Politics
‘Fundamental flaws’ cost Welsh taxpayers
FUNDAMENTAL flaws in the way the Regeneration Investment Fund for Wales (RIFW) was managed, overseen, and advised, cost Welsh taxpayers tens of millions of pounds, according to a National Assembly for Wales committee.
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 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 fulfill 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.
Members also agreed that, in light of South Wales Land Developments Ltd onward sales, the Welsh Government’s contention that it is not possible to demonstrate that the sale was under value, is unconvincing, pointing to the following as evidence (overage is an agreed sum of money to claw-back in addition to the sale price if the buyer meets certain conditions):
- The Rhoose site was purchased from RIFW for less than £3 m, without overage, and sold on by SWLD for nearly £10.5 m;
- The Abergele site was purchased from RIFW for £0.1 m, without overage, and sold for £1.9m.
- Lisvane, near Cardiff, was / is the ‘jewel in the crown’ and should have been disposed of via a properly marketed open and competitive sale process. The Committee believed it incomprehensible that this was sold to SWLD at an agricultural land value of £1.835 million (even with overage) when its potential open market value for residential housing is at least £39 million.
“The Public Accounts Committee’s inquiry into the Regeneration Investment Fund for Wales (RIFW) has been one of the most significant and deeply troubling inquiries undertaken by the Committee,” said Darren Millar AM, Chair of the Public Accounts Committee.
“The fact that one of the largest sales of publicly owned land in Wales should have generated tens of millions of pounds more for the taxpayer than it did, is inexcusable.
“While the Committee found the concept of RIFW to be innovative, we concluded that it was poorly executed due to fundamental flaws in Welsh Government oversight and governance arrangements, and that the Fund was poorly served from those appointed and trusted to provide the Board with professional advice and expertise.
“It is regrettable that many of the flaws we identified are consistent with issues this Committee has considered during previous inquiries.”
The Committee makes 18 recommendations in its report including:
- The Welsh Government must strengthen monitoring and oversight arrangements of its arms-length bodies and, in particular, ensure that any concerns are swiftly identified and escalated internally;
- That measures are put in place to ensure that Board Members have the appropriate expertise and capacity to fulfil their duties and receive adequate and appropriate induction training, and;
- The Welsh Government should ensure that robust overage arrangements are considered whenever it disposes of public assets that possess future development potential.
The Regeneration Investment Fund for Wales (RIFW) was established in December 2009 in response to the constrained financial climate which restricted access to capital for investment in regeneration in Wales. RIFW was created as a Limited Liability Partnership (LLP) wholly-owned by the Welsh Government. RIFW’s purpose was to invest £55 m initially in urban regeneration schemes across Wales, comprising £25 million of European Regional Development Fund (ERDF) and £30 m of Welsh Government funding. The Welsh Government provided RIFW with £9.4 m cash, and a portfolio of 18 land and property assets valued in existing use at £20.5 m , based on a valuation commissioned by the Welsh Government.
News
Too many children in Wales living in poverty – Lib Dems want action
THIS week in the Senedd, the Welsh Liberal Democrats renewed their demands for the implementation of child poverty targets.
According to a report from the Bevan foundation, 29% of children living in Wales are currently experiencing poverty (an estimated 190,000 children).
The same report highlighted that the largest percentage of children living in poverty are from working households or in couple households.
The Welsh Lib Dems are now renewing calls for the Welsh Government to create a set of targets for reducing child poverty, which the party argues will allow for more accountability.
The party has previously called for the implementation of targets, citing recommendations from the Calling Time on Child Poverty Report published in November last year.
Commenting, the Leader of the Welsh Liberal Democrats Jane Dodds MS said: “The latest statistics on childhood poverty in Wales paints a very distressing image of families across the country struggling to make ends meet.
Over the course of the last six years, the proportion of children in poverty has skyrocketed. Fuelled by worsening economic conditions and a complete lack of action from both governments in Westminster and Cardiff Bay.
We cannot act complacent about these figures nor accept the clear lack of progress in fighting child poverty, behind each statistic is a child that the state has failed.
It remains painfully clear that the Welsh Government is failing to make any meaningful progress in this fight, which is why they must follow through with the implementation of clear set targets that will allow for further accountability.
We as a party have continuously called for the creation of these targets and we will not be silenced. For the sake of future generations we urge the Welsh Government to listen.”
Education
Conservative calls for academies and free schools rejected by Senedd
THE SENEDD has rejected calls to introduce free schools and academies after a report found major challenges in Wales’ education system.
Tom Giffard led a Conservative debate on educational attainment, warning that Wales is consistently at the bottom of UK-wide league tables.
The party’s new shadow education secretary pointed to an Institute for Fiscal Studies (IFS) report on education in Wales which found low outcomes and high levels of inequality.
Mr Giffard told the Senedd the IFS report highlights the pitfalls of the Welsh Government putting all its eggs in the basket of a skills-based approach.
