1. Questions to the Minister for Economy – in the Senedd on 29 September 2021.
3. What discussions has the Minister had with the Minister for Climate Change regarding attracting green energy investment to Ynys Môn? OQ56913
Thank you for the question. I have regular discussions with the Minister for Climate Change to discuss cross-cutting portfolio responsibilities. I met with her yesterday with the Deputy Minister for Climate Change. Our officials are jointly pursuing opportunities for attracting green energy investment on both the island and the wider north Wales region, including discussions with key stakeholders on offshore wind opportunities and community benefits from local energy investment.
Thank you very much for that response. I was pleased to hear a reference to offshore wind energy. There's a very real economic opportunity for Ynys Môn from proposed BP developments in the Irish sea—the Mona and Morgan windfarms. I'm very eager to ensure that Holyhead will be the port to service the Mona development. It would create jobs and provide long-term assurances. But we also need investment in the port for that to happen. BP have said, by the way, that they don't have to have free-port status to deliver this, but if it could be useful, it would be good to see the UK Government providing the same funding to free ports in Wales as they give to those in England.
But more importantly, I think the UK Government needs to contribute from the £160 million pot that they have to develop ports for energy projects. So, will the Minister join with me in urging for a percentage of this funding to go to Holyhead, and will he commit to give Welsh Government support to this development in the port of Holyhead, to develop this project that would be of great economic benefit for the local economy and the Welsh economy?
Yes, I'm very keen that we don't just take the opportunity to generate more sustainable energy, but we see the real economic benefit being kept within Wales, as well. That's why we are already having conversations with a range of people who are going to be running the new lines that have been granted to try to make sure that supply chains are as localised as possible. That should benefit ports across Wales, including Holyhead.
I had a conversation with the leader of Ynys Môn last week, actually, about opportunities on the island, where we actually have an agenda that isn't in contradiction with where the council see themselves, and what they want to do locally as well. So, I don't think this is an area of conflict; it's about whether we're going to be able to do what we want to do as successfully as we would want to.
There are some choices for the UK Government to make here as well. On free ports, it's been disappointing that we've never got past having a much clearer idea about what the UK Government want to do and the level playing field between the different free-port proposals around the UK. It just cannot be right that, in Scotland and Wales and Northern Ireland, you expect free ports to be delivered on a different basis with a lesser amount of resource than in the rest of the UK. That isn't just my view, as a Welsh Labour politician—it's also the view of the Welsh Affairs Committee, chaired and led by a Conservative Member of Parliament who, of course, has a port within his own constituency as well. But the challenge here is getting some genuine fairness, and a fair share of the resources that are available. That is absolutely the agenda of this Government, and you can expect me to continue to make the case for Holyhead and other ports to gain their fair share of investment and support here in Wales.
First of all, let me express my support also for the Member's call for investment at the port of Holyhead, in line with the questions I raised with the First Minister in the Chamber here two weeks ago. As you'll be aware, Minister, Ynys Môn does have some unique opportunities for delivering green energy due to some of the existing infrastructure that's in place there, including, of course, the ports, but also some of the capacity in the power lines there, the rail line and the road networks as well, as well as the existing permissions for energy on the island. And of course, all these factors are really important for attracting new business and investment onto the island as well. I think at times there can be a perception that some of these areas of infrastructure aren't necessarily as integrated and linked as best they could be, so I'm wondering what strategic integrated plans you might have to invest in some of the existing infrastructure, but also into new infrastructure to attract further investment on the island, specifically in relation to green energy. Thank you.
As you'll know, as well as the proposals for offshore wind, we have with former European money supported the potential for tidal energy off Ynys Môn as well—real and significant potential for a new industry to be created, as well as a more mature industry that exists as well. I want to be clear—this isn't about moving investment; that would suggest it's going to come from somewhere else. It's actually about growing investment. I know in the second part of your question you were clear you want to grow the economy around Ynys Môn, and there is real potential here, and it requires us to work in a constructive way with both the council, but also with the UK Government, because some of the infrastructure points you mentioned, about making sure the grid is in a position to properly transmit the energy that is generated, and our ability to be able to have storage capacity as well, they require the UK Government to be part of the action as well.
Now, the differences between ourselves and the UK Government on a range of issues are very clear, but on this there should be room for a properly constructive approach. So, I look forward to meeting Greg Hands, the new energy Minister, who I dealt with in his former incarnation as a trade Minister, to have really constructive conversations about investment in Ynys Môn for both renewable energy and to finally get a decision on the future of nuclear energy, both on Ynys Môn but also in Trawsfynydd as well. There are opportunities but it requires some straight talking and some honesty from the UK Government and some decision making, because I do think that the case for that investment last time has left some people bruised about being led up the hill to think a significant investment was going to happen, then it didn't. So, we'd like to have some honesty, we'd like to have decision making and to make sure we gain the maximum benefit possible for our local communities.