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Auditor general criticises ‘irregular’ Industry Wales accounts

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THE AUDITOR general sounded the alarm about the “irregular” accounts of a wholly Welsh Government-owned company, warning of a lack of evidence to support financial claims.

Adrian Crompton took the extraordinary step of stating he could not form an audit opinion on Industry Wales, the trading name of Sector Development Wales Partnership Ltd (SDWP).

Industry Wales, which aims to provide expert advice and support to grow “Wales plc”, has received about £9.7m from the public purse in the past decade, according to accounts.

Mr Crompton said: “This is a highly unusual position whereby I am stating that I am unable to provide either a ‘true and fair’ or ‘regularity’ opinion on the accounts as I have been unable to obtain sufficient, appropriate evidence over material assets.”

In a letter to the Senedd public accounts committee, he wrote: “Unfortunately, this inability to obtain sufficient, appropriate evidence applied to multiple connected parts of the accounts.”

The auditor general concluded: “The impact is so significant and pervasive in the context of SDWP’s accounts that I am unable to give an opinion at all.”

Industry Wales – a relatively small umbrella organisation for forums in key sectors such as aerospace, net zero and the automotive industry – has an annual budget of about £1m.

In a disclaimer on the 2024 accounts, Mr Crompton pointed out that the company failed to follow the Welsh Government’s own procurement law in awarding a contract in 2021/22.

The company, which was set up by ministers in Cardiff Bay in 2013, has spent more than £1m on an automated decorating, cutting and packing line which is not yet operational.

The firm entered into a contract with Llanelli-based manufacturer EBS Automation which scored second on price in the non-compliant procurement process.

Mr Crompton said Industry Wales claims to have assets valued at more than £1m but the bulk comes from the packing line, with indications it may have significantly impaired value.

Declaring £829,000 of the spending to be “irregular”, the auditor general also warned of a lack of robust record keeping and accounting controls for another £217,967 of assets.

The audit, which had an initial deadline of December 31, was delayed until late February due to “significant deficiencies” in obtaining the required evidence.

But Mr Crompton, an ex-senior civil servant in the Senedd, remained unable to complete the work he was appointed to undertake on the 2024 accounts which showed a £35,000 loss.

The arm’s-length body is chaired by Professor Keith Ridgway and run by chief executive Dr Jenifer Baxter, who are experts in manufacturing and sustainability respectively.

Directors’ remuneration has totalled £245,000 over the past two financial years and the Bridgend-based company employs three to four people, according to accounts.

Mark Isherwood, the Tory chairman of the public accounts committee, said: “It is a matter of concern that the auditor general has ‘disclaimed’ his audit opinions on these accounts.”

The north Walian added: “This is a highly unusual position and there are questions that need to be asked as to why this has occurred. The public accounts and public administration committee will be discussing this matter on Thursday.”

Industry Wales and the Welsh Government were invited to comment.

 

Business

Pembrokeshire Lydstep Beach Village development refused

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A CALL for an extra sign advertising a Pembrokeshire holiday park, adding to exiting unauthorised ones, which planners say would create “visual clutter and intrusion” and a distraction to drivers, has been refused.

In an application to Pembrokeshire Coast National Park, permission was sought, through Lakeside Signs Limited, for an additional sign advertising Haven’s Lydstep Beach Village, near Tenby, the sign proposed for North Lodge where the holiday park joins the main road.

Pembrokeshire County Council’s highways authority raised no concerns regarding the specific location of the sign, but said “there remains a broader concern regarding the cumulative impact of signage along this section of highway,” adding: “The increasing proliferation of signs in this location has the potential to create a visually cluttered environment, which may distract drivers and, in turn, give rise to road safety implications.”

A Park officer report recommending refusal said: “Currently, there are eight flagpoles, one A-frame banner type sign, one pole mounted panel sign, and a further panel sign, located behind the stone wall on the western side of the park’s entrance. None of these advertisements have the benefit of advertisement consent.”

It added: “The increasing number of signs in this location has the potential to create a distraction to drivers, which may result in road safety implications. In addition, the proliferation of signage would create clutter that would result in visual intrusion in this countryside location affecting amenity. As such, the recommendation is to refuse.”

It went on to say: “Whilst it is not deemed that the proposed advertisement would result in harm being caused to the specific special qualities of this area, there are concerns that the display of this advertisement would, along with the remainder of the advertisements, which are unauthorised, result in a proliferation of advertisements, which in turn would cause visual clutter and intrusion.

“This is especially problematic in a countryside location where development is strictly controlled. Should the existing signage be consolidated and rationalised, the Authority may support the proposed sign, however, currently, any additional signage would not be deemed appropriate.”

The application was refused on the grounds that it would, along with the exiting signage, “result in visual clutter and intrusion which would detract from the visual amenity of this countryside location, and would result in potential distraction to drivers, which in turn would rise to road safety implications”.

 

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The Cheesecake Guy store could be coming to Saundersfoot

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SAUNDERSFOOT’S Coal Building interpretation centre could soon host the third store for Welsh cheesecake business The Cheesecake Guy Ltd, in plans before the national park.

In an application to Pembrokeshire Coast National Park, Craig Taylor of Merthyr Tydfil-based The Cheesecake Guy Ltd seeks a change of use of part of Saundersfoot’s Cambrian Terrace Coal Building interpretation centre to create a small retail unit.

On its website, The Cheesecake Guy says of its business and products: “Established in 2019, The Cheesecake Guy is all about delivering indulgent, handcrafted cheesecake desserts with a twist. While we offer a range of sweet treats, our specialty — and customer favourite — is the signature cheesecake jar.

“Made with quality ingredients and packed with rich, creamy layers, our jars are the perfect dessert for any occasion. Whether you’re treating yourself or sharing with others, The Cheesecake Guy brings a spoonful of happiness to every bite.”

While no supporting statement has yet been published for the Saundersfoot proposal, the application says the scheme would employ two full-time members of staff, operating 10am-6pm Mon-Sat, and 10-5 on Sundays and bank holidays.

It says the proposed site is currently a mixed-use retail and gift shop, having previously been used as office space.

It adds: “This is a space within a building that is still trading, the space we are wanting a change of use was last used by Persimmon Homes as an office space.”

Of the scheme itself it says it will involve “retail sales of pre-prepared desserts and merchandise,” adding there will be “no on-site manufacturing or heavy processing,” with “equipment limited to display fridges and freezers”.

If approved, the Saundersfoot site would be the third outlet for The Cheesecake Guy, with sites in Merthyr, and, more recently, Newport Market.

After that store opened following redevelopment of Newport’s Victorian market, Craig Taylor, of The Cheesecake Guy, said: “We are very excited to be part of the new development in Newport Market alongside some other amazing small businesses.

“We feel this is definitely the next step in the right direction after our Merthyr Tydfil store taking off so well.”

For its Newport site, The Cheesecake Guy says: “We specialise in creating a wide variety of cheesecake desserts that cater to all tastes. Our menu features popular favourites that have won the hearts of many, alongside exciting new creations designed to keep your taste buds satisfied.

“Whether you’re a classic cheesecake lover or an adventurous foodie, we promise a cheesecake experience like no other. Each cheesecake is made with the utmost care, ensuring a rich, creamy texture and a burst of flavour in every slice (or jar!).”

The Saundersfoot proposal will be considered by park planners at a later date.

 

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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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