Recommendations & Conclusions
20 items
1
Conclusion
Second Report - Renewable energy in Wal…
Acknowledged
The Crown Estate plays a crucial role in the management of the UK’s seabed and in ensuring that economic development arising from leases to developers works in tandem with the conservation and protection of our natural resources. We recognise that this is not an easy balance and we thank The …
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The Crown Estate plays a crucial role in the management of the UK’s seabed and in ensuring that economic development arising from leases to developers works in tandem with the conservation and protection of our natural resources. We recognise that this is not an easy balance and we thank The Crown Estate for their hard work and the judicious way in which they discharge their responsibilities.
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Government response AI summary
The government clarifies that The Crown Estate (TCE) is an independent body responsible for seabed management. It then details TCE's active role, including a confirmed new leasing round for floating offshore wind in the Celtic Sea and the progress of three test projects, thereby acknowledging …
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Wales Office
2
Conclusion
Second Report - Renewable energy in Wal…
Acknowledged
Over the course of our inquiry we heard significant demand from energy companies for additional seabed leases to be made available. These leases are essential to the development of offshore energy generation in Welsh waters. We therefore welcome the recent announcement from The Crown Estate of a new leasing opportunity …
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Over the course of our inquiry we heard significant demand from energy companies for additional seabed leases to be made available. These leases are essential to the development of offshore energy generation in Welsh waters. We therefore welcome the recent announcement from The Crown Estate of a new leasing opportunity for early commercial-scale floating wind projects in the Celtic Sea. This new leasing opportunity will be particularly significant for the marine sector in Wales and, through its focus on projects of circa 300MW in scale, will be an important step towards the UK Government’s ambition to deliver 1 GW of floating wind by 2030.
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Government response AI summary
The government reiterates that The Crown Estate (TCE) is an independent body responsible for seabed management. It then details TCE's active role, including a confirmed new leasing round for floating offshore wind in the Celtic Sea and the progress of three test projects, thereby acknowledging …
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Wales Office
3
Recommendation
Second Report - Renewable energy in Wal…
Deferred
We encourage The Crown Estate to continue to work proactively with developers to ensure that adequate leasing rounds continue to be offered on a regular basis in the future. Of most importance is that there is, as far as possible, alignment between the timetables being used by The Crown Estate …
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We encourage The Crown Estate to continue to work proactively with developers to ensure that adequate leasing rounds continue to be offered on a regular basis in the future. Of most importance is that there is, as far as possible, alignment between the timetables being used by The Crown Estate for its leasing rounds and the timeframes which underpin developers investment decisions. The Department for Business Energy and Industrial Strategy should work with The Crown Estate and energy developers to explore how there can be greater alignment of timeframes for, as well as clearer communications of, leasing opportunities. We also recommend that the UK and Welsh governments should explore mechanisms for more effectively distributing wealth generation from renewable energy projects to communities in Wales. (Paragraph 25) Subsidy schemes and finance
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Government response AI summary
The government states that The Crown Estate (TCE) is an independent body responsible for seabed management and details TCE's confirmed new leasing round for floating offshore wind and progress of test projects. The response effectively redirects responsibility for direct government involvement in leasing timetables to …
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Wales Office
4
Conclusion
Second Report - Renewable energy in Wal…
Acknowledged
The Contracts for Difference (CfD) scheme has been highly successful in supporting renewable energy development in Wales. However, emerging marine technologies such as wave and tidal require additional support to bridge the gap between innovation funding and CfDs.
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The Contracts for Difference (CfD) scheme has been highly successful in supporting renewable energy development in Wales. However, emerging marine technologies such as wave and tidal require additional support to bridge the gap between innovation funding and CfDs.
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Government response AI summary
The government points to existing mechanisms like the UK Community Renewal Fund and the CfD scheme's Pot 2 for less-established technologies. It states officials are engaging with tidal stream developers to explore cost-reduction and potential funding arrangements outside CfD.
