£1.3bn City Deal signed as PM sets Brexit milestone
PRIME Minister Theresa May has signed off the long-awaited Swansea Bay City Region Deal which supporters hope will create more than 9,000 jobs and unlock nearly £1.3bn in investment.
The move comes as the UK prepares for the two-year Brexit process to be triggered on March 29.
There were smiles and handshakes at Swansea’s Liberty Stadium but First Minister Carwyn Jones stressed the need for the two governments to work closely as the UK starts the formal journey towards Brexit. He said: “At the end of the day, this is about people’s jobs and livelihoods – that must be our priority. “Where we can work in partnership for the economic good of Wales, that is what we will do.” The Prime Minister set out the goal of ensuring that “prosperity, growth, that opportunity is available to everyone”.
Swansea council leader Rob Stewart pledged to “aggressively deliver” the deal, describing it as “among the biggest investments Wales has ever seen”.
But Mrs May gave no hint on timescales for a decision on the proposed Swansea Bay Tidal lagoon.
THERESA May has taken the final “leap of faith” to seal a City Deal for the Swansea Bay City Region.
The Prime Minister put her name to a deal which its architects believe will help make up for decades of lost productivity for the area.
Alongside her was First Minister Carwyn Jones, whose signature was the final piece of the puzzle after council leaders and health board chiefs had committed to the deal document.
The City Deal aims to deliver 11 technology, health and advanced engineering projects in the Swansea Bay City Region over 15 years.
Their £1.3bn price tag will be shared between the private sector (£637m), the UK Government and Welsh Governments (£241m), and the four councils – Swansea, Neath Port Talbot, Carmarthenshire and Pembrokeshire – plus other public sector partners (£396m).
A year ago the city region’s board chairman Sir Terry Matthews said South West Wales’ economic underperformance was stubborn and that “real transformation would not be achieved by doing more of the same”.
Sir Terry said the public sector had taken a “collective leap of faith” in agreeing to the outline of the City Deal but that for the private sector the unashamed focus on technology projects and infrastructure was “not so much a leap of faith as a leap of logic”.
Some people have queried whether the 11 projects and the expected 9,465 jobs properly reflected his broad-brush vision – a claim rejected by Swansea council leader Rob Stewart.
Mrs May said the projects had a strong appeal.
She said: “The individual projects will benefit but, crucially, the City Deal is going to bring in investment and jobs.”
Mrs May cited two of the 11 projects – an £80m steel science centre to develop new products and the creation of a 5G test bed for applications like driverless cars – as examples of being ahead of the curve.
Deal architect Professor Marc Clement, of Swansea University, said the agreement was about testing new concepts and then commercialising them for a global market.
“We have worked on these 11 projects in advance – some of them are shovel-ready,” he said.
“The steel science centre, factory of the future, and homes as power stations are largely driven by colleagues here.”
Prof Clement said the skills initiative should not be overlooked. “Without that all else fails,” he said. Secretary of State for Wales Alun Cairns said officials had been keen to ensure the tourism and agriculture sectors would benefit from the technological advances being put forward. “In New Zealand drones are used in agriculture and that is the sort of innovation we want to see,” he said.
Mr Cairns said advances in ultrafast broadband should benefit a remote bed and breakfast in Gower or Carmarthenshire as much as a city centre hotel.
“We want anyone coming on holiday not to see a lack of connectivity as a hindrance,” he said.
Mr Cairns added that work was needed to agree the governance behind the City Deal delivery, which will be the job of a private sector-led strategy board and public sector-led joint committee.
“We need to cross some ‘I’s and dot some ‘T’s over the coming weeks,” he said.
Mr Cairns said the private sector would have a “prominent role as a driving force” in pushing on with the projects as “they are the ones bringing the largest amount of money”.
He paid tribute to all concerned in shaping the deal, with a special word for Sir Terry’s business partner Simon Gibson, and also to Swansea East MP Carolyn Harris and Gower MP Byron Davies for their recent focus in helping to smooth out any issues.
Welsh Labour leader Mr Jones said: “Today’s City Deal announcement for the Swansea Bay City Region is an example of what can be achieved through partnership working.
“That is the approach we now want to see as we move towards the triggering of Article 50 and as we consider the future structure of the UK.”
Coun Stewart said work to “aggressively deliver” the deal was now the priority – but only once May’s local government elections had taken place.
The focus for Swansea, he said, was creating digital districts in The Kingsway and at the University of Wales Trinity Saint David’s big new base in SA1.
These, he said, would provide space and state-of-the-art digital infrastructure for tech companies.
Investment would also be required for the 3,000-seat arena for the St David’s site, which Mr Stewart wants to host gaming shows, tech conferences and academic activities, as well as bands and other performances.
The four councils will pay their portion of the £1.3bn City Deal costs over the next five years.
“All the councils have committed to an aggressive delivery,” said Mr Stewart.
Andrew Davies, chairman of Abertawe Bro Morgannwg University Health Board, said: “We are delighted that the City Deal has been supported by Welsh Government and UK
Government as this will help transform the health and economic opportunities of our region.
“The funding will also help us accelerate the development of health science campuses at Morriston and Singleton and the Wellness and Life Science Village in Carmarthenshire.
Swansea University vice-chancellor Richard Davies added: “The Swansea Bay City Region has a rich history of innovation.
“This groundbreaking £1.3bn City Deal will ensure that innovation thrives once again and is encouraged, embedded, and commercialised to help create a new era of growth and prosperity ranging from improved healthcare to tackling fuel poverty with many associated benefits.
“This is a once-in-a-lifetime opportunity with transformational projects proposed across the whole region and I am proud of the way Swansea University has responded.”
Swansea West MP Geraint Davies said he was “overjoyed” by the City Deal sign-off.
He added: “It’s important that we also move forward with the Swansea Bay Tidal Lagoon to keep momentum going.”
Neath AM Jeremy Miles said: “I would like to congratulate the four local councils, Welsh and UK Governments on agreeing the City Deal for our region – working together with the private sector to secure £1.3bn over the next 15 years.
“It is important now that work begins straight away on these projects which will provide opportunities across our region and help us take advantage of the economy of the future.”
Productivity in the region has dropped from 90% of the UK average to 77% and, amid all the grand expectations and dizzying concepts, one aim of the City Deal is simply to close most – but not all – of that productivity gap.
As Sir Terry said last year: “The time is right for a City Deal to underpin a step-change to help the region regain importance for UK industry.”