Item 6 this afternoon is the debate on the Economy, Trade and Rural Affairs Committee report, 'Nuclear energy and the Welsh economy'. I call on the Chair of the committee to move the motion, Paul Davies.

Motion NDM8535 Paul Davies

To propose that the Senedd:

Notes the report of the Economy, Trade and Rural Affairs Committee, 'Nuclear energy and the Welsh economy', which was laid in the Table Office on 21 February 2024.

Motion moved.

Diolch, Dirprwy Lywydd, and I move the motion tabled in my name. The report we are debating today relates to a one-day inquiry that the committee held last October, which looked at the economic impacts of new nuclear energy developments here in Wales. The committee focused its attention not on the arguments for and against nuclear power, but on how Wales could be a future nuclear powerhouse should nuclear energy developments in Wales progress. I know that some Members will have strong views on nuclear power, but this report and indeed this debate is not about the pros and cons of nuclear power; today's debate is really about the economic potential Wales has in this area.

The committee wanted to learn more about the opportunities that there are for the sector, and any barriers to its growth, and there were concerns about investment, jobs and skills, and the prospects for the communities most closely affected. It is important to recognise that there are differing views on whether nuclear power should be part of the overall energy mix in the UK, but it's a vital element of the British energy security strategy, and for Wales the development of former nuclear sites in north Wales is a critical economic issue.

As the committee report explains, there is huge potential for the nuclear industry here in Wales. A successful nuclear industry would provide thousands of high-quality jobs and billions of pounds' worth of investment. And this is not just for north Wales, where the industry is already a big local employer, because the skills needed and the potential for nuclear-related manufacturing activity can generate benefits throughout Wales. Nuclear development could provide an enormous economic stimulus, and would certainly help establish strong trading relationships across the world.

Since the committee reported back in February, the Chancellor has announced that the UK Government has reached agreement with Hitachi to acquire the Wylfa site. When the committee report was published, it was made clear that decisions on both Wylfa and Trawsfynydd, which are reserved to the UK Government, were urgently needed. This was especially the case because the 'Civil Nuclear: Roadmap to 2050' plan, published by the UK Government in January, had not mentioned either site.

The news about the Wylfa purchase was long awaited, and has been welcomed by most. Stakeholders told the committee that Wylfa was a strong contender for future nuclear development to help the UK achieve its energy-security and net-zero goals, and Trawsfynydd was also recognised as a site with great potential. So, although the purchase of Wylfa is an important step forward, full details of the UK Government's plans are still needed, in particular when it will confirm the designated sites for future nuclear projects, the kinds of technology to be deployed, and the time frames for implementation.

The committee's first recommendation was for this information, and so we wrote to the UK Secretary of State for Energy Security and Net Zero. I welcome the generally positive tone of the Secretary of State's response to our recommendation and the indication that work is moving ahead to more clearly define the nature of future nuclear projects. However there are still no clear answers, with future decisions to be made, I quote, 'in due course'. I do welcome the fact that Great British Nuclear, the new UK Government arm's-length body that supports the industry, is said to be working closely with the local community in Ynys Môn, and I look forward to the further updates promised over the coming months.

Now, the committee visited Ynys Môn last summer and heard how important a new nuclear power station could be to the community. However, we also heard that hopes about nuclear developments have been dashed in the past, and so managing expectations was something that was stressed to committee members. The committee understands that people in north Wales want clarity on what the future holds for them. Certainty is the key to building confidence, to secure the necessary investment in skills, to build strong and resilient supply chains, to secure high-quality jobs and to provide direction for the Welsh nuclear energy industry in the future.

Our report provided just a snapshot of the sector and its ambitions for Wales, and we set out a series of recommendations to support the UK Government and the Welsh Government to realise Wales's nuclear development potential. If the sites in north Wales are chosen to be part of the next generation of nuclear reactors, the Nuclear Industry Association tells us that it could bring tens of thousands of additional jobs to the area. And so, the committee's report urges the Welsh Government to be ready to ensure there are maximum benefits to the Welsh economy once the decision to go ahead with nuclear in north Wales is made.

During the inquiry, members asked a lot of questions about the Welsh supply chain and the Government's response sets out a clear rationale for identifying realistically where the benefits can be had most easily and where more effort may be needed for Welsh businesses to break into the supply of components, goods and services. This picks up on a key point raised in evidence gathering that it's about showing Welsh businesses where the opportunities are, and, also, where they are not, so they can see where to divert their efforts to building skills and winning business.

