§ Mr. Rhodri MorganTo ask the Secretary of State for Wales if he will make a statement on the winding-up of the Cardiff Bay Development Corporation, with particular 731W reference to the main successor bodies and the Corporation's functions, assets and liabilities to be passed on. [79018]
§ Mr. Michael[holding answer 29 March 1999]I have given careful consideration to the views of the CBDC Board, the Cardiff and Vale authorities, the Welsh Development Agency and other interested parties and I am able to confirm, as previously announced, that the Corporation shall wind up its activities on 31 March 2000 with dissolution taking place on 30 June 2000.
I regard it as essential that the momentum of development within Cardiff Bay is maintained. I have therefore decided that, from March 2000, as with other local authorities in the rest of Wales, Cardiff County Council and the Vale of Glamorgan authority should regain responsibility for the economic, social and environmental regeneration of the whole of their areas. As elsewhere, they will be able to rely on the services available from the WDA and other economic bodies on the basis of partnership. I have also discussed with those authorities the implementation of projects planned by CBDC which may not be completed within the lifetime of the Corporation, including the Penarth Link, Hamadryad Park, a significant environmental upgrade in the Bay area and an access road to the Cardiff Yacht Club. I have also considered the provision necessary for the new responsibilities and liabilities which each authority will inherit: and transitional support for certain local services in South Cardiff. For these purposes, I shall be making available over a period of 3–5 years a total of up to £13 million to Cardiff County Council and up to £8.2 million to the Vale of Glamorgan. Copies of the understandings reached with the local authorities will be placed in the Library of the House.
The Corporation's non-development assets and liabilities will be transferred to Cardiff County Council and to the Vale of Glamorgan Council respectively. Development assets and liabilities, including management of the proposed Bute Avenue PFI, will be transferred to the Welsh Development Agency. I shall invite the parties to discuss together and agree with me the timing and terms on which these transfers will take place. Land currently held by CBDC at the Ferry Road Peninsula will be transferred to Cardiff County Council, subject to terms and conditions to be agreed between the Department and the Council and taking into account the relevant provisions of the Development Agreement between CBDC and Associated British Ports.
Future sponsorship of the Techniquest organisation will transfer to my Department. Responsibility for the operation and maintenance of the Gwent Levels Bird Reserve will pass to the Countryside Council for Wales.
I attach particular importance to the efficient and safe operation and maintenance of the Barrage and to the exploitation of the impounded lake for the public benefit. These responsibilities, including groundwater monitoring and control and management of water quality in the Bay, 732W are also of direct and significant interest to the local communities in Cardiff and the Vale. As foreshadowed in the Cardiff Bay Barrage Act 1993, I propose to establish a dedicated body with responsibility for the operation, maintenance, and management of the Barrage, the outer harbour and the inland Bay. I shall enter immediate discussions with the Corporation regarding the purpose, functions and funding of such a body and will also fully explore the opportunities for partnership between the public and private sectors. I shall consult with local authorities and other interests before final decisions are taken.
On the basis of a thorough review of Barrage costs, I have decided to increase the financial cap for the project from £191 million to £197 million, subject to settlement of any unresolved and future claims. This is the best available estimate of the final outturn cost, subject to settlement of any unresolved and future contract claims. The increase is mainly attributable to the increased cost of the Bird Reserve on the Gwent Levels and additional costs arising from new legislation. A Budget Review report on the Barrage will also be available shortly and I shall place a copy in the Library of the House.
I am also pleased to announce a public consultation on the Corporation's proposal to install a dewatering network in the area of South Cardiff most at risk from rising groundwater. Copies of the Corporation's submission, including a report by Professor Stoner, can be obtained from Mr. D. Lowe at CBDC, Baltic House, Mount Stuart Square, Cardiff CF1 8DH. Comments should be sent by Friday 30 April to Mr. G. A. Fagan, Regional Development Division, Welsh Office, Cathays Park, Cardiff CF1 3NQ.
Finally, I should like to place on record my personal admiration for the great achievements of the Chairman, Board and staff of the Corporation, in removing the legacy of dereliction in South Cardiff, transforming it into an area internationally acclaimed as a major development success and in the first rank of investment locations. I am confident that the successor arrangements I have announced today will secure the continued successful regeneration of Cardiff Bay.
Cardiff Bay Barrage
A breakdown of the costs, including a comparison with the estimates that formed the basis for the previous announcement on 24 April 1995, are in the table.
£ million Estimated cost 1995 Revised estimate 1999 Change Barrage Structure 134.0 137.6 +3.6 Groundwater 11.0 11.2 +0.2 Birds Reserve 5.7 9.5 +3.8 Environment 6.7 6.2 -0.5 Legal Agreements 7.5 6.4 -1.1 Drainage 10.6 9.4 -1.2 Pre-1993 Expenditure 15.4 15.4 0 Additional Works 0 0.7 +0.7 Total 190.9 196.4 +5.5