Are Welsh Taxpayers subsidising the spanish economy?

2.00.25pm UTC (GMT +0000) Fri 12th Jan 2007

Welsh Liberal Democrat Enterprise, Innovation and Networks spokesperson, Kirsty Williams, has voiced doubts over the effectiveness of the Assembly Government's Route Development Fund spending.

Her comments came after the Enterprise Minister admitted over £500,000 of Assembly Government money had been spent to support the launch of a new Cardiff to Barcelona air service.

Ms Williams said: "While I have no doubt that the new service is good news for Welsh holiday makers looking for a weekend break in the sun, I am not at all convinced that this is a good use of Welsh taxpayers money. Even if we set aside the environmental implications (and I find it strange that this Welsh Labour Government, which talks about a commitment to sustainability, is effectively subsidising short-haul air travel), I find it unlikely that this route will meet the fund's objective of improving competitiveness for Welsh business. I will be asking the Minister what assessment has been made of the likely economic benefit to Wales, as it seems to me that it is Barcelona's tourist industry that is likely to be the main beneficiary of this funding."

Notes:

EIN Minister Andrew Davies has included a note in his report to next Wednesday's EIN Committee which reads: "Funding in excess of £500,000 from my department's Route Development Fund is to support the launch of a new Cardiff to Barcelona air service expected to carry around 29,000 passengers a year. Our Route Development Fund was launched in December 2005 with the aim of developing new direct air services and improving accessibility and competitiveness for Welsh business."