8. What consideration has the First Minister given to the National Infrastructure Commission for Wales having the function of an infrastructure bank? OAQ(5)0279(FM)

We are currently out to consultation on establishing a commission to advise on long-term strategic infrastructure needs to support a more stable investment framework for the future. The body as proposed would not have lending functions, but, of course, a development bank will be developed so that more financial support will be available to businesses.

Already this month the Canadian Prime Minister, Justin Trudeau, has announced the establishment of an infrastructure bank for Canada. The former Australian Prime Minister, Paul Keating, has called for the same for Australia. Hillary Clinton had campaigned in favour of an infrastructure bank, and, although Trump had opposed that, the President-elect has just said that he wishes to create an infrastructure bank for the United States. Isn’t it time for us in Wales now to take this opportunity, particularly as we’re about to lose the only infrastructure bank that we have at present, which is the EIB?

It’s not clear that we are going to lose the EIB. Officials have been in discussions with the EIB and there is no reason why people outwith the European Union can’t receive funding, but, of course, if the United Kingdom is outside the European Union, there would be less money available to the bank itself. So that’s what the position is at present according to the bank, so it would still be open.

We want to ensure that the development bank will be able to support businesses, but, at the present time, the work on the commission is being developed. I’m not in favour of a totally independent body, some kind of quango, but we want to ensure that the commission is a body that can develop and plan ahead for the best infrastructure for Wales for the future.

The Welsh Government consultation document on the commission makes it clear that the commission would be advisory and non-statutory, and that Ministers would retain control over investment decisions. If, as you’ve just indicated, the evolution of Finance Wales into a development bank for Wales might incorporate some infrastructure bank functions, how will you ensure that it complies with the sustainable development principle implemented by the Well-being of Future Generations (Wales) Act 2015, given that we understand from evidence to committee that it won’t be bound by Bank of England prudential requirements or EU rules on capital requirements requiring risk-sensitive and enhanced risk management?

That’s correct, but we expect all public bodies to adhere to the principles of the Well-being of Future Generations (Wales) Act 2015 and its seven goals. With regard to the progress of the development bank, that progress is going well in order to achieve the correct certification so the bank can operate, and we’re confident, of course, that it’s on time.