A Vision of the Future for the Swansea Bay Region

Wales is benefiting from one the most favourable economic conditions in living history - outperforming the rest of the UK in almost every aspect of economic activity. We are now seeing levels of investment - both public and private - that we have not seen for a generation or more. When for example did we last see in Swansea so much development and so many cranes - or indeed so such much scaffolding? In fact I even saw Oystermouth Castle is covered in scaffolding!

We are benefitting from stable macro-economic conditions, with inflation, interest rates and unemployment at their lowest levels for a generation, creates a secure platform for sustained growth, more jobs and greater prosperity.

Unemployment claimant count in Wales is now 2.4% - in Carmarthenshire it is 1.9%! Who would have thought that was possible ten years ago – let alone 20 years ago? And it has not happened by accident - France and Germany now have unemployment rates in excess of 10%. And in Wales since 1999 this growth has overwhelmingly - in fact two-thirds - been in the private sector. But as a Minister, I am determined that we don’t just sit back and become complacent about this high level of success.

I want Wales to become the best place in which to start a business. The best place to grow a business. And the best place to see that business prosper well into the future. My vision is for the Swansea Bay region to be the Seattle not just of Wales but the UK - a knowledge-based community, with high quality of life, a high quality environment. But why Seattle? It is not just because it shares the same rainfall regime as Wales! Visit to USA last October - Robert Florida - new knowledge economy based on ideas, knowledge and creativity. People, especially creative, innovative and entrepreneurial people are attracted to areas that encourage that type of thinking, that allow a different life-style. Places on the edge - in the case of Seattle North-Western USA and in the case of Wales on the edge of the EU. I do not believe it is an accident that Microsoft started and remains in Seattle. Two things struck me when I visited Microsoft’s museum: Firstly, looking at those 30 year-old photos of Bill Gates and his other founder members to ask whether if those hair styles and glasses were ever fashionable but secondly, that barely 30 years ago the company, which today is now one the biggest companies in the world was then an SME! Think about it.

A US visitor said last year that Cardiff is the administrative capital of Wales; and Swansea its bohemian capital. Look at the creative talent that has come out of this region and continues to come out of this region - Dylan Thomas, Vernon Watkins, Ceri Richards, Richard Burton, and more recently Catherine Zeta Jones.

And for the new knowledge-based society the quality of life, the quality of the environment, the quality of education and leisure facilities is key. I think that we too often take for granted what we have. Just think of the variety of landscapes and habitats in this region alone. We have a range of natural habitats which is unparalleled: We have the beautiful sweep of Swansea Bay and the glorious Gower peninsula and Millennium coast. We have the wonderful Neath, Afan, Swansea and Amman valleys, which combine stunning landscape with a unique industrial heritage. We have the Garden of Wales in the Towy Vally, where my mother was born. And we have the Brecon Beacons and Black Mountains on our doorstep.

But how many people know that in this city alone we have such a range of natural habitats that actually include two areas of international environmental significance in the Loughor estuary and Crymlyn bog?
So I believe we have the right ingredients to continue to build this vision of a knowledge-based society in this region. Indeed I believe it is fast becoming a reality, with Wales, and Swansea Bay region in particular is now attracting high levels of investment from a wide range of domestic and international businesses - as demonstrated by yesterday’s announcement by HSBC to create around 150 new jobs at their contact centre on the Swansea Enterprise Park.

However - we need to build on this confidence and progress if we are to truly achieve our vision for the future of Wales and for the future of this important region. That is why we are merging the ASPBs or quangos into the Welsh Assembly Government - to deliver the right support at the right time and the right level - particularly for the business community.
This is why we are working to drive forward the skills agenda - making sure companies in Wales are equipped with the skills and know-how for our 21st century knowledge-driven economy.