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Wales Office
5
Recommendation
Second Report - Renewable energy in Wal…
Not Addressed
The UK Government must address the funding gap for emerging marine technologies or risk negatively impacting their development. As a first step, Ministers from Her Majesty’s Treasury, in cooperation and coordination with Welsh Government Ministers, should arrange to meet with representatives from the marine energy sector as a matter of …
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The UK Government must address the funding gap for emerging marine technologies or risk negatively impacting their development. As a first step, Ministers from Her Majesty’s Treasury, in cooperation and coordination with Welsh Government Ministers, should arrange to meet with representatives from the marine energy sector as a matter of urgency to investigate the feasibility of introducing Innovation Power Purchase Agreements. Such Agreements could provide a powerful catalyst for investment in emerging technologies and help support innovation and development in renewable energy projects.
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Government response AI summary
The government did not address the specific recommendation for Ministers to meet with marine energy sector representatives to investigate Innovation Power Purchase Agreements. The response describes ongoing engagement by officials and existing funding mechanisms.
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Wales Office
6
Recommendation
Second Report - Renewable energy in Wal…
Not Addressed
The Feed-in Tariffs scheme had been hugely successful in attracting investment in small-scale renewable energy generation. We are concerned, however, that its Renewable energy in Wales 27 replacement scheme the Smart Export Guarantee has been widely criticised by small-scale renewable developers as being too limited in scope and for its …
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The Feed-in Tariffs scheme had been hugely successful in attracting investment in small-scale renewable energy generation. We are concerned, however, that its Renewable energy in Wales 27 replacement scheme the Smart Export Guarantee has been widely criticised by small-scale renewable developers as being too limited in scope and for its apparent lack of ambition. We are also concerned at reports that the roll out of smart meters has been hindered in rural areas due to infrastructure problems and urge the UK Government to work with the Welsh Government to resolve these issues.
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Government response AI summary
The government only provides a definition of the Smart Export Guarantee (SEG). It does not address the committee's concerns about the SEG's limitations, smart meter rollout issues in rural areas, or the recommendation to work with the Welsh Government to resolve these problems.
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Wales Office
7
Recommendation
Second Report - Renewable energy in Wal…
Not Addressed
This is a critical moment for the climate agenda. If the UK Government is to achieve its ambitious net-zero targets, it needs to have a subsidy programme that succeeds in attracting private sector and community investment in small-scale renewable energy generation. The UK Government should therefore, as a matter of …
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This is a critical moment for the climate agenda. If the UK Government is to achieve its ambitious net-zero targets, it needs to have a subsidy programme that succeeds in attracting private sector and community investment in small-scale renewable energy generation. The UK Government should therefore, as a matter of urgency, explore re- introducing generation tariffs to the Smart Export Guarantee in order to adequately support small-scale renewable energy generation. As consumers are currently only guaranteed to be paid less than zero, the UK Government should also examine bringing back a fixed tariff to incentivise further small-scale energy generation. The UK Government should report back to us within the next three months on its review of these proposals. (Paragraph 38) Renewable energy and the local economy
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Government response AI summary
The government only provides a definition of the Smart Export Guarantee (SEG). It does not commit to exploring the re-introduction of generation or fixed tariffs to the SEG, nor does it agree to report back within three months on a review of these proposals.
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Wales Office
8
Conclusion
Second Report - Renewable energy in Wal…
Accepted
The shift to a net zero economy will be one of the most significant economic transformations in decades. It will have far reaching consequences for communities and individuals across the UK, for livelihoods and lifestyles. While this decarbonisation journey offers potentially rich rewards, it also contains significant risks for the …
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The shift to a net zero economy will be one of the most significant economic transformations in decades. It will have far reaching consequences for communities and individuals across the UK, for livelihoods and lifestyles. While this decarbonisation journey offers potentially rich rewards, it also contains significant risks for the Welsh economy. While Wales’ natural resources may lend themselves to renewable generation projects, there is no guarantee that the supply chains and workforces involved in the development of these programmes will be based in, or come from, Wales. Securing the benefits of, and minimising the risks from, the shift to net zero will, among other things, require a comprehensive strategy, and focus, on upskilling the Welsh workforce.
