European Union 'vanity projects' in Wales attacked by UK minister

A UK minister has criticised what he called "vanity projects" that were funded in Wales by money from the EU.

Welsh Secretary Simon Hart's comments came amid growing calls for clarity over how much money Wales will get from the new UK government Shared Prosperity Fund (SPF) and when funding announcements will be made.

SPF replaces European Union economic aid for deprived areas.

Mr Hart appeared before MPs on the Welsh Affairs Committee at Westminster.

The Conservative minister said the details would be published "relatively soon", although whether it was "this side of Christmas" was down to the UK Treasury.

Swansea West Labour MP Geraint Davies asked Mr Hart if money would shift from areas of deprivation to other areas who wanted funding but did not necessarily need it, under SPF and other new UK government funds.

The secretary of state said: "I think it is completely the opposite.

"I think we have seen a lot of investment over the years that has not found its way into those areas that you refer to.

"We could all sit here and list numerous examples of investments which have been made which even to the most level-headed of us leave us scratching our head and wondering how on earth these vast sums of money could be spent on what in some cases, let's face it, are no more than vanity projects and which don't actually create jobs, sustain jobs or address poverty.

"Those are the kind of things that drove people to vote in such great numbers in 2016 [to leave the EU] and why change is so crucial when it comes to funding allocation this time round."

Mr Hart was asked to name some "vanity projects". "How long have you got?" he asked.

He said he was "astonished" that £140,000 had been spent on a road sign into Carmarthen "which nobody can see".

Mr Hart criticised a cable car in Ebbw Vale "which broke down I don't know how many times and didn't create the jobs it was projected to."

The UK minister confirmed that Wales would receive about £370m "in the financial year we are talking about" as EU funds start to tail off.

Earlier this year, Wales' Economy Minister Vaughan Gething called the UK government's new approach to financial aid a "top down, throwback to pre-devolution economic policy" and a "deliberate assault on Welsh devolution".

"As things stand, Wales is set to have less say, over less money," he told the Senedd, in June.

In Thursday's committee hearing, Mr Hart also accused the Welsh government of not wanting to "come to the party" to set up a freeport in Wales, which he described as a "tragedy".

The UK government is planning eight freeports in England and its ministers have said they would like to open one in Wales.

The scheme allow goods to arrive in ports and be free of tax, unless they are moved elsewhere in the UK, meaning they can arrive and be sent abroad without charges being paid.

The UK had seven freeports between 1984 and 2012, including one in Cardiff.

Wales' First Minister Mark Drakeford has expressed concerns that freeports in England could displace economic activity from Wales.

Mr Hart told the Welsh Affairs Committee that jobs were being lost to English freeports and that there was "ideological resistance" behind the Welsh government's position.

"We reserve the right, but we would much rather not, to go down the route of a reserved freeport [without Welsh government support] and we will go down that route if we have to," he said.

"It will be up to [the UK government Minister for Intergovernmental Relations] Michael Gove's department to persuade the Welsh government to re-enter the ring."

On Thursday, a Welsh government spokesperson said it was "deeply disappointing that the UK government have launched freeports in England while failing to bring forward firm proposals for Wales".

"We have been clear that any Welsh freeport must receive the same financial support as the English sites and that joint decision making is in place to ensure smooth delivery across both levels of government.

"It must be delivered in line with our fair work and climate policies to protect people and our environment.

"The UK government is fully aware it is not possible for one government to deliver this in isolation, and it is unfair to leave Welsh businesses in the dark indefinitely.

"No formal offer has been presented to the Welsh government and we continue to urge the UK government to resolve this as a matter of urgency."