughly through to community groups, through to passengers, and to elected members. So, I'm pleased that Transport for Wales, in particular during the current recruitment programme, are looking at increasing capacity within their communications team.