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.
Campaigners Thank Local MP, Ben Lake, for Championing Community Energy
Today campaign group, Power for People, thanked local MP, Ben Lake, for holding a debate last night in the House of Commons to promote community renewable energy by creating a ‘Right to Local Supply’ in law.
Central to the debate was a proposed new law, known as the Local Electricity Bill, that Mr Lake is co-sponsoring and which is supported by 212 MPs. The Bill aims to help rebuild local economies whilst increasing clean energy generation.
If made law, the Bill would empower community-owned local energy companies to sell locally generated renewable electricity directly to local households and businesses.
Currently customers can only purchase electricity from nationally licensed utilities. The Bill’s supporters say this means money people use to pay their energy bills is not helping to rebuild local economies and local clean energy infrastructure.
Responding to the debate, Energy Minister, Kwasi Kwarteng MP, said, “It is certainly something that I as the Energy Minister will be willing to engage with and have a discussion about … I think that with a co-operative spirit, we can get very far.”
Campaigning group, Power for People, are calling for MPs and the government to make the Bill law and are leading a supportive coalition of organisations including Community Energy Wales, Community Energy England, Community Energy Scotland, WWF, Greenpeace, Friends of the Earth and the RSPB. 62 local authorities have also pledged their support.
Ben Lake, MP for Ceredigion, said, “A Right to Local Supply will empower and enable new community energy companies to sell energy that they generate directly to local people which will accelerate our transition to clean energy and help strengthen local economies. The Local Electricity Bill would enshrine this in law and I will do all I can to ensure it succeeds.”
Power for People’s Director, Steve Shaw, said, “We thank Ben Lake for holding a debate on the Local Electricity Bill in the House of Commons. If made law, the Bill would unleash the huge potential for new community-owned clean energy infrastructure and for this to boost local economies, jobs, services, and facilities in communities across Ceredigion, Wales and the rest of the UK.”
Ceredigion MP urges UK Government to back Welsh farmers
THE UK Government has rejected the latest attempt to require imported food to meet domestic legal standards from 1 January.
The Agriculture Bill – designed to prepare the farming industry for when the UK no longer has to follow EU laws and rules next year – returned to the Commons on Monday following amendments by the House of Lords.
During the debate on the Lords amendments in the Commons, Ben Lake MP stated: “This Government have long talked up the benefits of taking back control and of how, post-EU, we will be able to set the terms of our trade with the world. Those terms should be quite simple: UK market access for imports should be dependent on meeting equivalent UK food production standards. Without this safeguard, this Bill threatens the future prosperity of Welsh farming.”
The UK Government says EU rules banning imports of chlorine-washed chicken and other products will be automatically written into UK law once the post-Brexit transition period ends on 31 December.
But peers made a number of changes, including one which would give MPs a veto over sections in trade deals relating to food imports, which would be required to comply with “relevant domestic standards”.
They argued these changes were necessary to make it impossible for the US or other countries to export chlorinated chicken or beef injected with hormones.
However, MPs voted by 332 votes to 279 to back government plans to reject the amendment.
In response, Ben Lake MP said: “Last night, Plaid Cymru supported amendments that would have protected food standards in future trade deals and strengthened parliamentary scrutiny of trade negotiations.
“Yet again, the UK Government has let down Welsh farmers when given the chance to protect their livelihoods. Despite all their promises and manifesto commitments, the Government defeated the amendments, exposing our farmers to unfair competition and lower production standards in future trade deals.
“Plaid Cymru will continue to put forward a positive vision for our food producers based on a greater say for our devolved governments and the protection of food standards. This is not because we not only believe them necessary now, but because they are fundamental to our collective tomorrow.”
Ceredigion Conservative Association Elects a New Chairman
On the 18th September, the Ceredigion Conservative Association held its Annual General Meeting, attended remotely by Conservative Members from across the County. The Association was formally re-established and Patrick Loxdale was elected as the new Chairman.
Commenting on his new position, Patrick says:
“ I am very honoured to be given the opportunity to serve in this position. I believe passionately in democracy and the democratic process. The Welsh Conservatives came second in Ceredigion in last year’s General Election, increasing the Conservative vote share by more than the national average. It shows that Conservative values are widely held by people of all ages in Ceredigion, and it is important that we have a functioning local association, and strong candidates to allow their opinions to be heard.”
Patrick, whose family have lived in Llanilar for five generations, previously served as a Medical Officer in The Royal Navy for almost twenty years, qualifying as a Consultant Orthopaedic Surgeon. From 2001 to 2016 he worked as an NHS Consultant in Devon. Moving back to Llanilar when his brother passed away, Patrick now farms from his family home and enjoys acquiring new knowledge in organic farming and rural management. Patrick adds:
“Ceredigion is a fantastic place to live, with a world beating environment. There are great opportunities for our future and our children’s security, prosperity and fulfilment here. Yet the Labour run Welsh Government continues to fail to grasp this and rarely provides any real focus outside of the M4 corridor! In next year’s Senedd election, the people of Ceredigion deserve a credible alternative choice; a choice that rejects both the on-going failures of Welsh Labour and the separatist ideology of Plaid Cymru. It is time for the people of Ceredigion to vote for the Welsh Conservatives.
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