Swansea Tidal Lagoon

Debate between Rebecca Long Bailey and Glyn Davies

Tuesday 8th March 2016 Westminster Hall

[Rebecca Long Bailey]

The hon. Gentleman raises some interesting and pertinent points. I hope that the Minister has considered them, and that the Government will address many of those issues in the review currently being undertaken. We as a party will comment on them when the facts and information become available in due course.

[Glyn Davies]

It is clear from the debate that everybody, across parties, thinks that this is a wonderful scheme and would like it to go ahead, but we know from experience that such schemes go ahead only if a satisfactory economic case is made. Does the hon. Lady welcome the review and the work going forward? The Government will be in a position to recognise the benefits, and it will confirm that the scheme is based on value for money as well as ticking every other box.

[Rebecca Long Bailey]

Yes. I welcome the hon. Gentleman’s comments and those made earlier by the hon. Member for Eddisbury (Antoinette Sandbach). The scheme needs to represent value for money, but that must be assessed in the context of the whole economy, not just the specific project. As we heard earlier, it is not just a stand-alone project and should not be treated as such. If we consider it in a national context along with the other projects in the offing, I think that we will see throughout the review—I hope that the facts are presented as I have been told they will—that it will represent more value for money than a single project in Swansea alone.

The Cardiff University research unit also considered community benefits. Tidal Lagoon Power has suggested that the lagoon could become a foundation venue for local and national sports use, as the lagoon wall would provide a track for cycling, walking, angling and running and the lagoon itself could be perfect for swimming, rowing and sailing.

Not only will the project be a fantastic source of job creation and regeneration for the Swansea bay area, but it is expected to have a huge impact on the Welsh economy in general. A 2014 report by the Centre for Economics and Business Research estimated that the impact on Welsh gross value added could amount to approximately £76 million a year, in 2014 prices, over its 120-year lifespan. The development of such a new and exciting industry could also provide a much-needed boost to UK exports. Tidal Lagoon Power estimates that the potential to export UK content to a new global tidal lagoon market has been valued at £70 billion. The review should refer to the wider global impact.

Tidal power is an easily replicable new industry. The UK could be a world leader in exporting the technology and manufacturing across the globe. I am sure that the Minister will agree that at a time when the balance of payments leaves much to be desired, the development of a new exportable industry would be highly beneficial to the country. In short, investment in renewable energy technologies is a long-term win for everyone, saving jobs, money and the environment.

The Opposition understand that the Government are not set against this or other tidal lagoon energy projects in principle but have announced a six-month independent review, delaying any decision until autumn. However, Tidal Lagoon Power has said that it will need a decision on a much faster timetable. I welcome any reassurance that the Minister can give us that the project will not be allowed to fail simply due to the timescale of decision making. In conclusion, it is clear that the potential economic and environmental benefits of developing the Swansea bay tidal lagoon are huge. I hope that the Minister can assure me that the Government are doing all that they can to agree a level of state support to make the project viable.