I have accepted an emergency question under Standing Order 12.67, and I call on Rhun ap Iorwerth to ask the emergency question. Rhun ap Iorwerth. 

Will the Minister make a statement in response to the announcement regarding Wylfa Newydd? (EAQ0004)

Diolch. I issued a written statement in response to the announcement on 17 January, and I've since been speaking with Hitachi, with Horizon Nuclear Power, the UK Government, local stakeholders, and I also attended an emergency meeting of the North Wales Economic Ambition Board yesterday, and I can assure the Member that we are doing everything possible as this developing situation unfolds. 

Thank you very much. I think we had expected this announcement for some months. We could ask some questions about what the UK Government did during that time to try and save the agreement, but, from the point of view of the Welsh Government, it is worth asking today, given that we had expected this announcement, what steps the Welsh Government took to draw up an action plan for such an announcement. I wonder whether you could outline those plans.

In terms of the next steps, seeing what can be done in order to keep the current scheme viable is clearly a part of what’s happening at the moment. I have to say that I do fear that the Secretary of State for Wales, within the UK Government, is being irresponsible in talking about the possibility of reviving the project within a year or two, or possibly three. But, if the intention is to try and create a new funding model, can I ask what role the Welsh Government proposes to play in that scenario, along with other partners locally?

But, whatever can be done in terms of restoring this particular scheme, clearly we need investment now—additional investment—to make up for what is being lost, at least in the short term. The politics of nuclear is one thing—I understand the arguments for and against nuclear energy—but as an economic opportunity, of course, this announcement will be a blow to generations of young people in Anglesey, and they now need to see that everything is being done to invest in their futures. So, will the Minister, who has given some signals of this already, make a commitment to invest more in the north Wales growth deal? One hundred and twenty million pounds has been allocated already, as well as £120 million from the UK Government? We will need to increase that significantly now in order to invest in regeneration and economic development plans in Anglesey. particularly in the north of the island, in the Amlwch area. We need to move towards opening the Amlwch line. We need to secure funding to make the electricity link to the Morlais energy project, and we need to support the Minesto investment. So, I would appreciate an assurance in that regard from the Welsh Government.

Further, can we have an assurance that the Welsh Government will urge the UK Government to increase its contribution to the north Wales growth deal? This is another project that has failed to be delivered by them in Wales. They must now show a commitment through further investment, including, perhaps, by directing substantial HE research funds to Bangor University. Wales fails to receive its share of research funding as things currently stand.

And finally, could I have an assurance that the Welsh Government will provide all possible assistance to the staff working with Horizon at Wylfa at the moment, who, of course, have received letters warning of redundancy over the last week? Good people from the local workforce will now need your support.

Can I thank the local Member for the very important points that he made and the questions that he raised? 

In terms of planning for this eventuality, well, of course, I'd already given the go-ahead to the development of a regional plan for north Wales, alongside the development of regional plans for the other two regions. That plan is in development as we meet here today, and will, of course, take account of the situation that we're in and the various scenarios that could be played out in the months and years to come. But, alongside the regional plan, of course, is the north Wales growth deal, with the 16 projects that are contained in it. Some are sensitive to the Wylfa Newydd project, but, of course, others are not. Yesterday, during the meeting of the North Wales Economic Ambition Board, we discussed how prioritisation could be given to a number of the projects, and those projects that are potentially the most transformational for the region, and, indeed, how they could potentially be accelerated and scaled up. If I can just identify one as an example, I think the digital project has huge potential and could be scaled up and delivered at great pace.

Rhun also raised the important point about the work that will be undertaken in the coming months, insofar as a potential new funding model is concerned. I think it's fair to say that we must do all we can collectively—here, in north Wales, and the UK Government, working with Horizon, to ensure that the project, if it can go forward, does go forward with the minimum pause. In terms of the new funding model and the work that's under way, we've been assured that the review and the report will be completed by this summer. The regulated asset base model has been utilised in other major infrastructure programmes. One that I would point to as probably the best example of its utilisation recently in this sort of field is the Thames Tideway. We need to be fully involved in any conversations, discussions and deliberations over that potential funding model, and I've asked officials to engage fully with the Department for Business, Energy and Industrial Strategy.

