12. Short Debate: Newport: economy, infrastructure and opportunities

– in the Senedd at 5:38 pm on 10 October 2018.

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Photo of Ann Jones Ann Jones Labour 5:38, 10 October 2018

We now move to the short debate. If Members are leaving the Chamber, can you do so quickly and quietly, please?

So, we will move to the short debate, and I call on Mark Reckless to speak on the topic he has chosen. Mark.

Photo of Mark Reckless Mark Reckless Conservative

Diolch yn fawr, Dirprwy Lywydd. I'm grateful to you and the Cabinet Secretary for facilitating this debate.

On 17 December, tolls on the Severn bridges will be abolished. The economic geography of south Wales and the west of England will be revolutionised. Nowhere is better placed to reap the benefit than Newport. And ending the tolls is not the only change to our infrastructure that will boost Newport. Railway electrification from London to Cardiff should mean trains from Newport reaching London Paddington in one hour 35 minutes. With CrossRail, that will mean that you can leave Newport and be in Canary Wharf in under two hours. 

And then, of course, there is the M4. Labour's manifesto promised, and I quote, 

'We will deliver a relief road for the M4,' and the Cabinet Secretary has since promoted that road through a public inquiry. So, three big prizes promised for Newport, south Wales and beyond; will they be delivered?

On the tolls, yes, they are going. Unlike some other projects, notably the second Dartford crossing, the promise made and legislated for in 1992 that tolls to fund the second Severn crossing would be temporary is going to be kept. And if the housing market in Newport and Monmouthshire is anything to go by, the private sector is responding. Through Help to Buy—Wales, Welsh Government is supporting significant construction of new homes. Indeed, since April 2016, fully 20 per cent of new home building in Wales supported through Help to Buy has been in Newport. Would the Cabinet Secretary confirm that Welsh Government welcomes this scale of house building, supported by the scrapping of the Severn tolls? The reason I ask is because not all voices, including some from within his own party, do appear to welcome it—[Interruption.] Within the Labour Party—the Cabinet Secretary's party, and yours indeed. Some complained that no tolls will just mean more congestion; others that people moving here from Bristol will just drive up house prices and not benefit Wales. Of course, one way to mitigate any rise in house prices is to build more homes and, at least on the basis of the Help to Buy statistics, Newport has been building 10 times the number of homes as Monmouthshire, where price rises have been greater.

Photo of Mark Reckless Mark Reckless Conservative 5:40, 10 October 2018

Further, does the Cabinet Secretary recognise that it is rising residential values that will unlock many more sites in Newport and help house builders pay towards infrastructure, section 106 agreements and affordable housing? I would emphasise that house building does not just increase the amount and choice of housing available; it also drives economic growth, creates jobs and generates tax revenue. 

Land transaction tax is now devolved, and a good slice of income tax will be from April. If Newport is able to attract more people working in Bristol on good salaries, both Newport and Welsh Government will benefit. Higher numbers of professionals living in the centre of the city will also boost demand for reviving the night-time, retail and leisure economies in Newport. That, of course, would also be supported by more action to improve the street scene, particularly pavements and shop frontages. We also need council and police to redouble their efforts to keep people secure in the city centre, particularly at night. I should also recognise that I've agreed that Jayne Bryant will have a minute of time later, and I look forward to hearing her thoughts on some of these issues.

Cabinet Secretary, I believe that you have an ambition that we should be able to travel between Cardiff Central and Bristol Temple Meads in just half an hour. Could you clarify whether that allows for a stop in Newport? Could you also explain the likely impact of changes in Network Rail's electrification plans? We rightly hear a lot about the disappointment caused by cancellation of electrification between Cardiff and Swansea. Could you also tell us what impact changed plans for electrification, following the very sharp increase in costs compared to what had been expected when the electrification was agreed initially—the changes between the main line and Bristol Temple Meads—what impact will those have on our ambitions to improve connectivity between Cardiff, Newport and Bristol?

Also, what can the Cabinet Secretary tell us about the delay to the major timetable changes that are needed before we can benefit from faster travel times to London from south Wales? Do we not also need a completely new approach for stopping services along the south Wales main line? Usage of Severn Tunnel Junction station has quadrupled. We have a very welcome £50 million investment for a new station at Llanwern. I'm also grateful that the Cabinet Secretary has been encouraging when he's met campaigners for a new walkway station at Magor and Undy. Amazingly, we may also be set to see a new privately funded train station at St Mellons, which could constitute a Cardiff parkway. It would keep many thousands of cars out of Cardiff, but it would also surely require, along with what is happening in Newport, a totally new pattern of service along the south Wales main line. Does the Welsh Government's ambition match the opportunity available?

