Eluned Morgan challenged over extra funding for Cardiff Airport
Martin Shipton
First Minister Eluned Morgan has been challenged to explain why her government seems committed to a budget-busting increase in funding for Cardiff Airport – which it owns – while apparently planning for cuts in core public services.
On July 20, the then Economy Minister Ken Skates issued a written statement in which he revealed that the Welsh Government intended to invest £206m over a 10-year period in securing new routes for the airport in parts of the world considered important for improved trade links like the Middle East and South Asia, the EU and North America.
Tourism
Mr Skates stated: “This greater connectivity will provide an excellent opportunity to grow tourism into Wales and make it significantly easier for potential investors to get to and from the country. It is anticipated that the totality of these route developments could see the Airport’s annual passenger numbers increase to just over two million within the next decade.
“To complement the air service development there are planned investments in the Airport’s existing terminal building and other infrastructure to ensure it can accommodate more comfortably the higher number of passengers whilst also reducing the carbon footprint of its ground operations.
“The measures put in place by the Welsh Government during and after the pandemic to protect the Airport have done their job but have left the business in a position where it does not have the financial resources necessary to kick-start these economic developments. To ensure that the South Wales region can make the most of these opportunities, the Welsh Government is planning to provide the Airport with long-term additional investment funding and will be seeking regulatory approval for a package up to a maximum of £206m across a ten-year period.
“Analysis commissioned by the Welsh Government has indicated that by 2034, this funding could lead to the Airport supporting a significantly higher number of jobs across the region and generating a significant increase in annual GVA contribution. As the economic returns would extend far beyond the ten years, this investment should benefit the workers of today and those of the next generation.”
Commercial confidentiality
Details of how the £206m will be spent have not been released for reasons of commercial confidentiality.
In a letter to Baroness Morgan, Plaid Cymru MS Delyth Jewell, who chairs the Senedd committee responsible for scrutinising the Welsh Government’s international strategy, asked a series of questions arising from Mr Skates’ statement:
“You will be aware that there are two references to Cardiff Airport in the International Strategy, published in 2020. These references are in the context of describing Wales’ connectivity to the rest of the world and, separately, in relation to sustainable adventure tourism and the ambition for the airport to become a UK centre for low-carbon aviation. Can you clarify the timeframe for the investment decision?
“Also, can you confirm which routes are being considered for development and how each route will support the delivery of the International Strategy? * The International Strategy sets out three core aims which are to: 1. raise Wales’ global profile; 2. grow the economy by increasing exports and inward investment; and 3. for Wales to be a globally responsible nation. I would welcome detailed information on how this investment contributes to each of the three core aims, as outlined; and what consideration was given to balancing the core aims, particularly with regards to sustainability?
“I would also be grateful if you could clarify whether the investment will be used to action the Airport’s plans to commit to net zero targets (which was not met by March 2023), such as for a solar farm at the airport or for the purchase of electric or hybrid vehicles? To what extent the failure to meet this target undermines the International Strategy’s aim for the airport to become a UK centre for low-carbon aviation? how the resumption of Qatar Airways services, if it is secured, will support the delivery of the International Strategy?
“Could you explain what involvement the Welsh Government’s overseas offices have had in the investment decision as it relates to Wales’ connectivity to the rest of the world? In addition, will the overseas offices have a role in the delivery of the airport’s future plans that are linked to the International Strategy?
“The scale of the investment is significant, and it does highlight budgetary implications. While the investment package is subject to regulatory approval, it could total a maximum of £206m across a 10-year period. This is substantially more than the allocated international relations budget of £8.093m for this financial year.
“You note in the statement that this investment is, in part, linked to improving connections with parts of the world identified in the International Strategy as being important for economic growth. In that regard, can you explain:
* How will the investment relate to the International Relations budget?
* The Welsh Government has repeatedly told us that it faces a challenging financial situation and cannot plan beyond annual cycles, particularly in relation to other areas of our committee’s remit such as the culture sector. How has the Welsh Government made these funds available?
* On what basis was the airport investment prioritised over other financial pressures such as the financial crisis in the arts, culture and sport?
“Finally, I would like to note how disappointing it was to learn of this information by written statement on the first Monday of the summer recess. There were ample opportunities to update Members during term time. For example, the former First Minister attended our scrutiny session on international relations on June 19 2024, just four weeks before this statement was issued.
“During the session, the airport was not raised despite specific discussions on the Welsh Government’s future international priorities, delivery of the International Strategy and activity in the regions earmarked for new flight routes.”
Ms Jewell asked Baroness Morgan for a response to her letter by September 17, but one has not been received.
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Is Cardiff Airport an exame of why Westminster wants to hold onto post-EU, so-called Shared Prosperity, funding?