In terms of support for the north Wales economy and, more generally, the marine energy sector of Wales, we believe as a Government that the UK Government should look to develop a new tariff regime that assists the development of the sector in the same way that, for example, wind was assisted in its formative years. That would enable Wales to lead the field in the deployment of marine energy technology, and it would ensure that, as we seek energy security, we are able to rely more heavily on renewable forms of energy. And of course, in and around Anglesey there are already existing centres of excellence and research facilities concerning marine energy.

In terms of the quantum that we have allocated to the north Wales growth deal, I was always very clear that, in supporting the growth deal to the tune of £120 million, we were matching the UK Government. But I was also very clear in statements made before Christmas that we believe that the UK Government should increase its contribution, and, if it so does, so will we. And I do await positive news from the UK Government concerning the sum of money that it is willing to contribute to this important deal. And it's also worth bearing in mind that, in addition to our contribution to the north Wales growth deal, we are also planning £600 million of infrastructure programmes across the region in the coming years. And on top of that, a huge amount of money will be invested in our social infrastructure—in new schools, health centres, hospital facilities, again making sure that we contribute to the regional economy and its economic resilience.

What I would say is that, in considering any additional resource for new projects, we should not tolerate an unco-ordinated call for support for programmes in north Wales. It's absolutely essential that the regional plan, and the north Wales growth deal bid, take centre stage in developing the economic footprint and interventions of north Wales. And so, I would call on any interested parties to ensure that their work, their proposals, are aligned with the growth deal bid and our emerging regional plan.

I think the Member is absolutely right as well to call for an increase in research and development spend in the region, and I would widen that to say we should have an increased spend in Wales as a whole. Of course, within the growth deal, there is a £20 million project for access to smart energy, relating to the development of Trawsfynydd as a centre for the deployment of small modular reactors. I'd like the UK Government now to examine the potential to ring-fence sums within the sector deals for nuclear and aerospace for the region and for Wales, to ensure that we are at the forefront of technological development in two areas of expertise that I think we are renowned for around the globe.

And finally, in terms of employees, my heart goes out to those people who have worked so diligently over a significant period of time. We are in talks with Horizon about the numbers that will be retained, but we have a proven track record of being able to assist people who are affected by such decisions, through ReAct and through a co-ordinated response across a number of Government agencies. Of course, we will support anyone affected in the same way. But I can also assure the Member that we are looking to go beyond this, by engaging intensively with businesses across the region who were scaling up and skilling up in order to take advantage of this once-in-a-generation opportunity. We are examining every possible means of providing opportunities for work and for businesses to take advantage of during the period that this project is paused. 

Can I begin by thanking the Member for Ynys Môn for raising this very important emergency question, and also the Minister for his response? May I also add that my thoughts are with everyone who's been affected by this recent announcement? 

I really hope that we can come to a solution on this issue, because the local people and the local communities on the island, but also the communities right across north Wales, have been working extremely hard to support and plan for this project for the best part of 10 years, and that's because it has clear benefits: the thousands of construction jobs, the hundreds of operational and engineering jobs and the opportunities for high-quality, skilled apprenticeships. So, I welcome the Minister's offer of support to those families who have been affected by this announcement. 

Deputy Llywydd, I have three points for the Minister. Firstly, it's clear to me that following this announcement, and the past announcement surrounding the tidal lagoon, we need a better mechanism in place for financing major construction projects. Secondly, would the Minister agree with me that we also need to learn from the lessons and put our full weight behind other projects in north Wales, just like the Heathrow logistics expansion hub, which is an ongoing project? Now, securing these investments would bring jobs and prosperity to my constituents but also those people right across the north Wales coast? And finally, Minister, people in north Wales and across the country are losing faith in major projects not being delivered, and, as it stands, we are being let down by the UK Conservative Government. Would the Minister agree with me that it's time to get projects like these delivered so that the people of Wales can see real change in their communities and clear opportunities for our future generations?

