Will train station and business park project backed by Vaughan Gething get public money?

Martin Shipton

Transport Secretary Ken Skates has hinted that a controversial business park and mainline station proposal backed by Vaughan Gething could be partially funded with public money.

The scheme entails building a new station called Cardiff Parkway at St Mellons on the eastern outskirts of Cardiff, together with an adjacent business park.

Nigel Roberts, the businessman behind the venture, claims that the station and the 900,000 sq ft business park "could support up to 6,000 jobs", although opponents are sceptical, pointing out that Cardiff already has an over-supply of office space and that Great Western Railways, which runs services between London Paddington and south Wales, has no interest in stopping trains at another station five minutes short of Cardiff Central.

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Arguments

Former First Minister Vaughan Gething has been a fervent supporter of the project, pressing ministers to make a decision on the planning application while it was pending. It is understood that there were behind-the-scenes arguments within the Welsh Government about whether the project should go ahead.

Earlier this month Mr Roberts posted a statement on social media channels that said: “Since our updates on Cardiff Parkway earlier this year we have been working with a range of stakeholders to make progress with the project, and wanted to provide you with further information about what has been happening.

“As you will likely be aware, the Welsh Government granted final planning permission for Cardiff Parkway at the end of January, and this was a significant step forward for the project. Following the granting of planning permission, there was an initial period when the decision by the Welsh Government could have been subject to judicial review. We are pleased that this period has now passed, and the project now has greater certainty.

“However, there are a number of matters that still need to be resolved. The planning permission included a range of conditions that are being assessed and we are continuing to liaise with local, regional and national stakeholders to consider their aspirations for the project.

"Our ambition is to ensure that the scheme delivers on its commitments, including to improve local transport, deliver economic opportunities, and preserve, protect and enhance the local environment. To ensure that happens there is a lot of upfront work and planning to be done.

“We appreciate that the Cardiff Parkway project has taken far longer to reach this point than everyone had hoped. It is a large and complex project, with the power to transform. As such, there are many stakeholders to engage, with a wide range of views to consider as we aim to realise the vision. Extensive work is currently taking place to ensure that happens and we will provide further updates when there is new information.”

Initially, Mr Roberts said that the project would require no public funding, but more recently there have been suggestions that it might need public funds to proceed.

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Delivery options

We asked the Welsh Government whether any public money would be provided.

The Cabinet Secretary for Transport and North Wales Ken Skates said: “Cardiff Parkway Station is a private developer-led scheme. The granting of planning consent earlier this year has provided a foundation for implementation, and we are now working with the developer to assess the scope and delivery options available.

"Once this work has been completed, we will have a better understanding of what is required to deliver this new station.

“By the time Cardiff Parkway is built it is likely Great British Railways, not GWR, will be operating services to and from London, under the UK Government’s plans for nationalising rail services.”

'Open'

Lyn Eynon, planning lead for Cardiff Civic Society, which opposed the granting of planning permission for the proposal, said: “It’s an interesting response from Ken Skates, although one that leaves everything open.

"The phrase ‘private developer-led scheme’ need not mean that the developer will carry the full cost. What are the delivery options that are being discussed, and when will that step be completed and the results made public?

“As the current GWR contract expires in 2028, then if the UK Government follows through on its intention to take passenger services back into public ownership under GBR at that time, it is indeed unlikely that Cardiff Parkway Station will be built before then. However, the decisions on the form and size of the station will need to be taken well before it is built. The transition to GBR adds further uncertainty over whether the future operator will wish to run services directly to and from London from that station.

“Yes, Nigel Roberts did originally say that the project would be wholly funded by the private sector.

“Last December, Jo Stevens talked of ‘a railway station that will be privately funded with no public sector money’ in an article by Sion Barry of WalesOnline. Barry commented: 'If consented, Cardiff Parkway Developments would need to revisit its business and financial plans in light of planning delays. The initial pre-Covid indicative price tag for a four-platform mainline train station was put at £120m. With inflationary pressures, that would have gone up significantly.'

“While always positioned as a privately funded station, being operated by Transport for Wales (TfW), alongside income generated from train companies via a track access charge, would underpin a private sector funding model. TfW, which is wholly owned by the Welsh Government, has worked closely with the project for several years on this approach.

“While economic development is devolved in Wales, there are a number of funding support mechanisms administered via the UK Government, which Welsh firms, universities, and organisations can access, including through research councils, Innovate UK and export finance. There is also the potential for deployment of hundreds of billions from pension funds to back the scaling-up of private businesses and infrastructure projects, as well as a new UK sovereign wealth fund.”

Mr Eynon said: “My reading of this, on the assumption that Sion Barry is communicating with Nigel Roberts, has been that while the official stance by both WG and CPDL (Cardiff Parkways Development Ltd) remains that this is a private development, the ground is being prepared for an injection of public money. Ken Skates appears not to have ruled that out.”