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Welsh Office

Answer

Mr. Rhodri Morgan: To ask the Secretary of State for Wales, pursuant to his answer of 4 July, Official Report column 294, who provided the legal opinion; who conducted the economic analysis on the barrage; and if he will place copies of the reports in the Library. [7784] Mr. Ron Davies: [holding answer 10 July 1997]: My officials have on my behalf undertaken a review of the barrage project. I have also considered fresh legal advice, particularly on the status of the project in relation to European Directives. Their advice to me included an assessment of potential financial costs. Committed expenditure on the scheme is around £140 million. Failure to proceed, involving clearance of the Bay and contractual penalties, could add over £30 million to this. none of these amounts would be recoverable and would represent fruitless expenditure if the project were abandoned. I also gave weight to the legitimate expectations of those who have invested in the Bay--and are still doing so--in the belief that the barrage was a key priority in the regeneration of South Cardiff and would be completed, creating the waterfront that has been central to the Bay's investment promotion strategy. Setting aside estimates of future growth, ventures recently announced or at an advanced stage of discussion alone involve investment of some £200 million, bringing major development and employment benefits to the area. The Commission have accepted that the compensation measures proposed would be adequate to meet the requirements of Article 6(4) of the Habitats Directive. For these reasons, I have felt bound to conclude that the only proper course open to me was not to intervene and to allow the project to proceed.

Secondary information

Type

Written question

Reference

7784; 297 c629-30W

Session

1997-98

Subjects

Legal aid scheme EU law Cardiff Bay barrage Economic analysis