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Government response AI summary
The government acknowledges the need for a comprehensive strategy to upskill the workforce for the net-zero economy, referencing its Ten Point Plan and investments in skills. It highlights the Green Jobs Taskforce, launched last year, specifically tasked with addressing skills for the low-carbon transition.
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Wales Office
9
Recommendation
Second Report - Renewable energy in Wal…
Accepted
If the UK Government intends to ensure that jobs will not be lost during the transition to a greener economy, it needs to work with the business sector and stakeholders including the Welsh Government to develop a comprehensive strategy for upskilling the current workforce, leveraging new opportunities and tackling the …
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If the UK Government intends to ensure that jobs will not be lost during the transition to a greener economy, it needs to work with the business sector and stakeholders including the Welsh Government to develop a comprehensive strategy for upskilling the current workforce, leveraging new opportunities and tackling the barriers, including grid constraints, that currently threaten to undermine the potential gains from the shift to a net-zero economy. As a sign of the UK Government’s commitment to securing progress at the COP26 summit, as well as of its broader net-zero agenda, we call on the UK Government to convene, prior to the COP26 summit this Autumn, a high-level panel of stakeholders to begin work on a reskilling strategy.
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Government response AI summary
The government highlights its Ten Point Plan for a green industrial revolution and the establishment of the Green Jobs Taskforce last year. This taskforce was already convened with stakeholders to advise on skills and a reskilling strategy, addressing the committee's recommendation.
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Wales Office
10
Conclusion
Second Report - Renewable energy in Wal…
Acknowledged
Wales natural resources, coastline and all round renewable energy potential should mean that it benefits significantly from the UK Government’s Ten Point Plan for the Green Industrial Revolution. However, we are concerned that the UK Government has provided no information on how many of the jobs envisaged by the plan …
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Wales natural resources, coastline and all round renewable energy potential should mean that it benefits significantly from the UK Government’s Ten Point Plan for the Green Industrial Revolution. However, we are concerned that the UK Government has provided no information on how many of the jobs envisaged by the plan will be located in Wales.
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Government response AI summary
The government acknowledges Wales' central role in the green industrial revolution and lists numerous specific funding commitments and projects in Wales, including over £90 million for net-zero initiatives. However, it does not provide specific figures on the number of jobs anticipated in Wales from the …
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Wales Office
11
Recommendation
Second Report - Renewable energy in Wal…
Not Addressed
While Wales has the potential to benefit from the Ten Point Plan, it will not do so automatically or by right. Rather, it will require a clear vision, and a specific plan, for job creation from the UK Government. Using the Ten Point Plan as a starting point, 28 Renewable …
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While Wales has the potential to benefit from the Ten Point Plan, it will not do so automatically or by right. Rather, it will require a clear vision, and a specific plan, for job creation from the UK Government. Using the Ten Point Plan as a starting point, 28 Renewable energy in Wales the UK Government should develop a Wales specific plan that provides a detailed route-map and aspirations, including in terms of job numbers, for the Ten Point Plan in Wales. The UK Government should also commit to set aside parliamentary time for this Wales specific plan to be debated by MPs. This plan should be published, and time made available for a debate on the floor of the House of Commons, or in a special session of the Welsh Grand Committee, before the end of the current year. (Paragraph 48) Issues facing the renewable sector in Wales
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Government response AI summary
The government details various existing funding commitments and projects for net zero in Wales, including specific amounts for initiatives like the Active Building Centre. However, it does not commit to developing a new Wales-specific plan with a detailed route-map, job numbers, or allocating parliamentary time …
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Wales Office
12
Conclusion
Second Report - Renewable energy in Wal…
Acknowledged
Effective collaboration and co-operation between the UK and Welsh governments will be essential if Wales is to achieve net zero by 2050. Significant issues such as grid capacity and port infrastructure, in particular, require cross-government working if they are to be resolved, and there are a number of key areas …
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Effective collaboration and co-operation between the UK and Welsh governments will be essential if Wales is to achieve net zero by 2050. Significant issues such as grid capacity and port infrastructure, in particular, require cross-government working if they are to be resolved, and there are a number of key areas where there are common interests and opportunities for further collaboration between the UK and Welsh governments. Existing programmes and schemes to develop the supply chain’s capacity and capability through clusters such as the South Wales Industrial Cluster and Celtic Sea Cluster should continue to enable cross-border working.
