Job cuts potential outcome of Swansea lagoon delays

The Welsh Conservatives have thrown their weight behind Swansea Bay’s tidal power project amid reports that its backer is braced for job cuts unless the government decides on a go ahead for the pioneering scheme.

Russell George, shadow economy secretary in the Welsh Assembly, called for a decision on the tidal lagoon project to be made “sooner rather than later”.

Tidal Lagoon Power, which is backing the £1.3 billion Swansea project, has said that it would produce the equivalent electricity used by 155,000 households per annum and create more than 2,000 construction jobs.

The government is currently negotiating with the Labour-run Welsh Assembly government following the latter’s offer to help finance the project.

Richard Graham, the chair of the all-party parliamentary group on marine and tidal lagoon energy, claimed last month that this cash injection would slash the cost of electricity generated by the project.

However Welsh secretary of state Alan Cairns told parliament following Graham’s comments the scheme continues to face “obvious” funding challenges and the government “must ensure that large-scale projects provide value for money for taxpayers and consumers.”

A spokesman for Tidal Lagoon Power said no job cuts were planned but that they would be “one consequence” of further delay to the project, which has been in limbo since it was recommended for approval in January 2017’s Hendry review.

George said: “The tidal lagoon project could be the inspiration for vast economic regeneration in South West Wales as well as ensuring Wales and the UK becomes pioneers in the delivery of this technology.

“The scheme also holds great promise to be the most reliable and resilient source of green energy available, and the Welsh Conservatives have been supportive of this ambitious scheme since day one.

“Last year’s Hendry review was emphatic and we remain as convinced as ever that this transformational project should be given the go ahead. Our green agenda is winning plaudits across the globe and this project will only serve to strengthen those credentials in the bold new world post-Brexit.”

The union Prospect, which represents engineers and scientists working in the energy industry, alongside other sectors, has urged the UK government to take a direct stake in the Swansea tidal lagoon and other major energy projects.

The union has outlined its proposals in a letter to Ken Skates AM, cabinet secretary for economy and infrastructure in the devolved government, chancellor of the exchequer Philip Hammond and Business, Energy and Industrial Strategy secretary of state Greg Clark.

It says that by taking a direct stake in projects like the tidal bay lagoon and new nuclear plants, the government could cut their costs and help speed up delivery.

Sue Ferns, Prospect’s senior deputy general secretary, warned that delays to delivery of low carbon generation risked jeopardising the UK’s energy security and ability to meet its climate change targets.

She said: “If government fails to act there could be serious consequences as soon as the mid-2020s. In a perfect storm it is conceivable that there could be energy shortages and missed carbon targets, if the failure to invest leads to a lack of resilience in the system.

“The Treasury has a direct role in ending delays around major infrastructure and in helping to kickstart new projects, such as the tidal lagoon and new build nuclear, to guarantee low carbon energy supply. Otherwise the UK will miss its climate targets and be reliant on imported gas and electricity from Europe, exposing us to supply risks post-Brexit.”