09:30 Virginia Crosbie (Ynys Môn) (Con)

There is an incredibly strong case for the Governments to make Anglesey the first Welsh freeport, not least because the solution to making serious progress towards meeting the UK’s net zero objectives or addressing reduced post-Brexit trade flows is right there on Ynys Môn. Anglesey stands on the brink of becoming a centre of excellence for energy production, and freeport status would only boost its progress towards making that a reality. The waters around Ynys Môn have been identified as some of the best for tidal power projects. Like the Cromarty Firth freeport in Scotland, the island would be a prime location for building, assembling and deploying offshore wind turbines. BP has been given preferred bidder status for its Mona and Morgan offshore wind farms in the Irish sea. It is actively looking for the right location from which to build its base and support operations, and a freeport on Anglesey would be the obvious place.

Then, of course, there is new nuclear at Wylfa, which has been my other main topic over the past few years. Wylfa offers the best new nuclear power site in the UK—possibly the world. It has the potential to power 2 million homes, and it offers to be Wales’s biggest single contribution to tackling climate change. Beyond that, the site has the support of local people and would offer 9,000 construction jobs, 900 long-term, permanent, skilled, well-paid careers, and thousands of supply chain roles across north Wales. Companies such as Rolls-Royce SMR, Bechtel, Westinghouse and Last Energy stand ready to turbocharge the nuclear offering on the site.

Home-grown energy will be essential if we are truly to tackle climate change, achieve our 2050 net zero target and protect our energy sovereignty. Anglesey has the ability to upskill the workers of north Wales. Bangor University and Grŵp Llandrillo Menai are working with the bid team to make the most of the opportunities the freeport would bring. Part of that is M-SParc, the first science park in Wales, which focuses on supporting growing local businesses and investing in green energy research and development.

[Source]

09:41 Stephen Kinnock (Labour)

The Celtic freeport would sit at the heart of the emerging green ecosystem in south Wales, which is set to play a central part in providing the green, competitive and secure energy supply our country is crying out for. South Wales was the cradle of the first industrial revolution, and we can now be the cradle of the green industrial revolution. The Celtic freeport can drive forward the green technology that will power our domestic, sovereign and sustainable energy supply, drive down household energy bills, support green steel making and, of course, create up to 16,000 new local jobs. The new technology at the heart of this green manufacturing revolution will be floating offshore wind.

The Celtic freeport bid is about prosperity, but it is also about pride. It is, of course, about prosperity for our economy and people, but it is also about pride in our country and community. We can once again lead the world in tackling the major global challenge of the 21st century, namely climate change. For our local communities, it is about taking pride in the fact that their work will contribute to that national and global mission.

The new green ecosystem can also play a critical role in strengthening the backbone of our national economy. The covid pandemic and Putin’s barbaric invasion of Ukraine have turbocharged the need to build resilience into our supply chains. Floating offshore wind in the Celtic sea will be able to generate 24 GW of clean, green, renewable energy by 2045, which is a quarter—an enormous amount—of the UK’s total target.

Combined with the supporting infrastructure, heavy engineering, industrial clusters and skills base along the M4 corridor, as well as the immense connectivity we have along the M4 corridor, our bid has what it takes to be a genuine game changer for our economy and security and in the battle against climate change. The prize is clear: the creation of a new long-term industry, where high-value manufacturing has “Made in Wales” firmly embossed on the tin.

Our ports are playing their part too. Associated British Ports and the Port of Milford Haven have committed to invest £710 million in their green energy-focused ports, while the first phase of construction at Pembroke Dock is already under way, as I am sure the right hon. Member for Preseli Pembrokeshire will illustrate in his remarks. That port infrastructure will act as a launch pad to help leverage a further £700 million of investment in factories to build the massive renewable sub-structures and turbines.

The decision about the selection of the Celtic freeport is the next vital step to secure this industry for Wales. It will provide the signal to global markets that will be needed if we want to lever in the high-impact private sector investment we need to take us forward. I will continue to make the case, and I hope that local businesses and residents across the Celtic freeport area and beyond will join me in making it. At the stroke of a pen, British and Welsh Ministers can unlock this new industry and repurpose our strengths for a green future. I hope that the UK and Welsh Governments will seize this opportunity. Wales was at the forefront of the first industrial revolution. With the right investment, commitment and decisions, we can put ourselves at the forefront of the net zero revolution.

[Source]

09:50 Stephen Crabb (Preseli Pembrokeshire) (Con)

Those industries are changing, and need to change. The hon. Member for Aberavon made the point that recent events have highlighted the need for our energy mix to diversify, and our demand for home-grown renewable energy has never been greater. Right now we have a unique opportunity to build on that heritage and the excellent skillset in Pembrokeshire to use vacant brownfield sites for the new and exciting energy revolution that is just in front of us.

The port of Milford Haven is in prime position to shift from being one of the UK’s leading conventional energy hubs to being one of the UK’s leading renewable energy hubs. The decarbonisation of Wales’s primary industrial cluster, which stretches from Milford Haven all the way to Port Talbot and further east across the south Wales coast, is the prize in front of us. That decarbonisation has already begun, as we have already heard this morning, and will make a significant contribution to helping the UK meet its net zero targets.

As I explained in my debate on floating offshore wind in this Chamber last October, offshore floating wind represents a major, exciting new opportunity for the UK to tackle pressing issues: jobs and skills regeneration, wholesale energy prices, energy security, levelling up and, as I have said, net zero targets. The UK Government have set ambitious targets to deliver floating offshore wind in the years ahead, and both Milford Haven and Port Talbot have already been identified by leading developers as key locations for the early development of this new industry for Wales. Hopefully Milford Haven will be a hub for operations and maintenance, with Port Talbot at the forefront of assembly and manufacture.