Criticising a failure to measure skills inequalities and pupil progress, he stressed that Wales’ lower performance is due to policy and approach rather than funding or the pandemic.
He said: “It seems the Welsh Government relies on Pisa results to tell the story but then, when those same results are all too disappointing, they are dismissed in equal measure.”
Mr Giffard, who previously worked in a primary school, said declines in Pisa results can be observed in almost every country that has adopted a skills-based approach.
Raising concerns about disappointing Pisa results, the South Wales West MS pointed out that Wales saw the lowest scores in the UK for every subject.
Heledd Fychan, Plaid Cymru’s shadow education secretary, warned that Wales’ schools are understaffed and facing difficult decisions due to budgets being at breaking point.
She criticised implementation of the Welsh Government’s additional learning needs (ALN) reforms, saying schools cannot realise the aims without the budget to bring them to life.
Ms Fychan said Plaid Cymru agreed with much of the Tory motion but her party would not support calls for free schools and academies.
Sam Rowlands described the IFS report as damning, warning that the Welsh Government’s education reforms have been disastrous and have widened inequality.
The Tory MS claimed the reforms are systematically holding back disadvantaged children, saying: “The most remarkable fact is that the performance of disadvantaged children in England is either above or similar to the average for all children in Wales.”
Mr Rowlands added: “The poorest in England’s schools are doing the same or better than the Welsh average, thanks to ambition, the academies and free schools.”
Samuel Kurtz, a fellow Tory, said free schools and academies have driven up standards in England as he argued a Wales roll-out provides an opportunity to improve outcomes.
James Evans, the Conservative MS for Brecon and Radnorshire, highlighted the party’s pledge to get 5,000 more teachers into Wales’ classrooms.
Buffy Williams, the newly elected chair of the Senedd’s education committee, said Wales is undergoing a profound transformation propelled by ALN and curriculum reforms.
The Labour MS for Rhondda stressed the importance of listening to teachers and allowing ample time for the reforms to take root in classrooms across Wales.
Altaf Hussain recounted a conversation he had this week with a headteacher at one of the largest schools in his South Wales West region.
The Conservative said: “The major improvements they have been delivering to attainment and addressing behavioural issues are all at risk because of cuts to funding.
“Vital work undertaken to improve the lives of young people with additional needs could be halted because they cannot afford to continue employing the support workers.”
Lynne Neagle recognised the scale and seriousness of work still ahead to improve Wales’ education system, stressing: “I am not, in any way, complacent about that task.”
Wales’ newly appointed education secretary, who takes over from Jeremy Miles, said sustained improvement in attainment will be among her top priorities.
She told the chamber: “My early focus has been to listen closely to schools and where it is clear that schools seek more scaffolding.”
Ms Neagle said the Welsh Government will work with trade unions and employers to reduce workload and eliminate unnecessary red tape.
The Conservative motion was voted down, 14-35, following the debate on April 24. The motion as amended by the Welsh Government was agreed, 26-23.
Climate
£1m turbine application to be decided by all councillors at County Hall
A TWICE-BACKED £1m scheme for a “20-storey-high” wind turbine at a Pembrokeshire mansion will have to be decided by all councillors.
Mr and Mrs Glen Peters of Western Solar Ltd are seeking permission for a single turbine on land near the Grade II-listed Rhosygilwen Mansion, which includes an arts and functions building known as Neuaddydderwen.
Members of the April meeting of Pembrokeshire County Council’s planning committee were recommended to refuse the scheme, despite backing it at their March meeting.
This backing meant the application returned to the April meeting for ratification after a ‘cooling off’ period; the application having been deferred at the January meeting pending a site visit.
It was initially recommended for refusal in January for several reasons, including potential harm to the setting of the Grade-II-listed house and grounds, and fears of threats to the safe operation of West Wales Airport at Aberporth in neighbouring Ceredigion, some 9.5 kilometres away.
The last concern was later withdrawn.
In papers ahead of the April meeting, officers, again recommending refusal, have said the scheme “would not protect or enhance the setting [of Rhosygilwen] but rather would result in significant harm to this interest of acknowledged importance”.
They have also warned any backing of the scheme against policy recommendations could set a precedent for similar developments.
-
News6 days ago
Police issue update on the search for Luke, missing from Pembroke Dock
-
News1 day ago
Police and air ambulances at ‘serious incident’ at West Wales school
-
Sport7 days ago
Herbrandston clinch promotion to Division One
-
News5 days ago
20mph U-turn: Some roads will return to 30mph following public outcry
-
Community5 days ago
Miracle pup finds her forever home after heart-wrenching journey
-
Community2 days ago
County Hall to offer space for community banking
-
Crime1 day ago
Pembrokeshire pensioner accused of 17 sexual offences against children
-
Crime3 days ago
Brian Davis: Wanted on suspicion of commercial burglary