One of the key challenges identified by the committee is the need to increase workforce skills for the nuclear sector. Great British Nuclear said that the increase in skills needed for the sector was breathtaking, which led the committee to call on the Welsh Government to set out how it will work with the education and skills sector to establish a workforce that is ready.

The Welsh Government's response also acknowledges the significant scale of that workforce challenge. The Cabinet Secretary says in his response that the Welsh Government was not invited to participate in the nuclear skills taskforce, but that officials have been in touch with taskforce members and that the taskforce's report is likely to make generic recommendations about the types of skills needed. Therefore, more clarity is going to be needed about the UK Government's plans for Wylfa and Trawsfynydd before much more detailed workforce planning can therefore take place.

Indeed, the committee report also highlights that any new nuclear projects would likely bring in many workers from outside of north Wales and this could bring pressure on local housing stock. The committee has urged the Welsh Government to work closely with local authorities and housing planners if nuclear investment goes ahead. The Welsh Government must engage closely with local and regional partners and communities to ensure that housing stock is not overwhelmed in the initial stages and that there is a clear long-term plan for maximum benefit to people living closest to these sites.

Dirprwy Lywydd, I welcome the Welsh Government's positive response on these issues and the indication that it will encourage a strong team ethos and a co-ordinated partnership approach to getting the best for Wales from nuclear projects. The example of the Somerset Larder project set out in the Cabinet Secretary's response is a good one, showing how it's possible to drive significant local benefits and economic growth through collaboration. Of course, the Welsh Government must step up to make sure that this potential investment is successful. As much work as possible needs to start now to make sure that the workforce is skilled, specialised and ready.

In closing, I'd like to thank everyone who engaged with the committee's one-day inquiry and also thank the team who supported Members with it. I look forward to hearing Members' views and I commend this report to the Senedd.

Diolch, Dirprwy Lywydd. I'd like to thank the committee clerks and all those who gave evidence to the committee.

I think, from the outset, it's fair to say that, as a committee, we are aware of the criticism that has come our way over this report, but I would reiterate what the Chair has already said: that the terms of reference of this inquiry weren't to weigh up the pros and cons of nuclear energy. Had it been an inquiry on that basis, then the report would have looked a lot different. However, I do think it is worth reflecting on some of the comments made within this place and outside of this place and perhaps consider how we might actually be able to hold an inquiry on energy more broadly, perhaps in partnership with the climate change committee—I'm conscious that the Chair is sitting right next to me—that does look at what the make-up of energy generation should look like in a future Welsh economy. I think, actually, it would be quite timely, because of the indication from the First Minister of the central role energy will play in his own economic vision through moving energy to the portfolio of the Cabinet Secretary for the economy—a move I welcome, by the way. I have my concerns around nuclear for a number of reasons, specifically on the opportunity cost element, but that's why I think a wider inquiry would be of benefit, so that we can discuss this and hash out those elements of nuclear.

I did want to highlight a specific thing in our report that I think touches on a wider issue within our economy—something, actually, you could pretty much copy and paste into the reports about other sectors of the economy pretty easily. The Chair has already mentioned it, and that's the skills gap identified. Whether we are talking about nuclear or green technologies, this is a prevailing issue. So, I would welcome some thoughts from the Cabinet Secretary in his response as to how we get to grips with the wider skills shortage. Because only a few months ago now, the First Minister—then the economy Minister—was proposing significant cuts to the apprenticeship funding, one of the primary avenues available to us to address skills shortages. I hope he is able to set out a skills strategy, a comprehensive one, co-produced with the FE sector. And I've mentioned it before: some of that work has already kicked off with Hefin David's report, so I'd like to see how we might be able to implement some of that work. We can't downplay the importance of having a strategy when it comes to skills, and I hope that the Cabinet Secretary will be able to share some welcome news on that front.

Again, I'd like to thank the committee clerks and I'd like to thank the Chair, as well as all those who gave evidence to our inquiry.

My thanks to our committee Chair for his leadership throughout this inquiry and the clerking team for their work in drawing this report together.

