Written evidence submitted by the North Wales Economic Ambition Board (FNP 47)
Introduction
The North Wales Economic Ambition Board (NWEAB) is a partnership of Business Organisations, Further and Higher Education institutions and Public Sector bodies in North Wales. The Board was established in recognition that the economic output of the region and the creation of new employment had not been sufficient in the past to deliver continued economic growth. The Board recognised that supporting the delivery of a number of major projects that have the potential to be transformational to the economy of the region, was crucial. Importantly the Board has also recognised the close economic ties with neighbouring regions in England and also works closely with the Cheshire and Warrington Local Enterprise Partnership.
The NWEAB is ambitious for the region and seeks to achieve the following outcomes
The NWEAB has established six work streams to deliver a range of projects that help achieve the outcomes. Detailed project definition plans for the work streams have been prepared as part of the NWEAB business planning process. The work streams are as follows:
Background
The Wylfa and Trawsfynydd sites have been major employment locations over the past 50 years. This in a part of North Wales where major employers have historically tended to be few in number. The significance of long term, well-paid and highly skilled jobs cannot be underestimated in these areas. The construction of the sites, generation of electricity and more recently the decommissioning of the facilities has provided exactly the type of employment the NWEAB seeks to support in North Wales.
The loss of employment at both locations, at Trawsfynydd due to the decommissioning work drawing to a close and at Wylfa due to the cessation if electricity generation, has the potential to be very damaging to the local economy. To lose two major employers of well paid high skill jobs is significant in itself, but coupled with the closure of other major employers such as Anglesey Aluminium and the reduction in public sector employment, this presents a significant issue. It is essential that new opportunities for high value skilled employment is created in these rural communities.
The challenges of creating employment in North West Wales have been recognised by the establishment of two Enterprise Zones in the area. The Snowdonia EZ was established in 2011 with the specific aim of recreating high value employment at two sites, the decommissioning power station site at Trawsfynydd and also at Llanbedr Airfield. The Anglesey EZ was specifically designated to further develop opportunities for renewable and for nuclear energy. For both Zones the sites of the former nuclear power stations are key assets along with the pool of skilled workers with nuclear experience.
There is also a strong advanced manufacturing sector in North East Wales. The developments at Wylfa Newydd and potential for development at Trawsfynydd gives rise to significant opportunities for North Wales in the manufacturing area. Welsh Government has identified Deeside as an Enterprise Zone for advanced manufacturing.
The NWEAB has expressed strong support for the proposed nuclear projects at Wylfa Newydd and for the potential to develop Small Nuclear Reactor projects at Trawsfynydd. The Board recognises that these projects have the potential to be transformational to the economy of the region as a whole. As a result the NWEAB supports the developments.
Wylfa Newydd
The NWEAB has actively engaged with Horizon Nuclear Power and with Hitachi, both directly and through partners Isle of Anglesey Council and the Welsh Government. The project is highly significant for the region, both in terms of construction employment and long-term jobs on site once the facility is completed. Among the projects the NWEAB has supported are included promoting opportunities for supply chain development,
The NWEAB also recognises that a project of the scale envisaged may also have negative impacts that need to be mitigated, especially in relation to labour supply, the impact on the tourism economy and the impact on Welsh language and culture. There are also long term environmental impacts that need to be managed effectively. Despite these potentially negative impacts, the NWEAB remains supportive of the project. The NWEAB recognises that these impacts will be broader and deeper in the communities close the site. For these reasons it is important that the immediate locality benefits from the potential economic spin off, and is adequately compensated for hosting the power station project.
The NWEAB would like to ensure that as much of the economic benefit of the project is retained as locally as possible to the site. This is an essential component of our supporting the scheme. It is vital that the UK Government work closely with Welsh Government and local agencies to ensure that the region benefits fully from the economic impact of the project. In particular we would like to ensure that local employment opportunities are maximised through the provision of adequate training and development places, that local SME businesses are supported to become part of the supply chain and that local communities that may be impacted are adequately supported through the project lifespan. There will be great opportunities for small local businesses outside the immediate technical area, for example, the large workforce at Wylfa will need be fed and transported to site on a daily basis. This is a great opportunity for small local companies to come together and tender for supplying such services. Work is being done with Welsh Government to develop appropriate support structures to support such developments and encourage small companies to work together. We would welcome specific funding to deliver these aims and ensure that the benefits of the project outweigh local long and short-term negative impacts.
