1. Will the First Minister make a statement on the development of tidal energy in South Wales West? OAQ53834

We continue to work with partners across Wales, particularly in South Wales West, to develop a strong and positive future for the marine energy industry whilst preserving our rich marine biodiversity. Tidal energy remains an area in which Wales could lead the world.

Thank you very much for that response. As you know, in a meeting of the scrutiny of the First Minister committee recently, I raised my concern that the world's first test centre for the development of materials for tidal energy is now being built in Scotland. There is a risk that we in Wales are losing momentum, therefore, in terms of putting ourselves in the vanguard in this field. The Swansea bay tidal lagoon is an opportunity for Wales to become a global leader, but with the London Government having turned its back on Wales once again, the Welsh Government, in my view, needs to show clear leadership on this issue. Now, with the work of the Swansea bay region task and finish group coming to end, it was suggested that something may emerge from that that would seek support from the Welsh Government. Can you expand on any recent discussions on this point, and to what extent is the Welsh Government considering co-production in this regard?

May I thank Dai Lloyd for that question? I remember the question that he posed at the scrutiny committee. Of course, we continue to work with the city council's taskforce, and we look forward to receiving its report when it's ready. As has been true over the years, the Welsh Government is ready to participate in the project and to contribute to the capital costs of building the Swansea bay tidal lagoon. The problem, of course, Llywydd, is with the cost of the electricity. In that field, it is the responsibility of the United Kingdom Government to announce a scheme that can support the sector with the electricity costs. It is the United Kingdom Government that commissioned the report initially, so they must be accountable for not implementing the clear recommendations of their own report.  

First Minister, I recently chaired a policy forum. Tidal Lagoon Power were there and they spoke about the work that they're doing to encourage businesses to buy energy from them in order to provide a future for the lagoon project. Welsh Government's national procurement service states that it collaborates with public organisations to use collective buying power to get a good deal for Wales, whether it's supply teachers, fuel, computers or sandwiches. Now, we know that the strike price is a question that has threatened this project. So, how can the work done on the national procurement service here on collective buying help make the case to organisations that it could be good value to buy energy from a tidal energy source like the Swansea bay tidal lagoon?

Well, Llywydd, I understand the point that Suzy Davies is making, and I've heard arguments made by those involved in the scheme in Swansea that the way to deal with the failure of the UK Government to have a contract-for-difference approach to the electricity that will be produced by any lagoon is to spread the cost of that amongst a large number of public and private sector buyers of that electricity. And I understand the case that they are making. But, surely, the real answer is that the UK Government should recognise that this was always to be a demonstration project, that it is inevitable in nascent technologies that the price of electricity produced would be higher than it otherwise would be in the marketplace, and, just as previous Governments were willing to do in the fields of solar and wind, that they must find a tariff for marine energy—not simply tidal lagoon technology, but marine energy—that allows those new technologies to be attempted and, as we would see it, to thrive here in Wales. That's the right way to do it. Spreading the cost amongst public and private sector buyers here in Wales will only go so far, and will, in the end, result in Welsh citizens having to subsidise a cost that always ought to have been the responsibility of the UK Government.

First Minister, Dai Lloyd pointed out that the energy proposals of the tidal lagoon could create a new sector of industry across the south Wales region and, clearly, also support other industries there, including the steel plant in Port Talbot. Following last Friday's announcement of the joint venture collapse that is likely to happen between Tata and Thyssenkrupp, this is now a possibility of actually where we can see steel being used from the Port Talbot plant in a project that would give benefits not just to the region, but to the whole of Wales with energy. Will you therefore go back to the UK Government with the message that this is a possibility of how the UK Government can help the steel industry, as well as the tidal lagoon and tidal energy?

I want to thank the Member for making that important point, and for taking the opportunity, which I know he does whenever he has that opportunity, to speak up for the steel industry across Wales and in his own constituency. The case for the tidal bay lagoon was never in the relatively small number of jobs that were directly to be involved in the project—that's a point that the Secretary of State for Wales tried to make when trying to excuse the UK Government's decision not to go ahead with the scheme. The jobs were always to be created in those supply chains and those other manufacturing possibilities that go with a new industry that can be born here in Wales. And of course there will be potential for Welsh-produced steel to be used in that construction. And I'm very happy to give the Member an undertaking that we will write again to the UK Government, making the case that he's just put to me, in this new context.