I'm an advocate for nuclear energy, and while I don't think that is controversial, I think it's worth looking at the 'why'. When uncertain times lie ahead with continued war in Ukraine and ever-rising tensions in the middle east, having energy security for our country is of paramount importance. None of us, I'm sure, want to be reliant on foreign powers and complex supply chains for our electricity if we don't have to be. Members will also know that I'm a passionate advocate for renewables, especially floating offshore wind in the Celtic sea. But a strong electricity supply relies on variety, with nuclear offering a unique opportunity around base-load generation.

We don't want to live in fear of blackouts, nor do we want to live with a national grid that is incapable of meeting our day-to-day needs. What we do want, however, is a source of power that is reliable, low carbon, and that can easily be used in conjunction with our developing renewable network, helping maintain our grid's balance and energy supply. That is exactly what the Economy, Trade and Rural Affairs Committee report lays out, along with a raft of other benefits of particular interest to me as the Member for Carmarthen West and South Pembrokeshire, where we already have a number of relevant skills. Just take a walk around Hinkley Point and you'll be sure to hear the Pembrokeshire accent: the wider economic benefits of nuclear can be seen.

I won't talk about how many other businesses could develop and be supported by such a strong hub of economic activity, as that would speak for itself, but I will talk about how much of a lasting impact such nuclear infrastructure would directly provide. Just one small modular reactor, or SMR, for example, could provide 400 to 500 jobs while in operation, many in servicing and maintenance, plus the many jobs that would be created in construction. And many of these SMRs could be built. Just to emphasise the economic benefit of nuclear, it is estimated that for each person employed, he or she would generate £102,300 gross value to GDP, over twice the average amount compared to other industries. However, the report does lay out some of the difficulties we could face if we are to get the full benefit from nuclear for our communities and economy, and that comes down to having the right skills and training, as has been mentioned.

While some of those skills are available, as I also mentioned earlier, luckily, about 80 per cent of jobs are not nuclear specific, so there is a chance for people in other industries to change career path. However, we need to ensure that this does not impact on the development of other industries, especially renewables. But it's not just the current workforce that will benefit; we need to think about our future workforce, one where young people can have the confidence to take up apprenticeship opportunities knowing that they have a long and valued career ahead of them.

I would like to ask the Welsh Government what funding it envisages being available to support technical colleges or other centres of training. It's positive news that the UK Government has purchased the Wylfa site, as the Chair mentioned. While there remains some uncertainty, I'm sure that once that certainty is given, the Welsh Government will need to be ready to capitalise on this fantastic opportunity by providing adequate levels of funding and support in the areas that are needed. This comes down to a positive working relationship between the UK and Welsh Governments.

The UK Government has already announced a sizeable investment to fund its nuclear skills pipeline, which will help the sector fill 40,000 new jobs by the end of the decade. Their road map to 2050 is in place, so the Welsh Government must work with this and set out its plans for how it will see it funding the non-project-specific training and skills development provision that will be desperately needed. That's not just nuclear specific; that will be of benefit to a whole range of other industries here in Wales as well.

In closing my contribution, Dirprwy Lywydd, I am happy to see that the Cabinet Secretary has accepted, at least in principle, all the recommendations of the committee's report. Once again, I reiterate the importance of nuclear energy to our energy security and hope to welcome a long and prosperous nuclear future here in Wales. Diolch.

I very much welcome the report from the committee and the opportunity to debate it this afternoon. As I've said consistently when I've campaigned on the need for pension disinvestment, we have to move away from our reliance on fossil fuels. The Intergovernmental Panel on Climate Change are clear that the decisions we take in the next 10 years will define the climate for the next 10,000 years. In my view, we should be working with UK Government counterparts to move away from fossil fuels and ensure nuclear is a significant part of our energy mix. The next generation of nuclear power production presents a tremendous opportunity for Cymru, as do the next technologies in our renewable sector.

The UK's existing civil nuclear industry contributed £700 million to the Welsh economy in 2021, directly employing 800 people and supporting a total of 10,700 jobs across Wales. In December 2022, Rolls-Royce SMR shortlisted a site in Deeside to produce components for small modular reactors, and this is exactly the sort of high-skilled, well-paid roles that I would like to see the Welsh Government and the Cabinet Secretary working to attract to my area. I hope the Minister can update us on this matter this afternoon. As well as attracting that type of work, it builds on the work of engineering giants Boccard, who, again, have sited their first major nuclear production facility in the UK close to the Airbus factory in Broughton, with 200 well-paid, highly skilled jobs that are always welcome in Deeside.

