METRO BOOST: HQ PLAN FOR SOUTH WALES TRANSPORT NETWORK
Economy Minister Ken Skates reflects on the Welsh Government’s evolving new economic strategy and the importance of regionalism in spreading wealth more evenly across Wales
Plans for a massive new transport project for south-east Wales have moved a step closer. Transport for Wales, the next rail franchise for the country and the South Wales Metro operator, will be headquartered in Pontypridd, Economy Secretary Ken Skates has announced.
The body has already started its process of procurement for the construction of the £2bn South Wales Metro project, which would see a fully-integrated transport system for the Valleys and Cardiff.
Now Mr Skates has earmarked Pontypridd, a town which grew out of its location as a transport meeting point in the Valleys, to take forward the next phase in Wales’ infrastructure development.
It would mean hundreds of jobs being created in one of Wales’ most disadvantaged towns – still recovering from the decline and fall of the coal industry and high street competition from nearby out-of-town developments.
Mr Skates said: “The new Transport for Wales headquarters will be located in Pontypridd, bringing hundreds of high-quality jobs to the area.
“This is great news for the town but it needs to be the start of something bigger. We need to work with partners in the local authority, the private sector as well as local colleges and universities to ensure this injection of jobs becomes a spark for wider local regeneration and prosperity.
“Later today I will meet young people training at the rail engineering centre at Coleg y Cymoedd, a £3m partnership between Welsh Government and the college and a great example of the partnership working and forward thinking that is key to regional economic success.
“By looking ahead to the opportunities arising from the £1bn-plus we will spend on electrification, Metro and rail infrastructure, we must work together to ensure more of the benefits of that spend remain in our local communities and benefit local supply chains.
“We face major economic challenges which will only be increased by our exit from the EU, global instability, welfare cuts and UK Government austerity.
“Our response must be to work together and to develop more resilient regional economies if we are to build a stronger and fairer economy for everyone in every area of Wales.”
Pontypridd MP Owen Smith said: “This is fantastic news for Pontypridd and I want to congratulate the Welsh Labour Government and our council here in Rhondda Cynon Taff on putting together this partnership to bring new jobs to our town centre.
“I have long argued that the secret to revitalising our towns is to create employment opportunities within them and I am delighted that the Welsh Government is showing the way in using their power to do just that.
“The hundreds of jobs that this plan will bring to Pontypridd will increase footfall through our high street and should bring benefits for everyone who lives in our community. I hope and believe that this project, along with the redevelopment of our Lido, our rail network and our improving retail offer, marks the beginning of a real renaissance for Ponty.”
Pontypridd AM Mick Antoniw said: “I have for a long time lobbied for the establishment of the Metro and new railway lines and for bringing Welsh Government jobs closer to the Valleys, so I’m pleased to have had the opportunity to contribute to developing this bold and exciting plan, which will transform Pontypridd.
“This is an extremely important announcement, which underlines the Welsh Government’s confidence in the future of the Valleys. It will bring hundreds of high-quality jobs and place our town at the forefront of the transformational Metro project. It also shows what we can achieve when Welsh Government and RCT Council work together.
“I’m convinced that not only will the new jobs and increased footfall bring increased prosperity to the town, but that it will encourage further development in Pontypridd and the Valleys.
“There is now a real sense of momentum building on Valleys investment and I’m delighted to have played a part in ensuring that Pontypridd is at the heart of both Valleys job creation and the Metro project.”
A further boost to Rhondda Cynon Taff came at the end of last week with the announcement that the Programme Management offices of the Cardiff Capital Region City Deal will be based in Treforest, just outside Pontypridd.
At the first Joint Cabinet of the 10 local authorities, which form the City Deal, it was formally agreed to locate these functions in Treforest.
Rhondda Cynon Taf Council leader Andrew Morgan was also formally appointed as chair of the Joint Cabinet at the inaugural meeting.
Coun Morgan said: “The decision to locate the Programme Management offices for the City Deal in Treforest is an important symbol of how this programme is about transforming and driving the economy of south Wales as a whole and not just Cardiff as the capital city.
“I remain hugely optimistic about the potential of the City Deal to transform the local economy of south-east Wales. With the first Joint Cabinet meeting of the 10 local authorities having taken place, we are demonstrating local government’s commitment to turn our ambitions for our
local economy into a reality.”
The leaders of the 10 local authorities within the CCR signed the City Deal on March 1, following universal support from all 10 councils for the programme. The City Deal includes funding of £734m for the South Wales Metro, of which more than £500m is provided by the Welsh Government. The UK Government has provided a £375m contribution, and the 10 local authorities have agreed a commitment to borrow a total of £120m as part of the Wider Investment Fund.
In a speech at Coleg y Cymoedd today, Mr Skates will outline the “challenges” still facing the Welsh economy.
He will tell business leaders: “I’m incredibly proud that during the last Assembly term the Welsh Government directly supported almost 150,000 jobs across the country, with many more in local supply chains.
“That has helped us secure a lower unemployment rate than England, Scotland and Northern Ireland and a faster rate of employment growth than the UK average.
“However, as an economy, we still face major challenges, particularly in addressing the regional differences in our economy and ensuring that the benefits of economic growth fall more fairly across Wales.
“Since 2010 our approach has focused on developing key sectors of our economy on a national basis. This has resulted in some stunning successes, particularly in advanced manufacturing areas like aerospace and in the creative industries. However, the growth of those sectors and the skilled jobs they have created have not fallen equally across Wales and so now is the time to write the next chapter of Wales’ economic story.
