3. Statement by the Minister for Economy: The Free-port Programme in Wales

Part of the debate – in the Senedd at 3:08 pm on 28 March 2023.

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Photo of Rhun ap Iorwerth Rhun ap Iorwerth Plaid Cymru 3:08, 28 March 2023

I thank the Minister for the statement, and I'd also like to place on record my thanks for the Minister's approach on this issue. We've come on quite a long journey, I think. When the UK Government announced its free port prospectus, it was clearly unacceptable that they proposed to offer £26 million for English free ports, only £8 million for one in Wales, and some may have been happy to roll over and say, 'Just take what you’re offered and be grateful for it'. Others of us could see that this lack of parity, this completely unjustified difference, had to be addressed, and I am grateful to Welsh Government for sharing that view, and also the view that we needed assurances around workers' rights and on environmental regulations.

The result, as the Minister said—we got that funding fair play. We'd have been short-changed by £18 million under those original Conservative Government plans. We also got those further assurances. So, when Plaid Cymru-led Anglesey council and Stena put together their plan—and I was only too happy to work with them and support them—they were working from a much stronger, I think, Welsh free-ports prospectus. We were in a much better place.

Now, the Minister also heard my numerous appeals for two free ports to be considered. Again, I congratulate the negotiators on both sides for making that happen. Why did I think two would be valuable? Because I think there were real synergies between the proposals to develop offshore energy proposals in particular, major decarbonising schemes in the north-west and the south-west, and I think the Welsh economy as a whole can benefit from that.

So, now we move forwards; we need to do so with purpose, but with care also. So, a number of questions. How does the Minister intend to work with the winning bids to ensure that jobs created are truly sustainable, because that has to happen, and also, that our social and economic values are respected and pushed forward, as those jobs are created? Also, what opportunities—? Or, how will he ensure, rather, that opportunities for the local workforce are maximised through the skills agenda and through effective upskilling? Because it’s got to be about employing our local workforce. And also, does the Minister agree that there needs to be honesty around the impact of this? This is a valuable economic tool, but there’s never one single lever, so we have to be driving forward with other opportunities too, and here, Government has to work across departmental boundaries.

I would invite the Minister to encourage looking again at how funding could work for strengthening the Menai crossing in response to the free-port designation. That should be another opportunity looked into. And also, we have to see pressing by Welsh Government for UK Government to look again at the issue of consequentials from English rail projects. The fact that we have HS2 and now Northern Powerhouse Rail being designated as English and Welsh projects when they’re clearly England-only projects, leading to the loss of many, many millions of pounds—hundreds of millions of pounds that could be spent on improving Welsh rail that could feed into this free-port project—I would suggest that we use this designation as a springboard to encouraging the UK Conservative Government to look again at that, rather than short-changing Wales.