6. Statement by the Minister for Economy, Transport and North Wales: Metro Projects in Wales

– in the Senedd at 4:49 pm on 25 February 2020.

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Photo of Ann Jones Ann Jones Labour 4:49, 25 February 2020

Item 6 on the agenda this afternoon is a statement by the Minister for Economy, Transport and North Wales: metro projects in Wales, and I call on the Minister for Economy, Transport and North Wales, Ken Skates.  

Photo of Ken Skates Ken Skates Labour

Diolch, Dirprwy Llywydd. This Government’s ambition to see a more prosperous, greener and equal Wales is one I hope we all aspire to in this Senedd. I'd also expect everyone to share our ambition for a modern transport system in Wales, a transport system that plays its part in contributing to three ambitions: delivering economic growth in rural and urban areas; encouraging people to use more sustainable forms of transport in order to minimise environmental impacts; and providing efficient and affordable journeys accessible to all.

Photo of Ken Skates Ken Skates Labour 4:50, 25 February 2020

As we know, our railway infrastructure in Wales has been continuously and systematically starved of investment. Unsurprisingly, as a consequence, Wales has some of the UK’s slowest inter-city rail speeds, the lowest level of rail ridership, and the highest percentage of car journeys. This is simply not sustainable.

Our metro programmes in the south east, in the south west, and the north will deliver the necessary changes through a customer-focused, integrated, accessible and sustainable multi-modal network across all regions. Trains, buses and the active travel network will work together to connect people and places efficiently and effectively for work, life, and leisure.

To deliver this, however, we require Welsh Government to be in control of all the levers necessary to deliver a fully integrated transport system, and despite the constraints of the current rail ecosystem, in which the UK Government defines priorities and allocates investment according to their own priorities, the Welsh Government has nonetheless funded and progressed the ambitious south Wales metro programme to develop the economy and support regeneration across the Cardiff capital region.

And today, I wish to reaffirm our commitment to our metros and set out our plans to develop similarly ambitious programmes for south-west Wales and Swansea bay, north Wales, and further expansion in the Cardiff capital region. These will build on the current metro principles, but now with an even greater focus on connectivity, decarbonisation, and integration as we develop future phases.

Following the recent triggering of the transfer of ownership and responsibility of the core Valleys Lines, the next phase of this ambitious project will deliver electrification, new trains, faster and more frequent services, and provide the foundation for further and necessary expansion. This ambitious programme to address climate change, improve air quality, and relieve congestion clearly demonstrates what is possible when powers and funding are devolved and decentralised.

Now, until full rail devolution is secured, we need the UK Government to improve wider network capability, capacity and resilience including upgrading our mainlines to enable faster, more frequent, and more reliable services, alongside measures to address network bottlenecks such as Ebbw Valley and junction, between Wrexham and Chester, Cardiff west, and Swansea station.

Now, the spine of our metro in north Wales will be a major upgrade of the Borderlands line to offer turn-up-and-go services from Wrexham, and through working with Merseytravel, deliver services all the way through to Liverpool. We will develop our key hubs, for example at Shotton, to provide an interchange between rail services, as well as integrated bus services across our regional hubs. To effectively deliver integrated, attractive services across the north Wales coast and the Borderlands line, we need new all-stop commuter services to complement faster long distance services running on an upgraded, electrified mainline.

In west Wales and Swansea bay, Transport for Wales has worked with the region to develop an initial package of measures, including new long distance and local metro rail services along the currently under-utilised Swansea District Line, offering reduced journey times from west Wales to Swansea, Cardiff, and across the border.

The new metro services would, via new rail infrastructure, and a number of new stations and strategic park-and-ride sites, connect the urban areas of Swansea and Neath directly to both Swansea High Street and Neath stations, encouraging further development at those locations. Now, we've also progressed work to enhance and expand bus services in the Swansea bay region, which will be integrated with this rail programme. Subject to further business case development, this will be a rolling programme that will start to deliver benefits across the region within the next two years.

In advance of any changes to the devolution settlement in respect of rail infrastructure, I would like the UK Government to work with us to accelerate this programme. We wish to explore more innovative approaches to the application of traditional rail standards to assess the potential for new and/or reopened lines.

Our forthcoming bus legislation will offer us opportunities to significantly enhance and expand our bus services, filling in current gaps in our rail network and offering increased frequency, integration and speeds to our regional hubs. We will assess the potential for segregated busways and public transport priority measures to support further network expansion. These public transport networks will be critical to supporting regional and local economic development and regeneration. It will also allow us to develop places designed around communities. 

Our climate change obligations dictate that we progress these ambitious proposals. We need to ensure that decision making on metros in Wales is fully integrated, of course, with regional planning and with wider investment in infrastructure and service delivery. The ongoing development and application of sophisticated transport, land use, and economic models covering the whole of Wales will provide the necessary analytical foundation for these developments. They'll also support our economic and regeneration interventions at key interchanges and at smaller community hubs across the country. In doing so, we want to work with local authorities to locate more of our public services and operations to hub locations connected to these networks. 