Cabinet Secretary, you have responsibility for economic development in Wales, but Newport also needs you to navigate changing responsibilities and accountability on the other side of the Severn to support cross-border economic development. As well as Marvin Rees, elected mayor of Bristol, we now have Tim Bowles, elected as mayor for the West of England Combined Authority, with substantial powers relevant to your portfolio here. Mayor Bowles has put an awful lot of emphasis on links with south Wales, and he says that his region looks towards London and the south-east of England as the strongest economic area in the UK, but the west of England also generates positive GVA, and he thinks he has a lot in common with us in south Wales in looking to improve that link and ensure that more of that economic prosperity comes further west to benefit our people. When I met Mayor Bowles, last month, he was keen to work more closely with you as Cabinet Secretary, as well as with the Cardiff city region. Beyond residential development, he sees great opportunities for us in Newport and beyond to take up manufacturing and commercial projects too from the west of England, where site availability is more constrained. These Islands recently published a piece by Nicolas Webb on the opportunities and challenges for the Severn region. He says,

'To plan for the economic future of South East Wales without paying attention to the economic success of Bristol would be akin to Connecticut ignoring the presence of New York City.' and that it is absurd to see commuting from Newport to Bristol as a threat to the local economy. Does the Cabinet Secretary agree?

Employment in Cardiff is becoming increasingly concentrated in the centre, well served by public transport. Newport employment is more reliant on business parks off the M4, reinforced by welcome investment in compound semiconductors and the ONS-supported data science park. We need traffic to flow on that M4. While the M4 relief road will benefit Newport directly, through its junctions near Llanwern and the docks and by offering a faster route, the biggest benefit for Newport would be cutting congestion on the current M4. That would mean easier access to employment. It would also mean improved air quality. 

Cabinet Secretary, are you going to keep your manifesto promise: 'We will deliver a relief road for the M4'? I understand planning law requires the First Minister to take a planning decision on the basis of the report from the public inquiry. However, is this now to be followed by, and subject to, a further and separate decision by Welsh Government on whether actually to deliver the project, despite it being a manifesto commitment? Cabinet Secretary, can voters in Newport rely on what you promised them in your manifesto? Will you support Newport's economy with the infrastructure it needs to exploit its opportunities? 

Photo of Jayne Bryant Jayne Bryant Labour 5:47, 10 October 2018

I'd like to thank Mark Reckless for allowing me a minute in this debate today and, as a proud Newportonian, I'm glad to speak today. Newport has a rich culture and history and is well placed to take advantage of the opportunities ahead. It was a pleasure to host the Cabinet Secretary at a business summit that I held at the Celtic Manor in my constituency in April. Representatives from a wide range of successful local businesses—big and small—attended the event overlooking the exciting international convention centre, which is set to open next year. 

Innovation in the private sector and support from the Welsh Government have greatly boosted the local economy. Established businesses like GoCompare, Airbus, Tata Steel and the Rutherford Cancer Centre South Wales have all chosen to be based in Newport. We have the Intellectual Property Office, the Office for National Statistics and their excellent data science campus. The new economy relies heavily on access to superfast broadband, and I note that, to date, the Welsh Government's Superfast Cymru programme has invested over £2 million across the city, facilitating greater connectivity for thousands of households and businesses. 

Newport is the gateway to Wales, and the abolition of the Severn bridge tolls in December will bring great opportunities to the city. Yet, as with every opportunity, there are challenges and we cannot ignore the congestion problem, and this must be tackled. Newport is a great place to live and we know that more and more people are choosing to make their home in this city. This brings with it the challenge of ensuring we have the right infrastructure to support the growth. 

Photo of Ann Jones Ann Jones Labour 5:49, 10 October 2018

Can I now call the Cabinet Secretary for Economy and Transport to reply to the debate? Ken Skates.

Photo of Ken Skates Ken Skates Labour

Diolch, Dirprwy Lywydd. I'd like to thank Mark Reckless for bringing forward this debate today and I'd also like to thank my colleague Jayne Bryant for making very important points as well.

