Transport secretary criticised for greater ‘prize’ claim when quizzed on HS2 funding

Emily Price

Opposition politicians have criticised the Transport Secretary after he promised funding from a state owned railway company that doesn’t exist yet in response to questions about HS2. 

In the Senedd on Wednesday (Oct 16) Ken Skates also said he couldn’t guarantee that any money received in consequentials for the high speed rail link would be spent on public transport in Wales.

HS2 was classified as an England and Wales project by the previous Conservative government even though it does not cross the border.

This meant no extra funding was released to Wales by the Treasury – unlike Scotland and Northern Ireland.

Billions

It was previously calculated that Wales is owed billions – but more recently the Welsh Government estimated the figure to be £350m.

Ministers have been accused of “changing their tune” on the sum after Labour won the General Election.

Mr Skates says the Welsh Government is applying “common sense” when it came to its expectation of rail funding.

‘Prize’

Shadow Transport Minister Natasha Asghar said that MSs across the political spectrum had all agreed that Wales is owed around £4bn from HS2.

The Transport Secretary said Wales risked losing a greater “prize” if ministers “focused purely” on the amount of money owed.

He promised a “pipeline of improvements” that would amount to “much more” than what Wales should have received in HS2 payments.

Speaking in the Chamber, he said: “We’ll be meeting, I’m pleased to say, next month, as a Wales rail board. Ministers from UK Government, and I will be agreeing on that pipeline of enhancements, and then, once we get legislation through at Westminster, we will see the creation of Great British Railways (GBR).”

When Labour won the election they announced that GBR would be established by two bills during the current parliamentary term.

The planned state-owned company will take over from Network Rail to manage most of Great Britain’s rail transport.

In September, the UK Government said that the enterprise would be created at first in “shadow” form, pending legislation to formally create it.

‘Heart’

Mr Skates said Wales would be “right at the heart” of GBR and have control over funding of enhancements to the Wales network.

Plaid Cymru spokesperson for Transport, Peredur Owen Griffiths called for the devolution of transport to Wales and asked for details of a timeline for GBR.

Mr Skates said the enterprise would eventually see the full devolution of rail infrastructure adding that the issue of HS2 goes to the heart of decisions that are made in Wales.

He said: “When we get a consequential for whatever portfolio, that money isn’t necessarily then spent on that purpose. It would be for the Welsh Government collectively to decide how a HS2 consequential would be invested in Wales.

“I could not stand here today and guarantee that all £350 million of that consequential would go into public transport or into rail in particular.”

The Welsh Conservatives have called for any consequential cash for HS2 to be handed over directly to Network Rail.

‘Revised figure’

Speaking to Nation Cymru, Natasha Asghar said: “There was a strong consensus that Wales was owed more than £4bn in consequential funding as a result of HS2, but in the run-up to the General Election Labour quickly changed its tune and came out with a revised figure of just £350m.

“Now it seems the Welsh Government is perfectly content with the £350m figure because, listening to the transport minister this week, the UK Government might instead at some point in the future throw them a bone when the Great British Railways body is established.

“In a nutshell, it looks as though the Welsh Government has abandoned its pledge to fight for Wales to get its fair share of HS2 funding after being bought off by their paymasters in London.”

‘Scaled back’

Plaid Cymru’s spokesperson for transport told Nation Cymru the “HS2 saga” shows how unfairly Wales is treated by Westminster.

Peredur Owen Griffiths said: “It is a fact that Wales is still owed £4bn from England’s HS2 rail project – it isn’t some sort of ‘prize’.

“Labour used to agree with us until a few months ago. Now they’re in government in Westminster, that figure has conveniently been scaled back to £350m and is selling Wales short.

“For years, Plaid Cymru has been clear that Wales shouldn’t settle for anything less than its fair share.

“It remains to be the case that only Plaid Cymru will stand up for Wales and demand the fairness we deserve.”