THE WELSH GOVERNMENT has been questioned about its investment in sports car manufacturer TVR.
On Tuesday (Jan 16), the Government announced that it had acquired a 3% stake in TVR; it has also provided a £2m loan to the company, which says there is another 12 months of research and development to go before it begins constructing cars in Ebbw Vale.
The planned TVR site was acquired by the Welsh Government last year and includes the 200,000 sq ft former Techboard building.
The terms of TVR’s lease have not been revealed by the Welsh Government. The TVR deal is part of a Welsh Government plan to build up automotive and manufacturing industry in Ebbw Vale and the surrounding areas following the Welsh Government’s withdrawal from involvement in the Circuit of Wales plan.
TVR claims that moving the car maker there will create up to 150 jobs.
However, official accounts lodged with Companies House indicate a headcount of just six jobs at TVR Manufacturing Ltd, despite that jobs pledge. The headcount at its ‘parent company’, TVR Automotive Ltd was recorded as ‘0’.
Official company accounts also reveal the extent of Welsh Government financial support for TVR: Shareholding of 100,000 shares in TVR Automotive Limited (a company listed as ‘dormant’ on Companies House) £2,000,000 in the form of a ‘long term loan’ which is repayable on demand until TVR secures £5.5m in further equity funding – though the company’s accounts suggest that the Welsh Government ‘has indicated that they have no intention of demanding repayment’.
Shadow Economy Secretary – Russell George – is calling for assurances from the Welsh Government that taxpayer money is being properly safeguarded.
He said: “We need to see tangible evidence that this investment represents value for money.
“The prestige of the TVR badge is one thing – and there is understandable excitement around their decision to locate in Wales.
“However, we need to see the jobs that were promised, and as major shareholders in the company the Welsh public will want to see genuine progress.
“Ultimately, commercial common sense dictates that there must be an economic benefit to this spending.
“Millions of pounds have been invested in TVR, and the Welsh Government must ensure that this exciting project doesn’t turn into another disappointment for the people of Blaenau Gwent.”
The Welsh Government has been repeatedly criticised by the Wales Audit Office and Assembly scrutiny committees for its participation in a series of commercial investments.
A scathing report delivered in 2016 revealed that the Welsh Government had ignored the views of its own senior civil servants in saying it was pressing on with the Circuit of Wales development in the run up to the last Assembly election and blew £9.3m of public money on the scheme, including funding the acquisition of a motorcycle company in Oxfordshire.
The Welsh Government accepted ten out of eleven recommendations made by the Assembly’s Public Accounts Committee following the collapse of steel coating firm Kancoat in Swansea.
Kancoat had received £3.4m of public funds in the teeth of advice to then Economy Secretary Edwina Hart that the investment was high risk and Kancoat’s business plan was ‘weak’. Moreover, there was no record of a key meeting in which funding to Kancoat was discussed.
A 2015 report revealed that 54 companies that had received Welsh Government support had either ceased trading or become insolvent, owing the taxpayer over £11m; in 2016 Main Port Engineering in Pembroke Dock, which had received £650K from the Welsh Government the previous year went bust owing £1.1m; £1m was given to Kukd, in Cwmbran, which then outsourced jobs supposed to be in Wales.
An investment in Pinewood studios resulted in the creation of only 50 of a promised 2,000 jobs.
Local coronavirus restrictions imposed to control outbreaks in South Wales
Coronavirus laws are being tightened in four more Welsh authorities – Blaenau Gwent, Bridgend, Merthyr Tydfil and Newport – following a sharp rise in cases, Health Minister Vaughan Gething today announced.
The new measures will come into force at 6pm on Tuesday 22 September 2020, to protect people’s health and control the spread of the virus in the four local authority areas.
The new restrictions will apply to everyone living in Blaenau Gwent, Bridgend, Merthyr Tydfil and Newport:
People will not be allowed to enter or leave these areas without a reasonable excuse, such as travel for work or education;
People will only be able to meet people they don’t live with outdoors for the time being. They will not be able to form, or be in, extended households;
All licensed premises will have to close at 11pm;
Everyone over 11 will be required to wear face coverings in indoor public areas – as is the case across Wales.
From 6pm on Tuesday 22 September, the requirement for all licensed premises to close at 11pm will also be extended to Caerphilly borough.
Health Minister, Vaughan Gething, said:
“Following the decision to place additional coronavirus restrictions in place in Caerphilly and Rhondda Cynon Taf, we have seen a worrying and rapid rise in cases in four other south Wales council areas – Blaenau Gwent, Bridgend, Merthyr Tydfil and Newport.
“In many cases, this is linked to people socialising indoors without social distancing. We are seeing evidence of coronavirus spreading. We need to take action to control and, ultimately, reduce its spread and protect people’s health.
