Connect with us
Advertisement
Advertisement

Business

Bullying claims at Development Bank ‘extremely worrying’

Published

on

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

UK workers’ rights bill ‘undermines devolution’

Published

on

SENEDD Members criticised the UK employment rights bill for “undermining” devolution and the Welsh Parliament’s role, warning of “dangerous” constitutional implications for Wales.

Luke Fletcher backed the principles of the bill: “Day-one rights for workers, zero-hours contracts being revised, removing restrictions on unions [and] ending fire and rehire.”

But the Plaid Cymru politician expressed serious concerns about powers in the bill for UK ministers to override decisions made by the Welsh Government.

He told the Senedd: “We are seeing provisions that encroach on the ability of this [Welsh] Government and this place to legislate on behalf of the people of Wales.”

Mr Fletcher said: “In the same way the Welsh Government would’ve opposed such a power grab in the days of a Tory government, I would hope they would do exactly the same now.”

Plaid Cymru MS Mabon ap Gwynfor
Plaid Cymru MS Mabon ap Gwynfor

His colleague Mabon ap Gwynfor expressed grave concerns as Senedd Members debated a legislative consent motion (LCM), the mechanism used to signify consent for UK bills.

He warned: “The way that this [Welsh] Government has actually introduced this, and the way that the Westminster government has approached it, is dangerous. It undermines the Welsh Government – it undermines this parliament – and it undermines devolution.”

Mr ap Gwynfor criticised so-called Henry VIII powers for UK ministers to change or overturn a law passed by the Welsh Parliament. “To me, that is entirely unacceptable,” he said.

Under the bill, Welsh ministers would need to obtain the consent of the UK Government before using powers to create a fair pay body for social care.

“We can’t continue to legislate in this way,” Mr ap Gwynfor said. “With powers being taken away from our parliament and our democratic voice being undermined time and time again.”

Warning of no Welsh scrutiny of the bill, he added that Welsh ministers opposed the use of Henry VIII powers but failed to convince their Labour colleagues in Westminster.

Mike Hedges said the Senedd’s legislation committee felt it was unsatisfactory that regulations could be used to create a devolved body under the bill.

Labour MS Mike Hedges
Labour MS Mike Hedges

The Labour committee chair said the Welsh Government was not content, “exhausting all reasonable avenues to challenge it” but not pursuing an amendment in the House of Lords.

Peter Fox, who chairs the health committee, expressed similar concerns, saying: “The Welsh Government has a long-standing commitment to promote fair pay in the social care workforce, yet has not brought forward its own bill.

“The effect of this choice is to severely limit the opportunities for stakeholders in Wales to be involved in the legislative process and for the Senedd to examine the policy in detail.”

Warning of a £5bn cost to businesses, his Conservative colleague Altaf Hussain said his party would vote against providing consent to the employment rights bill.

Conservative MS Altaf Hussain
Conservative MS Altaf Hussain

He told the Senedd: “Although the intentions behind this legislation appear commendable, I am concerned about the significant burden it will impose on businesses across the UK.”

Labour’s Hannah Blythyn, a proud trade unionist, defended the bill, stressing: “Whether we like it or not, employment rights are reserved and not enforceable at a Wales-specific level.

“If workers in the social care sector in Wales are not in scope of a UK social care negotiation body, employers would only be expected to provide the statutory minimum with regards to pay, terms and conditions, potentially disadvantaging more than 85,000 workers in Wales.”

Labour MS Hannah Blythyn

Ms Blythyn said: “To not pass this LCM does risk leaving workers in the care sector in Wales behind, many of whom are predominantly lower paid women workers.

“I think we need to see this as a way of progressing worker rights in a sector that radically needs reform, a sector that society depends upon and a workforce, at different times in life, to whom we entrust our nearest and most dearest.”

Jack Sargeant, who is minister for fair work in the Welsh Government, said the bill will be the single biggest upgrade to workers’ rights in a generation.

Mr Sargeant told Senedd Members: “It enhances employment rights, it strengthens enforcement and it removes unnecessary restrictions on trade unions.”

Labour MS Jack Sargeant
Labour MS Jack Sargeant

He agreed with Ms Blythyn, one of his predecessors as minister: “I do note some of the concerns from some members in the contributions today but we do believe it’s very much in the best interest of the social care sector and social care workers in Wales.”

He criticised Tory opposition. “That’s no surprise at all,” he said. “Their party, when they were in power in Westminster, consistently tried to undermine workers’ rights for 14 years.”

Senedd Members voted 27-13 in favour of the LCM on July 15, with Plaid Cymru abstaining.

Continue Reading

Business

Fishguard Port upgrade scheme lodged with national park

Published

on

THE EARLY early stages of a scheme for a new link bridge and floating pontoon for Fishguard’s ferry and associated works have been submitted to the national park, as part of multimillion-pound development which would provide better facilities for passengers and vehicles.

In an ‘observation’ application to Pembrokeshire Coast National Park, the unnamed applicant, believed to be Stena Line, seeks a long string of proposals.

The submission, not accompanied by any published supporting documents, includes the replacement of the existing linkspan bridge and jack up barge with new floating linkspan pontoon to serve Stena line ferry at Fishguard Harbour.

A linkspan is a type of drawbridge used mainly in the operation of moving vehicles on and off a roll-on/roll-off vessel or ferry.