We're already working on proposals to co-locate more activities near Wrexham General and our plans for Deeside Industrial Park station will offer viable public transport options for commuters. This approach could also have major impacts in Newport and Swansea where commuting contributes to daily peak-hour congestion on the M4. 

Now, we're also working to embed the development and delivery of metros across the country to develop local supply chains, to diversify expertise, and expand skills. I have asked TfW to direct effort to develop and deliver our metros and will share further details of progress with Assembly Members. 

Finally, Dirprwy Llywydd, to be clear, to deliver these programmes and to address decades of underinvestment by the UK Government in our rail network, we need ownership and funding of rail infrastructure. Wales has, for too long, been low on the list of Westminster's priorities for enhancing the rail network in England and in Wales. Rail devolution will enable us to put this right, building on the recent rail franchise award and infrastructure ownership, which are already delivering results. We look forward to the imminent Williams review and the White Paper to allow us to reform our railways and to create the fully integrated public transport network that Wales richly deserves. The effects of a decade of austerity have been felt across all regions and sectors. Plans by the UK Government to increase spend on infrastructure in this Parliament are very welcome, and Wales's share of this will amount to some £3.7 billion. With this funding, and a fair share of the HS2 spend over the next 10 years, we will deliver our plans to transform urban and inter-city connectivity in Wales.

Photo of Russell George Russell George Conservative 4:58, 25 February 2020

Can I thank the Minister for his statement and for the advanced copy as well? Can I perhaps answer the first question? I think a metro system to drive economic growth in south-west and north Wales is much needed, and we on these benches welcome those projects and the ambition that you've set out.

I think it's also correct to say that the UK Government is investing a record amount in Wales's railway infrastructure, and Network Rail investment in the Wales route for control period 6 will be over £1.5 billion. Can I also say—and I know this—that the UK Government is and will support rail infrastructure, including new stations that have a strong business case behind them? And it's also, of course, been confirmed that there will be an additional Barnett consequential from the recent bus announcement, which I'm sure that the Minister will welcome.

Minister, with regard to the metro system, if I can take you back to a statement in March 2017, entitled 'Moving North Wales Forward', you listed exciting projects in development, including rail and integrated transport schemes. Almost three years on, I'm keen to see what progress has been made. There have been concerns about a lack of action, so can you provide a timetable of exactly when these integrated transport hubs will be rolled out, and how much funding in total is being set aside for the project?

During the Economy, Infrastructure and Skills Committee general transport scrutiny just under two weeks ago, members of the committee questioned you on your latest position on each metro project and the governance arrangements around them. I was left unclear as to which organisation provided the overall strategic direction for each of the three projects. Now, whilst your statement today suggests that there is an intention for Transport for Wales to be given a remit and to have overall strategic direction for each of the projects, work does seem, and has seemed, to be fragmented at the moment, with different stakeholders, including the Welsh Government and local authorities, working together up until this point. So, therefore—and perhaps since the committee session—I wonder what discussions you may have had with Transport for Wales on the governance and funding arrangements of each of the projects. Will you put this information in the public domain, and are you confident that Transport for Wales has the capacity to deliver the schemes on time and on budget, and can you set out a clear road map of delivery of these projects?

Your 2017 vision rightly points out, Minister, that there are strong links between the economy of north-east Wales and that of north-west England, and I hope you can agree with me that it's a welcome announcement from the UK Government in regard to HS2, which has a huge potential to support economic growth and boost skills and promote regeneration across north-east Wales. Passengers travelling from north Wales will directly benefit from interconnecting into HS2 at Crewe, with significant reductions in journey times in England. And I wonder also—would you agree with me, Minister, that it's not just about where money and development is spent, it's about who benefits from that spend and development?

With regard to the transfer of the core Valleys lines into Welsh Government ownership to allow for work on the south-east Wales metro to progress, you have previously stated that the transfer would take place in September 2019, and, during the committee session on 29 January, Transport for Wales stated that they expect the transfer to be completed by the end of March 2020. So, can you provide an explanation as to why there has been a delay, and is the transfer on track to be completed by the end of March this year?

Photo of Ken Skates Ken Skates Labour 5:03, 25 February 2020

Can I thank Russell George for his questions, and also for the support he has demonstrated for our ambitions for the metro systems across Wales?

Can I just deal with the very first point that Russell George made concerning investment in rail infrastructure in Wales in control period 6? All of that investment during control period 6 will be for maintenance of the rail network—maintenance. No money is being allocated towards rail enhancements. That means that, essentially, because of underinvestment over the past decade, we are seeing the UK Government finally waking up to the fact that deferred maintenance costs an incredible sum of money. And it's as a result of that deferred maintenance, that irresponsible approach to maintaining the rail network along the Wales route, that the UK Government has now had to dig deep in order to pull forward the investment for maintenance. We wish to see a similarly generous offer for rail enhancements.

