Economic Growth in Aberavon

1. Questions to the Minister for Economy and Transport – in the Senedd on 10 July 2019.

Alert me about debates like this

Photo of David Rees David Rees Labour

(Translated)

1. Will the Minister make a statement on the Welsh Government’s priorities for economic growth in Aberavon? OAQ54227

Photo of Ken Skates Ken Skates Labour 1:30, 10 July 2019

Yes, of course. Our broad approach to economic development in Aberavon, and across Wales, is set out in the economic action plan.

Photo of David Rees David Rees Labour

Thank you for that answer, Minister, because it is important that we address the whole aspect. I'm sure I'll have another good look at the action plan. But, as you know, I've got strong commitments to the steel industry in my constituency and events in Bridgend, with Ford, have once again highlighted the need to develop a diverse economy in Aberavon, so that we're not simply reliant upon a sole employer. Tourism is one sector that can deliver part of that diversification and there are many fantastic sites in my constituency—I encourage anyone to come along to the lovely three-mile-long beach we have, the historic Margam abbey, or Margam park, or even the wonderful Afan valley. These all offer huge opportunities to strengthen the local economy and through a tourism offer—large or small scale.

One large-scale project that has been in the news recently is the Afan valley resort park, a concept that actually demonstrated that activity-based tourism is well suited to our topography, and one that could bring economic regeneration to an area of deprivation. I will acknowledge, as was mentioned yesterday, the serious concerns that have been raised about the financial dealings of the company that are developing and are behind the scheme, and, consequently, I would expect those to be dealt with in the appropriate manner. However, I believe the concept of the project is one that we should explore further, as it can offer employment, and opportunities, and regeneration to many in my constituency.

Minister, can you confirm first of all that no Welsh Government funding has been given to that project? And do you agree that such proposals should continue to be explored as a positive opportunity for building a strong tourism experience in our valleys and offer communities many opportunities, and what support can you give to smaller, local projects that can feed into the tourism offer in the valley?

Photo of Ken Skates Ken Skates Labour 1:32, 10 July 2019

Can I thank Dai Rees for not just his questions, but also the important point he makes about the fantastic natural and built assets in his constituency and across the region? As the Deputy Minister for Culture, Sport and Tourism takes forward a new tourism action plan, which will be consulted on, diversity within the sector and across each of the regions will play a key role. There has been huge business growth in Neath Port Talbot over recent years—double-digit growth in terms of business start-ups—and we as a Government, whether it's with regard to the tourism sector or any other sector, are determined to ensure that that growth continues into the future.

The Member also raises a very serious matter that has been much promoted in the media, and investigated particularly by ITV and The Guardian. We thank them for their work on this particular project. I can indeed assure Members today that we have not promised, and we have not provided, a penny of funding to Gavin Woodhouse or Northern Powerhouse Developments for the proposed development of the Afan valley adventure resort. But it is important that Governments look to proposals that are brought forward that offer transformational potential. I would join Members who have, across this Chamber in recent days, appealed for clarity as to whether the vision on offer for the Afan valley—a stunning valley in south Wales—can still be realised.

Photo of Suzy Davies Suzy Davies Conservative 1:33, 10 July 2019

David Rees is absolutely right. And the opportunity, not just in the Afan valley, but both the Neath valleys as well, for tourism development is extraordinary. And I still consider it a missed opportunity. What's available in the Neath Port Talbot borough is just amazing. We've obviously been hit by some bad news recently, not just the newspaper pieces that you've referred to, but the sad news about Jistcourt as well, so we could do with some good news. Could you tell me when you last received an update from the Swansea bay city deal board about progress towards the national steel innovation centre?

Photo of Ken Skates Ken Skates Labour 1:34, 10 July 2019

I receive, at the moment, almost on a daily basis, updates from my officials regarding the Swansea bay city deal and each and every one of the projects, as does my Deputy Minister. And I hope that we'll be able to make a positive statement very soon with regard to the deal.

Photo of Bethan Sayed Bethan Sayed Plaid Cymru

Nobody's disputing the fact that the Afan adventure park concept isn't good. And, in fact, we would be supportive of that idea, because I think, as has been exemplified in questions now, we know the potential and the beauty and the attraction of the Afan valley, and we want to see the area succeed. So, in your conversations with the council, with the city deal and other players, what efforts are you making now to ensure that we can get that much-needed investment in a region where we've seen not only Jistcourt, Ford potentially now as well, and other detrimental economic failures impacting on the area, so that we can put forward new alternative ideas and futureproof against some of these things? I appreciate you've thanked The Guardian and ITV, but how can Government, and the community as a whole, futureproof when we are looking at some of these grand ideas to understand how viable they actually are in future, so that we don't go beyond what is possible? We can still dream, but we don't actually then think that these ideas are something unachievable, but they are ones that are tangible, and ones that make economic sense, and that are value for money, ultimately, too.

Photo of Ken Skates Ken Skates Labour 1:35, 10 July 2019

Well, as I've said—. And I do welcome the point that the Member has made about being supportive of the vision that was offered. That's very different to being supportive of the company that was behind the vision; they are two very different things. The fact of the matter is that Wales is leading in terms of adventure tourism in Europe, and we have to look at all proposals that will enhance our excellent reputation. I think the Member also raises a very important point about how we assess the validity of schemes that are brought to us, particularly those that individuals promise will be enormously transformational for an entire region or, indeed, for an entire country.

And I'm sure I don't need to, but I will remind Members of the incredibly thorough due diligence that I ordered for one of the most controversial schemes that we have dealt with in recent years—the Circuit of Wales—which highlighted a number of challenges. It was as a result of that due diligence that we were able to avoid putting more than £300 million of taxpayers' money, £300 million of investment that could go into schools, hospitals and other services, at risk. So, I can assure the Member that, as far as my department is concerned, as far as the Welsh Government is concerned, rigorous due diligence of all projects that promise to transform the lives of people is made, and we will continue to make that effort to ensure that we do not invest in projects that cannot deliver and that are not viable.

But I think it is important that we don't put all of our hope in single projects that promise to change entire communities, and that's why I'm all in favour of ensuring that we have a diverse mix of businesses in each and every region. And with regard to the tourism sector, whilst you can have key strategic infrastructure in place, such as, in the north, Zip World or Surf Snowdonia, you also have to have around it a very, very high-quality supportive mix of attractions and infrastructure. And, so, with regard to the Afan valley, with regard to the wider community and the wider region, we're looking at every opportunity through the emerging action plan to invest in improving the quality of the offer in the area, and also the attractions that are there, based on the stunning natural environment and taking full advantage of our historic assets as well.