First Minster defends ‘raw deal’ rail link designation

Emily Price 

The First Minister has defended the UK Government's designation of the Oxford - Cambridge rail line as an "England and Wales" project, but added that Wales is not fairly funded when it comes to rail.

Baroness Eluned Morgan told MSs in the Senedd on Tuesday (June 3) that those confused about the classification of the English line need "a little lesson on how the Welsh devolution settlement works".

The multi-billion pound East West Rail scheme, linking Oxford, Milton Keynes, Bedford and Cambridge will not extend into Wales.

But as the project has been funded via the UK Government's rail network enhancements pipeline it has been classed an "England and Wales" scheme.

The UK Government says the pipeline has included funding for Wales including for the redevelopment of Cardiff Central Station, improved level crossings in north Wales and support for the upgraded South Wales Relief Lines.

The Liberal Democrats and Plaid Cymru have branded the Oxford rail project's designation as "HS2 all over again".

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'Raw deal'

Under the previous Conservative government in Westminster, the £100 billion high-speed rail link was classified as an "England and Wales" scheme despite none of the track crossing the Welsh border.

The classification meant no consequential cash was released to Wales by the Treasury using the barnett formula.

Speaking in the Chamber today, Plaid Cymru leader Rhun ap Iorwerth said the First Minister was allowing Wales to be given "a raw deal by her own party".

Responding, Baroness Morgan said her government was continuing to make the case for Wales to receive its fair share of rail funding.

She added that the Oxford to Cambridge railway line was part of the UK Government's rail network enhancements pipeline and that the HS2 project was an exception to that.

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'Different'

Mr ap Iorwerth accused the First Minister of "standing by" the Treasury's designation of the English rail link as an England and Wales scheme, adding that the move would see Wales miss out on hundreds of millions of pounds.

Baroness Morgan responded: "When it comes to the Oxford and Cambridge line, let's be clear, you need to understand how the system works.

"It is very different from HS2, and if you haven't understood that, you do need to go back and work out how the system works.

"This system is not devolved. In Scotland it is devolved. I think it's really important, and we will continue to make the case for additional funding when it comes to rail.

"I am hopeful. I've made the case very, very clearly that, when it comes to rail, we have been short-changed, and I do hope that we will get some movement on that in the next week from the spending review."

Row

The rail funding row was sparked when Liberal Democrat MP David Chadwick uncovered the Oxford to Cambridge scheme's designation following a written question to the UK secretary of state for transport.

The Welsh Lib Dems say the England and Wales classification could deprive Wales of an additional £360 million in consequential rail funding for its own network.

Welsh Transport Secretary Ken Skates says the UK Government "acknowledges that it shortchanges Wales" and pointed to an "ambitious pipeline of improvements" for Welsh rail.

The Welsh Liberal Democrat leader Jane Dodds branded the defence as "desperate" adding that the UK Government could immediately reclassify HS2, Northern Powerhouse Rail, and East-West Rail as "England-only" projects and free up funds for Wales.

She also highlighted that the government could bring forward legislation to devolve rail powers fully to the Welsh Government "if it had the political will to do so".

Ms Dodds said: "The defence we have seen from the Welsh Labour Government on this issue is pathetic. Meanwhile, it doesn't even look like the UK Government can be bothered to issue a response to address the outrage.

"Until the general election, Labour agreed with us that the situation over Welsh rail funding was a massive scandal, now that they are in power, they seem intent on keeping the same rotten system in place.

"It isn't good enough. If they really wanted to, they could change this system tomorrow. They could redesignate the projects and they could fully devolve rail to Wales. It's a political choice not to do so.

"The Welsh Liberal Democrats will continue to fight for Wales to have its fair share of infrastructure investment so we can not only improve public transport for people who rely on it, but also drive economic growth and investment in Wales."