BROKEN PROMISES?

Plaid Cymru’s Treasury Spokesperson, Jonathan Edwards MP, has raised serious concerns over indications that the Westminster Government could renege on its promise to allow the Welsh Government to borrow money to invest in infrastructure.

In an answer to a written parliamentary question by Mr Edwards, Chief Secretary to the Treasury, Liz Truss said “in light of [the Welsh Government’s] decision” not to go ahead with the M4 relief road, an increase in the borrowing cap will be reviewed.

Increasing the amount of money the Welsh Government can borrow requires the approval of the Westminster Government. Such an uplift in the Welsh Government’s capital borrowing allowances (the amount it can borrow to spend on physical assets such as roads or buildings) was announced in the Westminster Government’s 2018 Budget. At the time concerns were raised over indications that the Westminster Government would make devolution of extra borrowing powers contingent on the development of a specific M4 relief road route.

On 4 June this year, the Welsh Government announced that it would not build any M4 relief road. The concerns raised at the time of the announcement of the cap increase look to be realised, as the Westminster Government is now considering pulling back on the uplift of £300million.

A core principle of devolution is that the money granted to the devolved administration is a matter for the devolved areas over which it governs and the democratically elected National Assembly which oversees it. Linking increases in borrowing capacity to a preferred policy of the Westminster government runs contrary to this principle, particularly considering the project in question – the M4 relief road – sits within the devolved field of transport.

Jonathan Edwards MP said:

“It is outrageous that the Westminster Government is pulling back on its promise to allow the Welsh Government to borrow to invest in infrastructure. Devolution has been in place for over twenty years, but Westminster is still trying to use dirty tricks to undermine it.

“The M4 relief road, was highly environmentally damaging and has been rejected. Westminster cannot dictate what the devolved Government and Assembly should back, simply because they don’t like it.  

“Welsh transport infrastructure is crying out for investment and I am extremely disappointed in the record of the Labour Welsh Government on the issue. The fact that they did not have a plan for alternative investment plans in greener, cleaner options when they cancelled the development of the M4 relief road speaks volumes about their ambition. However, this does not mean that Westminster has any right to undermine the democratic structures of devolution.

“The very principle of devolution is being questioned by the Westminster Government. If they do as they are threatening and renege on their commitments, they will be undermining the fragile constitutional compromise that underpins the relationship between Wales and Westminster.”

ENDS

Notes

• M4: Wales: Written questions
• 259943 – https://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2019-06-04/259944/
• 259944 – https://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2019-06-04/259943/
• ITV – Row over proposed Welsh Government multi-million pound borrowing powers – https://www.itv.com/news/wales/2018-10-30/wales-budget-borrowing-powers-m4-cairns-drakeford/

HS2 AND WALES

HS2 has been branded an “affront to the Welsh taxpayer” by Plaid Cymru’s Transport Spokesperson Jonathan Edwards MP, after new analysis showed costs spiralling to over £150 bn.

Analysis by the Midlands Economic Forum (MEF) shows that the original construction cost of £30 bn could reach as much as £106.35 bn. This excludes further costs such as local infrastructure connection terminal (£43 bn) and rolling stock (£2.5 bn).

Mr Edwards said that Welsh taxpayers would be paying for an English railway, without receiving any benefit. The Westminster Government has already refused to give Wales any Barnett Consequentials – the normal mechanism by which a population share increase in funding for Wales is received relative to spending in England – for the project.

Transport expert Professor Stuart Cole has also demonstrated how HS2 will have negative consequences for Wales, particularly in the south of the country, as journey times to cities in the midlands and north of England are reduced and new technology encourages companies to areas with HS2 stations. Professor Cole’s analysis was supported by a report from Greengauge 21, which drew on analysis by KPMG, that found that HS2 could reduce employment growth in Wales by 21,000 jobs between 2007 and 2040.

The MEF report also claims the power requirement costs of HS2 would be approximately one third of the output of Hinckley C, and would cost £5 bn.

The overall cost of HS2, as calculated by MEF, would be £156.95 bn, which equates to 7.4% of UK GDP in 2018.  