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Government response AI summary
The government recognises the important role of Devolved Administrations in expanding renewable power and confirms that officials will continue to work closely with Welsh counterparts and the Wales Office. Ministerial collaboration will also continue through existing fora such as the Net Zero Inter-Ministerial Group.
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Wales Office
13
Recommendation
Second Report - Renewable energy in Wal…
Rejected
The UK Government should focus on maintaining a close working relationship with the Welsh Government, particularly in regard to major energy systems challenges such a grid capacity and port infrastructure. To facilitate effective collaboration, where renewable energy projects in Wales are under consideration, the UK Government should invite Welsh Government …
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The UK Government should focus on maintaining a close working relationship with the Welsh Government, particularly in regard to major energy systems challenges such a grid capacity and port infrastructure. To facilitate effective collaboration, where renewable energy projects in Wales are under consideration, the UK Government should invite Welsh Government Ministers to attend and participate in the Ministerial Delivery Group.
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Government response AI summary
The government states its officials will continue working closely with Welsh officials to ensure Welsh interests are reflected in the Ministerial Delivery Group. However, it declines to invite Welsh Government Ministers to that specific group, instead suggesting engagement through existing inter-ministerial fora.
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Wales Office
14
Conclusion
Second Report - Renewable energy in Wal…
Acknowledged
Interconnectors have been proven to provide strong benefits for decarbonisation, because of this the role of interconnectors is expected to greatly increase in the decades leading to net zero. As an interconnector in Wales would allow excess energy, which is likely to be created due to the abundance of wind …
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Interconnectors have been proven to provide strong benefits for decarbonisation, because of this the role of interconnectors is expected to greatly increase in the decades leading to net zero. As an interconnector in Wales would allow excess energy, which is likely to be created due to the abundance of wind energy in the country, to be exported rather than curtailed, there are clear opportunities for Wales to benefit. This is particularly significant for Welsh waters in light of the EU’s requirement for 300GW of offshore wind by 2050.
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Government response AI summary
The government acknowledges the benefits of interconnectors, highlighting its ambition for 18 gigawatts by 2030 and its support for interconnection as a core energy strategy. It references the ongoing Offshore Transmission Network Review which considers multi-purpose interconnectors and expresses interest in Celtic Sea opportunities.
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Wales Office
15
Recommendation
Second Report - Renewable energy in Wal…
Acknowledged
Further to the UK Government’s recent collaboration with the EU on a potential North Sea grid, the UK Government should consider the opportunity for further export from the Celtic Sea to the continent and the creation of a Celtic Sea Economic Zone.
Government response AI summary
The government outlines existing ambitions for electricity interconnection and the Offshore Transmission Network Review, and expresses interest in hearing more about Celtic Sea opportunities. However, it does not commit to specifically considering further export from the Celtic Sea or creating a Celtic Sea Economic Zone …
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Wales Office
16
Conclusion
Second Report - Renewable energy in Wal…
Accepted
We received a considerable amount of evidence arguing that grid capacity issues are currently significantly hindering renewable energy deployment throughout Wales, and are likely to continue to do so in the future. If the UK Government is unaware of the severity of this issue, it would suggest that their engagement …
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We received a considerable amount of evidence arguing that grid capacity issues are currently significantly hindering renewable energy deployment throughout Wales, and are likely to continue to do so in the future. If the UK Government is unaware of the severity of this issue, it would suggest that their engagement with stakeholders on issues affecting renewable energy development has not been sufficient.
