THE WELSH GOVERNMENT has settled a claim against its former advisors about land sales which took place under a purported regeneration scheme.
The Regeneration Investment Fund for Wales (RIFW) had issued proceedings against Amber Fund Management and Lambert Smith Hampton concerning the portfolio sale of 15 properties in 2012.
The settlement has been reached on a commercial basis and without any admission of liability by any party.
The detailed terms have been incorporated into a confidential settlement agreement between the parties.
The Welsh Government Minister for Local Government, Julie James, said the £40.7 million tied up in the Fund can now be made available to support future investments across Wales.
RIFW was set up as an arms-length body by the Welsh Government to allow the Welsh Government to raise money which could then be used to fund regeneration and investments in Welsh businesses.
It was a complete shambles.
One of the advisors appointed had previous connections with one of the parties which bought some of the land at an undervalue.
Vital information was not relayed to the RIFW’s board by the Welsh Government and Board members were kept in the dark about transactions carried out in their name.
Under the oversight of their appointed agents and Welsh Government civil servants, RIFW sold publicly owned assets by private treaty and without prior valuation at a price that reflected the assets’ existing use, under sale terms that provided only limited protection to the public interest in their significant future development values, and via a negotiation process that left RIFW lumbered with undesirable assets.
The Chair of the Senedd Public Accounts Committee, Nick Ramsay MS, said: “The out of court settlement between the Welsh Government and the former advisors of RIFW effectively brings a curtain down on a very sorry and lamentable episode.
“The hasty sell-off of publicly-owned land at bargain-basement prices effectively deprived Welsh taxpayers of tens of millions of pounds which could’ve been used for essential services.
“We look forward to examining matters further with the Permanent Secretary and Head of the Welsh Government Civil Service, Shan Morgan, at our next meeting on Monday, November 23.
“We will be asking what robust steps have been taken to avoid history repeating.”
RIFW was set up as an arms-length body by the Welsh Government to sell off land around Wales including in north Wales, Monmouthshire and Cardiff, and use the money, in conjunction with European funding, to reinvest in areas in need of regeneration.
But the Public Accounts Committee found that the body was poorly managed, poorly overseen by the government, and that, because of a change in the direction of RIFW, from one of regeneration to property asset disposals, some of the Board members felt they lacked the necessary knowledge and expertise to fulfil their roles.
It also learned that the Board was not presented with key information regarding the value of the land in its portfolio, or of expressions of interest from potential buyers.
Fifteen plots of land, originally supposed to be sold separately, were instead sold as a single portfolio at a price which did not take into account potential use of the land in the future. This decision resulted in Welsh taxpayers missing out on tens of millions of pounds of funding.
The Committee learned that one of the organisations charged with offering expert advice to the Board, Lambert Smith Hampton Ltd, had previously acted on behalf of a director of the buyer of the land, South Wales Land Developments Ltd (SWLD), and signed an agreement to do so again one day after the sales went through.
The Committee concluded that the RIFW Board had been poorly served by its own expert advisors.
Angela Burns MS – Shadow Minister for Government Resilience and Efficiency – said: “The Fund was established to sell valuable packages of Welsh Government land, with the money used to support regeneration schemes. However, evidence has since emerged that shows that the sale of RIFW’s assets was undertaken at a loss of tens of millions of pounds. A loss which was borne ultimately by the Welsh Taxpayer and yet another example of the complete inability of this Labour Government to be fiscally prudent.
“Millions of pounds have been squandered, millions that could have been invested in our education and health systems or spent building Wales’ economy or supporting some of our more vulnerable citizens. It’s an absolute scandal and the real scandal is the Welsh Government can slide out of their responsibility for this debacle”
Included in the scandal are:
- Fifteen sites sold for £21 million; with the taxpayer missing out on staggering sums of money
- A site in Rhoose purchased from RIFW for less than £3m – sold on for almost £10.5m South Wales Land Developments Ltd. Taxpayers losing out
- An Abergele site purchased from RIFW for £100,000, without overage, and sold for £1.9million. Taxpayers losing out
- Land in Lisvane sold for £1.8million – worth £39million.
Welsh Conservatives also claim the Welsh Government has squandered £1 billion on other projects, including:
- £221m on uncompetitive Enterprise Zones
- £9.3m on flawed initial funding of the Circuit of Wales
- £97.9m on delays and overspend on the A465 Heads of the Valleys Road
- £157m on the M4 relief road inquiry
- Over £100m propping up Cardiff Airport
Covid-19 restriction relaxations in Wales brought forward
THE WELSH GOVERNMENT will be accelerating elements of its programme to relax Covid-19 restrictions as cases of new infections continue to fall across Wales, the First Minister today announced.
People will be able to form an extended household, visit the gym or take part in organised outdoor activities a week earlier than planned, as the public health situation – and vaccination rates – continue to improve.
The First Minister last week set out a detailed timetable for moving Wales firmly into alert level three. But some of these measures will now be introduced sooner than planned as cases have fallen markedly from 37 cases per 100,000 people to fewer than 21 per 100,000 this week.
The pressure on hospitals also continues to ease. Confirmed cases in hospital beds continue to reduce, and now stands at 89. This is 26% lower than last Thursday and is the lowest position since 22 September 2020.