I do welcome any consequential that would come from the Prime Minister's announcement concerning bus services and active travel—the £5 billion fund. That could equate to something in the order of £50 million per year over five years, and would certainly allow us to increase the bus services support grant, so I do welcome a consequential from that particular fund. But, if we are to deliver the game-changing ambitious plans for our metros, we require further investment from UK Government. For example, I've talked about a four-trains-per-hour service from Wrexham through to Liverpool. That will require, as Members may be aware from the letter that I have sent with the metro mayor of Liverpool, Steve Rotherham, approximately £150 million of investment from UK Government. That is a tiny, tiny sum of money when you consider that, over the past five years, we've seen around £1 billion of underinvestment—money taken away from Wales, money that should have been spent on the Wales route.

Now, HS2 does indeed have the potential to transform many communities that it will serve. But if Wales is to benefit from HS2, then certain conditions must be met. We must have the right outcome at Crewe, the right hub must be developed and delivered at Crewe. We must also see electrification of the north Wales main line, and electrification of the Crewe to Chester line. That would then enable future high-speed trains to travel through to Holyhead. That is absolutely vital. The estimated cost for those works is around about £1 million, which, again, compared to the £1.6 billion estimate for HS2 is not a huge amount of investment, and then I would agree that HS2 could deliver significant benefits to north Wales.

In terms of delivering further benefits to south Wales, because there could be a net adverse impact on the economy of south Wales, we wish to see those business cases that were promised by UK Government taken forward to the next stage. Those business cases, when the electrification of the south Wales main line was cancelled, included the promise to look at improving speed on the south Wales main line. That must happen. We must see improvements to the south Wales main line as a matter of urgency.

I take the point that the Member made concerning strategic direction, and it has been different in each of the metro areas where, for example, in the Swansea bay area, we've been working very much alongside the four local authorities. In north Wales, it's very much been focused on a collaboration between Welsh Government and Flintshire council, because the commencement of the metro concept is in Deeside. However, TfW have been remitted for the forthcoming year to take strategic direction into their responsibilities and to ensure that programmes across all three metro areas are accelerated as much as possible. But, again, Russell George asked about TfW's ability to be able to cost the work. Well, TfW will be relying on UK Government funding to take forward the programmes.

The CVL transfer asset has now been triggered, and it will be completed by the end of March. There was a delay due to negotiations, but I am pleased that it has now been triggered, and I look forward to taking control of that major piece of infrastructure so that we can invest £0.75 billion in the transformational south-east Wales metro.

Photo of Helen Mary Jones Helen Mary Jones Plaid Cymru 5:08, 25 February 2020

(Translated)

May I also thank the Minister for the statement?

Photo of Helen Mary Jones Helen Mary Jones Plaid Cymru

Thank you very much indeed for the statement and for the advance copy. Similarly to Russell George, I'm very happy to give the commitment of these benches to supporting the principles behind the developments of these metros. We all, of course, want to see a more prosperous, greener and more equal Wales. I'm a little bit surprised, in the Minister's statement, that he talks about putting an even greater focus on connectivity, decarbonisation and integration, because I thought that was the point of the metros in the first place, but, nevertheless, that may be somewhat churlish.

If I may, I'll just raise a couple of general points with the Minister and then I've got some more detailed matters that I'd like to raise. To begin with, I'd like to associate myself with everything that he said about historic underinvestment by UK Governments in our rail structure. Of course, this is not something that began 10 years ago, and I would say that this is not exactly the best example of the UK's solidarity, regardless of which party is in control in Westminster, that the First Minister is always keen to remind us of.

But, be that as it may, I'm very glad to see that the Welsh Government has come to Plaid Cymru's thinking in terms of devolution of rail to this Senedd. We've advocated this move for a very long time, and it's good to see that the Minister's caught up with us. But, in terms of whether or not this is going to happen, can I ask the Minister what discussions he's been able to have recently with the UK Government? I fully appreciate that it may have been difficult to do that because we've got reshuffles, and you may have new people in charge, but can you update us on their thinking in terms of full devolution, which of course would require the full devolution of the necessary funding as well? And, can I ask the Minister: if the UK Government won't do what he's asking them to do, what is the fallback position? If they won't either devolve or make the investment that he's asking for, what kind of contingency plans does he require those developing the metro systems to build in, so that we can make some steps towards these laudable aims, even if we don't have the resources that we need to?

Photo of Helen Mary Jones Helen Mary Jones Plaid Cymru 5:10, 25 February 2020

I'm also very glad to see that the Welsh Government has come around to our side of the argument with regard to Wales getting its fair share out of the HS2 spend. The Minister may or may not remember a Welsh Government spokesperson saying some years ago—and I quote—when we were talking about the Barnett consequential: 'This is embarrassing guff from Plaid Cymru. They've got it totally wrong on HS2. Rather than admit their mistake, Plaid are digging a deeper and deeper hole.' I wasn't there, so I'm not quite sure what hole that was. We were then accused of a lack of humility. I'm sure that the Minister will now want to dissociate himself from that previous statement and to be absolutely ready to say that we were right all along.

