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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

Pembrokeshire Broad Haven holiday park works refused

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A DEVELOPMENT call for a Pembrokeshire holiday park has been turned down by Pembrokeshire Coast National Park.

In an application to park planners, Broad Haven Holiday Park, through agent Gerald Blain Associates, sought permission for the relocation of a boat storage area, vehicle shed and play area along with rewilding of adjoining fields at Broad Haven Holiday Park, Broad Haven, near Haverfordwest.

The application was supported by local community council The Havens.

However, an officer report recommended refusal.

Detailing the application, it said: “The proposal relates to the extension of an existing static caravan holiday site into adjacent undeveloped woodland to accommodate the relocation of boat storage, a vehicle shed, and a children’s play area, together with associated ecological mitigation measures. No increased pitch numbers are proposed.

“The development site has already undergone some site clearance, resulting in the removal of approximately 1,000 square metres of woodland.”

It went on to say: “The existing site is already intervisible with the coast, and the proposed relocation of boat storage would likely increase its visibility rather than reduce it. Without supporting evidence in the form of a Landscape and Visual Impact Assessment (LVIA) or Zone of Theoretical Visibility (ZTV) demonstrating that the development would be visually contained, the proposal appears contrary to the guidance contained within the SPG and the objectives of Policy 41.

“As a result, the proposed development is considered to detract from the special qualities of the National Park in this location and would be detrimental to the quality and character of the landscape character area in which the site sits, and as such does not comply [with policies].”

The application was refused on grounds including it being sited within previously undeveloped land within a flood zone, a lack of information on potential impacts on biodiversity, and it is “considered to detract from the special qualities of the national park in this location and would be detrimental to the quality and character of the landscape character area in which the site sits”.

 

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Manorbier caravan park call refused by national park

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A CALL to allow a Pembrokeshire caravan park to change part of its site from touring vans to static units without a formal planning application has been refused.

In an application to Pembrokeshire Coast National Park, Norfolk-based Park Farm Opco Ltd, through Chipping Norton-based agent Laister Planning Limited, sought a Lawful Development Certificate for the proposed stationing of static caravans in lieu of touring caravans, year-round, at Park Farm Holiday Park, Manorbier.

A supporting statement accompanying the application said: “The purpose of this application is to confirm that the touring caravans so permitted for year-round occupation on the western field at Park Farm, are capable of being replaced by static caravan pitches without effecting a material change of use. There is no specific number of touring or static caravans which is being sought at this juncture.”

It says Park Farm Holiday Park comprises of two areas, area A having some 61 owner-occupied static caravans, and area B used for touring caravan pitches and tents.

Planning permission was originally granted way back in 1956 for the caravan site, on a temporary basis, a Lawful Development Certificate for an existing use for the use of the site for up to 70 static caravans granted in December 1998, mainly covering area A.

The statement said the lawfulness of siting caravans year-round was previously confirmed by the park in 2024 “use as a campsite for touring caravans (not including twin-unit static caravans) and tents which shall be occupied for holiday use only and used as temporary, non-permanent units on a year-round basis”.

Of the proposals, it said: “The site is currently used for the stationing of touring caravans all year round. Most of the caravans on the site are stationed on what is called a ‘seasonal’ basis, where the owners leave them permanently stationed on the site and use them as holiday homes, paying an annual ‘seasonal’ fee.

“The proposed use of the site is to replace the permanently stationed touring caravans with permanently stationed static caravans. No specific number is provided, as no number is provided in any of the existing certificates, but it is anticipated that the total number of caravans in the application site will inevitably be reduced as the caravans are generally larger.

“There would be no other change in the way the site is operated, and the intention is to use the caravans for holiday purposes.”

An officer report recommending the certificate of lawfulness for the change be refused, saying it was “not satisfied that the evidence accompanying the application is sufficient to establish that the proposed use would be lawful”.

It said that while lawfulness certificates for tourers had been granted “it is considered that the siting of single-unit statics in lieu of those tourers, as now proposed, would be inconsistent with the lawful use of the site, and cannot be considered lawful in the same way,” adding “the changes proposed would result in a definable character change to the site of a magnitude that would be sufficient to amount to a material change of use requiring planning permission”.

The application for a certificate of lawfulness was refused on the grounds “the proposed use of the site would represent a material change of use requiring planning permission for which no permitted development rights exist, meaning a specific grant of planning permission is needed in order for the scheme to proceed”.

 

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Pembrokeshire Paddle West South Quay boat shed approved

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A PADDLEBOARDING and canoeing company’s call for an extension to a boat shed at Pembroke’s South Quay, below its historic castle, has been given the go-ahead by county planners.

In an application to Pembrokeshire County Council, G Booth of Paddle West CIC, through agent James Dwyer Associates, sought permission for an extension to the stone-built boathouse, adjacent to the cliff on South Quay fronting the Mill Pond, Pembroke.

A supporting statement said: “It is intended to erect a single storey ‘lean-to’ building, or ‘shed’ for the storage of boats, such as canoes and kayaks, and related equipment, on a vacant space adjacent to the existing stone-built boathouse.”

It added: “The boathouse and the intended adjacent boat storage shed is located, as is to be expected, in close proximity to water, the Mill Pond. The Mill Pond is the main area of activity for Paddle West, a Community Interest Company, providing boating activities, kayaking, canoeing and paddle boarding, frequently for young people and families.”

It went on to say: “It is intended that the structure would be lightweight, erected on the exiting hard standing. The ‘shed’ would be used for the storage of boats and related equipment.”

With regard to the historic setting, it added: “Although the stone-built boathouse appears not to be listed, it is recognised that the walls above are listed and together they are a piece.

“Accordingly, through form and external materials proposed, timber cladding and profile sheet roofing, the aim is to ensure that the structure would be subservient and muted and not detract or compete with the visual aesthetic of the boathouse or historic walls. In effect the addition would blend into the background.”

The application, supported by Pembroke Town Council, was conditionally approved by county planners.

The boathouse is sited near to the new Henry Tudor Centre in South Quay, which is due to open in Spring 2027.

The centre, expected to receive around 30,000 visitors a year, will tell the story of Henry Tudor, son of Pembroke, his Welsh ancestry and his impact on our national story, Welsh culture and our wider British heritage.

The restored derelict South Quay buildings will also house a new library and community café, and a healthcare, social services and supported employment facility in the adjoining premises.

 

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