HC Deb 08 November 1995 vol 265 cc923-4W
Mr. Sweeney

To ask the Secretary of State for Wales what is his Department's involvement in proposals for a freight terminal in south Wales; and if he will make a statement. [42368]

Mr. Hague

The WDA and Welsh Office have received several applications for contributions towards the capital costs of developing freight terminals. In assessing these applications, the detailed requirements of the various schemes of assistance must be met, together with the overriding one of value for money. It is for the applicants to show that their proposals satisfy all these requirements. The effect on existing rail freight businesses is another important consideration.

The provision of such a facility and its nature are matters for the commercial and technical judgment of investors. There is no need for Welsh Office permission to build a terminal at any location subject to the usual planning considerations, but I have today directed South Glamorgan county council to prepare an environmental statement as part of its planning application for a proposed rail freight terminal at Wentloog, Cardiff.

Applications for ERDF assistance under the objective 2 programme for industrial south Wales have been made by Gwent county council, in respect of a development at Magor, and by South Glamorgan county council, in relation to a project at Wentloog. Both applications were submitted on 30 June 1995 and, inquiries have been completed, these will be considered by the appropriate technical group, a wide-ranging partnership comprising central and local government, the European Commission, agencies and other bodies. Decisions are expected in early 1996.

Applications in respect of the same sites have been submitted for freight facilities grant. This is an environmental grant designed to encourage the transport of freight by rail rather than road.

The Magor application was submitted on 21 June 1995 and, following a meeting with officials on 2 August, further material was received on 10 October. That material is being considered urgently but it is too early to say whether it will be sufficient to enable a decision on grant to be made.

An application for Wentloog was submitted on 20 October 1995 but further essential material is awaited from the applicants.

With regard to the applications made to the Welsh Development Agency, I have asked the agency to consider these proposals on their merits and to offer such support as it may determine is both justified and necessary. The agency will therefore be contacting the relevant bodies concerned to take forward discussion in this regard.