If I can turn to some specifics, with regard to the north Wales metro, it's good to see some progress on this. But, in that context, it's quite concerning, and perhaps counter-intuitive, that of the additional £2 billion investment in transport that the Welsh Government intends to make in its budget, which is very welcome, only £20 million of that has been allocated to the north. Would he accept that, as things stand, the north-east plan relies very heavily on improving current services rather than looking at the transformation of services, and does he think that that's good enough?

Unsurprisingly, I disagree with Russell George with regard to the extent of the investment in linking the north of Wales into the north of England. That, of course, is important to do, but there is also a need for us to build stronger links between the north and south of Wales and, indeed, between the north-east of Wales and the north-west of Wales. I think that we need to have a balance, and it would be interesting to hear from the Minister what his understanding is, when he talks about the investment for that link to Liverpool, how much of that investment he expects to be spent in Wales and how much he expects to be spent in England.

Again, I'm very pleased to welcome what he's had to say about the Swansea metro, but I hope that the Minister will agree with me that it's very important that the Swansea metro—well, Swansea and south-west Wales, indeed—doesn't just link east to west along the rail equivalent of the M4 corridor, but also has the north-south links that will enable Valleys communities, further to the question that my colleague Dai Lloyd asked earlier, to make reliable use of those rail, light rail and bus services. Obviously, that's very important for people to be able to get access to good-quality job opportunities.

With regard to the forthcoming bus legislation that the Minister mentions, he will recall that we raised some concerns in the committee about the focus in the legislation on empowering local government, which of course I'm sure we would all very much welcome, but we are concerned, as I'm sure the Minister will remember, about whether or not this legislation provides the right vehicle for national and regional co-ordination. I understand and accept what the Minister said to the committee about regional co-ordination, but I'm still at a loss to see where this legislation will support the national co-ordination that we need if the metro developments are truly to work.

In terms of leadership and strategic direction, in response to Russell George, the Minister did clarify a little bit more about the role of Transport for Wales, but I'm still not clear about where the accountability and leadership is going to sit for this. Obviously, in terms of our scrutiny as Members of this Senedd, we will be scrutinising the Minister, but we also need to know who the Minister is asking questions of in terms of this broader strategic direction. I would be grateful if the Minister could tell us a little bit more about that, and how that accountability is going to balance with the very much more local and regionalised focus on bus services.

I want to briefly abuse my privilege and make a regional point. The Minister mentions in his statement hub locations, Wrexham general hospital—all very welcome. I wonder if the Minister will commit today to allowing his officials to discuss with the Hywel Dda health board the potential for public transport around the proposed new hospital site. Obviously, that proposed new hospital is a very long way off, and I know that the business case hasn't been completed. But, in discussions that we've had on this side of the house with Hywel Dda, they are very keen that, from the beginning, that hub should be a hub that can be supported by really effective public transport, because otherwise that will just increase the pressure on the roads in that area. And I wonder if the Minister will be prepared to commit today to his officials working at this very early stage with Hywel Dda to enable that to be a hub, potentially, as part of the south-west metro.

Finally, the Minister mentions the infrastructure, the Barnett consequential that we expect of £3.7 billion. Are we to take from his statement today that he expects all of that to be spent on transport, or is that a matter for further discussion? Because at the moment, if one reads his statement, that is what one would think.

Just a final comment more than a question: the Minister talks about transforming urban and inter-city connectivity in Wales. We of course have many communities in Wales that have almost no public transport at all, and I'd urge the Minister that, in his focus on the need, and we're not disagreeing with the need for this urban and Valleys and inter-city connectivity, we don't lose sight of those communities—and I'm thinking particularly of some in Gwynedd, some in Pembrokeshire—that have no access to public transport. I'm seeking some reassurance from the Minister that this isn't an either/or.

Photo of Ken Skates Ken Skates Labour 5:16, 25 February 2020

Can I thank Helen Mary Jones for her questions and assure her that that focus is equally on rural and distinct communities as it is on urban communities? It's why we've invested so heavily in services through the TrawsCymru network. It's why we believe that the reforms to local bus services through legislation that's going to be brought to this Chamber is so vitally important, and we are fully committed to improving connectivity right across Wales, in rural and in urban areas.

Of course, the £3.7 billion consequential will be spent against Welsh Government priorities, and transport is a key Welsh Government priority. We know the cost of rail infrastructure improvements. That £3.7 million could pay for many projects that would improve the metro infrastructure in north and south Wales. 

Now, I'm going to go back to the first points that Helen Mary Jones made, and thank her for the support for the principles of the metro projects. I think that support is consistent with other support that has been offered across this Chamber for the Welsh Government's approach to rail infrastructure, and in particular to our submission to Williams. In essence, the problem that we have with investment in infrastructure in the UK is that the business case is set against Treasury Green Book rules, and that will always skew investment towards areas that have already benefited heavily from investment—areas where there already is good connectivity and areas where there is already a high concentration of wealth. Those rules need to be torn up. I took heart from briefings that took place over the Christmas period by either UK Government Ministers or advisers to the press that Ministers were looking at tearing up those rules. We've seen nothing of any paper being torn up since, but I am hopeful that they will take a different approach now that they have a different Prime Minister, and that they will back up their claims of wanting to rebalance the UK economy by implementing new rules for investment. 