As we face the challenges of increasing electricity generation to power electric cars, to power heating systems and so on, Luke Fletcher is right, we also face a skills challenge. One of the barriers to ensuring the skills are in place is the uncertainty that the industry faces. Welsh workers, the Welsh supply chain and Welsh training providers do have the potential to contribute far more to the UK's nuclear agenda, but they need to see a clear commitment to the new projects and to have confidence that the investment in time and money is worth it.

The scale of the nuclear workforce challenge is significant. The sector has a current shortfall of 9,400 people, but it needs to grow from 83,000 to 123,000 by 2030 to service and support the expected demand. This is why the report from Paul Davies's committee is so timely, and the Cabinet Secretary's response to the report is welcome. We must give the industry the certainty it needs to thrive and to help reach net zero and create well-paid jobs in Cymru. Diolch.

Just a few comments from me. I'm grateful for this report from the committee. I don't believe there's anything unexpected in its findings or its recommendations. Briefly, what we have is a realisation that there is economic benefit that can come as a result of investment in nuclear energy production, but that such developments bring a series of challenges along with them, and that we have to be ready for those and be aware of them. And that is the work that I was involved in on Ynys Môn in relation to Wylfa—trying to highlight the potential for economic benefit on one hand whilst working hard on the other hand to safeguard our broader interests. And the report points to some of those, and the social pressures, not because it's a nuclear development—that would be true of any development—but because it is a major development. One of those is the pressure on the housing sector, and that is specifically referred to in this report too. And also the challenge, as we've heard from others this afternoon, of ensuring that it's the local workforce and local skills that are prioritised, and safeguarding other businesses that could lose staff, which is a major challenge when these kinds of developments do take place.

Now, at this point, I'm voicing my frustration that so much of this work, of course, has already been done in relation to the Hitachi Horizon project on Ynys Môn, and there were so many local partners involved with that. I think of the excellent work done by Grŵp Llandrillo Menai and the work done by Anglesey council, led by Llinos Medi there. And, of course, what we saw was a Conservative Government failing to support that, which meant that all of that work was undone, and we are now back at the starting point. Sam Kurtz mentioned hearing Pembrokeshire accents in Hinkley—well, I can assure you as a Senedd that there are many Anglesey accents too, because there were apprentices who had started working on the Wylfa Newydd project and those were forced to leave their homes in order to work at Hinkley, and that is something that we should deeply regret, and that, again, because of the failings of the UK Conservative Government.

Let's be clear that any development in Wylfa is many years down the line. We know that, in an election year, it would be desirable for some to believe that there is going to be an announcement now, or about to take place, but that is not the reality of the situation, and that's why the committee is entirely right in saying that we shouldn't raise people's hopes. And that's something that I am very clear on. I was at a briefing with Great British Nuclear exactly a week ago, and they explained where we're at now, having not decided even what kind of development could take place in Wylfa, although the site has been purchased recently. So, yes, the UK Government have made a mess of their nuclear plans, and the committee is right to note that we still don't have a clear idea of what those plans are. But I say this as a key final point—something that I and others raised in that meeting with GBN—local communities have to be central to any decisions taken. As with any energy development in Wales, we must ensure that Welsh interests and the interests of Welsh communities are always safeguarded.

As someone more positive about nuclear than the previous Speaker, I'd like to thank Paul Davies, the Chair of the Economy, Trade and Rural Affairs Committee. He states in the report that a successful and modern nuclear industry here in Wales will provide thousands of high-quality jobs whilst unlocking billions of pounds-worth of investment. Look at Ynys Môn: Wylfa Newydd will bring investment of around £20 billion for a large-scale plant, 8,000 construction jobs, and 800 steady-state quality careers would be created. But I have to put on record, yet again, my thanks, as a Member for Aberconwy and the jobs that will hopefully come to Aberconwy as a result of this, to our own little atomic kitten, Virginia Crosbie MP. The work she has done on this is actually making sure that major support for the UK Conservative Government is forthcoming. For example, the UK Government's British energy security strategy named Wylfa as a key site for one of its eight proposed new nuclear plants. The UK Government's UK-wide future—[Interruption.] I know you don't like mention of the UK Government, but credit where credit's due. The UK-wide future nuclear enabling fund was launched—

Will you take an Intervention?