Trawsfynydd
The potential for further development at the former Trawsfynydd site has been recognised by its designation as an Enterprise Zone. The site has many benefits that would support its potential for reuse for electricity generation. The site has land available in UK Government ownership for development and redevelopment, connectivity to the National Grid and a supply of cooling water. There is also local political support for the reuse of the site, which could provide exactly the long term well paid employment that the area needs.
There is also an opportunity for the wider North Wales economy by developing a supply chain for supporting the construction and manufacturing of Small Modular Reactors and their components in North Wales, building on the advanced manufacturing skills of companies already in North East Wales. Such a manufacturing supply chain, working with organisations in the North of England (such as Sheffield Forgemasters and the Nuclear Advanced Manufacturing Research Centre in Rotherham) could provide longer-term growth opportunities associated with the developing international interest in small modular reactors
The NWEAB supports the potential use of the site as a location for Small Modular Reactor generation. This technology maximises the input from UK Supply Chains to the project, benefiting the economy as a whole. The NWEAB fully endorses the site as a potential location for such a facility.
Nuclear Decommissioning
With two former reactor sites in the region the decommissioning work is important to retain suitable skills in the local workforce. Although we recognise that all sites are different, the core skills to support decommissioning are readily available and are transferable to other nuclear projects proposed in the region. It is important however the ensure that the work continues uninterrupted so that the skills and experience are retained in the workforce. We are heartened that revised draft plans indicated that the previously proposed (up to 5 years) where gaps would be left in the decommissioning work have been removed from the decommissioning timetable. This gap would have had a negative impact on employment in the area and would have resulted in valuable transferable skills being lost to the industry. Delays in the decommissioning at Trawsfynydd in particular, would also have delayed the availability of land to accommodate future projects, especially the proposal to use the site for SMR technology.
Cross-Border Relationships
The NWEAB works closely with cross-border agencies in North West England, in particular the Mersey Dee Alliance and the Cheshire and Warrington LEP. The partnership recognises the importance of the energy sector and a specific work stream to support growth in the sector has been commissioned. There are major energy generation projects proposed for North Wales. In Cheshire and Warrington there are major energy consumers and also significant clusters of support skills and technologies to support the development of the UK nuclear sector. The NWEAB works with partners to ensure that as much of the supply chain and technical expertise is UK based and regionally located as possible. Energy is one of the identified significant growth sectors for the Northern Powerhouse economic plan and opportunities at Wylfa and Wylfa Newydd and Trawsfynydd should be seen as part of a greater northern nuclear powerhouse.
The NWEAB supports a coordinated approach to ensure that as much of the supply chains and technical support for the proposed nuclear projects in North Wales is regionally and UK based. We recognise that there will be significant elements of the technologies from overseas, but believe strongly that the regional economy as a whole must benefit from these developments.
Summary
The NWEAB supports the proposed project at Wylfa Newydd and also the potential use of Trawsfynydd as a location for Small Modular Reactor technology and potential manufacturing opportunities. These projects are fundamental to the regions economy and have the potential to be transformational in a region where jobs and wage levels are generally much lower than the UK average. There is a pool of transferable skills in the economy that could be utilised in a cohesive work package comprising decommissioning and new build across both sites. We have established with partners good training and skills development projects to support the nuclear industry and are developing proposals to ensure the regions population and businesses are able to benefit from jobs and supply chain opportunities.
The NWEAB has established specific work streams on Skills and Employment; Supply Chains, Marketing North Wales as a location for suppliers to the transformational project; providing supporting infrastructure for the project and also cross-border cooperation so that technology and supply opportunities are maximised for the region.