Part of the debate – Senedd Cymru am 3:12 pm ar 28 Mawrth 2023.
Thank you for the comments and questions. Look, on your point around the approach we took, we were very clear that parity had to be delivered for Wales or we wouldn’t be prepared to sign up to a free-ports programme. I think we wasted the first year in a rather circular argument where one of the previous Secretaries of State for Wales said that there would be a free port whether the Welsh Government liked it or not, and that we'd have to take the money that was offered. I wasn’t prepared to do that, and I can certainly tell you that the finance Minister was giving me significant encouragement not to agree to anything less than exactly the same funding settlement that English free ports had received as well.
Having got there now, we do need to see that the detail in the delivery plan is to deliver sustainable employment, but actually, the money, the seed capital and the release are there to try to advance and expand the rate of growth in a sector that we think will need investment in any event. If you’re going to exploit tidal and wider marine power, including floating offshore wind, the jobs we’re talking about are not small or time-limited jobs. There’ll be jobs, of course, in the construction phase, but we’re actually talking, though, about a long-term deployment of manufacturing to go into the Celtic sea. So, these jobs aren’t going to be for two or three years if we get it right, and actually, both free-port bids looked to try to take advantage of the first-mover advantage that is still available in the developing and yet-to-mature sectors of floating offshore wind and tidal energy. Both north and south have something clear to offer on that, and that will help to deliver us a greater economic return, with more jobs being created there rather than things manufactured in other parts of Europe and then put together in Wales at a much later stage.
On skills, there is still a need to see—the construction sector is actually quite resilient, actually, there is still lots of opportunity, but think of the construction that will be required around both of the current free-port bids if they proceed to the final stage, and then, also, the skills for those jobs. I think I covered some of that in answer to Darren Millar as well, but it’s definitely a key focus for us to understand the skills need and be able to plan and to deliver those as well. A more coherent approach and the ability to work with different regions in Wales would help with that. So, there will be a need to try to knit together the way that some of the skills landscape has been pulled apart in the way that different funding streams are put in place. The shared prosperity fund does not allow for that sort of strategic joined-up approach in regions, let alone across the whole country, so there is definitely work to do to take proper advantage of that. We're already seeing that, in this area, a number of Ministers have an interest—so, not just the finance Minister—when it comes to the sort of tax reliefs and what's on offer from Wales as well as the UK. The climate change Minister has an obvious interest in this as well, as, indeed, does the Minister for north Wales. So, we do have a number of departments and we want to see how we can take proper advantage of the opportunity that's there. Regardless of free-port status, I want to see that investment made in the future of the economy and a low-carbon economy, and this, I think, helps us on the way.
Finally, I completely agree with you about HS2 and Northern Powerhouse consequentials. I don't think the Government here could have been any clearer: they're England-only projects, where there should be a consequential for Wales, and that would make a significant difference to our ability to invest in transport infrastructure. To be fair, I think there is a gathering of people who have recognised that and agree with it. Even the Welsh Affairs Select Committee have agreed that HS2 is plainly an England-only project, and that's a committee with a majority of Conservative members. I look forward to more Conservatives joining the cause in both Parliaments to make it clear to the UK Government that we want the rules to be respected and the consequentials that Wales is plainly entitled to to be delivered.