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Bullying claims at Development Bank ‘extremely worrying’

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ENTREPRENEURS have been bullied and forced to hand over control of their businesses after approaching the Development Bank of Wales for financial support, the Senedd heard.

Paul Davies, who chairs the economy committee, raised “extremely worrying” evidence from Dylan Jones-Evans, an economist and academic, about the Development Bank.

Mr Davies said the committee also received emails from people who had dealings with the bank and felt they had been bullied out or had their businesses essentially stolen.

Prof Jones-Evans told the committee: “Unfortunately, I have been approached by … businesses prior to this review who feel they have not been treated fairly with valuations being too low, where decisions have taken far too long, and where terms are unacceptable.

“Worst still, there have been instances where some have been bullied by the directors imposed on them, where they have been forced out by dubious means and where founders feel they have not been supported by the bank.”

Prof Jones-Evans warned that young, inexperienced founders found themselves in this position and should have received far greater support.

Mr Davies said: “If these reports are accurate, those actions may well have extinguished that entrepreneurial spirit, which would be an absolute tragedy and exactly the opposite of what the bank was established to do.”

The former Tory group leader added that much of the testimony was supplied anonymously, which limited the committee’s ability to scrutinise the evidence.

But he cautioned: “It only takes a brief look on a news website to find situations where allegations such as bullying have been made against other public institutions where, in some cases, they have been ignored and, as we know, sometimes these cases do not end well.”

Mr Davies stressed: “I just want to be clear: I have discussed these accusations with the bank via correspondence and in a private meeting and they absolutely refute them.”

Leading a debate on November 27, he said most of the evidence received by the committee, which made 13 recommendations, was supportive of the bank and its operations.

Mr Davies also raised concerns about the Development Bank being reclassified by the Office for National Statistics as central government in 2021.

He explained this leads to “double counting”, with the Welsh Government having to keep money in reserve to cover any uninvested funds given to the bank.

Plaid Cymru’s Luke Fletcher said the transition from Finance Wales to the Development Bank marked a step change in 2017, with investment doubling to £124m by 2022/23.

Mr Fletcher advocated merging the bank with Business Wales to create a one-stop shop.

Labour’s Hefin David pointed out the bank is not covered by Wales’ Future Generations Act, raising suggestions a social value clause could be inserted into grant and loan agreements.

Samuel Kurtz, the Conservatives’ shadow economy secretary, raised warnings from the Federation of Small Businesses of “massively fragmented” business support.

He expressed concerns about troubling evidence from Prof Jones-Evans that the Development Bank did nothing to stop imposed directors bullying out founders.

The economy committee scrutinised bank executives on November 20, questioning a 3.2% cost-of-living pay rise awarded to all staff including those earning six-figure salaries.

Dr David pointed out that annual remuneration for the highest-paid director increased by 20% from £217,000 to £260,000 between 2023 and 2024.

Giles Thorley, chief executive of the bank, which wrote off £27m in 2022/23, said 3.2% was lower than the Welsh Government’s rise, attributing the 20% to performance-related pay.

Rebecca Evans, Wales’ economy secretary, said the Development Bank has invested £778m in more than 3,900 businesses since 2017, supporting 41,700 jobs.

She said: “That’s a total impact of £1.66bn on the Welsh economy – real investment, real businesses, real growth, supporting businesses in every part of Wales.”

Turning to concerns received by the committee, Ms Evans said: “Finance can be complex and I am aware there are times when customers don’t understand the role of the bank or the obligations of the bank and this can, regrettably, lead to misunderstandings and complaints.”

She added: “I’ve had the opportunity to address concerns with officials. It is the case, though, that founder members of companies are sometimes removed by their boards.”

Ms Evans told the Senedd she has confidence in the leadership of the bank and its board, with an external review set to take place next year.

Business

Welsh tourism tax plan ‘ill thought out’, Tories warn

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CONSERVATIVE Senedd Members warned “ill thought out and unnecessary” plans for a tourism tax will make people think twice about holidaying in Wales.

Peter Fox raised concerns about visitors being priced out after the Welsh Government unveiled a tourism bill, which would give councils powers to charge for overnight stays.

Mr Fox told the Senedd “This is an industry that should be supported, not exploited,” with one in seven jobs in Wales relying on tourism, equating to almost 200,000 people.

The Tories’ shadow finance secretary warned the tax could cost hundreds of jobs, with the hospitality sector already paying double the business rates of counterparts in England.

He said the tourism industry is still rebuilding from the pandemic, warning: “The legislation will create another significant pressure on an incredibly hard-pressed sector.”

Mr Fox, who represents Monmouth, raised concerns about the “hidden” costs of bureaucracy under the bill, which would also introduce a register of tourism providers.

He rejected the depiction of £1.25 per person per night as minimal, saying a family with four children would have to budget an extra £50 to £60 for a week’s stay.

His Conservative colleague Darren Millar said he was angry on behalf of businesses when the tourism tax, which would raise up to £33m a year from 2027, was first mooted in 2017.

Warning tourists will go to the north-west coast of England, he said: “We know that visitors who come to places like Rhyl, Colwyn Bay, Llandudno – many of them are price-sensitive.”

The Clwyd West Senedd Member blamed the Welsh Government’s “anti-tourism” messaging for a fall in last year’s visitor numbers which were down 14% on 2019.

But Luke Fletcher welcomed the tourism bill, which was a commitment in the now-collapsed cooperation agreement between Plaid Cymru and the Welsh Government.

