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Welsh Government’s TVR investment probed

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TVR: Questions remain over Government role

THE WELSH G​OVERNMENT 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.

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Ben Lake MP “disappointed” after Agriculture Bill amendment on the standard of food and agricultural imports is rejected by House of Commons

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The UK’s new Agriculture Bill was put before MPs on Wednesday (13 May) for the final time as it reached the Report Stage and Third Reading.

Alongside farming unions and campaign groups, Ben Lake MP has lobbied for the Bill to include a number of important amendments. One of the amendments sought to introduce a legal requirement that agricultural or food products imported into the UK under future trade agreements would need to be produced or processed according to equivalent animal health, welfare and environmental standards as those required of UK prodcuers.

This amendment, in the form of New Clause 2, and which was tabled by the Chair of the Environment, Food and Rural Affairs Committee Neil Parish MP, was rejected by the Commons. All Plaid Cymru MPs supported the amendment and Ben Lake MP said he was “disappointed” that the house did not vote in favour of an amendment to prevent the importation of products produced to lower animal health and environmental standards, and which in turn would have supported the high standards of Welsh produce.

Ben Lake MP said:

“Without this amendment there remains no legal requirement for future UK trade agreements to ensure that any agricultural or food imports are produced to the same standards as those required of domestic producers.

“Farmers in Wales strive to produce quality food in a sustainable manner, but the failure to include this amendment to the Agriculture Bill risks undermining these efforts by keeping the door open to imports produced to lower environmental and animal welfare standards.

“I have always argued that in order to protect our own high standards it is crucial that a level playing-field is maintained in relation to imports, and that farmers in Wales are not put at a disadvantage by having to compete with imports that are produced to lower standards. I sincerely hope that this amendment will be adopted by the House of Lords, so that the House of Commons has another opportunity to support it.”

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£1 billion deal for ‘Shared Rural Network’ to improve mobile coverage goes ahead

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Ceredigion MP, Ben Lake says he is delighted that a scheme to extend mobile coverage in hard-to-reach rural areas making poor mobile phone coverage a thing of the past has been given the green light, thanks to a major new deal between the Government and UK mobile network operators.

The ‘Shared Rural Network’ will mean that high quality 4G coverage will be available for 95 percent of the UK by 2026 which means consumers will get good 4G signal wherever they live, work or travel. The new plans involves four operators (EE, O2, Three and Vodafone) joining forces to create a new organisation to deliver the ‘Shared Rural Network’. Each will be able to make the maximum use out of existing and new phone masts by being able to host their own equipment on them allowing their customers to access a mobile signal. The scheme will cost more than £1billion made up of £530m from the mobile operators and a £500m investment from the Government.

Ben Lake MP, who was one of 78 cross-party MPs who wrote to the Secretary of State for Digital Culture, Media and Sport last year to ask for government support for the scheme, said:

“This is really good news for my constituents. Better mobile connectivity will make flexible working, access to education and leisure opportunities easier. It will boost regional economic growth and begin to close the digital divide that exists across the country. The mobile has become an essential tool for most of us. It will certainly come as a relief to many people living in my constituency who are frustrated by the persistent ‘not spots’ which prevent them from carrying out many tasks which other people take for granted”.

The ’Shared Rural Network’ will eliminate the substantial majority of the country’s partial not-spots with the added benefit of increasing competition for mobile services, especially in rural areas; deliver on the Government’s 95% coverage manifesto commitment to extend coverage across the country; improve road coverage by reaching a further 16,000 kilometres of roads; involve minimum environmental impact and reduce the need for duplicate infrastructure and ensure that the UK has one of, if not the best, mobile coverage in Europe.

The initiative, which is a world first, follows government proposals for an overhaul of planning rules and is part of the Prime Minister’s plan to level up the country with world-class digital infrastructure across the UK to make sure homes and businesses are better connected.

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Elin Jones welcomes speed reduction, but says it should be even lower

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Following a meeting and correspondence with the Welsh Government, Elin Jones AM has welcomed the confirmation of an initial reduction in the speed on the A487 between Bow Street and Aberystwyth.

This stretch of the A487 is particularly dangerous, and there were two fatal accidents there last year.

Ken Skates, the Welsh Government Minister for Economy and Transport, confirmed to Elin Jones via letter that the route between Waun Fawr to 300m beyond Dorglwyd Junction will be reduced to 50mph, with work taking place in the next financial year.

The reduction to 50mph has been initially welcomed by Elin Jones, however she has called for the speed limit to be reduced further to 40mph.

Elin Jones said:

“The need for a review of the safety on the A487 is clear, particularly following the two tragic accidents that took place last year. I was pleased to be able to discuss the issue directly with the Welsh Government Minister in Bow Street recently, and for him to see for himself why a speed reduction was needed.

“I’m also pleased that this has resulted in the safety and speed limit review concluding that a reduction was necessary.

“However, I and many constituents who regularly use this route feel that the speed limit could be reduced further to 40mph, which I will raise again with the Minister.

“I will also continue to call for upgrading safety at the Dorglwyd junction. There are also many areas on the A487 where safety can be improved, either with a speed limit reduction, or by providing cycle lanes and footpaths to remove pedestrians and cyclists from danger. I have called on the Welsh Government to consider all options.”

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