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City Deal scheme uncertainty as Port and Council argue over interest payments

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TIME is fast running out for vital funding for Pembrokeshire’s part of the controversial Swansea Bay City Deal.
The deadline for obtaining European funding, upon which the Pembroke Dock Marine project depends, is December this year, when European funding ends. The final business case for it is yet to be submitted, let alone approved.
If the business case is not approved by then, the future of the project – or at least its size – will be cast into doubt.
Next week, the County Council’s Cabinet is likely to approve the submission of the project’s business case.
The Port of Milford Haven, in partnership with Marine Energy Wales, ORE Catapult and Wave Hub, aims to develop what it calls ‘a world-class centre for marine energy research and development, fabrication, testing and deployment’.
History is not in its favour.
A key project at Ramsey Sound, Delta Stream, failed catastrophically. The submerged device claimed to be the forerunner to a major tidal power investment stopped working after three months. The company behind it, Tidal Energy Ltd, went bust. The scheme was extensively supported by the Welsh Government and EU funding.
A briefing document shows consideration of the Pembroke Dock Marine project has now become time-critical because of the probable loss of significant European funding if the project is not fully approved by the end of the calendar year.
A source close to the City Deal told The Herald getting the business case fully approved before the December deadline is ‘unrealistic’.
The Council will have to borrow up to £28m for the Pembroke Dock Marine project and will be ‘paid back’ (capital only, no interest by the Governments) over 15 years, with payments ‘theoretically linked to delivery and performance’.
The cost of borrowing for the Pembroke Dock Marine project is estimated to be £2.35m.
Wrangling between Milford Haven Port Authority and Pembrokeshire County Council over the interest on the money the Council will borrow to bankroll the Port Authority’s £76m Pembroke Dock Marine project has caused rancour between the partners.
The Port Authority says it cannot afford the interest charges, while the Council faces having to put money intended for other projects into the pot to make up the shortfall.
It is little secret Council leader David Simpson has misgivings about pouring such a large sum of public money into a single project instead of using the money to regenerate the wider local economy.
His concerns are shared by others involved in the City Deal’s governance and underlined by views expressed in the Deal’s external review that little evidence existed to show proposed projects would deliver the tangible benefits the Deal originally intended.
Certainly, Pembrokeshire will get the least out of the City Deal whether it succeeds or fails.
The City Deal, which is in the middle of reorganisation and is yet to recruit a programme director, has been plagued by governance problems and scandal almost since its outset.
An external review, by consultants appointed by the Welsh and UK Governments, concluded the City Deal’s governance system was unfit for purpose. It also found the Deal’s central control was so lax that incomplete proposals were treated as fully worked up plans.
A report prepared by Pembrokeshire County Council found failure by some City Deal participants to declare either personal or corporate interests and concluded: ‘It was evident through meetings with stakeholders that there is insufficient trust within the Partnership’.
The re-arrangement of governance and the need to build bridges left broken by internal strife across four local authorities, mean not a single penny of the millions promised by the UK and Welsh Governments has been received for any of the projects under the City Deal.
Individuals and companies formerly involved in Carmarthenshire County Council’s controversial Llanelli Wellness Village are under investigation by Tarian, the Regional Organised Crime Unit.

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Too many children in Wales living in poverty – Lib Dems want action

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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.”

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Crime

Welsh constabulary areas record another increase in shoplifting

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RETAIL trade union Usdaw is deeply concerned by today’s police recorded crime statistics showing that in 2023 there were significant increases in shoplifting across all constabulary areas in Wales. In the whole of England and Wales there has been a persistent upward trend since the pandemic, which continued with a 37% increase and has now risen to the highest level in 20 years.

The Office for National Statistics released figures showing a 39% increase in shoplifting incidents across Wales and by constabulary area as follows:

  • Dyfed-Powys +11%
  • Gwent +47%
  • North Wales +23%
  • South Wales +51% 

Usdaw’s 2023 annual survey of over 5,500 shopworkers found that 60% had suffered incidents of violence, threats and abuse that were triggered by shoplifting and armed robbery.

Paddy Lillis, Usdaw General Secretary says: “Shoplifting is not a victimless crime, theft from shops has long been a major flashpoint for violence and abuse against shopworkers. Having to deal with repeated and persistent shoplifters can cause issues beyond the theft itself like anxiety, fear and in some cases physical harm to retail workers. This 39% increase in shoplifting across Wales is further evidence that we are facing an epidemic of retail crime, which is hugely concerning.