In terms of questions about devolution of rail infrastructure, and whether there might be a plan B, we simply don't know what Keith Williams is going to recommend when his report is finally published. Therefore, we don't know what could be contained with the rail White Paper. I've met with Secretaries of State on numerous occasions, not just within transport, but also in the Wales Office, and pressed the case for full devolution and a fair settlement to go with it. I think we've made a powerful and united case for devolution—a united case that has received support from every single party in this Chamber, and so I remain optimistic. However, if it's decided that devolution will not take place, then we would expect a carefully considered method of investing what we deserve in Wales, and in a way that gives us control over enhancements. 

Now, in terms of HS2, I'm not entirely certain what the Plaid Cymru position is on HS2, to be honest. I think it is to oppose HS2 even if it brings a £50 million annual benefit to north Wales. The position of Plaid Cymru seems to be to oppose HS2, and I would invite Plaid Cymru just to confirm whether or not Plaid Cymru would oppose HS2 if we were successful in electrifying the line from Crewe to Holyhead. [Interruption.] Right, so we've had the answer. We've had the answer. In no circumstances will Plaid Cymru support better connectivity across north Wales and to London and to the midlands and to the north-west with HS2. That is its position—that north Wales will lose out under Plaid Cymru. If they were to take forward their proposals, we would never see electrified HS2 services to the north of our country. That is simply unacceptable as a position to take, because we know, for example, that, there or thereabout, 25,000 people cross the border from Wales to England each day. They can't access their jobs by rail at the moment or by public transport—they are having to take motor vehicles. That's why our focus at the outset has been on improving connectivity in and around the Deeside industrial estate.

A similar number of people cross the border the other way to get employment, contributing hugely to carbon emissions, and that's why, as a responsible Government that is determined to meet its obligations in the climate emergency, we are investing in the metro in that area. And it's also why I believe that HS2 could be beneficial to the north of Wales—[Interruption.]—but only if the right option for Crewe is delivered and we get that £1 billion investment from Crewe to Holyhead. [Interruption.] The Member shouts, 'That is not on the table.' That is precisely what the Prime Minister has been told is needed by the First Minister. We've not had a response yet from the Prime Minister, but it is very well known now that with the TEN-T programme, with the obligation on the UK Government to deliver electrification—if that takes place, we could see future Avanti services, HS services, high-speed services travelling through north Wales. Why would Plaid Cymru oppose HS2 delivering for north Wales? It's a bizarre position to take.

Now, the £20 million that is being allocated for metro improvements is money that can be spent in the financial year that it's being allocated—money that will deliver improvements across north Wales, not just within that immediate Deeside enterprise park area. And it's part of our plans to spend £1 billion on transport schemes in north Wales—£1 billion. We would hope the UK Government would meet our investment with £1 billion to electrify the main line as well.

In terms of accountability for metro schemes, for bus services and so forth—well, of course, it sits with the Welsh Minister in so far as Welsh Government responsibilities are concerned. But with the corporate joint committees, they would have, through their council leaders—responsibility and accountability would be with them.

I can promise the Member that we are already working with the health board with regard to Hywel Dda and making sure that we do have good public transport links to that particular piece of social infrastructure. It's absolutely vital that people are able to access hospitals by public transport, and that's exactly what we're going to make sure we do with Hywel Dda.

(Translated)

The Llywydd took the Chair.

Photo of David Rowlands David Rowlands UKIP 5:23, 25 February 2020

Can I thank the Minister for his statement this afternoon? We, of course, all share your ambition to see a more prosperous Wales. We might sometimes disagree on how to achieve that, but I think it is true to say that, by and large, we as a party have supported your attempts to reinvigorate the economy with a more business-friendly approach, with the improvements in infrastructure forming a large part of your support for the private business economy in Wales. However, following on from Russell George's remarks, given its rather stumbling start, do you still believe that Transport for Wales has the expertise and the resources to deliver on your ambitions?

We all understand, if not the key enabler, a transport system that takes people and goods around the country in the most efficient and, hopefully, with maximum comfort, is one that has a major impact on the growth of the economy. Companies, for instance, now use the just-in-time operational methods, where they do not hold large stocks of components, but rely on fast, efficient delivery of such from a number of suppliers. So, fast, efficient transport systems are critical to these manufacturers, often deciding on where companies locate. Can I ask the Minister: has he had maximum consultation with companies with regard to these sorts of operations?

We all understand, Minister, getting people out of their cars and onto trains and buses is a major challenge. As you outline in your statement, Wales has suffered from underinvestment by the UK Government for far too long, and we appreciate the financial and operational constraints you operate under. We therefore fully support your call for the devolution of rail infrastructure projects and operations to Wales. I was going to ask you what sort of pressure you were putting on the UK Government to deliver those competencies, but I think in answer to earlier questions you've given a comprehensive answer to that.

