Politics

Development Bank ‘not a guaranteed solution’

Published

7 years ago

September 11, 2017

A NEW report by a think tank has assessed the potential of a public development bank for Wales to boost lending to firms and promote economic development locally.

The report by the Public Policy Institute for Wales describes evidence that ‘bank branch closures are having a negative impact on individuals and businesses in Wales, but more specific research is need to ascertain what impact bank branch closures is having on individuals and communities. Finding out the extent to which vulnerable areas are affected by bank branch closures can also help identify which specific services can be provided in the future.’

The report states: “However, even the most extensive public banking model, opening community banks would not be able to replace the branches that have been closed in Wales in recent years.”
On ways to protect banking services it comments: “A public development bank is potentially useful option, but not a guaranteed solution.”

Plaid Cymru Mid and West AM Simon Thomas said: “We need action from Governments in Westminster and Wales on bank branch closures.

“It is unacceptable that the bank network is being stripped from rural Wales. We cannot have a gap in the banking services available to rural and urban Wales.

“Plaid Cymru’s Westminster leader Liz Saville Roberts has called for a change in the law to protect the last bank in town. We are now seeing often in our communities from Llandysul to Llanidloes towns left without a bank.

“While bank branches are expensive to maintain and are used by fewer people in the past they are still an important resource. The report highlights research by the Federation of Small Businesses that bank branch closures affect small businesses in rural communities, as they are more likely to require cash purchases than in urban areas.

“High street banks have a duty to consult effectively with the local community over closures. While banks are private companies making commercial decisions, in effect access to banking is essential for modern life and participating in democracy.”

“The Labour Government in Cardiff Bay should be looking at how other financial institutions like Finance Wales and credit unions have a role to play. Other ways to protect banking services for small businesses and individual customers like developing the services provided by the Post Office will be hampered by the closure programme of successive Westminster governments of different political colours.”

The report identifies problems with lending to small and medium sized businesses, automation has made banks more geographically and operationally distant from small businesses.

Bank closures contribute to this problem according to the Federation of Small Businesses.

Mike Cherry, FSB National Chairman, said: “The rapid pace of bank branch closures across the UK presents some very real and tough challenges for small businesses. FSB members highly value the face-to-face interaction they receive in-branch, particularly when making complex financial transactions, with staff who often have a greater understanding of their business and the local economy. In addition, many of our members deal heavily in cash and cheques and need access to over-the-counter banking facilities on a regular basis.

“Small businesses are keen to embrace the opportunities of the digital economy. However, barriers towards digital inclusion, such as unreliable broadband connectivity, and a lack of confidence in using digital services creates serious challenges. These are some of the reasons which explain why the protection of in-branch banking is so important for financial inclusion.”

Large banks were three times more likely to shut a branch in Wales than in London and the south east of England, and five of the top ten areas affected by the 600 branch closures in Britain in 2015-2016 were in Wales – Powys, Denbighshire, Gwynedd, Conwy, and Carmarthenshire.

The FUW is particularly concerned as internet banking is not always an option in rural areas; many people will not have an appropriate internet connection- if they have a connection at all, and especially the elderly may not be familiar with IT and the process of doing their banking online.

Speaking earlier this summer, FUW President Glyn Roberts said: “The closure of rural banks has a detrimental effect on rural areas, as they serve not only villages and small towns but many of the neighbourhoods in surrounding areas, as well as providing employment to local people.

“Closures are a great loss to residents and local businesses, particularly the elderly or residents who are unable to travel to the nearest town. The closures will of course also affect small businesses, as they will have to travel further afield for their banking needs.
“In addition, internet banking is not always an option in rural areas; many people will not have an appropriate internet connection if they have a connection at all, and especially the elderly may not be familiar with IT and the process of doing their banking online.
“For many telephone banking is impractical, as they prefer to deal with their personal finances on a one-to-one basis and mobile banking is limited in many rural areas. It is worth considering as well that some people may not be able to get to mobile banks during the short time they are present in villages.
“With more and more rural services and businesses being closed down, we must also acknowledge that it is becoming less and less attractive for young families and indeed business owners to remain in the countryside.
“If the problem of rural depopulation is not addressed with some urgency it could have severe consequences for our rural communities and with that also our rural economy.
“It is clear that if we want to ensure that Wales develops its full potential in being a rural economic powerhouse, we must make it attractive for working families to stay and also encourage vital services like business banking to remain available in our countryside.
“The provision of acceptable broadband services is an increasingly critical part of meeting the needs of rural Wales.”

