1. Questions to the First Minister – in the Senedd on 6 November 2018.
5. What assessment has the First Minister made of potential delivery models for the Swansea Bay tidal lagoon? OAQ52890
Well, we continue to be open to ideas to find an alternative way to see tidal lagoon technology delivered in Wales. The Swansea bay city region has established a taskforce to find an alternative funding model for a private sector-led tidal lagoon product.
Further to that, First Minister, I have to say that I was disappointed to hear recent statements by the leader of Swansea council, as he mentioned that he thought the best way of delivering the lagoon in Swansea was to leave it to the private sector entirely. In his view, the private sector should do the design work, find the investors, build the project and maintain the tidal lagoon, but there is no certainty, of course, that this will happen. If the Welsh Government is truly committed to introducing a tidal lagoon in Swansea bay and then developing the renewable industry in Wales, why don’t you lead the way on this agenda and create a national energy company for the people of Wales?
There is a taskforce, and we have representation on that taskforce, and a bid has been received for additional funding from the taskforce itself in order to consider another study as regards the way forward, and of course we are considering that at present to see whether it is possible to fund another study to see which model would be best for the area.
Well, considering the criticism of the UK Government from that particular source, the comments made by the leader of Swansea council referred to by Dai Lloyd, I think that's quite a turnaround from the comments that were made by him, and, indeed, your Government, when it was the UK Government that was responsible for a decision on viability for the lagoon. Do you agree with these comments, or are you still offering £200 million of taxpayers' money in order to support such a project?
Well, the reality is the UK Government controls the market. The UK Government controls the strike price, it controls contracts for difference. We control none of those things. The UK Government could have committed to Swansea bay, but it failed to do so, as it did with electrification to Swansea—it didn't do that even, though it was able to find £1 billion to give to Northern Ireland.
This problem arises as a result of a lack of commitment from the UK Government. It was their scheme. We were willing to work with them. It is right to say that we would consider a loan or equity investment to support the lagoon, but the UK Government were not prepared to offer a contract for the difference, and that's what stymied the original plan. But we will continue to work with Swansea council and others to see if an alternative plan can be brought forward.