Can I thank the Member for Alyn and Deeside for his important points and the questions that he has raised? Of course, he represents an area of Wales that is integral to the nuclear arc that stretches from the north-west of Wales right through to the north-west of England, and whilst the centre of activity will, of course, be focused on Anglesey, I am conscious that many people who work on the Wylfa Newydd programme are from other parts of north Wales. This really is a project of regional and, indeed, national significance in terms of the employment base. Indeed, within the nuclear sector as a whole, such is the demand for skilled people that employees are willing to travel far and wide for work. One of my best friends, who lives just outside Mold, actually travels on a daily basis to Trawsfynydd for the decommissioning project there. So, nuclear-related activities in the region are of huge benefit to the whole of Wales. 

I think it is essential that work on the alternative funding model is taken forward at speed and, with the collaboration of Welsh Government officials, I've also pledged to provide a briefing note and regular updates for colleagues in local government in north Wales. I think the Member also raises the important point of seeking out other opportunities for employment in the region and across Wales. I think the Heathrow logisitcs hub that the Member points to could be a transformational project at the Tata plant, and I look forward to receiving an update on the work that has taken place in recent times in determining where the hub should be located. 

And, finally, insofar as major infrastructure projects are concerned and major investments are concerned, I won't rehearse the points that Members have already made so far concerning let-downs for Wales and failures for Wales, but I would say that, in contrast, the Welsh Government continues to deliver. It was perhaps a very sad irony that, on the day that we heard about the failure to take forward Wylfa Newydd on the current funding model, I was actually in north Wales launching the start of work on a £135 million Caernarfon-to-Bontnewydd bypass. In addition, we're delivering the £5 billion franchise, and the international convention centre is reaching completion. We have a record spend in terms of infrastructure in the region where Wylfa Newydd was due to be located, and where I hope still will be built. 

Minister, thank you for your comments this afternoon, and also last Wednesday, and in particular last Wednesday where you fully endorsed the Welsh Government's support for nuclear energy, which obviously was a concern for some people given the recent leadership race that was undertaken within the Labour Party. But what is important to understand is, as Horizon and Hitachi have pointed out, this boils down to the funding model that's available to build this project. We are led to believe that the UK Government offered a strike price of £75 per megawatt. That clearly doesn't seem to have been in the ballpark so that Hitachi could press the 'go' button on this particular project. What is your assessment of what strike price is required to let this project go forward? And, ultimately, what's really important for the communities in north Wales, and in particular on Anglesey, is that the negotiations do not continue indefinitely but that a conclusion is brought about to those negotiations.

When do you think that the Governments at both ends of the M4 will be in a position to make a reasonable call on the development of this site so that, if Hitachi are unable to develop this site, other partners can be secured? Because this is the best site to develop a nuclear opportunity in Europe, not just in the UK, and it is vitally important that Hitachi as a company, if they feel they can't continue with this project, are replaced with an alternative vision that can develop the opportunities that very many Members around this Chamber have identified for jobs and prosperity on the Isle of Anglesey. 

Can I thank the Member for his question? And, of course, it's the funding model that is broken. I don't think it would be for me to judge the strike price that would be needed to take this forward, because negotiations have taken place in confidence, although the figures, I understand, are now out there in the open. What is required is an appraisal of an alternative funding model to be carried out as soon as possible, and I think the Member makes a very important point, in that the patience of individuals and the faith that individuals have in the region will be tested if this situation is not resolved either way as soon as possible.

And I think it's also important to say that there can be no more false hopes, false starts, because it takes a huge amount of will and investment by businesses and people to ramp up for activity on the sort of scale that we've seen in recent months and years. If and when—. And I hope that the project will go ahead. When it goes ahead, I would hope that businesses and individuals across the region will take full advantage of it. But, in order to do so, we have to maintain the momentum and the traction that's been developed in recent times, and so it does require further intervention by Government in terms of the Government being able to guarantee that it's doing everything possible to bring this project to Anglesey, that it clarifies very publicly the funding model and how it will work and whether it is feasible as soon as possible. We also would like wider assurances about wider implications for the regional economy of north Wales and how, in light of the decision, support could be turned to other areas of economic activity, for example, as I've already mentioned, the SMRs and digital infrastructure.