A report from the British Infrastructure Group found nearly a quarter of Welsh constituencies appear in the worst 20 constituencies in the whole of the UK for broadband speed.

News

Withyhedge Landfill faces political allegations and regulatory enforcement

Published

19 hours ago

April 19, 2024

Tom Sinclair

STEPHEN CRABB MP has vociferously criticised the Welsh Labour Government for its management of the Withyhedge Landfill in Pembrokeshire, claiming it has turned the area into a “dumping ground” for waste from across Wales. Mr. Crabb, supported by Paul Davies MS, alleges that substantial lorries deliver waste daily to the site, causing significant distress to local residents. The MP has repeatedly written to the First Minister, demanding immediate intervention, yet claims to have received no response.

Compounding the controversy, Mr. Crabb highlighted a substantial £200,000 donation to Vaughan Gething’s recent election campaign from the landfill’s owner, questioning the impartiality of regulatory practices. Despite ongoing political efforts, Mr. Crabb asserts that resolution lies solely with the Welsh Government, which has the ultimate authority to address these grievances.

Meanwhile, Natural Resources Wales (NRW) has escalated its enforcement actions against the site’s operators, Resources Management UK Ltd (RML), amid persistent community complaints about odour and gas emissions. A recent Regulation 36 Enforcement Notice demands a series of remedial actions by RML, with deadlines stretching into May 2024. These measures focus on improving the site’s gas management infrastructure and capping exposed areas to mitigate odour issues.

Huwel Manley, Head of South West Operations at NRW, expressed understanding of the community’s frustration, emphasizing the urgency of the required actions. “We are committed to ensuring RML Ltd. deliver these actions rapidly and effectively. Continued non-compliance will lead to further measures, potentially including a suspension of the environmental permit,” stated Mr. Manley.

Pembrokeshire County Council, represented by Chief Executive Will Bramble, also voiced disappointment over the ongoing issues, affirming full support for NRW’s stringent enforcement steps. The Council and NRW are working closely to monitor the situation and have encouraged the public to report any odour incidents promptly to aid in effective resolution.

As the deadline approaches, all parties involved are under increasing pressure to demonstrate tangible improvements and ensure the health and well-being of Pembrokeshire residents are prioritised.

Politics

Barclays closure in Haverfordwest sparks calls for banking changes

Published

24 hours ago

April 19, 2024

Bruce Sinclair Local Democracy Reporter

A CALL for Pembrokeshire County Council to potentially change its banking arrangement with Barclays, after the bank announced it was closing its county town branch, is expected to be turned down next week.

Barclays Bank in Haverfordwest, located on the town’s High Street, is to close on May 10.

The council has had a banking services contract with Barclays since 2013, with the most recent contract – for four years – signed last May following an independent review.

Councillor Huw Murphy, in a notice of motion to be heard by Pembrokeshire County Council’s Cabinet meeting of April 22, is asking the council to review its banking arrangements with Barclays following the announced closure.

“The loss of many banking facilities within Pembrokeshire over recent years has had a detrimental impact on many town centres such as Tenby, St Davids, Fishguard, Milford Haven, Narberth, Newport and Pembroke and Pembroke Dock and will soon impact Haverfordwest with the loss of Barclays bank to the town.”

He said the loss of a branch “not only impacts upon town centres and businesses but also disproportionately impacts the elderly who are less likely to embrace on-line banking options”.

After the Haverfordwest closure was announced, a spokesperson for the bank said that the Haverfordwest branch only had 32 regular customers who used the branch exclusively for their banking and do not interact with Barclays in any other way.