We also support your connectivity ambitions with regard to the expansion of the metro principles to both north and west Wales. A transport system, whether by bus or rail, which links all of Wales must be a priority for the Welsh Government. Do you envisage that local authority bus companies will play a large part in that connectivity of these more remote regions?

Minister, in the past, industries linked up with and along lines of transport. In your statement, you refer to co-locating activities alongside rail networks. We would agree with this strategy, because it not only makes far easier market access but it would also enable more use of public transport for commuters, thus reducing overall traffic on our roads.

In conclusion, Minister, we welcome and support the ambitions laid out in your statement. We acknowledge that if Wales is to climb the economic league table and deliver better jobs, and subsequently better lives for the people of Wales, a fast, efficient, well-connected transport system is an essential ingredient in making this attainable. But please, Minister, sooner rather than later.

Photo of Ken Skates Ken Skates Labour 5:26, 25 February 2020

Can I thank David Rowlands for his contribution and again recognise the clear support that is forthcoming from his party for our position on rail devolution? I'd like to thank David Rowlands as well for recognising the importance of the private sector to our prosperity in Wales, and that is vitally important, particularly at this moment in time when we do face uncertainty over Brexit still. Whilst enjoying record low unemployment, we wish to develop a country that has more high-quality job opportunities for its citizens.

And we have engaged quite extensively with the business community through business councils in the development of transport proposals. For example, in developing our vision for the metro in north Wales, we engaged and consulted with Deeside professionals. We've also engaged with the West Cheshire and North Wales Chamber of Commerce. We've engaged with the business council for north Wales as well, ensuring that the needs of businesses across the region are recognised in the development of our plans.

Fast and efficient transport links are absolutely vital in growing businesses and in attracting inward investment, particularly in areas of Wales that are close to the border. It's all too easy sometimes to allow our competitors to take jobs and opportunities through not investing in infrastructure, and that's why it's vitally important that the UK Government steps up and invests with capital in rail transport.

In terms of local authority bus companies, this is just one of the provisions—if you like, one of the tools—that will be available in the legislation that's going to be coming forward, and the ability for councils to be able to run their own bus companies of course is something that could be considered in rural areas where there is no competition, or where there is equally no provision. And it's just one of the tools that we'll be providing for in the legislation that's going to be introduced in the spring to this Chamber.

I would agree also with the Member in what he said about the co-location of services. It aligns very neatly as well with our town-centre-first approach to public investment, to the public sector locating in areas where it can generate town-centre income for shop owners and service providers. And a good example of how we're looking at co-locating services is in Wrexham, with the Wrexham gateway vision, where we will be investing in Wrexham General station, but where I'm pleased to say that we will be purchasing land at the kop end of Wrexham Racecourse. It's a particularly proud moment for Welsh Government to be in a position to do that, because it could lead to the transformation of that particular areas, that gateway area of Wrexham, bringing in more services at a historic site.

Photo of Jack Sargeant Jack Sargeant Labour 5:30, 25 February 2020

Minister, it is important that the north Wales metro delivers for generations to come, and it is the transport network that residents in north Wales deserve. For residents in Alyn and Deeside, this is about delivering the Flintshire corridor to act as the spine of the north Wales metro. It is also about creating key transport hubs to achieve a fully integrated, multi-modal system, and I welcome in your statement, Minister, that you have recognised Shotton as a key hub.

However, we will need more hubs to ensure all areas, including our rural communities, benefit. This will have to include places like Buckley and Broughton, to allow them and surrounding rural areas to be properly connected. Minister, we also need to deliver on a station for Deeside industrial park, and I welcome your commitment to that station, which will link people from right across north Wales and across the border to the north west of England to their place of work. So, Minister, what work can be done to make sure all of these communities can benefit from such a metro, in particular our rural areas?

And if I may, Minister, bring you back to your statement where you were absolutely right to mention the years of under-investment from a UK Conservative Government, a Government that is spending over £100 billion on an England-only HS2. Minister, what message do you send to the UK Government and others who are refusing to give the people of north Wales what is rightfully theirs?

Photo of Ken Skates Ken Skates Labour 5:31, 25 February 2020

Absolutely. Can I thank Jack Sargeant for his questions and the points that he's made? HS2 could have the potential to transform north Wales. It is absolutely vital, therefore, that we get the right solution, as I've said to many Members now, both at Crewe and for north Wales, the electrification of the main line. If that happens, it could be hugely, hugely beneficial for north Wales. That, I believe, is something that every party should be fighting for, for north Wales, not just for parts of Wales, but for north Wales and all parts of Wales.

In terms of the work that is being taken forward within the Deeside area, I can inform Jack that Transport for Wales has been commissioned to develop schemes for an integrated Shotton station and also a new Deeside Parkway station, working in partnership with both Network Rail and with Flintshire County Council. This work will, in turn, complement the £12 million of funding in the last three financial years to improve bus schemes along the A548 and the B5129 and within Deeside industrial park.

