Leaving the EU: Infrastructure in Wales

Carolyn Harris Excerpts

Tuesday 17th January 2017 Westminster Hall

[Stephen Doughty]

Absolutely. We need that sort of clarity, which is clearly absent from the so-called plan that has been put before us today by the Prime Minister and the Brexit Secretary. I emphasise that the metro is far more than just a transport scheme—it is a vehicle for transforming the economic and social prospects of many of our communities. It will deliver jobs and connectivity as well as those faster journey times and more frequent services that we all want to see.

It is also of note that, in addition to the funds I have mentioned, at present both public and private organisations in Wales can bid directly to the European Commission for funding from other programmes such as the Connecting Europe Facility and Horizon 2020, which supports many of our academic research projects. Those can also provide funding for infrastructure projects. The House of Commons Library suggested that it is difficult to quantify the funding from each of the direct funding programmes but, to give an idea of the scale, the CEF fund is worth €30.4 billion in total over the period 2014 to 2020. That covers areas such as transport, energy, and telecoms. CEF projects currently funded in Wales include the South Wales railway electrification studies that were conducted around the electrification programme. The Welsh Government and Welsh ports are also in discussions—here, again, are the links with Ireland—with the Irish Government and Irish ports on access to the “motorways of the sea” funding, which can be used to invest in crucial port infrastructure and hinterland connections to ports.

The Horizon 2020 programme has awarded €40 million of grants to organisations in Wales, as of 23 February 2016, and the predecessor to Horizon 2020—the seventh framework programme—allocated €145 million to organisations in Wales. We absolutely need that certainty. I have spoken to many academics locally who are deeply concerned about their ability to participate in these cross-European infrastructure projects based in the academic sector. The issue is not just what that valuable research and co-operation can engender in terms of knowledge and understanding of crucial issues, but the link to products and the frontline economy. Many businesses in my community, particularly in some of the business parks, have strong links with the high tech and biotech industries that have developed around universities such as Cardiff University.

I mentioned the European Investment Bank. I hope that the Minister can provide some clarity about what Wales’s relationship could be post-2020. The European Investment Bank is a significant source of finance for UK infrastructure projects. In 2015 the lending to the UK amounted to €7.7 billion, of which two thirds was provided for infrastructure. Programmes in Wales included €340 million for Welsh Water to make improvements to water supply and wastewater collection, and €174 million for Wales & West Utilities to upgrade and expand gas distribution networks. This funding is integral not only to those high-profile road junctions and road projects and things such as the South Wales metro, but to the utilities that ensure the functioning of our communities.

[Carolyn Harris (Swansea East) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Flello. After last week’s review from Charles Hendry on tidal lagoons, I was very proud that he noted the enthusiasm and confidence that the city has had in the tidal bay project. That enthusiasm overflows into the city bay region. In these uncertain times, is now not the time for the Government to commit the important resources in order to take forward these exciting plans, which could see Wales develop as a world-renowned “first” in so many of the fields in respect of tidal power?

[Stephen Doughty]

My hon. Friend makes a powerful point. She knows that I have long supported the principle of tidal power coming from the Severn estuary. There have been concerns about some of the projects proposed, but I am interested in and support the proposals for tidal lagoons—obviously each needs to be judged on its own merits—and particularly the Swansea one. So much work has gone into that and it is crucial that we now provide certainty on delivery and funding to enable it to go ahead.

Briefly, the chief of the EIB, Werner Hoyer, stated in October:

“Even if we find a way to continue lending in the UK, I am absolutely sure that the enormous volumes we have achieved over the last couple of years cannot be maintained”.

What clarity can the Minister offer on that issue in particular?

In his conference speech, the Chancellor of the Exchequer announced that beyond the autumn statement the Treasury would offer a guarantee to bidders whose projects

“meet UK priorities and value for money criteria”.

It is absolutely crucial that the Government outline what to

“meet UK priorities and value for money”

mean and whether that will cover projects currently funded by the EU. I hope that we will have some clarification on that, too. With today’s announcement of a hard Brexit package, in an attempt to appease certain elements in the Prime Minister’s party—as I said earlier, her Chancellor appears intent on pursuing some sort of trade war or commercial war with our European partners—it has become clearer and clearer that those who may suffer will be the ordinary people, the ordinary businesses and the ordinary working people the length and breadth of Wales.