Extract from Wales Assembly: Statement on Ambitions for Great Western and north Wales main lines - May 8

With regard to your list of overarching needs, I was pleased to note that you've made reference to access to airports. Particularly, I'm thinking of Manchester, Birmingham and Liverpool—all important airports, of course, for mid and north Wales. I'm sure I don't need to tell you, Cabinet Secretary, about that. But it'd be interesting if you could, perhaps, expand on your ambition in that regard. From what I've understood, you've outlined that Mark Barry is going to undertake a strategic outline programme case, and two cases are being proposed, for the north and the south. It would be useful to have some timelines on that for when those cases and reports will be reported to you and when you'll be able to report back to Members. Will this happen before the consultation that you have outlined that will take place later this year? I was pleased to see that you made reference to the Cambrian line and mid Wales not being neglected, but I'd be interested to see if that does sit in your north Wales case or your south Wales case. It's surely got to fit in one or the other.

I'd also like to ask you, Cabinet, Secretary, how your plans dovetail with existing policy documents that the Welsh Government has already published. How, for example, do you intend for your ambitions that you've outlined today to complement the existing economic action plan? And also, how are the proposals that you've outlined today going to directly complement the growth deals, which, of course, have a huge potential to drive forward economic growth right across Wales?

Can you also specifically outline how your ambitions will benefit Welsh commuters based in both urban and rural communities across Wales? Now, it's my view that it is, of course, vital that we build an integrated transport system that can support a host of wider economic and social policy objectives. I don't think you mentioned at all plans for how rail will be integrated with bus services to ensure that improvements will result in benefits for passengers across Wales, so can you give some views on this?

Finally, Cabinet Secretary, can you outline how the delivery of these proposals, or your ambitions, will be supported by the two new bodies that have been created to help drive forward the creation of new transport infrastructure in Wales? I don't think you mentioned the national infrastructure commission for Wales in your statement, which I'm surprised about, and if that's the case, perhaps you could just explain some rationale behind that. And with regard to Transport for Wales, I think at one point that you mentioned that Mark Barry will be working with your department and Transport for Wales, so I'm just keen to understand the relationships between Transport for Wales and your department and how they work together. And finally, does the national infrastructure commission for Wales have the resources and support that are required to deliver your ambition?

In terms of Transport for Wales and the role that Mark Barry has in informing the work that Transport for Wales is doing, and where the Department for Transport is concerned, Professor Barry brings expertise that currently complements what Transport for Wales has to offer. It's my view that Professor Barry is able to inform Transport for Wales in an objective way and inform the UK Government's decisions in an objective way by offering us expert views, expert analysis and an evidence-based approach to the projects that should be prioritised in the early stages. I think it's fair to say that there is good complementarity between what I've announced today and the economic action plan. Indeed, if you look at the programme for government, we have a united and connected Wales at the very heart of our desire to drive up prosperity. Equally, the Department for Transport's investment strategy highlights the need to build a stronger, more balanced economy by enhancing productivity and responding to local growth priorities. Both that strategy and 'Prosperity for All' have better connectivity right at the heart of their objectives.

I do believe that the Member is absolutely right in talking about the need to enhance integration of public transport services, particularly in rural areas. Although this statement today does not concern, necessarily, buses, the Member is right to state that the success of trains in the future in serving passenger needs will be dependent on better integration with bus services. It's also important to point out that the success in recent times of the TrawsCymru network should not be underestimated. It's a long-distance network, often connecting communities not served by rail services. It, along with reform of local bus services that will come through legislation and, hopefully, through Welsh Government and local authorities working with the sector, will deliver better integration, not just in terms of timetables, not just in terms of physical infrastructure and hubs, but also in terms of ticketing. That work is being taken forward in parallel with the work that Professor Barry is undertaking in identifying the early projects that require investment.

Regarding mid Wales, it sits within both. Mid Wales is crucially important in connecting the whole of Wales, in ensuring that we deliver at the heart of 'Prosperity for All' a truly united and connected Wales. So, it will be essential that the Cambrian line is considered in all of the work that's undertaken and that we go on working with partners across the border to develop cross-border transport links, both in terms of rail and bus services. It's my expectation that the early work that will be completed by Professor Barry will be with me by July. I've already stated that it's my intention to go out to consultation in the second half of this year, and so I would hope to have his early findings on my desk in the coming two to three months.