It's why we are investing in a modern infrastructure - from broadband to road and rail. In fact today the UK government following Tuesday’s Queen’s Speech will be introducing the Transport Wales Bill to the House of Commons. It will give us the tools to do the job of creating an integrated transport system in Wales. It will allow us to build on the strides we have already made in this crucial area of transport. In this region I have funded a new road in Port Talbot, the new link-road in Burry Port and in Swansea the two park-and-ride schemes in Fabian Way and Landore as well the new modal interchange at High Street station. And in December I announced our £8 billion, 15-year transport programme, which included the decision to go ahead with upgrading the A40 and building the new M4 south of Newport - a vital link for the whole of the south Wales economy - not least for this area.

It's why, through highly successful financial support schemes like RSA which, for example, with £8 million of Assembly Government assistance has supported the new Delicarta/Intertissue paper mill at Baglan Energy Park and the Assembly Investment Grant, we act to identify innovation and support and nurture enterprise. And it's why we continue to make excellent use of the opportunities afforded to us by the European Structural Funds Programmes such as Objective 1. When people ask me, well what has the Assembly Government done for Wales I am reminded of the Monty Python film “The Life of Brian”? What have the Romans ever done for us?

So, Chair, if you will allow me to give some examples of how Objective 1 funds are making a real difference to our communities here in this region. Developments and investment that would probably have not taken place without this support from the Assembly Government and Objective 1: the National Maritime Museum; SA1; the new road in Port Talbot; the Swansea High Street station interchange and the Burry Port link-road.

In fact many people, some in this room, may have received Objective 1 funding without knowing they are doing so. Grant schemes such as the WTB. For example, who in this room is aware that Morgan’s Hotel, the Grand Hotel or indeed Patrick’s in Mumbles have received Objective 1 funding to invest and upgrade their facilities? The success of the Welsh economy is clearly reflected in the many exciting changes taking place across this region. We have landmark developments, from the spectacular Sail Bridge (£5.5 million from my budget!), in the iconic SA1 Waterfront Development through to the Llanelli Millennium Coast, Llandarcy Urban Village, Tawe Vale, Velindre and Baglan Energy Park to have become outward symbols of a confident region. The Swansea Bay region really is the arc of opportunity.

Swansea Bay region also boasts some of the finest higher and further education institutions in Wales and the UK, and as the home of the new Scoll of Medicine, Technium centres and the pioneering Institute of Life Science, the City is becoming internationally recognised as one of the most dynamic and forward looking regions in Europe.

Take the Technium hi-tech incubator centre development - a Swansea-designed concept. From its inception in 1999 it is now a £150 million all-Wales programme. From the first Technium 1 and Technium 2 in SA1 to Digital Technium at UWS, Sustainable Technologies Technium at Baglan, Technium Auto at Dafen in Llanelli and Energy Technium in Pembroke.

And of course, the region is home to the Swans, our promotion winning football side and in the shape of the Ospreys and the Scarlets – the leading regional rugby sides. The region will also benefit from the new and highly impressive Morfa Stadium next season.

So, you might ask, if Swansea Bay is booming - 'why do we need a spatial plan'? 'Is it really relevant?'. Spatial thinking provides a fresh challenge to us. Our Spatial Plan - People, Places, Futures is a first for Wales, and is fit for Wales. In many ways we are taking the lead with Spatial Plan delivery in the UK. The Spatial Plan is the framework for a long-term process of delivering change. If I was asked to summarise in one sentence what our Spatial Plan is about then I would say it's about integrating our economic, environmental and social actions to drive forward a coherent joined up plan at both a national and a local level.
As a Minister, the issue of resources and the need for more resources often gets raised. But the argument is not just about resources.
It's about maximising the effective use of available resources. So we target economic, social and environmental development in different parts of Wales. It's that strategic, joined up and targeted approach toward delivery that underpins the Wales Spatial Plan.

It's about ensuring what we do in the public, private and voluntary sectors is spatially integrated - ensuring actions support each other to move forward on delivering a shared vision for Wales and for different regions of Wales. Spatial Plan delivery is a radically new departure. One of the reasons I am so committed to it because I have believed for a long time that the old, tired one size fits all policy prescriptions of the past did not work. It replaces that approach with a genuine recognition that different regions have varying strengths, weaknesses and opportunities and will therefore adopt varying approaches to their future development. It recognises, celebrates and builds on local and regional distinctiveness.