I am incredibly proud of what the Welsh Labour Government is doing to support economic growth to improve infrastructure and to prepare for future opportunities in south-east Wales and, particularly, in Newport. For example, over its 20-year lifetime, the £1.2 billion Cardiff capital city region deal is expected to deliver up to 25,000 new jobs and leverage an additional £4 billion of private sector investment. With a £734 million of planned investment, the £1.2 billion deal places the south Wales metro right at the centre of a significant infrastructure programme. 

Photo of Ken Skates Ken Skates Labour 5:50, 10 October 2018

In addition, the Tech Valleys programme is also incredibly exciting. I recently announced £100 million of Welsh Government funding over 10 years that will support the creation of more than 1,500 high-quality jobs. In recognition of the growing importance of digital technologies, we are supporting a number of initiatives to assist the region's technological credentials. Our support of the compound semiconductor sector is an example of the value we place on high-value industries. The strengths in this sector in the south-east region have led to the establishment, of course, of the world's first compound semiconductor cluster.

Remaining with the theme of technology, Wales has also emerged as a centre of excellence in cyber security, with the south Wales region recognised as a prime location for both research and development and the commercialisation of defence and security products and services. Recognising the importance of a strong skills base for the continued growth of the economy, we are supporting the UK's first national software academy. Data are fast becoming a key part of the modern economy and will continue to drive innovation and economic growth for as far as we can see. It's encouraging, therefore, to see a significant number of data-driven businesses innovating in this field in south-east Wales, and especially in the Newport area.

Of course, Newport is also home to a significant number of major employers in the field of data and data management—for example, ONS and the Intellectual Property Office—and the new data science campus acts as a hub for the whole of the UK public and private sectors and will certainly help to build Wales's growing reputation as an international leader in this field.

Then, of course, we also have the £84 million International Convention Centre Wales to look forward to, and construction, as I'm sure all Members will have now seen, is well under way. This will be a huge asset for Newport and the entire region of south-east Wales, enabling us to compete with any venue in the UK and Europe. There are around about 350 construction workers on site now and they'll be there for the next two or so years. It will bring an estimated £50 million to the local economy. It will also, crucially, I think, for the region and for Wales as a whole, help drive up the offer to the visitor economy and, especially with regard to hospitality, help to drive up the quality of hotels and bed-and-breakfasts in the region.

Now, following the inaugural Severn growth summit event on 22 January at the Celtic Manor resort, at which David Rosser, our chief regional officer for south-east Wales, spoke, I jointly led with the Secretary of State for Wales a discussion with business and civic leaders from across south-east Wales, and crucially, as well, with the west of England, to gauge an appetite for more joint working on both sides of the border. I'm clear that both regions can certainly benefit from closer economic ties, and that creating the western powerhouse around the Severn estuary will present a compelling proposition to draw in more investment, whether from the UK Government or from overseas investors. And I've asked the chief regional officer to lead this work with counterparts in the Bristol region to explore how this can be taken forward.

I would welcome the construction of additional new homes, and the announcement that the Severn bridge tolls will be scrapped on 17 December will also boost economic connectivity into the region. We know that the figure, in terms of benefit to Wales, is around about £100 million a year, and, with regard to house building, whilst I would welcome the building of new homes, I'd say it's absolutely essential that those homes are built for people who would otherwise, perhaps, be forced to leave the community in which they have grown up because of a lack of housing stock, and therefore too high a price to be paid for existing properties.

In terms of rail connectivity, I've been very clear in my correspondence and engagement with the UK Government that we need to see reduced journey times between south Wales and London and other parts of the south of England, not through implementing a closure of services along the Wales side of the main line, but on the English side. We believe that time savings could be achieved through certain stops not taking place. But it's a tragic fact that, as a result of years of underinvestment and the cancellation of electrification from Cardiff through to Swansea, it's now no longer possible to reach London in a faster time than it would have taken 41 years ago. It's absolutely clear that, whilst we may have electrification to Cardiff, further electrification or remedial work to ensure that times are improved must take place at great speed.

I'm pleased to say that I've also met with Tim Bowles on a number of occasions. We have, I believe, a very strong working relationship. He has visited here, he has sat in my office and we have shared our views, which are incredibly similar on cross-border collaboration. Likewise, I have similar relationships with metro mayors in the north-west of England, and I'm looking to develop a similar positive relationship with the metro mayor in the west midlands. I am a firm believer, and passionate believer, in cross-border collaboration. I know that some in this Chamber, although they are not present here now, vehemently and vociferously object to working with our partners just across the border. But what does it say about our country, as an outward-looking, internationalist country if we are saying to our neighbours just across the border that we do not want to work with them.

