Welsh economy and health service to benefit from £1bn Welsh Government investment
7 May 2014 03:45 PM
Dualling of the last
section of the A465 and a new specialist cancer care centre at Velindre
hospital are set to be delivered under investment plans unveiled by Finance
Minister Jane Hutt
A £1bn investment into
major infrastructure projects between 2017-18 and 2021-22, which has the
potential to create 6,500 jobs and provide a sustainable boost to the Welsh
economy, will be undertaken using new innovative investment models.
Following the UK
Government’s programme of cuts to public spending, which has seen the
Welsh Budget cut by 10% since 2010, Welsh Ministers have already developed new
and innovative methods of financing infrastructure investments, including the
£340 million Local Government Borrowing Initiative and the £125
million Housing Finance Grant.
Addressing the National Assembly
for Wales, the Minister gave details of how the Welsh Government intends to
supplement its capital budget with direct borrowing and revenue-funded
innovative financial instruments to invest in a number of major priority
schemes, as set out in the Wales Infrastructure Investment Plan
(WIIP).
The new investments
include:
- A465 Sections 5&6 (Dowlais
Top to A470 Junction and A465 / A470 Junction to Hirwaun) - £300m: This
investment means that the whole of the A465 is expected to be dualled by
2020.
- A new Specialist Cancer Care
Centre, enhancing the capacity of the Velindre Trust - £210m: this will
enable the construction of a brand new hospital to provide cancer patients with
access to high quality services comparable with the best in the
world.
The Minister also confirmed the
Welsh Government would make full use of the £500m of direct borrowing
that Ministers will, in the future, be able to undertake as a result of the
Wales Bill. The results of a consultation on the major enhancement of the M4
around Newport are currently being considered and a decision is expected this
summer. Once a decision has been made the Minister said "it would
feature as an early priority for deployment of our direct borrowing
powers."
Finance Minister, Jane Hutt
said:
"Investing in our
infrastructure to create jobs and boost economic growth is my number one
priority.
"The £1billion
infrastructure investment that I have announced today represents a vital
injection of investment at a time when the economy and our health services most
need it. It reflects this Welsh Government’s desire to use the full range
of its resources to boost investment. We are providing a reasoned,
affordable and desirable alternative to the austerity measures that would choke
off investment had we not acted decisively.
"In today’s
challenging economic environment, compounded by profound social change, finding
new sources of funding is harder than ever. But this additional expenditure is
an investment in our economy and in our people. In short, it is an investment
in the future of Wales."
Since its publication, the WIIP
has provided the strategic basis for additional infrastructure investment
totalling around £2 billion – including investments in Next
Generation Broadband, 21st Century Schools, and Flood and Coastal Erosion Risk
Management, as well as investments providing financial support for SMEs,
housing, and domestic energy efficiency.
This new £1bn investment
in priority infrastructure projects will boost jobs and growth, provide
training opportunities and improve facilities for delivering vital public
services. It has the potential to increase economic output, fostering the
creation of 6,500 extra jobs. It means that – over the ten year period
between 2012 and 2022 – the Welsh Government will have boosted funding
for infrastructure by around 9% each year.
Links
A465 (Heads of the Valleys Road) - Dualling
ProjectWales
Infrastructure Investment Plan