Rhun ap Iorwerth AM has drawn attention to a new analysis of how Wales should receive money as a result of the UK Government building its “HS2” high-speed rail network.
The party says its figures, prepared by chief economic adviser Dr Eurfyl ap Gwilym, demonstrate that a “fair share” of HS2 funding for Wales would be worth around £1bn over a decade from the first phase of the project.
If the budget for Network Rail was devolved to Wales, as recommended by the Silk Commission, Dr ap Gwilym calculates that this figure could increase to £1.04bn or £1.2bn, depending on whether HS2 is treated as a UK or England-only project.
The second phase of the project would be expected to deliver a further, similar sum of money for Wales after 2027.
This week (Wednesday 14th May), Plaid Cymru will hold a debate at the Assembly calling for the Welsh Government to press for a full Barnett consequential from HS2 expenditure.
Speaking at the party’s weekly Press Conference, Shadow Economy Minister Rhun ap Iorwerth said:
“Plaid Cymru is stepping up its campaign for fairness for Wales over HS2. Our MPs in Westminster have raised the issue consistently, and our Euro MP Jill Evans has pointed out that there are key European transport corridors in Wales that are in need of investment.
“An extra £1bn over a decade would represent enough money to transform the Welsh rail network and electrify all major arteries in our country. This is without going into the money from phase 2 of the project. It would also give us the investment needed to ensure that Wales would be properly connected to HS2 itself.
“It is essential that Wales does not miss this opportunity. We want the Welsh Government and the other opposition parties to back this campaign. Securing a fair share of HS2 money could represent a turning point for the Welsh economy and for our future prospects.”
Dr Eurfyl ap Gwilym commented:
“The analysis I have written shows several different scenarios of how HS2 expenditure could affect Wales. The UK Government should classify the project as England-only expenditure, as was the case with Crossrail in London. A glance at the map demonstrates that both phases of HS2 are entirely within England. Furthermore, I have set out that devolution of rail infrastructure spending would increase the amount of money we would receive, due to the way the Barnett formula works.
“Given the current confusion and disagreement between the UK and Welsh governments over the funding for the electrification of the Valley lines it is even more important that the Welsh government marshals its arguments well in time and ensures that Wales gets a fair deal.”