I will gladly give way.

Photo of Nick Ramsay Nick Ramsay Conservative 5:56, 10 October 2018

You know, Cabinet Secretary, what I'm going to mention, as I mentioned it earlier with the finance Secretary, and I have done so with you previously, and that's the Chepstow bypass. That's an example of where cross-border co-operation isn't just important but absolutely vital. So, I hope that you will progress that, because if we can solve the congestion problems within Chepstow and there's more capacity there, then there would be greater capacity on the M4 as well. 

Photo of Ken Skates Ken Skates Labour

Well, I'd agree entirely, and the Chepstow bypass is potentially a great example of how, by working closely together and aligning priorities on both sides of the border, we can deliver for the people that we all want to see have improved life chances. And there's another example closer to my home with the work that I've been doing with counterparts just across the border, with Owen Paterson and with Shropshire Council and Highways England, looking at how we can improve traffic flow along the A5 by utilising our investment on the Welsh side, and hoping and encouraging Highways England to invest similarly on the English side. But, as I say, I am a firm believer in cross-border collaboration, working with our partners not just in England but also, of course, in Scotland and in Ireland and beyond. I firmly believe, Deputy Presiding Officer, that we can never allow the politics of hate that drives nationalism to stifle partnership or collaboration or solidarity or, indeed, our very prosperity. 

And in terms of the year-long M4—.[Interruption.] In terms of the year-long M4 public inquiry, well, that is now concluded. I don't think I've ever had so many cheers from opposition benches. [Laughter.] That's very kind of you.

The public inquiry has now concluded and the inspector's report has, of course, been received by officials carrying out the necessary due diligence. I've not yet seen the report. Whilst officials are conducting that due diligence, I will not be seeing that report. But, upon receiving their advice, the orders decision—effectively the planning decision—can be made, and that decision and the inspector's report will then be made available to all Members in this Chamber.  

(Translated)

Andrew R.T. Davies rose—

Photo of Andrew RT Davies Andrew RT Davies Conservative

You might be going on to this, Minister, but could you clarify? As I work out, I think we've got about seven weeks of term left, and two weeks this side of half term. The First Minister has said that he is going to make that announcement and he's standing down in the last week, so that leaves five weeks the other side of half term. So, there are seven parliamentary weeks left. What is the Government's thinking about when they will be bringing that decision to this Chamber for that, because I hope it will be via this Chamber that that announcement will be made, not some sort of announcement in the press? 

Photo of Ken Skates Ken Skates Labour 5:59, 10 October 2018

And I was just about to say, actually, that that decision on the inspector's report will then be made available to Members before a debate and a vote on this issue in the Chamber, before final decisions are made on whether to proceed with construction. But our position is very clear and remains consistent with what our manifesto pledge was.

There are, of course, many more transformational projects that we have led the way on, and I was particularly pleased to see the investment from CAF in the Newport area, bringing an invaluable train assembly plant. That has enabled us to attract further interest in Wales, and I'm sure Members will have seen just yesterday the announcement by TALGO of north Wales being shortlisted as a potential site for the creation of 1,000 new high-quality jobs, producing some of the world's greatest high-speed trains. From a standing start, Wales has now got an enviable reputation as an area of rail manufacturing expertise. 

But of course, lastly, we face the challenge of Brexit, and what bigger challenge can any of us face than our exit from the EU? In Newport, a city that has such a strong manufacturing economy and where many businesses are part of very complex supply chains and networks that reach right across Europe, I think that that reality is very well known. So, despite a strong conviction that a deal must be struck, I think it's also equally important to say that we have a responsibility to prepare for our exit from the EU. The economic action plan is fundamentally about futureproofing our economy. It's taking into consideration eventualities in the Brexit negotiations and it's designed to meet the challenges of today, but equally to harness the opportunities of tomorrow.

Now, I trust that this debate has shown that, with all that we are doing as a Government in Newport, as well as across the whole of Wales, there is cause for optimism and confidence in the city and in the region, now and for the future. I am particularly pleased as well that there is cross-party, for the most part, consensus that our future prosperity does indeed rest on strong, cross-border collaboration. 

Photo of Ann Jones Ann Jones Labour 6:01, 10 October 2018

Thank you very much. That brings today's proceedings to a close. Thank you. 

(Translated)

The meeting ended at 18:01.