I think it's also important that we know what the UK Government will do to support skills development and the supply chain during the pause period. It's not just important for north Wales—it's important for the whole of Wales and, indeed, it spreads further: it's important for the whole of the nuclear arc and for Britain's energy security.

Thank you. I have two more speakers, and if they promise me they will just ask questions I will call them both. Mark Isherwood.

Diolch. [Laughter.] Thank you. Question: what will you now say to retract your statement last week that the Prime Minister had been in Japan the previous week and hadn't raised this, when the Prime Minister of Japan was actually in London, and she confirmed in the House of Commons that she had, as did the Secretary of State for Wales, who confirmed that he'd also met her in the House of Commons? She answered a question to Ian Lucas confirming she had. And, given that this increases the need for the growth deal, what dialogue have you had, or will you have, with UK Research and Innovation, the body that has £7 billion funding for a combined budget for purposes such as this, which I understand might be accessible to support the small modular reactors and advanced modular reactors to help fill any gap that's created and drive Trawsfynydd and north-west Wales as a European centre, and potentially as one of the global centres, for SMR and AMR development?

Look, I should just say at the outset that the development of SMRs will not make up for the potential loss of 9,000 jobs across north Wales and the rest of Wales. It simply will not. It will contribute to filling the gap, but one project alone, I'm afraid, is not the silver bullet. Of course, Innovate UK has been heavily involved of late in activities here in Wales. We look for every and all opportunity to draw down competitive funding for research and development and innovation in Wales, and, as the Member, I'm sure, is fully aware, we are now using the Government offices in London as a showcase for Welsh innovation in order to draw attention to what's taking place within our research institutions.

And with regard to the discussions that did or did not happen between the Prime Minister of Japan and the Prime Minister of the UK, it seems that conflicting statements are being made. In order to clarify exactly what was said, it may be useful to know what the response of the Japanese Prime Minister was to the supposed raising of queries by Theresa May.

Can I ask what light this might shed on the opportunities for other energy developments in north Wales, and in particular the north Wales tidal lagoon, a project that, of course, could create up to 20,000 jobs, has the potential to deliver significant contribution to the energy needs of Wales and the wider UK, and which, according to the firm that has put this project forward, has significant interest from investors around the world and can provide this energy at an affordable price? It seems to me that there's an opportunity here that we could potentially pursue as an alternative to Wylfa, given that it's been shelved for the time being, and I was wondering what work the Welsh Government might be able to do with the UK Government in order to make progress on this alternative scheme, which, of course, would also bring added benefits in terms of flood protection for the north Wales coast.

Yes. I recognise the points made by the Member for Clywd West. I think it's just important to restate the importance of finding a favourable funding model for the marine energy sector if we're going to take forward any of the proposals that have been put on the table, whether that's in the Swansea bay area or north Wales. I am aware of a number of proposals for tidal lagoons around Wales. I hope that these will be further explored at the marine energy summit that's taking place in Swansea next week, which, in light of the decision by Hitachi, I think has taken on additional significance.

I think what's also important to state about tidal lagoons is that we must examine not just their potential to create jobs and create economic development and not only consider their role in providing clean, renewable energy but also their role in potentially building places and defining places. I think all of us in this Chamber—well, certainly most of us in this Chamber—would like Wales to be recognised as the renewables nation. In order to reach that point, I don't think we should play off—and there's always a risk of this happening—one region against another region in Wales or one project against another. I think it's fair to say that most people in this Chamber would like to see multiple tidal lagoons around Wales, and most people in this Chamber would like to see a variety of renewable energy sources being deployed as wide and far as possible.

Thank you very much, Minister. Thank you.