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Government response AI summary
The government states that network regulation is a matter for Ofgem but is working with them to enable anticipatory investment by network companies. It details significant existing and planned investments in Welsh transmission and distribution networks, and highlights the ongoing Offshore Transmission Network Review which …
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Wales Office
17
Recommendation
Second Report - Renewable energy in Wal…
Accepted
The UK Government must recognise that Wales’ increase in renewable energy development and generation may be significantly hindered by grid constraints if action is not taken. To mitigate this risk, the UK Government must work in collaboration Renewable energy in Wales 29 with Ofgem to plan anticipatory investment in Wales, …
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The UK Government must recognise that Wales’ increase in renewable energy development and generation may be significantly hindered by grid constraints if action is not taken. To mitigate this risk, the UK Government must work in collaboration Renewable energy in Wales 29 with Ofgem to plan anticipatory investment in Wales, so that the significant uplift in renewables generation which is likely to occur is not handicapped by our currently severe grid constraints. The UK Government must also engage with key stakeholders to ensure that these constraints are adequately addressed in such a way that will not delay the Welsh decarbonisation roadmap.
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Government response AI summary
The government confirms it is working with Ofgem to enable anticipatory investment in network infrastructure and cites significant current and planned investment across Great Britain and specifically in South and Mid Wales. It also highlights the Offshore Transmission Network Review, which is developing a plan-led …
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Wales Office
18
Recommendation
Second Report - Renewable energy in Wal…
Acknowledged
Wales is well-placed to benefit from the significant potential of fixed bottom and floating offshore wind around the Welsh coast. However, existing issues with the supply chain and port infrastructure must be addressed if the country wants to take advantage of these opportunities.
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Wales is well-placed to benefit from the significant potential of fixed bottom and floating offshore wind around the Welsh coast. However, existing issues with the supply chain and port infrastructure must be addressed if the country wants to take advantage of these opportunities.
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Government response AI summary
The government acknowledges the potential of offshore wind and the importance of supply chain and jobs. It highlights past investment in port infrastructure and welcomes collaboration, but does not commit to new specific actions to address existing supply chain and port infrastructure issues.
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Wales Office
19
Recommendation
Second Report - Renewable energy in Wal…
Acknowledged
The UK Government should make clear the likelihood of further funding of ports infrastructure in Wales to support the emerging offshore wind sector. Further port investment should be encouraged for Welsh ports, particularly the Celtic Sea ports, in any future funding rounds. Freeports are one current area where significant investment …
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The UK Government should make clear the likelihood of further funding of ports infrastructure in Wales to support the emerging offshore wind sector. Further port investment should be encouraged for Welsh ports, particularly the Celtic Sea ports, in any future funding rounds. Freeports are one current area where significant investment is being discussed by the UK Government, and we urge the UK and Welsh governments to reach agreement, as soon as possible, on the funding arrangements for a freeport in Wales. If these discussions can be unblocked, the competition process for a Welsh freeport should place a heavy emphasis on renewable and net-zero considerations and should look to facilitating investment in the development of renewable energy generation.
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Government response AI summary
The government acknowledges the economic opportunities of offshore wind and commits to working closely with Welsh stakeholders. However, it does not commit to clarifying the likelihood of further ports funding or accelerating agreement on Welsh freeport funding, instead referencing existing successful investments.
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Wales Office
20
Recommendation
Second Report - Renewable energy in Wal…
Acknowledged
The UK and Welsh governments, as well as port operators, and energy companies with developments in Wales, should work together to learn the lessons from the North East of England, where a clear strategy, focus, and public and private sector investment have led to the Port of Blyth becoming a …
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The UK and Welsh governments, as well as port operators, and energy companies with developments in Wales, should work together to learn the lessons from the North East of England, where a clear strategy, focus, and public and private sector investment have led to the Port of Blyth becoming a hub for renewable energy development and jobs. If Wales is to make the most of its offshore potential, then her ports will need to have the right infrastructure and the skills base which can ensure that investment in energy development also results in investment in jobs and skills in Wales. (Paragraph 81) 30 Renewable energy in Wales
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Government response AI summary
The government acknowledges the economic potential of offshore wind and the importance of maximizing supply chain and job benefits, noting past successful investments in port infrastructure. It welcomes collaboration but does not commit to a specific process for learning lessons from the North East of …
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Wales Office