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WG settles ‘scandalous’ land sale case

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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
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Ben Lake MP urges UK Government to review calorie legislation

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JUST one week after the legislation to label restaurants with calorie labels came to force the Hearts Minds Genes Coalition for eating disorders, chaired by multi award winning campaigner Hope Virgo, have coordinated an open letter to the Government calling on the Government to: 

  • Make a commitment that the evaluation of the new legislation to label restaurants with calories on will happen in the first year with a commitment that members from the eating disorder community and experts will be involved in this review. 
  • To make it mandatory for every single restaurant that has to have mandatory calorie labelling will also have a no-calorie menu choice for those who wish to request this 
  • To remove the labelling of calories on children’s menus in all restaurants

The letter spotlights the problematic nature of adding calories to menus, highlighting not only the dangers for those affected by eating disorders but for the wider society. It goes on to emphasise that with 16% of the adult population screening positive for an eating disorder and millions more suffering from eating disorders, what is proposed as a “common-sense approach” – focusing on weight and calorie counting – is incredibly destructive. 

Ben Lake MP

Ben Lake MP says: “Mandating calorie labelling may have a detrimental impact on those living with, or who are at risk of developing eating disorders. The rates of both eating disorders and obesity are increasing across the UK and whilst we all want to have a population approach to making society healthier, none of us want unintended consequences for people on whose lives this issue has a profound impact.  

“I believe that the UK Government should take a holistic approach to tackling obesity. Action is needed to protect children from junk food marketing with restrictions on advertising, alongside the promotion of healthy  food choices in shops and supermarkets. More widely, I believe that the UK Government must reverse cuts to public health funding to ensure that community services can support people to live healthier lives.” 

Hope Virgo says: “I honestly still can’t quite believe that this has happened. For so many people affected by eating disorders restaurants will become an even more toxic and fearful place. It will normalise conversations around food and exercise. Over the pandemic we have seen a huge increase in eating disorders, with services completely overrun. Do we really want future generations to grow up basing their food decisions on numbers? Since the legislation came into force I have been inundated with messages from people who have so much fear not just for themselves but those around them.” 

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Boris Johnson, his wife and chancellor Rishi Sunak to be fined for breaking lockdown rules

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THE PRIME MINISTER Boris Johnson and his wife Carrie, and chancellor Rishi Sunak, have been notified that they will be issued with fines for breaking lockdown rules.

The fixed penalty notices are the result of a Metropolitan Police investigation into parties in Downing Street and Whitehall in 2020 and 2021.

Mr Johnson will become the first sitting prime minister to receive a punishment for breaking the law.

Labour immediately called for both the PM and chancellor to resign while Liberal Democrat leader Sir Ed Davey called for parliament to be recalled for a vote of confidence in Mr Johnson.

Scotland’s first minister Nicola Sturgeon also demanded that they should quit.

Those calls have been echoed this week by Welsh Liberal Democrat Leader Jane Dodds has called on the Welsh Conservative Leader Andrew RT Davies and Welsh Secretary Simon Hart to “show a backbone” and call for Boris Johnson and Rishi Sunak to resign following the news that both men are to be fined over lockdown parties.

Commenting Jane Dodds MS told The Herald: “Boris Johnson & Rishi Sunak have broken the law & repeatedly lied, they must resign from their positions at once.

“While people in Wales were playing by the rules at great personal expense, those in charge thought they were above the law.

“This also will come as a painful blow to all those covid bereaved families in Wales.  The behavior of Johnson and Sunak

“The Welsh public deserves much better. For the sake of the country, both Boris Johnson and Rishi Sunak must resign immediately.

“If the Conservative Party is to have any legitimacy in Wales Andrew RT Davies and Simon Hart need to show some backbone and be calling for resignations immediately. No Welsh Conservative MP should be backing the Chancellor or Prime Minister staying in post.”

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Concessions to UK Elections Bill secured to ensure open and accessible elections in Wales

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COUNSEL GENERAL Mick Antoniw reaffirmed the Welsh Government’s commitment to open elections and increased voter participation, as the Senedd prepares to vote on the passage of the UK Government’s Elections Bill.

The UK Government’s Elections Bill proposes the introduction of mandatory photo ID, as well as measures relating to the administration and conduct of elections, overseas electors and UK citizens, and amendments to the role of the Electoral Commission.

The Welsh Government has secured concessions that mean large parts of the Bill will not apply to Senedd and local government elections in Wales. This includes removing a proposed provision that would have allowed the Secretary of State to direct the Electoral Commission in the discharge of its devolved functions in Wales.

In a Legislative Consent Motion, to be voted on in the Senedd on Tuesday, the Welsh Government is recommending consent is given in two specific areas only – digital imprints and an offence of voter intimidation.

Mick Antoniw, Counsel General and Minister for the Constitution, said: “The concessions we have secured to this Bill represent a success for devolution. The Welsh Government is committed to making elections as open and accessible as possible, and to do all in its power to increase participation.

“This is why 16 and 17 year olds and qualifying foreign citizens will be able to vote in local elections in Wales for the first time this May. We are also running pilot schemes in four local authorities designed to make it easier for people to vote at a time and a place that is convenient for them.

“The UK Government plans for voter ID risk making voting harder. Though the proposals won’t apply to devolved elections, they will apply to general elections in Wales and I’m concerned this will confuse voters. We have shared our concerns with the UK Government.”

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