I welcome the additional energy consents that the Government are now going to include in the Bill, and I especially welcome the measures relating to grid connections. When planning consent has been determined in Wales for energy projects such as wind turbines, the issue of grid connection has imposed an additional bureaucratic burden. Until now, it has been a matter reserved to the United Kingdom Government, which makes no sense at all.
I support amendments 70 to 76, tabled by my hon. Friend the Member for Newport West (Paul Flynn), which would extend the Welsh Government’s power to determine planning consent for energy projects not just to 350 MW, but to 2,000 MW. That would cover not only the Swansea tidal lagoon but the planned further lagoons for Cardiff and Newport, and I hope very much that Members will support the amendments. Not only do tidal lagoons offer predictable clean energy, but the Swansea proposal will not cost the taxpayer a penny until it actually produces electricity, and, moreover, the bosses are very committed to sourcing components as locally as possible. The beneficial effect of companies producing components for tidal lagoons not just in Swansea but in Cardiff and Newport will be apparent to all.
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I could go on forever about all sorts of important renewable projects throughout Wales—wind, hydro and tidal—including the projects in Rheidol and Dinorwig, mentioned by my hon. Friend, which use the force of water alone. Let me simply say, however, that it would be very welcome if the Welsh Government gave full consent to those projects, and saw the whole process through from beginning to end.
I also support new clause 6, which would devolve air passenger duty to Wales. That was recommended in the first Silk report, which specifically stated that
“this issue should be considered in the context of the Davies review and any developments in Scotland and Northern Ireland.”
Given that APD has been devolved to both the Scottish Parliament and the Northern Ireland Assembly, it is surely right for Wales to control the tax as well.
In its evidence to the Silk Commission, the Federation of Small Businesses said:
“if air passenger duty were to be reduced then this could increase the flow of business and tourist visitors to Wales via Cardiff Airport, increasing economic activity and benefiting small businesses in Wales.”
Cardiff airport itself said:
“APD is an appropriate tax to be devolved and offers the Welsh Government a tool which can be directly applied to support objectives of improved connectivity”.
As we have heard, Cardiff airport has recently seen a significant growth in passenger numbers following the Welsh Government’s decision to nationalise it in 2013. The latest figures, as of July 2016, show that passenger numbers are 29% higher than they were last year. Even if the Welsh Government chose to reduce APD somewhat, they might recoup it through additional passenger numbers. That could become a virtuous circle.
I hope very much that the Government will change their mind, will think again about the Silk report and the comments that were made at the time, and will recognise that now is the time for APD to be properly and fully devolved to the Welsh Government.