Of course.

Just to point out, there's no mention of Wylfa or Trawsfynydd in the latest documentation from the UK Government. You mentioned the jobs created by large nuclear in Ynys Môn. For the record, I would favour a smaller, modular option. But there is no decision, so you have to recognise that this is years away.

Let's just wait and see. Patience. Most recently, the UK Government announced that Great British Nuclear is buying the Wylfa site as part of a £160 million deal. That momentum will come under this Conservative leadership. I am very hopeful of a decision soon. As the Rt Hon Claire Coutinho MP, Secretary of State for Energy Security and Net Zero, stated in her response, the UK Government is making a concerted effort to support development decisions, improve investor confidence and provide the greatest certainty that's needed. 

In comparison, the committee is rightly questioning, in recommendation 2, the role of the Welsh Government. The clear impression that I am getting from the response provided by Jeremy Miles is that you want a decision by the UK Government before doing more with the levers that you already have at your disposal. That should not be the case.

When considering that Alan Raymant told the committee that trying to develop both Wylfa and Trawsfynydd in north Wales at the same time would probably not be feasible in the context of current skills shortages, the challenge for the Welsh Government to tackle is clear. And who has been responsible for making sure that we have those skills over the last 26 years? The Welsh Government, propped up by Plaid.

As Bechtel rightly stated, it is imperative that Wales builds a strong workforce to meet new nuclear demand. Of course, Bangor University has now started a general engineering degree, and new training facilities have been provided at Coleg Menai in Llangefni, so as to offer courses in engineering, fabrication, welding, mechanical engineering and power engineering.

However, apprenticeship uptake has been in decline for the past five years, with 43 per cent of vacancies in STEM roles, and we do still have a massive shortage of applicants with the required skills. There is amazing potential for our nation's young people to step up to the plate, but we must ensure that our education system is providing them with the best possible opportunities to secure STEM skills and careers.

In short, we need a review of this Welsh Government's curriculum and apprenticeships policy, so as to ascertain how we can deliver better. And like the Minister wrote in his response, if Wales is to contribute to addressing the broader UK nuclear skills deficit, I believe that a solid commitment can and should be made by you today that Wales will contribute to addressing the broader UK nuclear skills deficit.

Finally, I would invite the Minister to provide some much-needed clarity on funding for Cwmni Egino. While the UK Government is ramping up investment for nuclear, overseeing the biggest expansion in 70 years, the Welsh Government appears to be reducing support. The First Minister is directly accountable. It was, of course, during his tenure as Minister for Economy that it was planned to cut financial investment for Cwmni Egino.

Having written to yourself, Cabinet Secretary, asking you to make a statement on how much money Cwmni—I'm sure that they have put this in for me to keep saying it—will be receiving from the Welsh Government in 2024-25 last week, you chose not to give me the figure. So, please tell the floor here today how much you are committed to giving to Cwmni Egino. 

Cwmni Egino.

Yes. Thank you. How much Welsh taxpayers' money—

Janet, you need to conclude now, please.

—did the Welsh Government give in 2023-24, and also 2024-25? I have met with Andrew Bowie MP, Minister for Nuclear and Renewables, and I can assure you that any indication that Trawsfynydd is not being considered is wrong. Indeed, it would be premature for the Welsh Government to take a decision on cutting any funding for Cwmni Egino.

Janet, conclude, please.

So, clarity on what Welsh Labour has done is now urgently required, and in this Welsh Parliament here today. Diolch.

The committee took oral and written evidence from pro-nuclear organisations and individuals, but none from anti-nuclear or a sceptical view to give a balance. I hear what the Chair said earlier, but I want to do that now. There were no comparisons to alternative renewable technologies of wind, wave or solar. So, why wasn't evidence sought from experts and interested parties on such questions as, 'Why should such reliance be placed on the voices of an industry that consistently fails to deliver on cost and on time?', 'Why should Ynys Môn and Gwynedd become a nuclear plant to satisfy the needs of the nuclear industry and the UK state?', 'Why continue when nuclear is in retreat globally?'