Commenting, Jonathan Edwards MP said:

“HS2 has always been bad news for Wales – independent analysis shows it will mean an economic hit for our country. These latest figures, however, shows how much of an affront to the Welsh taxpayer HS2 really is.

“When costs are spiralling over £150bn for a railway between English cities, the Westminster Government remains committed. But when it comes to Wales, the British state can’t find the money to electrify a few miles of track between our two biggest cities.

“Welsh infrastructure is creaking. You can’t even get from the north to the south without going into a different country.

“Not only is this state of affairs symbolic of Westminster’s disdain for Wales, it is hurting our economy. Wales is stuck with a 20th century transport system, whilst helping fund the development of a multi-billion pound new transport system in England.

“We simply cannot trust another country to dictate our transport policy for any longer.”

ENDS

Note

• Professor Stuart Cole’s Comments in relation to HS2 detrimental impact on Wales (para. 42) - https://publications.parliament.uk/pa/cm201719/cmselect/cmwelaf/403/40307.htm
• Greengauge 21 report - http://www.greengauge21.net/consequences-for-employment-and-economic-growth/

OUT OF SIGHT AND OUT OF MIND!

Plaid Cymru MP, Jonathan Edwards, responding to the Labour leader's speech, said:

"The Labour leader failed to mention Wales once in his speech, despite the fact that his party is in government in Wales.

"They have been in charge of our NHS, our schools and local authority funding for 21 years and their leader didn't even see fit to mention any of it in his keynote speech - not even a thank you to the departing First Minister, Carwyn Jones. 

"Corbyn repeated his delusional policy of achieving the exact same benefits of the single market without being members of it and once again focussed on his cynical attempts to force another UK election instead of committing to a genuine people's vote on the final Brexit deal. 

“His opposition to giving people a real say, with the option to remain on the ballot paper, plays directly into the hands of the Tories, who will be able to push through a rigged referendum where the only choice would be between their deeply flawed plans and a disastrous no deal Brexit. Why is the Labour Party so keen to support the dirty work of the Tories? They are both as bad as each other.

"It is clear that for as long as both Westminster parties share the same Brexit policies, the only way we can solve this impasse is to hold a genuine people's vote and give the people the final say."

LONDON 1 WALES 0

Plaid Cymru responding to figures obtained by the Wales Governance Centre has called the historic pooling of taxpayers’ money in London ‘scandalous’. The figures, based on statistics issued by the Office of National Statistics, show that government capital spending on transport in the UK is heavily concentrated in the south east of England. Had capital spending per head on transport in Wales matched spending per head in the wider south east of England, an extra £5.6 billion would have been invested since 1999.

Jonathan Edwards MP, the Plaid Cymru Westminster Group spokesperson for the Treasury said:

“The historic pooling of transport infrastructure expenditure in London is ‘scandalous’. This is a classic case of underfunding by the London-centric British Government and a chronic case of negligence by a dormant Labour Welsh Government since they took the reins twenty years ago. Had capital spending per head on transport in Wales matched spending per head in the wider south east of England, an extra £5.6 billion would have been invested since 1999. Transport infrastructure in Wales has been short-changed to the tune of billions. 

“At the moment the taxes of Welsh people are flowing to London and we are being offered crumbs back. When Tory and Labour politicians talk about pooling and sharing what they must mean is that Wales and other parts of the British State do the sharing and London does the pooling.

“To put £5.6 billion into context, the whole of the Welsh transport project pipeline, which includes the recently cancelled electrification of the Great Western Mainline, the South Wales Metro, the third Menai crossing, the Caernarfon – Bontnewydd bypass and tens of other vital pan-Wales projects, is worth £7.3 billion.

“These figures should be of huge concern as Brexit will mean an end to structural funds from the EU. The British State is grossly unequal and the concentration of transport infrastructure investment in London and the South East of England is one reason for this. The British State model is bust and there is little point looking to the Westminster parties for salvation.

“Imagine what we could have done since devolution to improve transport infrastructure in Wales with £5.6 billion. The Westminster parties will always look after London. Labour and the Tories are both as bad as each other.  There is no point looking to the British Government to invest in Wales, we need to have the full portfolio of job creation leavers in Wales to enable is to do the job ourselves.”