The potential to unlock a UK market in the construction, maintenance and operations of floating offshore wind projects could be worth more than £54 billion in the decades ahead. That is the prize in front of us. It is clear that the establishment of a freeport across the sites at Milford Haven and Port Talbot will enable this exciting renewable vision to flourish. The war in Ukraine, coupled with rising energy prices, has underlined the urgent need for the UK to become less energy dependent. The need to diversify our energy mix has never been more apparent as the dial shifts to the development of green, sustainable energy. Floating offshore wind represents the next big renewable opportunity for Wales. With the expertise and heritage in the Milford Haven waterway, and the skillset and industry in Port Talbot, these two locations at the heart of the Celtic freeport bid are ideally suited to supporting the industrial-scale deployment of floating offshore wind.

Freeport status would be hugely advantageous in that process as it would allow this new green vision to flourish, with the tax breaks, simplified customs procedures and streamlined planning processes helping to ease the transition from conventional to renewable energy. In turn, there is a potentially enormous investment to be unlocked in the supply chain, and that is the prize here. The UK has made enormous progress in the fixed-bottom offshore wind industry and has taken strides in expanding that deployment, but the one thing that did not happen in was we did not create strong domestic content for the UK. We did not capture a bigger share of the full economic value of offshore wind as we should have done. We now have the opportunity with floating offshore wind to get it right and to deploy these structures to give us clean energy in a way that creates long-term jobs and training opportunities in our communities.

I hope that in making this freeport intervention, the Government recognise that they need to work with the grain of the private sector and industry and recognise where real, substantial projects are already starting to happen—in Port Talbot, the port of Pembroke and Milford Haven—and capture that and work with it. That is what will deliver real economic and social benefits for our communities in the way that freeports are intended to do. If the UK Government want to improve our energy security, help us to take a big step towards meeting our net zero ambitions and invest in creating good-quality jobs and training opportunities in our constituencies—that is the essence of levelling up and rebalancing the economy, as it would mean that young people do not have to leave their communities in Wales to work elsewhere, allowing them to stay and be part of those communities, to build and to raise their children there—they will recognise the strength of the Celtic freeport bid and what it proposes. I really hope that the Government take this opportunity and give us the freeport status that we are looking for to help to create this new industrial revolution.

[Source]

10:16 Alex Norris (Labour)

Renewables, including floating offshore wind, are a way to tackle our three domestic crises: the cost of living, regional inequalities and reaching net zero. They will help us to add skilled jobs to our economy so that people have long, viable careers; to spread opportunities more fairly around our nations and regions; and to protect our planet. My hon. Friend the Member for Aberavon and his colleagues have clearly put a lot of thought into doing that with the Celtic freeport bid. As the right hon. Member for Preseli Pembrokeshire (Stephen Crabb) mentioned, the plans change will that community, which we may associate with energy generation methods from the past, into a place of energy generation for the future.

The Welsh Government need to work in concert with local authorities and communities, which are clearly ready, able and waiting to deliver. The question for us in this place is how we get the right powers and resources out of here to them, to allow them to do so. I do not want to dwell too much on the history, but the initial knockings of this debate between the UK and the Welsh Governments did not offer a particularly solid demonstration of the devolution settlement. I think we would all have struggled with the idea that the UK Government could impose a freeport without putting the backing in; that would not have been a good thing. Happily, cooler heads have prevailed, and the two Governments have negotiated two important things: the non-repayable starter funding for the freeports established in Wales on a similar footing to deals in England; and the agreement that both Governments will act as a partnership of equals, and, as the right hon. Member for Dwyfor Meirionnydd said, in a manner that works with the Welsh Government’s policies on fair work and environmental sustainability, including the commitment to net zero. That provides a bedrock of certainty for the people of Wales and their business leaders to allow them to plan for the future.

[Source]

10:25 The Parliamentary Under-Secretary of State for Wales (Dr James Davies)

I very much welcome the contributions to the debate. My hon. Friend the Member for Ynys Môn powerfully articulated her arguments for the Anglesey freeport. She focused on net zero, the need to boost trade flows, energy and, of course, jobs.

The hon. Member for Aberavon (Stephen Kinnock) spoke about green energy—in particular, his desire to see the success of the floating offshore wind agenda—and energy security. My right hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb) echoed those comments. He particularly wanted to highlight the importance of job opportunities, energy companies in his patch, and the decarbonisation of the industrial cluster in his part of the world. He, too, spoke about floating offshore wind and the importance of the supply chain.

The right hon. Member makes a good point. Clearly, the Welsh Affairs Committee has considered these issues in detail. They are important to me, and the role of the Wales Office is to liaise with the Department for Energy Security and Net Zero, as it is now called, to ensure that grid capacity meets aspirations. I assure her that I hope to have that influence.

I will move on from the SPF to conclude this excellent debate by again thanking my hon. Friend the Member for Ynys Môn for securing it. She is a champion for Ynys Môn on issues from the freeport bid to nuclear and green energy and transport connectivity. I know how important it is to her to see well-paid jobs on the island and to provide good reasons for young people to stay on Anglesey. I would welcome the opportunity to have further conversations with my hon. Friend about freeports in Wales once the competitive process concludes. Of course, that invitation extends to all right hon. and hon. Members.

[Source]

10:41 Virginia Crosbie

In conclusion, I sincerely hope that we will all be back here in Westminster Hall this time next year speaking in a debate with the title, “Welsh freeports: delivering levelling up, delivering net zero and delivering the green revolution”.

[Source]