At an all Wales level the plan emphasises the following core themes
Building Sustainable Communities
Promoting a Sustainable Economy
Valuing our Environment
Achieving Sustainable Accessibility
And Respecting Distinctiveness
But above all the plan is a flexible, living document. Whilst it focuses on the long term, it does not advance a set of policy prescriptions that are set in stone. On the contrary - flexibility is key - and the WSP will continue to develop and evolve in the light of changing economic circumstances.

The Spatial Plan vision for this region is both bold and ambitious.
It is for an area of sustainable growth and environmental improvement. Realising its potential and spreading prosperity to support the continued and remarkable revitalisation of West Wales. As part of our commitment to delivery, individual Minister's are taking responsibility for facilitating delivery on an area basis and for promoting joint working across boundaries. My colleague Jayne Davidson - the Minister for Education and Lifelong Learning is lead Minister for Spatial Plan implementation in this area.

For Swansea Bay I envisage Spatial Planning will impact upon three very important issues for the future of this region: -
Continued development of a modern, attractive and vibrant waterfront area across the region.
Better and enhanced transport links between inland communities and the coast and
The revitalisation of Swansea as Wales' second national City.
I'll say a few words on each of these issues and why they are important to the Spatial Plan.

The Waterfront Urban area - stretching from Port Talbot to Burry Port and taking in Llanelli, Neath and of course Swansea offers tremendous opportunity to create an attractive waterfront urban network. That is why I want to see existing regeneration - the Baglan Bay Energy Park; Llandarcy Urban Village; SA1 and Llanelli Millenium Coastal Park being fully integrated with our Wales Spatial Plan.

With concerted action we can make much more of what is one of the most extensive areas of developed coastline in Wales. For example we've only just begun to scratch the surface of the commercial potential of watersports related leisure and tourism. For example, I have seen for myself in Brittany the massive potential for sailing as a major lever for community regeneration, wealth generation and employment. That is why I have made it a priority and am so excited by marina developments in Swansea and Burry Port, amongst others.

Spatial Planning can also help us to continue the development of Swansea as a regional centre - a driver for growth within the area and a catalyst for development further West. It is obvious from the experience in Europe and North America that our vibrant cities are vital to the successful and sustainable development of our country.

Building upon many of our existing success stories like the Marina and SA1 can help us make Swansea an even more attractive place for people to live, work and play - helping us to retain not just our own talent but to attract talented people to Wales. (a la ILS)

I am therefore delighted to be able to announce today that Swansea is on course to benefit from a £1.4m objective 1 grant towards an exciting £3.5m town centre regeneration project. This project will create a safer, more attractive and sustainable urban environment providing
considerable benefits for local people, tourists and the local economy.

The funding will deliver a wide range of improvements to the streetscape and public areas within the City centre, complementing the significant physical development schemes already underway across the City. ‘The project includes renovation of the main shopping centre, including Worcester Place, Castle Street, Princess Way, Oxford Street, Union Street, Portland Street, Whitewalls and St Mary’s Square. It will also include improvements to the frontages of many City centre landmarks and buildings. In terms of developing the knowledge economy considerable potential exists in exploiting the opportunities offered by Swansea University, Swansra Institute, the local FE Colleges and the Technium centres. But for Swansea to truly provide an economic driver to the wider area we must ensure inland towns within the region are able to share in this growing prosperity. The stress that the Spatial Plan places upon improved public transport links is therefore key to providing additional opportunity to inland valley communities. That is why the Transport Wales Bill will give us the legislative tools to develop an integrated transport system for this region and build on the considerable progress we have already made in this direction..

I've no doubt that with concerted action this region can become a key driver of our economy. But this can only be done in partnership. All the developments I have outlined today have been developed in partnership. And whilst Government can lead - effective delivery is dependent on a genuine sense of partnership. Between the private, the public and the voluntary sectors. That is the only way we can and will deliver.

I believe strongly that the Spatial Plan provides a perfect opportunity to do just that - lets work together to make it happen.

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