I think access to airports is absolutely critical. The Member is right. Liverpool airport—connectivity to it from north Wales will be enhanced through investment in the Halton curve, but there will also be investment through the new franchise in service provision. We've signed the memorandum of understanding with Transport for the North, the aim of which is to ensure that consideration given to transport proposals on the English side of the border respects and reflects passenger needs and individuals' needs in Wales. So, in the future, I would expect better connectivity between north Wales and Manchester Airport to be a key consideration for Transport for the North. Indeed, it's fair to say, given the critical role of Chester station as a major hub serving north Wales, its role in providing transport provision for people living in north Wales will be even more important. So, it's absolutely vital that, in my view, the Department for Transport invests in service provision at Chester station. It requires considerable work, and I think it deserves the investment that Cheshire West and Chester have been calling for for many years.

Now, you said that we shouldn't be standing in the margins complaining, and I heartily agree with that. The Cabinet Secretary for Finance recently announced that the Welsh Government will soon be able to issue bonds in order to fund infrastructure projects in the future. As part of this overarching analysis, will Professor Barry be looking at the possibility of using bonds, as Transport for London has done very successfully, as Professor Gerry Holtham has suggested, in terms of the cancelled electrification link? Rather than just complaining about those projects that Westminster's refusing to fund, shouldn't we be looking creatively at our own financial means of meeting our own requirements?

Finally, it was, of course, Mark Barry's big idea for reducing journey times between Cardiff and Swansea, shared as part of his vision for the Swansea bay and western Valleys metro, to take the Neath station off the Great Western main line, running that connection, then, instead, along a new direct line from Port Talbot to Swansea. Can I therefore invite you to say clearly whether or not you are ruling out any proposal that would remove Neath from the Great Western main line? Your Counsel General said that he would not support any proposal that included this. He is ruling this idea out. Can you say whether you are ruling this out at this stage, given that it was actually Professor Barry's idea?

Now, if we look at how you can improve journey times whilst maintaining stations such as Neath on the main line, you can first of all look at station improvements, you can look at signalling improvements, points improvements—it's a fact of the matter that the trains that are currently operating on the Great Western line have the potential to travel up to 140 mph, but because of poor signalling, poor points and so forth—those factors that I've already identified—and too many level crossings, there's only one point on the entire line that they're able to travel at 125 mph. So, before you even look at the major components of rail infrastructure, you should first look at signalling, points and crossings, in order to improve the speed at which trains can travel. That would reduce journey times between London and Cardiff, and beyond into west Wales, before any consideration would need to be given to the actual track or stations. So, I can say we're not looking at any reductions. We don't just wish to protect stations and services and the provision of services to stations in Wales; we wish to see them enhanced, and that includes to Neath station.

In terms of the promotion of a national railway, I'm not sure whether the Member was referring to a national railway in terms of track and train—a vertically integrated national railway. I think that's what the Member is referring to. The fact is that, at the moment, though, as the Member pointed out, we do not have devolution of responsibility or funding for rail infrastructure. I'd be very concerned about taking forward the idea of using our own money, in whatever way, shape or form it might be, to supplement for historic underfunding of rail infrastructure in Wales. To me, that would be akin to raising a white flag to a Government that has underinvested in our railway infrastructure to the tune of it being only 1 per cent of investment across the UK in the latest control period, in spite of the fact we've got 10 to 11 per cent of track miles. Now, I know that the Member's suggestion for a national railway might look attractive, but is he also proposing, as part of a national railway, given that he's spoken about the need to have connectivity within Wales that does not necessarily have to include connectivity outside of Wales—? Is the Member suggesting that we therefore have new tracks constructed in parallel to the existing network, for example between north and south Wales, in Powys, that actually run in parallel to existing infrastructure? Because I think, actually, for the most part, people are content with the infrastructure that is in place. What people are not content with is the quality of the infrastructure, which is holding back not just the availability of frequent services but also holding back the speed at which trains travel. I think most people in Wales would wish to see investment channelled into the existing infrastructure to ensure that trains travel more frequently and travel faster, whilst at the same time making sure that franchise agreements are in place that drive up the quality of services that run on the track.

The Member suggested that the statement doesn't speak of connecting Wales internally. Well, the whole point of our metro developments in the north, in the south-east and in the south-west is to better connect communities within Wales. These are hugely ambitious. Indeed, the committee that the Member sits on called them heroically ambitious proposals that we're taking forward, and later this month we'll be considering, at Cabinet, the preferred bidder for the next franchise, and the development partner for the metro, which is, as I say, designed to ensure that our communities are better connected within Wales. Also, in terms of better connecting communities, the ambitious proposals that will be consulted on in the coming months, concerning reform of local bus services, will again demonstrate our determination to ensure that, whether it might be rail or buses, active travel or a combination of all, we are investing more heavily than before, and have more ambition than ever before in terms of connecting together our communities in Wales.