“Our members have reported that they are often faced with hardened career criminals in the stores and we know that retail workers are much more likely to be abused by those who are stealing to sell goods on. Our latest survey results show that 7 in 10 retail workers suffered abuse from customers, with far too many experiencing threats and violence. 60% of respondents said theft from shops and armed robbery were triggers for these incidents.

“The scale of assaults, abuse and threats towards shopworkers and extent of the retail crime epidemic has been a disgrace for many years. This has been made worse by police cuts and a failure to legislate to protect retail staff. Usdaw has long called for action that includes a standalone offence for assaulting a shopworker and that has been vehemently opposed by this Government and their Conservative MPs on many occasions.

“Recently the Government performed a long overdue U-turn after many years of sustained campaigning by Usdaw and others. Our members have had to wait too long for their voices to be heard and common sense to prevail. We will have to see the detail of what Ministers are proposing and we are clear that it must be at least what we won in Scotland three years ago. It also cannot fall short of Labour’s commitments to 13,000 more uniformed officers, patrols on high streets, banning repeat offenders and ending the perverse £200 threshold for prosecuting shoplifters.

“The dither and delay by this Government on this issue over many years, has led to thousands of shopworkers needlessly suffering physical and mental injury. Today’s stats should ensure that their promise to legislate is done speedily. We hope that whatever the Government is proposing will be substantial and effective in giving shopworkers, key workers in every community, the respect that they have long deserved and regrettably too often do not receive.”

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Business

Paramount’s key role in transformation of McArthurGlen Designer Outlet

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FAST-growing Welsh company Paramount is relishing the challenge of creating an “irresistible dining destination” after winning the contract to play a key role in the multi-million transformation of the McArthurGlen Designer Outlet Bridgend.

The Cardiff-based design, build, fit-out and refurbishment specialist will spearhead the re-development project of the shopping centre after being handed responsibility for revamping its popular food court over the summer.

In the coming months, the development will see the Food Court transformed into three modern, and bright restaurants, welcoming new food and beverage brands to the centre and creating more than 100 new job opportunities for the local community.

Paramount’s Construction Director, Paul Thomas, said: “The team behind the scenes at McArthurGlen Designer Outlet Bridgend have fantastic plans for the future and we’re delighted to have been entrusted with the mission to help turn their exciting vision into a reality.

“Paramount prides itself on creating places where people want to be, and my team are relishing the opportunity to help create what will be an irresistible dining destination. It’s certain to be a complex project, but we have the expertise and local knowledge to deliver outstanding results in close collaboration with our project partners.”

The owners of the shopping centre, which has been attracting local people and visitors for more than 25 years, have promised a “substantial investment to redevelop the Food Court area and replace it with new and exciting restaurants”. 

Now the Paramount team is ready to lay the groundwork by removing some existing structures around the Food Court and will then introduce a series of new features as part of the overall facelift. These include new glazed entrance doors within glazed curtain walling shopfront, render and a new entrance lobby with new stairs and lifts.

The work to completely develop the Food Court in the shopping centre starts this week, and is expected to be completed in late autumn. As a result, customer favourites including Nando’s, McDonald’s and Chopsticks will be closed while work is under way.

Patrick Finney, Head of European Construction, McArthurGlen Group, said: “After celebrating our 25th anniversary last year, we’re extremely pleased to welcome Paramount on board in this important step of revitalising the Food Court area. 

“These are exciting times for everyone at one of South Wales’ best-loved retail complexes and we know Paramount will work closely with us to create a truly special place for diners and shoppers of all ages.”

Paramount, whose turnover reached £45 million in 2023, employs 60 people who own a majority shareholding of the business – 51 per cent – following completion of an Employee Ownership Trust  (EOT) scheme in 2021, a deal which marked a major milestone for Paramount after a period of sustained growth. 

The company is well known across Wales and England where it has created high-quality inspirational space for a number of leading companies. These include the multi-million-pound redevelopment of Hodge House and Fusion Point One in central Cardiff, and the fit out of Par 59 bars in South Wales and South West. 

Over the next few months, Paramount’s construction team will also be completing on a multi-million-pound social housing development in Porthcawl, Mid-Glamorgan with Valleys to Coast.

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