THE WELSH AFFAIRS COMMITTEE has today launched (Mar 27) a new inquiry examining the defence industry in Wales, looking specifically at defence manufacturing and cyber security.

From Airbus to Kent Periscopes, Raytheon to Qioptiq, there are over 160 companies supporting the defence sector that are based in Wales. Wales’ defence sector is further enhanced by the Ministry of Defence’s (MOD) Defence and Electronics Components Agency (DECA), based in North Wales, which has a £0.5 billion contract with the US Department for Defense.

However, there are concerns that a decrease in investment from the MOD will erode the prominence of Wales’ defence sector. In recent years, the number of jobs and small and medium sized enterprises (SMEs) in the sector has declined and MOD spending in Wales has fallen by £300 million since 2018. The Committee is keen to examine trends in defence spending and how SMEs can benefit from available opportunities.

Over the course of the inquiry, MPs will look at how important the sector is to the Welsh economy, investigate the opportunities for growth and examine the role of the UK Government in further promoting the defence sector in Wales.

Welsh Affairs Committee Chairman, Stephen Crabb, said:

“From maintaining fighter jets to hosting one of the most advanced aircraft surveillance and intelligence systems in existence, in Wales we have a ground-breaking defence sector that is routinely punching above its weight.

“However, MOD investment in Wales has decreased, as have the numbers of jobs and SMEs in the Welsh defence sector. Over the course of our inquiry, we will be considering the future opportunities and challenges to ensure defence industries in Wales – from defence manufacturing to cyber security – thrive.

“The defence sector is a major employer and helps support local economies across our nation and it is in all our best interests to support Wales’ defence prowess.”

The Committee is inviting written submissions by Friday 5 May. These should focus on, but not be limited to:

• What are the reasons underlying the trends in MoD spending in Wales since 2019?
• What is the MoD’s understanding of how funding flows from prime contractors to small and medium sized defence sector businesses in Wales?
• What is the relationship between Wales-based prime contractors, Welsh academic and research bodies, and the development of new defence technologies?
• Can Wales play a role in enhancing the UK’s defence industrial capacity?
• Do skills and knowledge exist within Wales’ workforce to support the growth of the Welsh defence sector?
• How might the reorganisation of Wales’ defence estate affect employment in the defence sector in Wales?
• Will the 10% social value weighting applied to MoD procurement support the Levelling Up agenda in Wales?

ECONOMY MINISTE, Vaughan Gething, was in Port Talbot today to congratulate the Celtic Freeport consortium on their successful bid to be Wales’ first freeport, which is set to deliver tens of thousands of new, high-quality jobs in south west Wales.

Last week, the Welsh and UK governments jointly announced the Celtic Freeport in Milford Haven and Port Talbot, and Anglesey Freeport on Ynys Mon, have been chosen as Wales’ first freeports.

The two freeports aim to collectively create around 20,000 jobs in the green industries of the future by 2030 and attract up to £4.9 billion in public and private investments.

The Celtic Freeport will be based around the port of Port Talbot in Neath Port Talbot, and the port of Milford Haven in Pembrokeshire.

The freeport plans focus on low carbon technologies, such as floating offshore wind (FLOW), hydrogen, carbon capture, utilisation, and storage (CCUS) and biofuels to support the accelerated reduction of carbon emissions.

The freeport aims to attract significant inward investment, including £3.5 billion in the hydrogen industry as well as the creation of 16,000 jobs, generating £900 million in Gross Value Added (GVA) by 2030, and £13 billion by 2050.

The Minister visited the port of Port Talbot earlier today, which will become one of the focal points of the new Freeport – which is expected to be operational later this year.

Speaking during a visit to Port Talbot, Economy Minister, Vaughan Gething said: “It was great to be in Port Talbot today to congratulate the Celtic Freeport team on their successful bid.

“From off-shore energy to advanced manufacturing, the Celtic Freeport will help create tens of thousands of new, high quality jobs in the green industries of the future. it will support our highly ambitious plans to reach net zero by 2050, while also supporting our young people to plan their futures here in Wales.

“All this will help us transform the economy of south west Wales, helping us create a stronger, fairer and greener future for local people and communities.”

Roger Maggs MBE, Chair of the Celtic Freeport consortium said: “Wales is on the cusp on an exciting green journey.

“The freeport decision will cause a chain reaction.

“Upgrading our major energy ports in Milford Haven and Port Talbot will enable floating offshore wind, create the cradle to nurture new green tech companies and take a step on the path to greening Wales’ steel industry.

“Now is the time for action so that Wales captures the renewable energy supply chain.”

Andrew Harston, Director, Wales and Short Sea Ports, Associated British Ports (ABP) said: “The roll-out of floating offshore wind, or FLOW, in the Celtic Sea provides a once-in-a-lifetime opportunity for Wales. Port Talbot is the ideal location for the deployment of FLOW, and ABP is ready to invest over £500m in new and upgraded infrastructure to enable this and to ensure first-mover advantage to capture this global market. The Celtic Freeport provides a huge opportunity, and not just for FLOW, but for sustainable fuels and hydrogen too.

A DEVELOPER, involved in a major 700-plus-housing scheme in Haverfordwest, has disposed of its site so it can concentrate on a development in Nottingham.

Conygar has been involved in the Slade Lane development since plans for 729 houses were approved in 2014, along with a commercial site.

Reserved matters for the first phase of 115 houses was approved in 2019.

Part payments of a transport contribution, sewage works contributions and footway works contribution, of around £2million have been paid to the council with other contributions linked to the occupation of the 200th dwelling.

Back in 2021, the Local Democracy Reporting Service reported that affordable housing would not have to be included in the first phase of the major development, following a successful application by developer Conygar to the county council to vary Section 106 agreements previously made during the planning process.

The variations include removing the affordable housing element of the first phase of development at Slade Lane – around 29 houses – because it was considered “commercially unviable” to include the cheaper homes.

At the 2021 meeting, Conygar said that well-known community housing group Pobl was in final negotiations to buy the whole site if variations were approved, with a high likelihood of a mix of housing being created.

On Monday, March 20, a statement was issued by Conygar.

“The Conygar Investment Company PLC, the property investment and development group, announces that, on March 17, it exchanged contracts on an unconditional basis to dispose of its development site at Haverfordwest, Pembrokeshire to The Welsh Ministers and POBL Homes and Communities Limited for aggregate gross proceeds of £9.65 million.

“The development site has outline consent for 729 residential units and 90,000 square feet of implemented A1 retail.

“Completion of the sale is contracted to occur on March 24 for net cash proceeds, after sale costs, of £9.55 million, resulting in a profit over carrying value of £0.2 million.

“The net proceeds are to be utilised primarily in the further progression of the Group’s mixed-use development at The Island Quarter, Nottingham (‘TIQ’).”

Freddie Jones, director of Conygar said: “We are delighted to have agreed the sale of Haverfordwest, as part of our plan to focus our resources on those areas where we expect to see the greatest returns for our shareholders.”