A typical reactor will generate 25 to 30 tonnes of high-level nuclear waste annually. It can remain radioactive and dangerous to human health for thousands of years. Nowhere has a satisfactory long-term solution to waste disposal been found, so why produce more? Energy security is being touted, but there are no uranium reserves in the UK, current uranium reserves are expected to be depleted by the end of the century and new uranium reserves are hard to find. As a result, uranium prices have been rising steadily, with estimates predicting a doubling of prices by 2030.

As extreme climate events become the norm, sea levels will rise, and there will be more disruptive storms and storm surges, bringing into question the operational safety, security and viability of coastal nuclear infrastructure. Inland nuclear has also other problems: wildfires, episodic flooding alternating with lower river flow and raised water temperature, impacting reactor cooling and discharge.

Expert planning officers found that Wylfa Newydd failed to meet some of the United Nation's biological diversity standards, and also listed concerns over the project's impact on the local economy, housing stock, health, culture and the Welsh language. Hinkley Point's estimated bill costs in 2016 was £18.2 billion, but updated costs are now £31 billion to £35 billion. EDF has estimated that it could cost up to £46 billion, another £10 billion cost hike and another four years to complete—most likely longer.

The lifespan is expected to be just 60 years. Meanwhile, the UK Government have given licences to new gas fields for fear, they say, of blackouts. Nuclear will never fill the energy gap on its own. And meanwhile we burn more fossil fuels because we're not investing enough in the renewable technologies, storage and infrastructure, energy efficiency, or the insulation of homes, which would allow for quicker, cheaper mitigation of climate change and help people's budgets.

Including planning and approval, one nuclear station takes up to 17 years to build, with construction taking approximately 10 years. On-costs and decommissioning costs are a bottomless pit. So, given the development timelines for new reactor designs, they are not likely to have a significant impact on carbon dioxide emissions reductions for decades, and, as a result, their relevance to the climate argument shrinks. 

When Hitachi's Wylfa Newydd project was live, the Welsh Government established an education and skills group, focusing on dealing with training and skills provision, as part of the internal cross-departmental Wylfa Newydd programme, to respond to the numerous challenges arising from the project. Welsh Government also provided the further education sector with significant support for new training facilities at Coleg Menai in Llangefni, which are now able to offer courses in engineering, fabrication and welding, mechanical engineering and power engineering. And Coleg Llandrillo Rhyl's new engineering facility offers courses in wind turbine maintenance, in partnership with RWE. They are also looking at green hydrogen.

I am disappointed that Cwmni Egino has also been used for pursuing nuclear power, when priority should be given to renewable technology. Just because the Tory UK Government under Rishi Sunak designated nuclear as renewable, it doesn't make it right. Wind, wave and solar is renewable technology. 

There's been much talk of needing nuclear for baseload, but I'm increasingly hearing this is not the case. The former CEO of the National Grid said that there was no need for baseload several years ago, yet the mantra was still rolled out without question by the nuclear lobby. Wind and solar complement each other across sectors to provide stable output. RWE Renewables are developing combining green hydrogen with their windfarms, and I'm told that a tidal energy barrage would last 130 years, would provide a flood defence for north-Wales coast and have consistent energy. 

Investment and political will should be focused on achieving a sustainable future, and that cannot be done with nuclear.

I call on the Cabinet Secretary for Economy, Energy and Welsh language, Jeremy Miles.

Thank you, Deputy Presiding Officer. May I thank the members of the committee for their report, which comes at a very important time in the development of the nuclear industry in the United Kingdom. And this is particularly timely in Wales with the news that the UK Government is in the process of purchasing the Wylfa site from Hitachi. 

As the report states, nuclear isn't an issue that is devolved, so it's the UK Government that is responsible for driving new investment in nuclear projects. I understand there are a range of stances—Carolyn Thomas has voiced some of them—but the Welsh Government is in general broadly supportive of nuclear projects in Wales, but costs must be borne in mind.

As these developments are driven forward, we want to ensure the best benefits in terms of the economy and social issues. But we want to consider the negative impacts too that come as a result of major infrastructure projects, such as those outlined by Rhun ap Iorwerth. 

The committee report contains two major findings and six recommendations. The first finding is that an urgent decision is needed with regard to the future of Wylfa and Trawsfynydd. The second is there's a lack of clarity from the UK Government with regard to what to do next, which is preventing a joint effort to prepare the workforce through developing skills and training. I agree entirely with both of those findings. 

