PUBLIC INQUIRY DOCUMENT

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1 M4 Corridor around Newport REFERENCE NO. : ID/163 PUBLIC INQUIRY DOCUMENT RAISED BY: Mathew Jones DATE: 06/12/17 RESPONDED BY: DATE: SUBJECT: Correspondence between Welsh Government and NRW (OBJ0268) Please find attached a letter from NRW dated 04/12/17 and a response from Welsh Government dated 05/12/17

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5 Adran yr Economi a r Seilwaith Department for Economy and Infrastructure Mr Hogg Head of Operations (South Wales Central) Rivers House St Mellons Business Park Cardiff CF3 0EY Response by jessica.poole@cyfoethnaturiolcymru.gov.uk 5th December 2017 Dear Mr Hogg Thank you for your letter of 4th December setting out NRW s key unresolved issues. May I take this opportunity to respond to each of your outstanding issues in turn. Register of Environmental Commitments and Funding Issues The version of the Commitments Register you received in August has been developed further since then, and I can confirm that Welsh Government and NRW are in agreement with the wording of Commitments 195 and 196 that relate to the funding of additional IDD costs and the funding of commitments in the Register of Environmental Commitments respectively. Welsh Government welcomes that agreement. For ease of reference Commitment 195 states: Welsh Government will provide NRW with the funding required to cover the additional costs that NRW may incur with respect to management of the Caldicot and Wentlooge Levels IDD reen network and water level management due to the construction, operation and management of the M4 Corridor around Newport scheme should the Scheme proceed. The extent and timing of the work, quantum of funding per annum (which would be ring fenced) and payment mechanism would be agreed in advance of the works being undertaken by NRW. Commitment 196 states: Welsh Government will fund the funding required to implement and carry out the commitments in the Register of Environmental Commitments should the M4 Corridor around Newport scheme proceed. The extent and timing of the work, quantum of funding per annum (which would be ring fenced) and payment mechanism would be agreed in advance of the works being undertaken by the appointed organisation and/or company. Parc Cathays Cathays Park Caerdydd Cardiff CF10 3NQ Ffôn Tel Martin.Bates@gov.wales Gwefan website:

6 However, Welsh Government are unable to agree to your amended wording of Commitment 197 which you will recall was originally not requested by NRW, but was offered by Welsh Government. Commitment 197 is about funding of additional costs incurred by NRW in respect of its statutory responsibilities directly associated with the M4 Corridor around Newport scheme. Welsh Government originally proposed the following wording: Welsh Government will provide NRW with the funding required to cover those reasonable and substantiated additional costs that NRW may incur with respect to their statutory responsibilities directly associated with the M4 Corridor around Newport scheme including the agreed environmental mitigation measures should the scheme proceed. The extent and timing of the work, quantum of funding per annum (which would be ring fenced) and payment mechanism would be agreed in advance of the works being undertaken by NRW. Due cognizance will need to be taken of NRW s current statutory responsibilities which are already funded by Welsh Government. Your proposed amendment removes the words reasonable and substantiated from the first sentence and removes completely the last sentence. These words, or something very similar need to be retained for the following reasons. Welsh Government must be assured that 1) additional costs must be reasonable (and bench marked if necessary), clearly defined and differentiated; 2) that NRW would not seek to fund their current statutory responsibilities out of any additional funds that may be made by way of this commitment; and 3) that all payments made by Welsh Government with respect to M4CaN will be independently audited such that all additional costs must be transparent to facilitate the audit process. The ability to audit funding commitments is of the utmost importance to Welsh Government; to that end, the payment mechanism referred to in Commitments 195, 196 and 197 must include a mechanism for auditing. For these, and the above, reasons we respectively maintain that our original wording, or something very similar, is required. Flood Risk I am disappointed at your comments on flood risk because our respective positions on flooding are set out in evidence, and indeed in the signed Flood Risk Statement of Common Ground. Welsh Government s view as articulated in section 6.2 of the Statement of Common Ground is that in agreeing the SESMP2 Hold the Line policy it has demonstrated commitment to maintenance of the Wentlooge and Caldicot Levels flood defences both in the short and long term. An open-ended guarantee of future funding for these flood defences has never been in place, but the serious implications of a tidal flood event have consistently been accepted by past Governments as justification for continued investment to protect the Levels. Matters related to Welsh Government policy are beyond the scope of this inquiry. Parc Cathays Cathays Park Caerdydd Cardiff CF10 3NQ Ffôn Tel Martin.bates@wales.gsi.gov.uk Gwefan website:

7 Due to the extent of infrastructure at risk, the Benefit Cost Ratios for the recommended programme of improvements to the Wentlooge and Caldicot Levels tidal defences are already very high and can only increase with further investment in the area. The Welsh Government therefore considers it reasonable to assume that the investment necessary to maintain the tidal flood defences for the Levels will take place over the long term. Once the limited short-term conflict has been removed by the implementation of the identified flood defence improvements, there would be no conflict with national planning policies in the longer term on the basis that future funding does occur to comply with the Welsh Government's 'Hold the Line' policy. To reinforce our view, I am able to confirm that funds for detailed design leading to construction to address the limited short-term conflict (i.e. Stephenson Street) referred to above is included in Welsh Government s draft Budget that was announced in October. Gwent Levels SSSIs I have set out Welsh Government s position on the three funding commitments to NRW above and will not dwell on them further, other to say that all three will be included in the final Register of Environmental Commitments to be put into the Public Local Inquiry before it closes. Turning to Commitment 199 Welsh Government are pleased that NRW welcome such a commitment. The purpose of that commitment is to ensure ongoing dialogue between Welsh Government and NRW to endeavor to identify and implement an optimal solution to the impacts on the three individual SSSIs across the Caldicot Levels To date we have identified opportunities at Rush Wall within the Gwent Levels Redwick and Llandevenny SSSI and in the vicinity of the Ellen Reen diversion within the Gwent Levels Nash and Goldcliff SSSI. We have also demonstrated that topographically it should be possible to transfer water from Julian s Reen to Common Reen and in so doing increase the length of replacement reen in the Gwent Levels Nash and Goldcliff SSSI. We are continuing to work with your experts on these opportunities and are awaiting information from them on several matters, but most importantly on the seasonal availability of water. I note that NRW s objection remains unchanged with respect to the other matters set out in Section 2.3 of the SoCG, namely extent of loss, likelihood of reen and ditch mitigation supporting SSSI features and adherence to best practice with respect to reen and ditch replacement. Similarly, Welsh Government s position on each of those matters is also set out in Section 2.3 of the SoCG. Parc Cathays Cathays Park Caerdydd Cardiff CF10 3NQ Ffôn Tel Martin.bates@wales.gsi.gov.uk Gwefan website:

8 Finally, I welcome NRW s continued commitment to make its officers available to work with Welsh Government to seek to remove or reduce NRW s outstanding objections. Yours sincerely Martin W Bates Project Director Infrastructure Delivery Transport Parc Cathays Cathays Park Caerdydd Cardiff CF10 3NQ Ffôn Tel Martin.bates@wales.gsi.gov.uk Gwefan website:

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