“As we approach the challenges of the future, I believe we need to take a new approach by developing the competitive edge of each region of Wales more fully. This will mean empowering each region to develop its own specialised sectors and more distinct economic identities.
“Allied to this, we need to change our economic development structures in government to work in closer partnership with those regions, utilising drivers, such as skills, transport connectivity, procurement and digital infrastructure to accelerate economic growth in those areas.
“The way to address these regional differences is not to turn one area against another, but to work together to ensure the fruits of growth are shared by everyone. It’s a question of fairness and that’s why I want to grow the regional economies of Wales and unleash their potential to drive more balanced growth across the whole of the country. Only that way can we make real our promise of better jobs closer to home and ensure every area of Wales becomes more resilient to the economic challenges we face over the next few years.”
I’M INCREDIBLY proud that during the last Assembly term the Welsh Government has directly supported almost 150,000 jobs across the country, with many more in local supply chains.
This has helped us secure a lower unemployment rate than England, Scotland and Northern Ireland, a faster rate of employment growth than the UK average, as well as a growth in GVA per head that since the crash has been higher in Wales than the UK as a whole.
The Welsh Government has been an important part of that economic growth story. During the crash we worked alongside business, unions and other partners to deliver the ProAct and ReAct schemes, and our flagship Jobs Growth Wales programme has helped over 15,000 young people find good-quality work.
However, our economy still faces major challenges. With lower productively than the rest of the UK and higher economic inactivity, we face important structural questions of how to get more people into work as well as the skills to progress into better-paid jobs.
As I have said on these pages before, one of the biggest challenges we face is addressing the regional differences of our economy and ensuring that the benefits of growth fall more fairly across Wales.
Over the last year I have given a lot of consideration to these questions and the future of the Welsh economy. I have been asked by the First Minister to lead a new crossGovernment approach to promoting economic opportunity in Wales and so I have been speaking to business owners, workers, trade unions and others about how we can stimulate stronger, fairer economic growth across every areas of the country.
There is no silver bullet. There is no single project, programme or initiative that, alone, can solve our economic problems. It’s only by working together in a truly national effort, that we can help the Welsh economy to fire on all cylinders.
Part of the answer lies in giving a harder edge to the work we do to prevent poverty by empowering individuals with the economic tools they need to get into work and progress through into higher-paid jobs. That means stronger employability skills, better transport links and better jobs closer to home.
But part of the answer also lies in empowering communities and our regional economies to be more economically resilient.
Since 2010 our approach to economic development has focused on developing key sectors of our economy on a national basis. That has resulted in some stunning successes, particularly in advanced manufacturing areas and in the creative industries.
The growth of companies like GE, Raytheon and BAMC have helped strengthen the manufacturing heart of our economy, while the coming of new jobs through Aston Martin and General Dynamics has transformed the perceptions of Wales as a place to invest.
However, the fruits of the growth of many sectors – and the benefits of the skilled jobs they have brought with them – have not fallen equally across Wales. That is why I believe that now is the time to develop our approach by strengthening the competitive edge of each region of Wales.
I want a smaller number of national, foundational economy sectors, such as healthcare and energy, which the Welsh Government can take the lead in supporting, but below that I want to grow our regional economies by empowering each area to develop its own specialised sectors and more distinct economic identities.
Allied to this, we need to change our economic development structures in government to work in closer partnership with those regions, utilising drivers such as skills, transport connectivity, procurement and digital infrastructure to accelerate economic growth in those areas.
The way to address these regional differences is not to turn one area against another, but to work together to ensure the fruits of growth are shared by everyone. It’s a question of fairness and that’s why I want to grow the regional economies of Wales and unleash their potential to drive more balanced growth across the whole of the country.
Only that way can we make real our promise of better jobs closer to home and ensure every area of Wales becomes more resilient to the economic challenges we face over the next few years.
So over the coming months we will be setting out a new approach with four clear overarching strategies that recognise that only through co-ordinated interventions can we support prosperity and growth.
It will mean shaping local skills provision more closely around the needs of a region, its employers and its priority sectors, and developing more tailored interventions for those needing support into work.
It will mean better utilising procurement and ensuring that local companies have a more accessible route into bidding for and benefiting from major projects so more money stays in our local communities and benefits local supply chains.
And it means developing connected, sustainable infrastructure across the country to better connect people to jobs and services.
Only by forging a new economic contract between business, Welsh Government and social partners can we collectively identify and solve the economic challenges we face.
Today I am delighted to announce that the new Transport for Wales headquarters will be located in Pontypridd, bringing hundreds of highquality jobs to the area
This is great news for the town but it needs to be the start of something bigger. We need to work with partners in the local authority, the private sector, local colleges and universities to ensure this injection of jobs becomes a spark for local regeneration and prosperity.
Later today I will meet young people training in the excellent rail engineering centre at Coleg Y Cymoedd, a £3m partnership between Welsh Government and the college and a great example of the partnership working that’s the key to regional economic success.
By looking ahead to the opportunities arising from the £1bn-plus we will spend on electrification, Metro and rail infrastructure, we must work together to ensure more of the benefits of that spend remain in our local communities and benefit local supply chains.
We face major economic challenges which will only be increased by our exit from the EU, global instability, welfare cuts and UK Government austerity.
Our response must be to work together and to develop more resilient regional economies if we are to build a stronger and fairer economy for everyone in every area of Wales.