It is all too apparent that the UK Government is committed to some mouthwatering improvements to the rail network in England. You mentioned yourself the £15 billion Crossrail investment and the £3 billion trans-Pennine scheme. You also, of course, referred to the vastly expensive high speed 2 project, which is likely to swallow up £55 billion, at least, and, curiously, you point out its possible negative impact on the Welsh economy, which is in sharp contrast to the Welsh Government's view when UKIP debated it in this Chamber, where you maintained, against UKIP analysis, that it would be a great boost to the Welsh economy.

UKIP agrees with the ambitions stated in the overarching needs you lay out, and we will continue to support the Government in its attempts to secure the infrastructure improvements outlined in those needs. But in light of these announcements, is there not a need to have a full debate on Westminster spending on the rail infrastructure in Wales, where cross-party support for Welsh Government demands could be aired, with the effect of strengthening your hand in any negotiations with the UK Government?

In terms of HS2, yes, there is the potential for HS2 to have an adverse impact on the economy of south Wales, and that's why we're arguing that we need to see investment in the south Wales main line come as soon as possible, to ensure that south Wales, and, indeed, this applies to the south-west of England, remain competitive and go on being competitive on a UK and global stage. In north Wales and, potentially, in mid Wales, HS2 offers the opportunity for those regional economies to be significantly strengthened and boosted, but it will require the right outcome, specifically with regard to the Crewe hub, ensuring that there's the right outcome, the right infrastructure in place to the north of Crewe station.

In terms of HS2 as a whole, what I would say is that—and this goes for the regions within Wales as well—what we should not do is argue that we should hold back the prosperity of one region in order to maintain current levels of prosperity for another, whereas actually what we should be arguing for is enhancements across all regions. That's why, again, I clearly state that HS2, whilst it could have an adverse impact on south Wales, if we get the right level of investment into south Wales and the main line into and from south Wales, then the adverse impact could be mitigated. So, my consultation response to the Secretary of State concerning the Great Western Railway franchise clearly stated the need to ensure that there were mitigating proposals that could be adopted that would then guarantee current levels of prosperity for south Wales and ensure that the south Wales economy can prosper in the future. 

In terms of the business cases, the commitment for taking forward business cases rests with the UK Government, but we need to ensure that there are irresistible cases put forward to UK Government. I outlined in my statement how there is significant spend taking place elsewhere in the UK. What I don't want to see happen is for us to just rely on business cases designed elsewhere. What I wish to see happen is for us to influence those cases at the earliest opportunity, and that's why we have experts and that's why we have Transport for Wales working on those cases right now.

We do have an enormous challenge in that our UK Government is so south-east England-focused. If they'd started HS2 in Manchester, rather than in the south-east, you might be convinced that they were beginning to look at a transport system that covered the whole of the UK, but, clearly, that's not about to happen.

One of the big issues for my constituents is the necessary upgrading of Cardiff Central station, which is quickly going to have insufficient capacity to manage the increased number of trains that people want us to be delivering. That is something that we can't do unless the UK Government gives GWR or Network Rail money to do something about it. So, I fear it's a good illustration of how dependent we are on the largesse of the UK Government.

I do recall that when Chris Grayling cancelled the Swansea electrification, he immediately started talking about all the things that he might do with the money to go to south-west England, which is just disgraceful. So, we absolutely have to have a fit-for-purpose rail and bus link, and I look forward to the day in which we have these joined up together. 

In terms of fares, it's a tragic fact that, in parts of Wales, 20 per cent of young people don't even turn up to their job interviews when trying to find work, because they cannot afford public transport to get there. This is in part as a consequence of relatively high fares on rail. It's also in part as a consequence of infrequent and sometimes excessively expensive bus transport as well. The answer, of course, in Wales, as far as the Wales and borders franchise is concerned, is with the new franchise agreement. We set out in our high-level objectives the need for bidders to ensure that their profits would be minimised and that any excess would be reinvested into service provision. It's also absolutely right that we look at maintaining, wherever and whenever possible, the lowest possible fares on rail services, and that's what I hope to be talking about a little more once the Cabinet has considered the outcome of the procurement process.

But equally it's absolutely vital moving forward that a greater degree of integration of rail and bus ticketing takes place. I've seen in parts of the UK—in the Merseyside area in particular—excellent examples of how bus and rail integrated ticketing has acted as an enabler, particularly for young people facing unemployment, in ensuring that they can get into work and stay in work. That's what I wish to see replicated through the new franchise and through additional services in the future being managed by Transport for Wales. That's what I wish to see happen here.