The value of trade going through Holyhead last December was almost half a billion less than the year before, a Senedd Committee has been told by the Welsh Government.
The Senedd’s Economy, Trade and Rural Affairs Committee has been critical of the Welsh Government’s response to the port closure last year and believes this was a main factor in the loss of trade.
Members expressed dismay at the “lack of speed and urgency” from the Welsh Government in responding to the closure of Wales’s busiest ferry port.
Following an inquiry and evidence gathering from key organisations involved with the port, the Committee’s report is calling for a ‘lessons learned review’ for Holyhead to be prepared and resilient in the future.
Andrew RT Davies MS, Chair of the Senedd’s Economy, Trade and Rural Affairs Committee said:
“Holyhead is the UK's second busiest ferry port and last December’s storm damage, after more than a month of closure, seriously affected some local businesses. We heard of some firms reporting losses of tens of thousands of pounds.
“We are very disappointed by the lack of speed and urgency in the Welsh Government’s response to the closure of a crucial European trade route.
“We have seen limited evidence that the Welsh Government has adequately addressed the issues caused by the closure. It is local action and cooperation between ports that prevented Holyhead's closure from being even worse for Welsh trade and the wider economy.
“It is clear that the Welsh Government’s response was not acceptable – it was too slow to act and uncoordinated. Many people were left in the dark because communications were not good enough - this must not happen again.
“Ports and freight are vital to our economy and the Welsh Government has ignored these areas for too long. We were promised new policies by last December but this has now been kicked into the long grass until next year – this is not good enough, we need action now.”
Who’s in charge?
It is unclear to the Committee, and key organisations involved in the response and recovery efforts, which Minister is responsible for the Welsh Government’s response - this confusion may have exacerbated problems with the response to this emergency.
The Committee is recommending that in any future incidents of this scale or complexity, the Welsh Government should agree a Ministerial lead who will oversee and be held accountable for management of the response.
Support for local businesses and workers
Today’s report highlights a lack of urgency in responding to requests to support affected businesses, and limited understanding of how the closure is impacting the local workforce- the Committee wants to see a clearer picture of the effects of job losses and lost working hours on households.
For this, and similar incidents, the Welsh Government should better understand the impact on workers and businesses and urgently decide what financial and other support is available for those affected by any port closures.
The future for Holyhead
The Committee believes that the Welsh Government has shown a lack of attention to both ports and freight over recent years and is concerned about trade being diverted elsewhere. The Welsh Government must ensure Holyhead remains an attractive choice for trade.
In 2022, the Committee launched a report, A new direction for HGV Drivers, which provided recommendations for the Welsh Government on freight issues, in particular how to address HGV driver shortages and related supply chain issues.
The Committee believes that the Welsh Government should accelerate its work to implement the recommendations in that report and bring forward a maritime and ports strategy and freight plan as a matter of urgency.
Taskforce for Holyhead
On 7 January the Cabinet Secretary for Transport and North Wales announced the establishment of “a Welsh Government-led multistakeholder taskforce to develop a new strategy for the future of Holyhead”
The Committee will be closely monitoring the work of this taskforce and believes that its objectives should include:
- Understanding the causes of the events at Holyhead to understand whether there are any implications for the wider ports sector or ports policy
- Ensuring the future safety of the Port
- Improving facilities for drivers through Holyhead
- Assessing the resilience of, and improving transport links, to Holyhead including consideration of rail connections
- Supporting the long-term viability of the Port and avoiding trade diversion
- Ensuring there is a strong contingency plan for any future closure at Holyhead in particular and Welsh ports in general. In particular, this should include traffic management, communications, implementation of alternative maritime routes and support for local businesses
The Welsh Government will now be asked to respond to the Committee’s report.