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£200m in extra funding expected £350m boost for capital projects
(about 3 hours later)
Millions of extra pounds to boost the Welsh economy are to be spent on health, house building and projects aimed at fighting climate change. Hospital reorganisation, schools and affordable housing will all benefit from a new £350m fund, announced by the assembly government.
The Welsh Assembly Government is to announce an expected £200m from its Strategic Capital Investment Fund. The cash, announced by Finance Minister Andrew Davies, is part of the Strategic Capital Investment Fund (SCIF), a new way of funding projects.
Projects dealing with climate change, transport, regeneration, house building and health could benefit. Mr Davies said 19 capital projects were included in the fund's first round.
Finance Minister Andrew Davies said they were "busting a gut" to bring forward spending during the downturn. Earlier, he said they were "busting a gut" to bring forward spending during the current economic downturn.
He said money which was earmarked for spending in future years was being spent, and he and First Minister Rhodri Morgan and Deputy First Minister Ieuan Wyn Jones will make further announcements on Friday. "Overall, these projects are expected to receive SCIF investment of around £350m, but this figure will be more than doubled with investment also coming in from existing departmental capital budgets, other parts of the public sector, and the private and voluntary sectors, " Mr Davies said.
Mr Davies suggested that affordable housing schemes were among the projects likely to benefit from the announcement later. The projects are spread across six themes - regeneration, positive lifestyles, climate change, sustainable transport, resilience and skills.
Considerable investment 'Tough decisions'
"Obviously, it is one of our major ambitions, we're already spending a very significant amount of money in this area and there is an increasing need for affordable housing," he told BBC Radio Wales. The £350m includes £70m towards an investment to improve hospital services in Swansea, £42m to provide an estimated 500 new affordable homes across Wales, £47m for rail infrastructure and improvement, and £24m for three schools to be built in Wrexham, Newport and Blaenavon.
He said other public services would also be helped in the first phase of this "new and exciting fund". But, under the resilience theme, the fund also earmarks £59m to be spent preparing Wales ahead of a possible flu pandemic and £3m for hazard area response teams who would be involved in responding to chemical or biological incidents.
Mr Davies added: "But you mustn't forget that while the £400m fund, of which I'll be making the first announcement today, is a significant amount of money, that's in addition to the £1.6bn we spend every year in terms of the health service, education, housing and transport. Mr Davies also announced £12m would be spent on transforming the Heads of the Valleys into a low-carbon region.
"So this is in addition to the very considerable investment we are already making." He said Tuesday's announcements were "the result of some tough decisions, reflecting the challenging times in which we are now operating."
He also said the fund was a new way of the assembly government deciding spending priorities. The minister said the assembly government's approach "will ensure that we are best placed to use our resources strategically and imaginatively, and that we maximise the benefit of every Welsh pound for the people of Wales - helping people where it matters most."
Earlier, Mr Davies said the fund, set up last December, was a new way of the assembly government deciding spending priorities.
One Wales documentOne Wales document
"This is the result of an internal process whereby ministers have put bids to me and my colleagues and then we have collectively made this decision which I am announcing today.""This is the result of an internal process whereby ministers have put bids to me and my colleagues and then we have collectively made this decision which I am announcing today."
Asked if in the past spending has been "unstrategic", Mr Davies said: "I think that's something we've accepted for some time, that's why the proposal to set up the fund has been accepted by everybody.Asked if in the past spending has been "unstrategic", Mr Davies said: "I think that's something we've accepted for some time, that's why the proposal to set up the fund has been accepted by everybody.
"This was why the commitment to do this was in the One Wales document [which formed the basis of the Labour-Plaid Cymru coalition assembly government] and as finance minister I've been taking it forward and leading on it.""This was why the commitment to do this was in the One Wales document [which formed the basis of the Labour-Plaid Cymru coalition assembly government] and as finance minister I've been taking it forward and leading on it."
It is thought the money from the Strategic Capital Investment Fund (Scif), which was set up last December, will be used to boost the construction industry, protect jobs, while also building more affordable housing.
Generating work for builders, plumbers and electricians is thought to be one example of injecting money into the economy.
Big projects on climate change, transport, regeneration and health are also expected to benefit.