Government ‘dithering’ over Swansea Bay tidal lagoon, says Reeves

The government has been accused of ‘dithering’ over whether to approve the pioneering Swansea Bay Tidal Lagoon project as the House of Commons business and Welsh select committees unveil a joint probe into the project.

The Business, Energy and Industrial (BEIS) strategy and Welsh Affairs committees have announced plans to scrutinise the delays and obstacles in the decision-making process for the Swansea Bay Tidal Lagoon project.

The MPs have said they will examine why the government has failed to reach a decision on whether it will support the lagoon during the five years since it entered exploratory discussions about the project.

The government has yet to respond to a report, submitted by former energy minister Sir Charles Hendry in January last year, recommending that the project should be given the go ahead despite the high cost of electricity that it would generate.

Energy and climate change minister Claire Perry told the House of Commons during BEIS question time this week that she had recently met the Welsh government’s environment minister and officials to discuss the lagoon, but that no decision had yet made.

The Welsh government recently announced that it had put forward an offer of financial support for the lagoon, which it has been claimed will enable the project to match the £92.50 strike price agreed by the government for the Hinkley Point nuclear plant.

The inquiry will kick off next Wednesday when it will hear evidence from witnesses including Hendry.

Rachel Reeves, BEIS committee chair, said: “The Swansea Tidal Lagoon project has been a tale of indecision with the government having dithered over this for five years and still to reply to the Hendry Review, published over a year ago.

The government’s consistent failure to give a clear indication of whether they will provide taxpayer support has left investors in limbo. In this inquiry, we are keen to explore the decision-making process, to get clarity on the next steps for the Swansea Bay Tidal Lagoon, and how government can learn the lessons for future projects of this kind.

“The Committee on Climate Change say the UK will fall short in reaching the targets of its Carbon Budgets. Tough choices will need to be made. If the Government wants to go ahead with this project, then it needs to say so urgently. If not, then it must get on with it and let the public and investors know of its intentions.”

David Davies, chair of the Welsh Affairs Committee, said: “At this point, the Swansea Tidal Lagoon has that all too familiar feeling of an infrastructure project which appears to offer much, but there are still serious questions to be asked about the value for money of the project, and possible environmental impacts. We are looking forward to hearing from Tidal Lagoon Power and a range of interested parties – both those in favour and those sceptical of the lagoon – to better understand the true costs and benefits of project.

“Without backing from the Welsh and UK government the Tidal Lagoon will not progress. The UK government continue to delay deciding on whether to support this project, and while the Welsh government has offered funding to kick-start the project, this offer lacks detail. This session will help us understand if that backing would be worthwhile.”