FSB calls for reversal of UK Government’s Swansea Bay Tidal Lagoon ruling

BUSINESSES and communities in the Swansea area were incredibly disheartened last week upon hearing the news that, after a protracted decision-making process, the UK Government will not support the Swansea Bay Tidal Lagoon.

In a statement to the House of Commons, Business, Energy and Industrial Strategy Secretary Greg Clarke argued that the Tidal Lagoon Power project did not meet the requirements for value for money, and therefore the UK Government would not be prepared to support the project with public funds.

We do note and respect the concerns of the UK Government regarding the value-for-money aspects of this project.

However, this is, by its nature, a pioneering scheme which cannot be judged in exactly the same way as other, established forms of power generation.

Wind power itself didn’t represent the value-for-money return it now enjoys when that technology was first adopted.

Charles Hendry, author of the independent review into the prospect of a tidal lagoon some 18 months ago, has stated that based on their given reasoning, the UK Government could have come to this decision in January 2017 when his report was published.

Which really does raise the question – what has the UK Government been doing with this issue for the past year and a half?

At FSB, we have been campaigning for the Swansea Bay Tidal Lagoon for some years. We still feel that this project has a regenerative potential for the Swansea Bay region – an opportunity that has now been missed by the UK Government following its decision.

This pioneering project was described as a trailblazer scheme for Swansea – and by choosing not to exploit this, the UK Government has displayed a lamentable lack of ambition for the region.

However, it is not too late for UK Government to reverse its position and support the Swansea Bay Tidal Lagoon.

The case for this project has become only more pressing over the past week, given the clear public, business and cross-party political support for the Tidal Lagoon (which includes the Welsh Conservative Party).

At FSB, we are calling on the UK Government to reconsider its position on the Tidal Lagoon and work on providing a new way forwards for this project.

We would be happy to take part in any work to get this deal back on to the table and capable of benefiting businesses in Swansea.

Just two weeks ago in my speech at the FSB Wales Annual Dinner, I discussed the importance of small business supply chains, of which the Swansea Tidal Lagoon is a really important example.

The prosperity of Wales in the world depends on the Welsh and UK governments prioritising business needs, and the ability of these smaller firms to engage in supply chain opportunities.

The UK Government must be capable of taking action when it comes to promising investment for south-west Wales. UK Government ministers must consider how they can build the confidence of those businesses in Swansea and the region.

We have noted that the Secretary of State for Wales has made clear his enthusiasm and commitment to delivering large-scale infrastructure projects for his home city.

We would be happy to work closely with the Secretary of State to make this vision for Swansea a reality.

Regardless of what happens next with the tidal lagoon, this issue demonstrates that there is a clear imperative for more collaborative thinking and decision-making regarding delivering real progress and growth for Swansea – and FSB Wales will play any possible role in this.

We would be happy to take part in any work to get this deal back on to the table and capable of benefiting businesses in Swansea BEN FRANCIS