The report's first recommendation builds on the conclusions and calls for a decision sooner rather than later from the UK Government on project siting, along with clarity on how and when a project is likely to be brought forward in north Wales. A commitment to north Wales is something that we have been seeking from the UK Government since the cancellation of Horizon’s Wylfa Newydd project. The effective silence on any new project detail has impacted significantly on our ability to plan for any new activity, and the ongoing delay also affects the perception of deliverability in potential host communities and can eat away at any future project’s social licence to operate. Recommendations 2 to 4 focus on requests for the Welsh Government to explain how it will work with a variety of key partners, including the UK Government and local authority partners, to support the Welsh supply chain, to undertake local workforce planning, and to address housing needs and pressures that may arise with large-scale infrastructure projects. There is also a call for the Welsh Government to outline how it will work with others to manage expectations around any new proposals. I support these recommendations and will address each in turn.

Should new projects emerge for Trawsfynydd and Wylfa, we will strive, as we always have done, to develop a pragmatic approach to working with major developers and strategic partners, including the UK Government. On the Wylfa Newydd project, we worked with Horizon and regional stakeholders on issues that were best addressed through a multi-agency approach, including, for example, on housing needs and pressures, which we did along with local authority partners from Ynys Môn and Gwynedd councils and relevant regional housing associations, and we would seek to reintroduce similar collaborative working on any new nuclear project in north Wales.

On issues of supply chain support and workforce planning we have a platform to build on. We worked with the nuclear advanced manufacturing research centre on their fit-for-nuclear supply chain development programme between 2015 and 2019, and funded access for around 70 Welsh companies. We also provided significant further education sector funding investment for new training facilities, which both Carolyn Thomas and Rhun ap Iorwerth have mentioned, at Coleg Menai in Llangefni. That’s now able to offer a range of engineering-related courses, all with relevance to nuclear and the wider energy sector.

With respect to managing expectations, let’s be clear: the responsibility for managing expectations lies principally in the hands of those capable of realising those expectations, which is the UK Government. However, new nuclear presents opportunities for significant economic change and so we will seek to play our part in encouraging proportionate preparation within host communities. While we initially created Cwmni Egino to target opportunities at Trawsfynydd, we are in ongoing discussions with the UK Government on a potential early stakeholder management role for Cwmni Egino on any new Wylfa project.

Recommendation 5 refers to the work of the nuclear skills taskforce, and asks what action is the Welsh Government taking to recognise and address potential barriers to scaling up skills for the nuclear sector. Jack Sargeant, Luke Fletcher and others have touched on this point.

The scale of the nuclear workforce challenge is significant. The sector has a current shortfall of 9,400 people and needs to grow sharply from 83,000 to 123,000 people by 2030 to service and to support the expected demand. The skills taskforce was established last summer to help address this challenge and is chaired, as we have heard, by Sir Simon Bollom. It consists of UK Government officials from various departments, academics and industry partners. The Welsh Government was not invited to participate and we have had no formal engagement as a consequence of that, but my officials are in contact, as Paul Davies mentioned, with taskforce members and we understand the report will be published shortly, and I look forward to considering how we respond to any recommendations that resonate with our circumstances in Wales.

Finally, recommendation 6 suggests that, when there is an announcement from the UK Government, the Welsh Government should set out how it will work with key sectors and partners across Wales to drive and maximise the delivery of socioeconomic benefits. We will do this at the appropriate time. The key will be ensuring that all partners understand the potential opportunities and buy into a co-ordinated team approach. Those kinds of approaches have the advantage of pooling financial resources and manpower, as well as enabling cross-regional solutions to be developed for challenges that may be too difficult to address and to solve at a local or a single agency level.

In closing, Dirprwy Lywydd, I support the committee's conclusions and recommendations, and recognise that we will need interventions in areas such as supply chain development, workforce planning and stakeholder engagement. We will play our part but we now need the UK Government to provide genuine, clear and timely leadership.

I call on Paul Davies to reply to the debate. 

Diolch, Dirprwy Lywydd, and can I thank Members for taking part in this debate this afternoon? We've heard some really interesting contributions from Members today, and a constructive response from the Cabinet Secretary. Now, Members have understandably commented on the UK Government's future plans and the opportunities for Wales, and I want to make it clear and reassure Janet Finch-Saunders that the committee will be following future developments very closely, and I look forward to the Cabinet Secretary for Economy, Energy and Welsh language keeping the committee updated on these matters. 