Shoring up continuing losses whilst hoping for a pay-off 10 years away – perhaps – doesn’t inspire my confidence.
All successful regional economies need an airport. That’s why the Cons are doing the same in Teesside.
Nonsense. Bristol is close to South Wales, Manchester & Birmingham supplies North Wales. So they are effectively Wales regional airports, the fact they’re based in England makes no difference.
Dear FM. How are we going to become carbon neutral and increase the number of aircraft taking off and landing? Please explain.
Would you like to see the only commercial airport in Wales close? If so do you think that the population of Wales would then mo longer fly?
I wasn’t suggesting that it closes I was asking why sometimes Wales’ commitment to becoming ‘carbon neutral’ is a priority and it can be ignored at other times.
We could start by having control of APD and zero rating it for the cleanest aircraft to encourage their use.
Outsourcing emissions to England is cheating.
What is APD? Sorry but to me it means Auditory Processing Disorder and I know I’ve seen it in other contexts but I’m having a senior moment
Air Passenger Duty, the supposedly environmental tax on flying that does nothing to encourage better environmental practices.
Thanks, yes that sounds sensible.
Global trade is likely to reduce as more countries, including the UK, opt for self-sufficiency. Most supply chains are unsustainable.
Trade undervalues our workers and our resources. What’s the point of swapping lamb with New Zealand? Though the traders, brokers and all the other non-productive participants do very well, thank you.
The expansion of Cardiff Airport will become another white elephant. Given other real needs (say, feeding hungry children or keeping pensioners warm), these commercially-driven wants appear as luxuries we should not be affording…
“The expansion of Cardiff Airport will become another white elephant. Given other real needs (say, feeding hungry children or keeping pensioners warm)” – so investment in transport and infrastructure (which apparently supports 4k of jobs in the local area) should be stopped and instead the WG should provide handouts to pensioners to make up for UK gov pulling support? That’s economic suicide but it’s a point of view.
With respect, Lynn, you appear to be suggesting that if this egregious development doesn’t go ahead, all other investment would stop.
Au contraire, I envisage major investment in trams (really light rail, not tram-trains), reducing the need to travel with improved land use planning and home-working and maintaining the infrastructure.
Unfortunately, our governance is weak and under-funded. Instead, we can anticipate a sequence of glamour projects providing for the wants of the few (again) while the mobility requirements of the many will be largely ignored.
The future isn’t no aviation. It’s clean aviation.
Good luck with that one!
He’ll show you how to flap your arms to achieve a balanced take off, although keeping it up to get to your holiday destination might prove too strenuous!. There’s an awful lot of posturing around and the mixed messages are symptoms of the confused policy making by our governments.
We should perhaps accept that the future for most of us is no flying. Currently around 60% of the UK population never fly and just 15% of the population take 70% of flights. So, clearly the aviation industry is servicing a small priviledged group while doing terrible damage (UK aviation causes 12% of UK emissions). Whilst I do not have the data, I suspect that those 15% are also the ones with the high fuel consumption SUVs and probably have big inefficient houses. (One of our groups of friends fits that profile exactly). Government spending on transport infrastructure including trams,… Read more »
6% of UK emissions according to the CAA.
We need innovation to find sustainable alternatives. Already there are test fights of electric planes. The biggest challenge today is energy storage. And one day airships will return.
In the meantime we should follow France and ban short haul where good rail routes exist. And reform APD to drive better environmental practices and speed up the adoption of cleaner aircraft.
Westminster’s fault.
The one thing that amazes me if you do a search of MS transport expense claims, if you filter various categories the amounts that brings up.
The vast majority is for private car mileage, then flights, then for trains fares. But not one penny has ever been claimed by MS’s past and present for bus fares, which ordinary folk of Wales use on a daily basis. Perhaps, this gives a inkling into the mind set of those who are suppose to represent us.
You can’t realistically travel from Bangor to Cardiff by bus. But they’d do well to have an annual travel to work by public transport day and chronicle the experience on their socials.
Yes, let them eat buses!
Buses do have a role, mainly as feeders to Light Rail, which should operate 24/7/365 in much smarter ways than now.
Anyone for never-ending subsidies?
If you put a bunch of silly people in a room to debate any topic and come to a consensus, it doesn’t mean any of them are going to leave the room more enlightened than when they went in, but they will agree to do something, be it have a cup of tea and a biscuit and meet again next week. As they like to feel important they will discuss funding for future projects in hundreds of millions of pounds as if it is nothing. Wales owns an airport and a farm for festivals, and as to date neither of… Read more »
The purpose of an airport isn’t to make a profit, it’s to facilitate economic activity. Roads don’t make a profit and I’m sure you’ve never demanded their subsidy be cancelled.