Wales must not be short-changed on HS2 money

Elfed Williams – YesCymru Director

Wales is owed money by Westminster and a lot of it.

We’re not talking a few thousand pounds or even a few million here. We are talking about billions – sums that have the potential to have a transformative impact on our creaking and grossly underfunded rail network.

However, thus far, governments, both Conservative and Labour have been determined to deny Wales the many billions that are due as a result of the farcical HS2 project.

Though Scotland and Northern Ireland receive substantial extra funding as a result of the rail project, Wales has been conspicuously, not to mention deliberately, overlooked.

‘Damage’

This has been done through the use of an accounting trick that is transparent, ridiculous and insulting in equal measure. HS2 has been branded an England and Wales project despite the fact that not even a solitary meter of track has been or will be built in Wales.

To make matters worse, experts such as Professor Stuart Cole, Emeritus Professor of Transport Economics and Policy, at the University of South Wales, have pointed out that the project is likely to damage the Welsh economy and further hamper our rail travel facilities.

‘Utterly illogical’

Anyone objective can see the absurdity as well as the gross unfairness here, and before Labour got back into power in Westminster, its leading politicians were terribly keen to criticise the Conservatives for adopting this policy.

The Secretary of State for Wales Jo Stevens has previously stated that it was “utterly illogical” to designate HS2 as an England and Wales project.

She was right about that of course, as she was right to call on the Conservatives to “cough up” the billions owed to Wales. However, disappointingly when she moved from opposition to the government benches she had a sudden and dramatic change of heart.

Since the British Labour Party has gotten itself into a position where it can properly address this injustice, she has repeatedly refused to commit to ensuring Wales would get its fair share of consequential funding. Demands for fairness for Wales have been replaced with weasel words.

Misleading

In an interview on S4C’s Y Byd yn ei Le, she astonishingly claimed that HS2 is “no longer in existence”. It is concerning that the politician whose job it is, ostensibly at least, to stand up for Wales around the Cabinet table, would make such a misleading and inaccurate statement on this matter.

While it is true that parts of the HS2 project have been cancelled due to spiralling costs, such as those linking the West Midlands to Manchester, and to the East Midlands, others most certainly have not.

For example, Phase 1 from London Euston to Birmingham is still going ahead at an estimated cost of £66.6bn. In addition to that, enormous sums of cash have already been spent on the now cancelled legs of the high-speed rail line.

Meanwhile, the Welsh Government seems to be preparing the ground for accepting a great deal less than what Wales is owed.

‘Sensible’

In a recent interview, First Minister Eluned Morgan said she had spoken to the UK Chancellor Rachel Reeves about obtaining HS2 funding for Wales.

But the Welsh Government is already asking for a great deal less than it was in the past. Having previously estimated that Wales is owed billions, it now puts the figure at a meagre £350m.

The newly-installed Finance Secretary, Mark Drakeford has said he’s looking for a “sensible and pragmatic conclusion” to the HS2 issue.

Those of us who want to see Wales get its fair share hope this language from the former First Minister isn’t code for swallowing a raw deal which amounts to a lot less than the £4bn that is due.

This issue with consequential HS2 funding is indicative of a wider problem with our transport infrastructure.

Transport expert, Professor Barry, from Cardiff University, has pointed out that Wales receives around 1 to 2% of the funding available in the UK for our rail infrastructure, when in fact we should be getting something closer to 5 or 6% of the available money.

This leaves Wales at a distinct disadvantage relative to the rest of the UK, because when the necessary investment in essential economic infrastructure doesn’t materialise – such as in energy, transport and housing – then it hampers the economy. This in turn means there is less money available to invest in public services.

Emblematic

The infuriating debacle with HS2 is emblematic of how Wales gets short-changed by the Westminster establishment. It is far from an isolated incident. It is the inevitable consequence of Westminster rule, under which Wales will never be a priority.

What all of this highlights is the damaging effect of our rail network and our finances being controlled from London instead of Wales. Only in an independent Wales can we ensure that the needs of our citizens are put first and that funding decisions are consistent with the priorities and aspirations of our people.

In the meantime, it is incumbent on our elected representatives here in Wales to insist that we get our fair share of HS2 funding and not a penny less. Anything short of that would be to effectively sell out the people they’ve been elected to represent.