Jack Sargeant raised the prospect of stations in Broughton and closer to the centre of the town in Buckley. They are both projects that I think merit further investigation. I think, in particular, a station near Airbus in Broughton would have huge potential to remove the need for 6,000 people to drive to work.

In terms of the Flintshire corridor scheme, this is particularly exciting. This £300 million scheme would enable us to deliver dedicated bus lanes and dedicated bus rapid transport systems. We could create, in turn, the longest bus corridor stretching from Deeside industrial park right along A55 to Rhyl and potentially beyond, linking together the north west of Wales and the north east of Wales through bus transport on the A55, as well as through the north Wales main line, which again I would hope, at some point in the future, will be electrified, with high-speed services running along it.

Photo of Elin Jones Elin Jones Plaid Cymru 5:34, 25 February 2020

We are almost out of time on this statement, and I have very many speakers still wanting to contribute. I'll extend it slightly and call at least three other speakers, but I will want all of you to be as succinct as possible so I can call as many speakers—and succinct from the Minister, as well, please. Mark Isherwood.

Photo of Mark Isherwood Mark Isherwood Conservative

Diolch, Llywydd. I welcome your acknowledgement of the research showing that the HS2, if connected through the appropriate Crewe hub, will have a beneficial economic impact for north Wales and the wider region.

In March 2016, the UK Government announced its growth deal offer to north Wales and the Welsh Government. The following month, the Welsh Government announced its proposals for the north Wales metro, and I think the first time you mentioned it in this Chamber after the 2016 election was in response to a question from me about the north Wales growth deal offer. You mentioned the north Wales business council and, I think, the chamber of commerce, but what direct input has the north Wales growth board and economic ambition board had into the design and delivery of the evolving north Wales metro?

You say you will develop key hubs, you refer to Shotton as an example, to provide integrated bus services. Your written statement on the north Wales metro last October said you were working in partnership with Flintshire council and bus operators to deliver a bus quality partnership covering services. Can you provide an update on that, four months down the road, in terms of that partnership? And what, again, direct input, given their expressed interest in this, have community transport operators in north-east Wales had into the design and delivery of the north Wales metro?

You stated last October in your statement that, having initially focused on the delivery of the metro integrated transport hub approach in Deeside, you intend to roll out the concept to other key employment hubs, including Wrexham, Rhyl, Prestatyn, St Asaph, Abergele, Colwyn Bay, Conwy, Llandudno and the Menai area, and you made some reference to this earlier. Realistically, what timescales are you thinking of, notwithstanding a political clock in the future, to enable that to occur?

And finally, you refer to even greater focus on connectivity, decarbonisation, and integration—something that Helen Mary Jones referred to earlier—and your plans for Deeside industrial park, you say, will offer viable public transport options for commuters. In your written statement last October, you also talked about the new park-and-ride site and active travel routes on Deeside industrial park. However, I understand there's been a failure of connectivity. For example, only two double chargers are being installed for the 240 parking spaces in that park and ride, and even that only occurred after sector intervention with the council. So, how will you ensure better integration of decarbonisation technology as we take this forward?

Photo of Ken Skates Ken Skates Labour 5:37, 25 February 2020

Can I thank Mark Isherwood for his questions? With regard to the charging scheme that we have at Deeside industrial park, we expect the market, first and foremost, to invest in these schemes, and then, when there's market failure, we will use taxpayers' valuable investment to invest in these schemes. But all of the indications are that, in places such as Deeside industrial park and in our railway stations, the private sector is ready to invest. And that's why TfW, Transport for Wales, have been remitted to work on a strategy for utilising the public estate to draw in private sector investment.

In terms of HS2, I just go back to the point I made earlier: yes, there would be a £50 million benefit to the economy of north-east Wales, however, it is dependent on the right hub being developed in Crewe. But the benefits could be so much greater, so much greater, if an additional £1 billion was to be spent on electrifying from Crewe to Chester and then through to Holyhead; £1 billion compared to the £1 billion great train robbery that we've seen in the past five years. This is simply IOUs coming to reality, if the UK Government decides to invest. And against an overall spend of £106 billion, £1 billion of investment in north Wales is not a considerable ask of the UK Government.

In terms of engagement with the North Wales Economic Ambition Board on our vision, we have presented to and engaged with council leaders, higher education leaders, further education leaders and representatives of business organisations. Much of the work stems from the recommendations of Growth Track 360, the report that provided the Welsh Government and the UK Government with a framework for investment in rail services and rail infrastructure. And the Member will be aware that Growth Track 360 comes from the work of the Mersey Dee Alliance, which includes council leaders who also sit on the North Wales Economic Ambition Board.

Now, Mark Isherwood is right to question the investment and when it will lead to improvements at those hubs that I mentioned in my statement. I'm pleased to say that that £20 million of additional money for the north Wales metro will be used for some of those hubs. Whether it can be spread across all of them with major impact is to be determined, but we're going to use that £20 million for those hubs elsewhere in north Wales and not just concentrate it within Deeside where there is already a considerable sum of investment.