It also includes capital dredging of 78,000m3, with disposal at licensed site in Milford Haven, along with a piled reinforced concrete bankseat; tubular steel guide pile; reclamation to facilitate extension to the road and pedestrian network.

It also includes the demolition of structures, including a disused RNLI slipway; rock armour revetment with toe detail to tie into scour protection; storm sewer extension; and ancillary and temporary works.

The published observation scheme has been marked as a response.

Stena Line is currently in the process of applying to Natural Resources Wales (NRW) for a marine licence application for the replacement linkspan at Fishguard Port, via its agents RPS  Consulting UK & Ireland.

The submitted documents state that Stena Line proposes to replace the existing temporary arrangement of a linkspan and jack-up barge within Fishguard Harbour.

The minutes from a recent meeting of Fishguard and Goodwick Town Council suggest that this development will cost in the region of £15.5 million.

“The proposed development, providing a replacement pontoon, will allow safe berthing of the ferry, and provide an improved facility for passenger and vehicular access to vessels within the port,” state documents provided to NRW.

The planning boundary of the proposed development is encompassed by Fishguard Harbour, within Fishguard Bay.

Stena Line Ltd owns a floating pontoon, which they want to relocate to Fishguard.

Because the proposed development is within the boundaries of the West Wales Marine SAC and in proximity to other marine SACs, Stena has had to submit environmental statements to NRW. The most recent was submitted at the beginning of last month.

Continue Reading

Business

Wesleyan Chapel school, Haverfordwest flats plans approved

Published

on

PLANS to convert the Sunday School building of Haverfordwest’s former Wesleyan Chapel, once the site of a regular place for preaching by the founding father of Methodism, to six flats have been approved.

An application to council planners, Mr S Lavrinovics of Northampton, through agent Vitaly + Partners ltd, sought permission for the conversion of the Chapel Lane building.

Accompanying documents say Haverfordwest was a regular place of preaching for John Wesley, the founding father of Methodism, first visiting in 1763, with the first chapel built in 1772. By 1781 there were 60 members in the town, the largest congregation in the Pembrokeshire Circuit.

The chapel was rebuilt in 1818 and enlarged in 1835; the adjoining schoolroom built in 1874, with further chapel works in 1880-1.

The chapel closed in 1985, and the interior was stripped for use as an antiques showroom.

A heritage statement accompanying the application said: “The works on internal alternations of former school building started in 2014 after planning permission was approved. Then other records show that works has re-started in 2020. There are previous building inspector assessment notes available for more details. Since there has been numerous of owners and works started again in 2024.”

It added: “The main factor to support proposed development is in fact it was approved few times in the past. The works already began, and the original layout and external elements are already altered.

“The building was abandoned and not maintained in any way. It did not look pretty and had a negative impact on the residents of the town.  The building has had its original use adopted numerous of times to suit the needs of the particular time period and serve the town accordingly.

“The maintenance work to the building has already shown how much cleaner and more beautiful the building appearance became and it has had good impact on the residents who shared their views on social media talking positively about the renovation works on the building.”

The application was conditionally approved, an officer report saying the proposal, subject to conditions “will have a neutral impact on the character of the listed building”.

Continue Reading

Business6 hours ago

Fishguard Port upgrade scheme lodged with national park

THE EARLY early stages of a scheme for a new link bridge and floating pontoon for Fishguard’s ferry and associated...

Farming22 hours ago

Farming future at a crossroads as final Welsh support scheme unveiled

Unions, politicians and sector leaders respond to ‘once-in-a-generation’ changes in land policy THE FINAL version of the Welsh Government’s Sustainable...

News2 days ago

Fresh storm hits Neyland Town Council over church ceremony outburst

Councillor demands mayor’s resignation after ‘diatribe of hatred’ in chapel. Town Clerk responds as tribunal looms for accuser — mayor...

Crime3 days ago

Gran ‘attacked with rock near school gates’, court told

Woman ‘dragged victim by hair and gouged eyes’ in front of children A PEMBROKE DOCK woman has been accused of...

Crime3 days ago

Man arrested after stabbing in Tenby housing estate

A MAN was taken to hospital with stab wounds following a serious incident in a quiet residential estate in Tenby...

Charity3 days ago

Swimmer with 1% chance of survival returns to Newgale to thank lifesavers

London woman reunited with Wales Air Ambulance medics one year after near-fatal sea rescue A LONDON woman who was given...

News4 days ago

Inquest opens into tragic A478 Blood Bike crash

AN INQUEST has been opened into the death of a retired Blood Bikes Wales volunteer who died following a crash...

Crime4 days ago

Carmarthen link to baby manslaughter case: Couple camped on wasteland behind Tesco

Constance Marten and Mark Gordon once lived rough by Five Fields Allotments before baby’s tragic death in Brighton A COUPLE...

Community4 days ago

Summer Safety Fest brings positive change in Milford Haven

Under-the-bridge event tackles anti-social behaviour through community collaboration MILFORD Marina was transformed into a hub of activity and community spirit...

Business4 days ago

Port Talbot steelworks enters green era – but thousands already out of work

5,000 jobs secured as electric arc furnace construction begins, but unions call transition ‘bittersweet’ WORK has officially begun on a...

Popular This Week