“It’s always a difficult decision to introduce restrictions but coronavirus has not gone away – it is still circulating in communities across Wales and, as we are seeing in parts of South Wales, small clusters can quickly cause real issues in local communities.
“We need everyone’s help to bring coronavirus under control. We need everyone to pull together and to follow the measures which are there to protect you and your loved ones.”
The restrictions are being introduced following a rapid increase in the number of confirmed cases in coronavirus, which have been linked to people meeting indoors, not following social distancing guidelines and returning from summer holidays overseas.
The Welsh Government will call an urgent meeting of all local authority, health board and police forces from Bridgend to the English border tomorrow to discuss the wider situation in South Wales and whether further measures are needed across the region to protect people’s health.
The new local restrictions measures will be kept under regular review. They will be enforced by local authorities and by the police.
Keep Wales safe by:
Always keeping your distance
Washing your hands regularly
Working from home wherever you can
Following any local restrictions
Following the rules about meeting people
Staying at home if you or anyone in your extended household has symptoms.
Julie James AM attends the launch in Swansea of new research on benefits of Community Led Housing
JULIE JAMES AM, Minister for Housing and Local Government, attended the launch at Down to Earth in Swansea of new research from the Wales Co-operative Centre, with support from the Nationwide Foundation, which found that residents who live in community led housing (CCLH) experience improved mental wellbeing and happiness, as well as improved skills development.
Over 50 residents from 22 community led housing schemes across Wales and England were interviewed. The top benefits that residents highlighted were:
Residents felt less isolated, being surrounded by a supportive network
• Improved mental wellbeing and happiness
• A better quality of life with the potential for skills development and increased levels of confidence, as well as a better financial situation
• Wider benefits to the community including a reduction in antisocial behaviour and greater community collaboration
• Derek Walker, Chief Executive of the Wales Co-operative Centre, said of the research: “We were really pleased with the research findings and the range of softer benefits that residents have seen. As well as the expected financial benefits, there is a much wider impact on mental wellbeing and skills development which is great to see.”
Minister for Housing and Local Government, Julie James AM, said: “I have been overwhelmed in hearing the benefits residents gain from living in community-led housing. The difference tenants feel in terms of improved skills, increased confidence and improved mental wellbeing to name but a few – demonstrates why community-led housing can, and should be part of the solution to the housing crisis we face here in Wales. Building more affordable housing and providing people with safe, warm and secure homes is a key priority for this Welsh Government. I’m looking forward to watching community-led housing grow and flourish – and contribute towards our commitment to building 20,000 affordable homes during this Assembly term.”
Lib Dems slam ‘botched’ scheme
THE WELSH Liberal Democrats have slammed the Conservative Government for their “hapless treatment” of EU citizens after the Home Office released guidance on the new EU Settlement Scheme.
The Home Office has confirmed that for the duration of the trial period, until 30 March, EU citizens applying to stay in the UK must either use an Android phone or travel to one of 13 ‘document scanning’ centres instead.
For Holyhead, the closest ‘document scanning’ centre is Trafford.
According to an analysis by the Welsh Liberal Democrats, EU citizens travelling from Holyhead would face costs of £55 on the train for at least a six and a half hour round trip. The drive would be a 224-mile round trip costing around £56 in fuel.
The only document scanning centre in Wales is in Caerphilly. Travelling from Pembroke to Caerphilly and returning the same day by rail would cost £32.10 (the cheapest available fare at the time of enquiry), the cheapest off-peak fare from Aberystwyth would be £77.10 return. By car at an average of 40mpg, the cost of travel would be at least £27 to and from Pembroke, while from Aberystwyth the cost would be at least £25. Both car journeys represent round trips of over 180 miles.
Welsh Liberal Democrat Leader Jane Dodds said: “Too many people in Wales are deeply anxious about their right to stay. Many of them fill vital roles in the health service, our schools and the tourism sector. They want to register as soon as possible, but Theresa May’s hapless treatment of EU citizens could result in a new Windrush scandal.
“For anyone who doesn’t have an android phone, this botched scheme means they will have to travel. For people in Holyhead, that means facing a 224-mile round trip and paying over £50 for the privilege. This postcode lottery is simply unacceptable.”
Liberal Democrat Home Affairs Spokesperson Ed Davey MP said: “Following significant pressure, the Prime Minister said there will be no financial barrier for any EU nationals who wish to stay. How long did that commitment last?
“It is Conservative Ministers who have made a mess of Brexit. They should either pay the cost for EU citizens or change the application system and ensure EU citizens are made to feel welcome in the UK.
“Ultimately, the best way to avoid all of this mess is by giving the people the option to remain in the EU with a final say on Brexit.”
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