He said: “If you had listened to what some have said … you’d swear that in order to visit Wales you’d have to remortgage your house because it would be so expensive. That simply isn’t the case, is it?”

Mr Fletcher, who represents South Wales West, described £1.25 a night as reasonable, pointing to a lower rate of 75p for stays at hostels and camp sites.

Mike Hedges, a Labour backbencher, said visitor levies are common across Europe, with more than 60 places around the world having similar taxes.

He asked: “Why would a visitor levy affect Wales when it does not affect Spain, Greece or France – the three most visited destinations in Europe?”

In a statement on November 26, Mark Drakeford stressed the levy is rooted in fairness, with tourists being asked to make a “small” contribution to public services.

He said: “Many Senedd Members here today will have paid a levy abroad, probably without noticing perhaps. Governments worldwide recognise that visitor levies are an effective means to offset some of the costs associated with tourism.”

Pointing to charges in Manchester and similar legislation passed in Scotland this year, the former First Minister said: “Our proposals in Wales are rowing with the tide, not against it.”

Prof Drakeford, who was appointed finance secretary in September, criticised opposition attempts to “catastrophise what is a modest measure”.

Closing his statement, he told the Senedd: “This is a step closer towards a fairer, more sustainable Wales where the benefits and responsibilities of tourism are shared by all.”

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‘Grave concerns’ at 950-herd dairy farm building plans

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CALLS to allow a 950-herd north Pembrokeshire dairy farm to keep a farm shed built without permission a decade ago are expected to be approved despite “grave concerns” by the local community council.

In an application recommended for conditional approval at Pembrokeshire Coast National Park’s development management committee meeting of December 4, Trewern Farms Ltd seeks permission for the retention of the agricultural building and lay down area at Trewern Farm, Felindre Farchog.

The application is part of a wider complex planning history associated with the site.

A report for Park planners says: “Trewern Farm is operated as a zero grazing style dairy farm with 304 hectares located on two separate parcels of land, one at Trewern with the remainder being at Penpedwast, adjacent to Castell Henllys. The farm has a dairy herd of approximately 950 cows.

“Trewern Farm has expanded significantly over recent years with many of the buildings and structures on site having been erected without the prior benefit of planning permission, and having since been regularised through a combination of retrospective applications and certificates of lawfulness.

“The building subject of this application is believed to have been constructed in 2014. The site currently comprises an agricultural shed immediately adjoining another shed and is used for cubicle housing.

“A slurry lagoon, silage clamps and 12 of the newer agricultural buildings are now lawful as Certificates of Lawfulness were granted for these whilst the Authority was awaiting an Environmental Impact Assessment to be submitted by the applicants for the 2015 planning application to regularise the unauthorised buildings.

“However, this is the last of the outstanding agricultural buildings which are not lawful, and an enforcement notice was served in May 2018 requiring its removal. This notice was appealed in November 2019 and is currently being held in abeyance by the Planning Inspectorate.”

It says the building referred to in the application “is described as being designed to house cattle in a series of cubicles, and forms part of a longer set of buildings running along the southern section of the farming complex,” adding: “The livestock numbers are not proposed for increase as a result of this application but will be as secured [by a planning consent] restricted to no more than 960 milking cows with 1020 maximum excluding calves.”

It adds: “The close proximity of the site to the North Pembrokeshire Woodlands SAC which is an old sessile oak wood with an exceptional diversity of rare epiphytic lichens has meant that proposals to increase livestock numbers have required appropriate assessment under the Habitat Regulations to assess potential impacts. The design and siting of the building is considered acceptable within the wider complex of buildings.

“Subject to conditions in relation to both landscaping and control of maximum milking herd numbers, to ensure there are no potential additional ammonia impacts on the SAC, the proposal is considered acceptable and to meet relevant Local and National planning policy requirements.”

Local community council Nevern has said it has “grave concerns” about the application, asking, amongst other things, how the 960 cattle limit will be policed and the important woodland will be protected.

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Millin Brook Luxury Dog Boarding wins three top industry awards

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MILLIN BROOK Luxury Dog Boarding, a family-run business in Wiston, has received three major industry awards this year, cementing its place as a leader in pet care services.

The first accolade came in September when the business was named Business Service of the Year at the PetQuip Awards. Co-owner Sian Smith said: “We are absolutely thrilled to have been awarded Business Service of the Year. We put our heart and soul into providing the highest possible level of service to our wonderful clients, and it’s great to have this recognised by industry experts.”

THE UK’S BEST

On November 7, Millin Brook was crowned Best Kennels in the UK at the Pet Industry Federation (PIF) Awards. These awards, which celebrate excellence across the pet care sector, saw Millin Brook score highly in customer satisfaction.

Nigel Baker, CEO of the Pet Industry Federation, said:

“Millin Brook particularly impressed the judges. They scored very highly on their customer satisfaction scores.”

Co-owner Dave Smith added: “This is the biggest accolade we can receive in the pet industry, and we are so very proud.”

A LONDON CELEBRATION

The year was rounded off on November 21, when Millin Brook won the Kennel and Home Boarding category at the Dog Friendly Awards, held at the Kennel Club in Mayfair, London.

Mrs Smith reflected on the occasion, saying: “It is such a beautiful venue and full of history. Following the award ceremony, we were treated to a fabulous spread of afternoon tea. One of the highlights was meeting Ted, the dog from Gone Fishing. We finished the day with a tour around the Kennel Club museum and enjoyed a few celebration drinks.”

These three awards highlight Millin Brook’s commitment to providing outstanding pet care and confirm its status as a standout name in the UK pet industry.

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