A report for cabinet members says, in terms of the impact on Pembrokeshire residents, Barclays has said that it is “not leaving Haverfordwest and [will] continue to provide face-to-face support for those who need it” via community locations.

It adds: “Everything else can be done via alternative channels such as everyday transactions via the Post Office. We will be making personal contact with our regular and vulnerable branch users to discuss their options and guide them through alternative ways to bank.”

Two options were presented to cabinet following Mr Murphy’s motion, to retender the banking services contract, and, the favoured, to work with Barclays to ensure a community location is set up in Haverfordwest.

The report says the costs associated with moving to a new service provider “can be excessive and in some cases greater than the cost of the annual contract value,” adding: “Whilst the costs can vary between local authorities it can be in excess of £50,000.”

For the second, favoured option, the report says: “An integral part of the branch closure communication, Barclays advised that they will be setting up a community location in Haverfordwest.

“Whilst this is a change to how Barclays currently operate in Haverfordwest, this concept mirrors the successful implementation of a hub located within The Giltar Hotel in Tenby that operates twice a week.”

It adds: “Discussions have commenced with Barclays to see what the council can offer in terms of locations.”

Cabinet members are recommended to back the second option.

Community

Burned down hotel to be used for social housing

Published

24 hours ago

April 19, 2024

Bruce Sinclair Local Democracy Reporter

A SCHEME to build 38 affordable and social housing units on the site of the fire-ravaged former Cleddau Bridge Hotel, Pembroke Dock is expected to be backed by senior Pembrokeshire councillors next week.

Members of Pembrokeshire County Council’s Cabinet, meeting on April 22, are recommended to support a contract with developer Castell Group Ltd for the mix of affordable homes and social housing units at the site, with the actual contract details expected to be discussed in a private and confidential session.

A report for members ahead of the meeting says: “The potential development site on the former Cleddau Bridge Hotel site, Pembroke Dock has been up for sale for some time, and its purchase by Castell Group Ltd (‘Castell’) is now imminent.

“Following completion of their purchase, Castell will submit an application for planning consent to develop the land for affordable and social housing. It would see the development of a high-profile site with visual impact on surrounding areas that has sat dormant for many years.”

Castell has approached the housing service to determine whether there is an interest in working with them to bring forward the development as a housing site, the report says.

Castell Construction Ltd, the delivery arm of Castell, specialises in the construction of affordable / social housing, typically for registered social landlords across south Wales.

An initial proposal says the development, if backed, would see 12 one-bedroom flats, 15 two-bed houses, five three-bed, two four-bed, and four two-bed bungalows, the report adding: “This site would help towards both the council’s 300 new home target and also Welsh Government’s 20,000 new homes target.”

It adds: “The proposal by Castell Construction Ltd is for a development programme of 18 months following planning permission being secured. Castell Construction Ltd estimate commencing the development in March 2025, which would mean completion in autumn 2026.”

Delegation of the decision to enter into the works contract to the Director for Social Services and Housing is sought, and Cabinet is also being asked to delegate the decision to proceed with the land acquisition to the Assistant Chief Executive.

The development package would be part-funded from the housing revenue account, the remainder from the Social Housing Grant and/or second homes premium for affordable housing if it becomes available for the Housing Service to use in this manner.

The proposals would be subjected to an as-yet unsubmitted planning application; if granted Castell Construction Ltd hopes to start the development in March 2025, finishing in autumn 2026.

In 2023, an unrelated application by a different applicant, to demolish the remnants of the hotel and replace it with a care home was approved.

In a prime location at one of the entrances to Pembroke Dock the former Cleddau Bridge Hotel has been derelict since a fire in March 2019, which brought emergency services from as far afield as Ammanford, Aberystwyth and Swansea.

Mid and West Wales Fire and Rescue Service previously said the fire was started by a deliberate act.

Following a fire investigation, Dyfed-Powys Police said they found there to be insufficient evidence to identify a suspect.