Photo of Adam Price Adam Price Plaid Cymru

(Translated)

Thank you, Llywydd, for the opportunity, first of all, to point out that Plaid Cymru has opposed HS2 because of its negative impact on Wales for over a decade, since the idea was first raised under the last Labour Government. I remember that as I was the spokesperson for transport in Westminster. We've been consistent on this issue.

I wanted to ask about the western Valleys again. I say 'again' because Dai Lloyd did raise this with the First Minister—and he didn't receive a response. Helen Mary raised it with you just now—and still hasn't received an answer. So, third time lucky, hopefully, for the western Valleys.

There was an agreement three years ago, as part of the budget agreement between Plaid Cymru and the Labour Government, that you were going to fund development work on a metro to Swansea bay and the western Valleys—including the valleys of Amman, Gwendraeth, Dulais, Tawe and Neath —because of the importance of ensuring that those post-industrial areas weren't left out of the metro.

And yet, there's no word of those valleys in your statement today, and I've received a response from you that confirms that the feasibility study that was funded as a result of the agreement between us hasn't looked at the western Valleys at all. Why have you turned your back on the agreement between us, and why should anyone in the western Valleys believe a word that you and the Government are saying?

Photo of Ken Skates Ken Skates Labour 5:41, 25 February 2020

Can I first of all pick up on the point of HS2 again? If my interpretation of Plaid's position is correct, Plaid are opposing, under all circumstances, HS2; that includes if HS2 were to be extended to north Wales. That is Plaid Cymru's position. I think it's absolutely right that people in north Wales know that Plaid Cymru would oppose high-speed rail services to north Wales. It's absolutely vital that people understand that.

In terms of west Wales and the development work, that development work has been conducted. We've also funded development work by the four councils in south-west Wales. A metro scheme must begin, first and foremost, with an assessment of what we're trying to solve, what problems we're trying to overcome. That's precisely what's happening with WelTAG studies. That's precisely what's happening with metro enhancement framework projects to assess corridor opportunities, and then to carry out further work in order to discover whether it would be best to deploy rail-based solutions or bus solutions. That is consistent with work right across Wales, whether it be in the south-west Wales Valleys, or north Wales, or the south east of Wales as we enhance the metro in the south east as well.

Photo of Mick Antoniw Mick Antoniw Labour

Minister, I just want to raise a few points with regard to your report and your references to the south-east Wales metro. As you know, in the Taff Ely area, there's been considerable economic regeneration from the development of the metro. That's had a massive impact on Pontypridd itself. But of course, it was only a few weeks ago that we saw all this publicity over an announcement by the Prime Minister of £500 million for opening new lines. It received considerable coverage.

Yet, for a number of years now, we've been talking about and having discussions between—quite advanced discussions now—Rhondda Cynon Taf and Cardiff council, and of course various representations have been made, which Welsh Government's involved in, and that is for the re-opening of a railway line from Cardiff through to the Beddau spur, through to Llantrisant, Pontyclun, which would link. Some 85 per cent to 90 per cent of that railway line still actually exists. And of course, it is an area where, over the next decade or so, there are going to be 20,000 or so new homes. So, it is an area where there is a massive expansion of population and no capacity on the roads and so on. 

Now, as you'll know, Minister, there's a report, a business plan, that's being prepared—it was funded by the councils, et cetera—that is due for publication soon, I think. None of us has seen it, and I'm not quite sure whether it is quite complete yet. I wonder if you could update us as to what the status is now of that report and what the next steps are likely to be with what is, I think, a really exciting potential project, and that is the re-opening of an old railway line in an area that is massively congested—massive economic growth—and where there are major environmental issues that can be resolved by that.

Photo of Ken Skates Ken Skates Labour 5:45, 25 February 2020

Can I thank Mick Antoniw for his questions? He makes a very powerful case for the reopening of lines in his constituency, in the region and across Wales. It can lead to regeneration and to the creation of opportunities for people to get into sustained, decent jobs.

The reverse Beeching fund, amounting to £500 million, will not deliver the sort of new infrastructure, it will not deliver the number of reopened stations that I think many people hope could be delivered through such a programme. Five hundred million pounds wouldn't deliver the whole reopening of the Carmarthen to Aber line. It would simply not deliver major projects that require significant investment. My understanding of that particular fund is that any project promoted for consideration must be promoted by a Member of Parliament and that that work must be undertaken imminently. Unfortunately, I do not believe that the report that Mick Antoniw refers to will be ready for Members of Parliament representing constituencies in the region to present to the Secretary of State for Transport, and, therefore, as a Government, once that report is concluded, once we have our hands on it, we will be making the case to UK Government for investment along that particular stretch.

I think it's absolutely right that we look at all opportunities to extend the south-east Wales metro. We have the frameworks now in place for examining each of the travel corridors that could benefit from investment, but, at the end of the day, it still comes down to requiring UK Government to invest in infrastructure.