Energy and Climate Change CommitteeWritten evidence submitted by Wales TUC

The Wales TUC is a constituent part of the British Trades Union Congress. The Wales TUC has devolved responsibility for matters specific to Wales. The Wales TUC represents all TUC affiliated unions with members in Wales.

We thank the Committee for allowing a slight extension to the submission deadline in order to allow this Wales TUC evidence to be fully agreed through our democratic structure.

Introduction

1. The Wales TUC supports a balanced energy mix of low carbon, secure and affordable energy. This will include investment in all renewables, in new nuclear capacity and in carbon capture/storage technology for coal and gas installations. The tidal power of the Severn estuary, if harnessed to its full potential, would make a major long-term contribution to the UK’s renewable energy strategy.

2. Large scale renewable energy projects are essential to create the stimulus required to take us out of economic crisis, to deliver on climate change commitments and to create green jobs in a modern economy with sustainable economic growth. Unless that understanding provides the context for consideration of large schemes, the focus will always be on why we can’t act decisively rather than why we must.

3. It is important that any scheme which seeks to harness the renewable energy potential of the Severn estuary, sets out in detail how it will ensure that the investment has maximum impact in terms of creating and securing for the UK high quality employment; building the skills base and securing procurement or supply chain opportunities. This must be a fundamental and priority concern in the consideration of any scheme.

4. It is important that the employment, skills, economic and environmental impacts of any scheme to harness the potential renewable energy opportunities of the Severn—are all properly evidenced. Consideration of a scheme must not be based on claims which, whether negative or positive, are not proven or which refer to unrelated evidence from previous schemes. All evidence, in favour or against should be robust and publically available at the earliest opportunity to allow stakeholders and the wider community to independently assess the potential benefits and costs of any scheme.

5. There have been suggestions in the media that the current proposal may reduce the number jobs in Bristol port. This has naturally caused concern for port employees and for their colleague trade unionists throughout the UK. Hafren have given a public commitment that the proposal will not have a negative impact on existing employment in the Port. It is important that Hafren take the opportunity to set out in detail how they believe the barrage can be delivered in a way that does not impact negatively on the existing employment in the Port in order that the concerns raised in the media may be fully addressed.

6. It is important that robust consultation processes are put in place in both Wales and South West England at every stage of the project in order for all views to be fully taken into account.

7. It is important that the UK government provides high level leadership and co-ordination on any scheme of this scale and that the Welsh Government must be a full partner in the co-ordination of schemes which impact directly on Wales.

8. It is important that the potential for other schemes coming forward should not be allowed to preclude the barrage proposal going forward. It is equally important that support for this barrage proposal should not preclude proper consideration of other potential schemes to harness the renewable energy potential of the Severn.

Wales TUC Perspective of the Economic Benefits

9. The proposal for the Severn Barrage is for the development of a significant source of green energy without investing significant public funds.

10. The proposal provides for a social legacy by creating substantial new, permanent jobs through industrial regeneration and the creation of new leisure industries around the barrage.

11. The scale of the Severn Barrage proposal is unlike anything previously seen in Wales and the South West of England. It is transformational in scope and impact for our economy and would make a huge contribution to meeting the statutory renewables commitment.

12. The Barrage will inject an investment of around £25 billion into the economy and help to revitalise parts of Britain that remained economically depressed. According to the UK Contractors Group, UKCG, for every £1 spent on construction, output generates a total of £2.84 in total economic activity.

13. The electricity produced will offset currently imported energy sources and improve UK balance of trade, enabling the UK to become significantly more self-sufficient in energy.

14. Hafren have given the public commitment that they will work on both sides of the Severn with trades unions, local colleges, training providers and welfare to work services to ensure the right skill mix to support the barrage.

15. The development of a new ultra-large container ship terminal at Port Talbot would provide business opportunities and long term employment prospects in South Wales—one of the most economically deprived areas of the UK.