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Graph and figures compiled from figures from ONS (2018) webpage:https://www.ons.gov.uk/economy/governmentpublicsectorandtaxes/publicsectorfinance/articles/countryandregionalpublicsectorfinances/2016to2017#things-you-need-to-know-about-this-release

Original statement from Guto Ifan, Research Fellow Wales Governance Centre found here:https://twitter.com/Guto_Ifan/status/1026417934518898688

NO SURPRISE

REVEALED: @JonathanPlaid discovers UK Gov has no plans for official Brexit meetings with devolved administrations https://t.co/GnxUi6aN4u pic.twitter.com/DSBxY9SlPg

— Plaid Cymru (@Plaid_Cymru) August 9, 2017

EVER FELT SECOND CLASS?

1 week after scrapping electrification in Wales, British Gov announce £30bn Crossrail 2 for London. Westminster isn't working for Wales

— Jonathan Edwards (@JonathanPlaid) July 24, 2017

WORKING FOR WALES?

Westminster isn't working for Wales. Disgrace if electrification to Swansea ditched https://t.co/rnkT2ZZz7u

— Jonathan Edwards (@JonathanPlaid) July 19, 2017

A FAIR SHARE FOR WALES?

Plaid Cymru’s Transport spokesperson, Jonathan Edwards MP 

Plaid Cymru has responded to the UK Government’s announcement that it will launch a £1 billion “roads revolution”, demanding that Wales gets its fair share.

The £1 billion of spending in England will be ring-fenced from the £6 billion raised annually from vehicle excise duty, known as road tax, which is paid by taxpayers from all UK countries, not just England.

£1 billion of spending on England only projects would trigger around £50 million for Wales under the Barnett Formula.

Plaid Cymru has called on the Welsh Government to ensure this money is spent on improving Wales’ roads.

Plaid Cymru’s Transport spokesperson, Jonathan Edwards said:

“Wales’ roads are shamefully inadequate and our country is disconnected as a result of chronic underinvestment. 

“The £1 billion for England will be funded from the road tax, which is paid by Welsh taxpayers as well as English taxpayers. 

“It is vital that Wales receives its fair share of this investment which should be around £50 million a year. The UK Treasury cannot be allowed to get away with an accounting trick as they have in the past and deny Wales our rightful share by describing England-only investments as investments for the whole of the UK. 

“The Welsh Government must also commit to spending this money on rebuilding Wales’ road network, connecting our towns and cities and reducing congestion.

"Wales should not have to rely on decisions made by English Ministers for English domestic issues in order to get on with the job of rebuilding our country. We should be free to make those decisions ourselves, invest in our country and upgrade our roads and railways."

WESTMINSTER WORKING FOR WALES?

Is Westminster's ownership of Welsh natural resources working for the people of Wales? Asks @JonathanPlaid pic.twitter.com/c8UkVS2UpO

— Plaid Cymru (@Plaid_Cymru) July 3, 2017

STANDING UP FOR WALES

Mae @BenMLake wedi ennill #Ceredigion i Blaid Cymru / Ben Lake has won Ceredigion for Plaid Cymru #Plaid17 pic.twitter.com/bjRQvEj5L1

— Plaid Cymru (@Plaid_Cymru) June 9, 2017

Congratulations to @LSRPlaid on being re-elected MP with Plaid Cymru's highest ever vote in #DwyforMeirionnydd #Plaid17 pic.twitter.com/aQVZO5GwoH

— Plaid Cymru (@Plaid_Cymru) June 9, 2017

Llongyfarchiadau i @HywelPlaidCymru ar gael ei ailethol / Congratulations to Hywel Williams re-elected as MP #Plaid17 pic.twitter.com/XJ6CNyrfu8

— Plaid Cymru (@Plaid_Cymru) June 9, 2017

Llongyfarchiadau i @JonathanPlaid ar gael ei ailethol / Congratulations to Jonathan Edwards re-elected as MP #Plaid17 #GE2017 pic.twitter.com/UImxnXzW1z

— Plaid Cymru (@Plaid_Cymru) June 9, 2017