Order, Order.

We turn now to a Vote on WM122 in the name of the 20th Welsh Government. The question is whether this Parliament approves the Motion on Capital Spending Borrowing Powers.

Motion on Capital Spending Borrowing Powers

The Senedd notes that:

(1) The Senedd can currently borrow up to a total of £1 billion for capital spending,

(2) The limit is currently set at £150 million a year that the Welsh Government may borrow for this purpose up to a total of £1 billion,

(3) The Senedd has yet to use any of this power.

The Senedd further notes that:

(1) Investing in infrastructure to tackle climate change is an important method both to safeguard our future and increase growth across all parts of Wales.

(2) Using the powers we have for targeted capital investment will ensure day to day spending remains balanced.

(3) Any borrowing in the next few financial years will involve repaying that money over time which will need to come out of future day to day spending.

(4) £150 million a year may not be enough to meet the needs of Wales in the next few years.

(5) The use of new powers would need to be approved during the usual budget process, and the Welsh Government has noted it would seek legislative approval for its long term infrastructure strategy.

Recognising all of the above, the Senedd resolves to

(1) Put together a multi year Infrastructure Strategy to meet the needs of the people of Wales in tackling climate change and ensuring people have appropriate local infrastructure, and

(2) Asks the Welsh Government to negotiate a rise in the £150 million a year cap to £500 million a year, and seek further clarifications from the UK Government and Bank of England in how repayments will be made should the increase come into effect.

This motion was proposed by Sir /u/T2Boys, Duke of Aberdeen and Cabinet Secretary for Finance and the Economy, on behalf of the 20th Welsh Government

Opening Speech — /u/T2Boys

Llywydd,

This motion is a straight forward one dealing with a complicated topic. The motion I believe does go into sufficient detail on the background of the policy but I will briefly go over it again here. As it stands, the Welsh Government can borrow £150 million a year up to a maximum of £1 billion for capital spending. This is a small amount of money given this £150 million could be eaten up by one infrastructure project alone.

We want to see an increase to our borrowing powers to allow us to borrow up to £500 million in one year, with the cap at £1 billion remaining. The overall cap is a sensible one and will ensure the Welsh Government cannot get into mountains of debt, but the yearly limit we want to see lifted.

This would allow us to invest more in a shorter time period into our infrastructure strategy. This strategy will be budged for in the upcoming budget although given the tight timeframe it is unlikely the full details would be released before that point. By giving us extra borrowing powers, we are ensuring both quicker investments, but also given we intend to use these powers sensible it may mean we can borrow more if costs begin to overrun which we will work hard to ensure does not happen.

There has been concerns raised in the past about the responsibility of this plan, acknowledging that I will not always be Finance Secretary and future governments may choose to use these powers recklessly. I do not believe that is possible. The overall cap remains in place, the limit is only being lifted, and ultimately this money will need to be paid back if used which is something we will discuss with relevant stakeholders if we get to the point of using these powers.

This motion will allow us to go to Westminster with a clear mandate from this place, and by inference the people of Wales, and for that reason I urge this place to pass the motion.

Vote on this motion will end on Sunday 11th February at 10pm GMT.