The planned opening date for organised outdoor activities and outdoor wedding receptions will be moved forward to Monday 26 April from 3 May.
And, from Monday 3 May, a week earlier than previously signalled, gyms, leisure centres and fitness facilities will be able to reopen for individual or one-to-one training. Extended households will also be allowed again, enabling two households to meet and have contact indoors.
First Minister, Mark Drakeford said:
“The public health situation in Wales continues to improve thanks to everything you are doing to help us control this awful virus. Cases of the virus are falling and our incredible vaccination programme continues to go from strength to strength.
“Last week, we set out our programme to further re-open the economy and relax the restrictions we have lived with for so long, as part of our careful, step-by-step approach to keeping everyone safe. This week, because of the improvements we continue to see, we can bring forward some of our plans.
“This is only possible because of the efforts everyone is making to protect themselves and their loved ones.”
From Monday 12 April, the following relaxations will go ahead:
- The full return of children to schools for face-to-face education, all post-16 learners will return to further education and training centres, and university campus’ will be able to open for blended face-to-face/online learning for all students;
- All remaining shops will reopen, completing the phased reopening of non-essential retail;
- All remaining close contact services will open, including mobile services;
- Travel restrictions on traveling into and out of Wales will be lifted. However, restrictions on travel to countries outside the Common Travel Area without a reasonable excuse, remain in place. The Common Travel Area means the United Kingdom, the Channel Islands, the Isle of Man and the Republic of Ireland;
- Wedding ‘show-arounds’ by appointment are allowed;
- Restrictions on political canvassing are removed, subject to canvassers doing so safely.
- Further easements to restrictions in the coming weeks will be subject to the public health situation remaining favourable. These will be confirmed at the next three-weekly review of the coronavirus regulations on 22 April.
On Monday 26 April:
- Outdoor attractions, including funfairs and theme parks, would be allowed to reopen;
- Outdoor hospitality can resume, including at cafes, pubs and restaurants. Indoor hospitality will remain closed except for takeaways;
- Organised outdoor activities for up to 30 people can again take place (previously Monday 3 May);
- Weddings receptions can take place outdoors for up to 30 people (previously Monday 3 May).
On Monday 3 May (previously Monday 10 May):
- Gyms, leisure centres and fitness facilities can reopen. This will include individual or one-to-one training but not exercise classes;
Extended household will again allow two households to meet and have contact indoors.
- As set out in the revised Coronavirus Control Plan, a small number of outdoor pilot events of between 200 and 1,000 people are also being planned.
Ceredigion MS and MP call on Welsh Government to support agricultural shows
ELIN JONES MS and Ben Lake MP have called on the Welsh Government to provide financial support to all agricultural shows to see them through to 2022
A number of shows up and down the county were forced to cancel last year, starving farming communities of annual chances to meet acquaintances, denying traders a vital market and rural charities of fundraising activities and ultimately causing significant losses to the rural economy.
About seven million people attend agricultural and county shows across the UK every year, and numbers were growing before the pandemic, according to the Association of Show and Agricultural Organisations (ASAO), the voice of the agricultural show industry.
In 2019, agricultural shows across the UK generated £128.6m of income, the ASAO figures show. But the mass cancellation of physical shows last year led to a £36.5m loss, while the impact on the wider economy was an estimated loss of £810m.
Some agriculture show organisers in Ceredigion have already announced cancellations of their 2021 events. These include: Aberystwyth County Show, Lampeter Stallion Show, Barley Saturday, and Llanilar Show.
With the possibility of further show cancellations this year, Elin Jones MS and Ben Lake MP have called on the Welsh Government to provide financial support to all agricultural shows to see them through to 2022.
Elin Jones MS said: “For many farming families in Ceredigion, the agricultural show season is the highlight of the year. Every agricultural show plays an important part in promoting our nation’s rural sector, in addition to the rich array of traditions and history associated with rural Wales.
“Whilst virtual agricultural shows went some way to filling the void left by the cancellations in 2020, nothing replaces the buzz of live outdoor shows. They give opportunities for communities to come together and provide a vital hub for the farming and rural community to meet, socialise and conduct business.”
Ben Lake MP added: “Agricultural shows and societies are a crucial feature of the annual calendar for most rural communities, showcasing the heritage of key elements of farming and rural life in Ceredigion.
“With the possibility of further show cancellations in 2021, we believe it is timely for the Welsh Government to consider providing a one-off grant payment to all agricultural shows to ensure that they are able to see this pandemic through.”
16 and 17 year old’s urged to register to vote in this year’s Senedd Elections
ELIN JONES, Ceredigion’s Member of the Senedd, has urged everyone who will be 16 years old by or on the 6th of May – Senedd Election Day – to register to vote. This is the first time 16 and 17 years olds will be able to vote in a national election in Wales.
Speaking directly to young people in Ceredigion, Elin said: “One of my proudest achievements from the last Senedd has been helping to pass the law that has extended the vote to 16 and 17 year olds.
“This is the biggest change in voting rights in Wales for many, many years.
“So many aspects of young people’s lives have been turned upside down by the pandemic, so it’s completely right that you have the democratic right to express your opinions on how things have been run.
“We now have a fixed date for the election, providing the Covid situation doesn’t change. So if you will be 16 years old or older by the 6th of May, then make sure you register to vote. Your voice counts, and I hope that you will use it.”
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