Now, as Luke Fletcher said, this is not a report about the pros and cons of nuclear power. This was a one-day inquiry to look at nuclear power and the Welsh economy, and we were limited in terms of the oral evidence that we could take. And I hear what Carolyn Thomas said, but I want to make it clear once again that we didn't look at the arguments for or against nuclear power; we just looked at the economic impacts of potential future nuclear developments. 

Now, as Luke Fletcher also touched upon, whilst energy is not within the committee's remit, the economic potential of the sector is, and so it was wholly appropriate for the committee to hold this inquiry, but his suggestion of a joint inquiry on energy could well be something we could look at in the future. 

Now, of course, clarity is very much needed from the UK Government over its plans. Further information is crucial to support forward planning around skills and housing, as well as to give certainty to the community on Ynys Môn. Although views on the merits of nuclear energy may differ, Members are united in wanting the best economic outcomes for Wales of decisions taken by the UK Government on new nuclear projects, and I agree with the leader of Plaid Cymru—as well as benefits to communities, these projects can bring challenges to those communities, and as a committee we did touch upon some of those challenges.

Jack Sargeant mentioned the importance of highly skilled jobs. There is a huge demand for the skills necessary to work in the nuclear industry, and many of those skills are also transferrable to other growth areas, including jobs for green growth and the move to net zero. Jack Sargeant also referred to skills shortages, which several witnesses told the inquiry was a real concern and a barrier to delivering nuclear ambitions. Alan Raymant of Cwmni Egino said the Horizon experience in north Wales had shown that gearing up local colleges to take on apprentices can be done, noting many of these were now working, of course, as we've heard from other Members, at Hinkley Point.

Of course, certainty is vital to scale up skills programmes, but it's clear that more work needs to be done. I welcome the Welsh Government's commitment to work with the UK Government and its various partners in Wales, as well as with communities in north Wales who are most closely affected, to upskill our workforce and deliver maximum benefit to Wales.

Now, the committee's inquiry clearly showed the potential that the nuclear industry has to provide a huge economic stimulus to our economy and generate jobs and investment. Of course, the Welsh Government must be agile in its response on supply chain and skills issues, once more information is available about the plans for Wylfa, and once there is more certainty on Trawsfynydd too.

Now, Samuel Kurtz referred to supply chain issues, and the committee heard that a substantial amount of work is needed to ensure strong and resilient supply chains to deliver new nuclear projects. Cwmni Egino's approach to ensuring a broad and lasting legacy of local benefit, over the lifetime of a project, is taking a bottom-up approach to a local needs analysis, identifying what communities would value. This looks beyond the construction phase, which lasts a specified period, to the operational phase, involving work in areas such as servicing and maintenance, but also to generate business opportunities on the back of a bedrock of economic activity.

Members have also raised local impacts and community support, and, as the committee report states, nuclear energy developments draw in a mix of workers, and the percentage of local workforce will vary over the lifetime of a project. It will include younger workers who may be expecting to stay in the area for a sustained period of time, and a more transient workforce, including experienced older workers moving from one nuclear project to another. And that requires engagement with the local community, strategic planning, and, indeed, collaboration.

The committee recommended that the Welsh Government sets out how it will work with local authority partners and others to specifically address the housing needs and pressures associated with a new nuclear development, and I'm pleased that the Cabinet Secretary has accepted this specific recommendation. The Welsh Government's response makes it clear that an approach to co-operation with local authority partners and others was tested during the operational period of the Wylfa Newydd programme. Therefore, should a new Wylfa project be forthcoming, a similar approach would be suggested, with partners, to optimise how housing and accommodation pressures can be addressed.

Now, as with all of the themes picked up in this report, the committee will continue to monitor developments very closely. So, in closing, Dirprwy Lywydd, can I thank all those who have taken part in this debate this afternoon? And I want to reassure Members that the committee will continue to look at nuclear energy and the Welsh economy, going forward, and we now await further information from the UK Government about the future of nuclear developments in the UK and, in particular, the future of the sites at Wylfa and Trawsfynydd, and I commend this report to the Senedd.

The proposal is to note the committee's report. Does any Member object? No. The motion is therefore agreed in accordance with Standing Order 12.36.

Motion agreed in accordance with Standing Order 12.36.