16. ONS figures for in the area on both sides of the Severn most directly impacted by the Barrage show there are currently almost 40,000 job seekers on benefits out of an economically active population of 770,000. It is precisely in this area that employment could be created in new leisure, tourism and fisheries industries. Hafren has also stated that it intends to co-operate with local colleges, and consider bespoke centres, in order to provide vocational training which will enable residents in the area to work in the newly created tidal-range technology export industry. The Barrage will contribute to the creation of large scale employment in South Wales and the West Country, and will contribute significantly to the regeneration of the region around the Severn.

17. The scheme proposers estimate that it generates 20,000 jobs during construction, in managerial and administration; civil, electrical and mechanical engineering; environment; project management; skilled & semi-skilled trades; and labour. The indirect effects of a £25 billion stimulus can be 50,000 jobs in total.

18. Post-barrage construction, employment can be maintained by the strengthening of the manufacturing base at, for example, Port Talbot and Baglan. There will be real potential to work with Welsh government in a targeted way to make sure economic benefit is delivered long term.

19. Supply chain jobs would be potentially significant, such as those involved in aggregates and transport which would directly benefit from the scheme. It could also help secure the long-term expansion of the Tata steel facility in Port Talbot where almost 600 job losses were recently announced.

20. There are other job creation opportunities more directly associated with the on-going operation and maintenance of the barrage.

21. The Hafren proposal entails the creation of a heavy industry and renewable energy technology hub in Port Talbot and commits to over 80% of the investment being spent in the UK—sourcing most of the components throughout the UK and assembling these locally. This use of local industry is in sharp contrast with other renewable energy industries where the technology and expertise are predominantly sourced from outside the UK.

22. The size of the proposed caissons and marine turbines make them very difficult to transport long distances and therefore the proposal requires them to be assembled and shipped through Port Talbot—giving a significant manufacturing opportunity.

23. Since a huge volume of materials for the construction of the Barrage will be brought in from the sea, all the South Wales/South West England ports will be able to benefit accordingly. Because of its location and because it is a natural deep sea harbour, Port Talbot docks are likely to be one of the main beneficiaries of redevelopment—allowing greater and long term economic use post barrage construction.

24. As the largest tidal Barrage in the world, the Severn Barrage will be a tourist attraction of greater potential than the smaller La Rance Barrage in France and would facilitate leisure and tourist use of the Severn above the barrage.

25. Hafren have stated that their proposal would not have the severe siltation/dredging issues of old high-head barrage upon which much of the criticism regarding dredging is based. A barrage that generates on both the ebb and the flow would more closely match the existing tides, tidal range and sediment regime and therefore minimise excessive siltation.

26. The “sea lake” on the Bridge side would create a much more benign environment for shipping, boating and leisure activity than the Severn’s extremely rapid tide which is hostile to such activity. This offers new opportunities for Bristol Port to supplement its existing shipping with additional traffic and therefore jobs.

27. Hafren believe that clearer waters upstream of the Barrage mean more photosynthesis and more oxygen, and hence more sea plant life and nutrients. They use the example of La Rance, to show that the fishing industry could therefore be dramatically expanded.

28. Hafren have made the following commitments in respect of existing shipping—locks will enable ships to continue to pass up the river as they do today with no change in water level, no fee, no change in the size of ship and current delays waiting for the tide not increased. The commitment is that relevant ports will be able to continue with their business as in the past and therefore the barrage does not present a threat to existing jobs at Bristol port.

Conclusion

29. The Wales TUC believes that the environmental and employment concerns related to previous barrage proposal have been addressed in this new proposal. We will leave detailed consideration of environmental factors to those best placed to provide evidence in that area.

30. It is important for us that the Hafren proposal explicitly does not threaten existing shipping (and therefore existing jobs) at Bristol port.

31. Of great significance for the Wales TUC is the potential for transformational economic impact in Wales both from the project itself and from longer term economic activity, supply chain growth and infrastructure capacity.

32. Hafren have indicated their willingness to work in partnership with the Wales TUC and unions to ensure union recognition and collectively negotiated terms apply throughout the project.

33. Having taken account of all of the above we therefore believe that the proposal should be supported.

December 2012