Capital Investment in Cynon Valley

1. Questions to the Cabinet Secretary for Finance – in the Senedd on 5 December 2018.

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Photo of Vikki Howells Vikki Howells Labour

(Translated)

4. What are the Welsh Government’s priorities for capital investment in Cynon Valley? OAQ53029

Photo of Mark Drakeford Mark Drakeford Labour 2:01, 5 December 2018

I thank Vikki Howells for that. Our capital priorities for the Cynon Valley include investment in town centres, in flood prevention, in the health service—including, for example, the new primary and community care centre due to be completed in Mountain Ash in 2021.

Photo of Vikki Howells Vikki Howells Labour 2:02, 5 December 2018

Thank you very much, Cabinet Secretary. In fact, there's an exhibition on for that primary care centre in Mountain Ash today. But, in particular, I am keen for work on sections 5 and 6 of the dualling of the Heads of the Valleys road to be completed, which will be so important for my constituency. I noted the local government Secretary's comments last week about maximising the benefits of the investment in the A465 corridor for local communities. This was set against a 12-month time frame, so with work on sections 5 and 6 due to start at the end of 2019, how will this investment be exploited to bring the most advantage to communities in Cynon?

Photo of Mark Drakeford Mark Drakeford Labour

I thank Vikki Howells for that. She will know that we went out to tender on sections 5 and 6 of the A465 back in July. We are now having an opportunity to consider fully the inspector's report, and I hope that a decision to proceed with the next stage of procurement will be taken very shortly. Directly in that project, there will be contractual requirements for the successful bidder to deliver a range of community benefits around the employment of local people, training apprenticeships and work contracts for local companies, all of which will benefit residents in her constituency. My colleague Alun Davies was referring to a working group set up by the Valleys taskforce, which is to consider how best to maximise the opportunities around the dualling, not simply while it's being built but once it is open as well.

Photo of David Melding David Melding Conservative 2:03, 5 December 2018

Cabinet Secretary, you will know, and I'm sure you welcomed, as I did, the decision of RCT council to launch the largest ever capital investment programme in their history. It's set at £300 million, of which £45 million will be on housing. Some innovative schemes are planned, and some important partnerships with the private sector and housing associations—and the local authority itself, of course. Given now that the Treasury is lifting the borrowing cap on councils that want to build more houses, don't you welcome this approach, which, in tough financial times, is just the sort of way to really see our local economies being stimulated?

Photo of Mark Drakeford Mark Drakeford Labour 2:04, 5 December 2018

Well, I do welcome the lifting of the cap, and I know my colleague Rebecca Evans has been in correspondence with local authorities about what that will do to their ability to raise further funding to invest in housing. Of course David Melding is right about the local economic impact of house building in communities, and I agree with him that RCT council, under the leadership of Councillor Andrew Morgan, has been amongst the most innovative councils in Wales in finding ways to expand their ability to invest in capital projects, not simply in housing but in many other areas as well. Councillor Morgan is the author, with Jane Hutt, of the local authority borrowing initiative that we have helped to fund, and I congratulate them on the work that they do in this area.