Politics
Welsh Government pays £13m to settle contract claims
THE WELSH Government made a £13m “special payment” to settle claims over road contracts and lost more than £2m on defunct technology, according to scrutiny of annual accounts.
Welsh ministers shelled out £13.1m, excluding VAT, after contractual claims for additional money for three road projects amid spiralling costs due to high inflation.
Andrew Goodall, the Welsh Government’s permanent secretary, said in a letter that his officials sought to settle all claims with the contractor in the interests of value for money.
Pressed by the Senedd’s public accounts committee about the consequences of not settling, Dr Goodall raised the risk of delays to roadworks and the loss of European funding.
He wrote: “Not settling all claims would have left the Welsh Government open to the risk of unsettled claims being leveraged by the contractor at a later date.”
Wales’ most senior civil servant added: “Whilst there’s no guarantee the contractor would have commenced formal dispute proceedings for amounts they considered were due, it was deemed that there was a real chance of them doing so.”
He said such push back was not unique to the Welsh Government, with other public bodies also grappling with the reality of contractors no longer being willing to take on certain risks.
In his letter to the public accounts committee, the ex-NHS Wales chief confirmed the payment was discretionary and made as a result of the government’s policy position.
Politicians on the committee called for more information in their scrutiny of the Welsh Government’s 2023-24 accounts which provided few details of the “special payment”.
Members questioned how the £13.1m compares to the overall value of the road projects and whether it represents a negotiated settlement below the total value of the contractor’s claims.
The committee also called for clarity after the accounts revealed a £2.27m loss to the public purse from spending on “defunct” equipment for a green social housing scheme.
As part of its “Optimised RetroFit Programme”, the government made a “fruitless payment” for intelligent energy systems (IES) only to discover the devices could not be upgraded.
Explaining the loss, Dr Goodall pointed to a lack of clarity in reporting and escalation which meant the Welsh Government was unaware the units were useless until it was too late.
He wrote: “A detailed and thorough lessons learnt process has been completed, in which all parties have considered and reflected upon their role and responsibilities….
“The initial IES devices represented one of the first tranches of monitoring units of this kind, so were exposed to the inherent risks associated with new technologies.”
In his foreword to the report, chair Mark Isherwood outlined serious concerns about the Welsh Government’s “unsatisfactory” oversight of 48 arm’s-length bodies.

Ministers have paused a programme of tailored reviews, with only two completed – for the National Library of Wales in 2020 and Amgueddfa Cymru (Museum Wales) in 2023.
The public accounts committee has criticised a move to an alternative lighter-touch, self-assessment model which has taken more than six years to implement.
The report, which makes 18 recommendations, also expressed concerns about a data breach as the Welsh Government rolled out a new HR system called Pobl.
Dom Houlihan, director of people, told the committee: “Some line managers were able to view data they shouldn’t have been able to,” prompting an immediate security review.
The scrutiny report, which was published on Monday, called for an update on the Welsh Government’s £14m attempt to attract sports carmaker TVR to Wales.
Ministers spent £4.75m buying a factory in Ebbw Vale in 2021, £7.6m on refurbishment, £2m on a five-year loan for TVR and £500,000 on shares – only for the venture to fall through.
The committee said: “We are concerned the property remains vacant and the investment as it currently stands is not generating any income nor representing value for money.”
Senedd members also expressed concerns about the damning “no assurance” findings of internal audits of the Welsh Government’s framework for managing major projects.
Their 60-page report similarly raised alarm bells about a leaked staff survey which painted a picture of a culture department in “chaos”, with “no sense of longer-term strategic planning”.
Business
Cosheston Garden Centre expansion approved by planners
PLANS to upgrade a garden centre on the main road to Pembroke Dock have been given the go-ahead.
In an application to Pembrokeshire County Council, submitted through agent Hayston Developments & Planning Ltd, Mr and Mrs Wainwright sought permission for upgrade of a garden centre with a relocated garden centre sales area, additional parking and the creation of ornamental pond and wildlife enhancement area (partly in retrospect) at Cosheston Garden Centre, Slade Cross, Cosheston.
The application was a resubmission of a previously refused scheme, with the retrospective aspects of the works starting in late 2023.
The site has a long planning history, and started life as a market garden and turkey farm in the 1980s, and then a number of applications for new development.
A supporting statement says the previously-refused application included setting aside a significant part of the proposed new building for general retail sales as a linked farm shop and local food store/deli in addition to a coffee bar.
It was refused on the grounds of “the proposal was deemed to be contrary to retail policies and the likely impact of that use on the vitality and viability of nearby centres,” the statement said, adding: “Secondly, in noting that vehicular access was off the A 477 (T) the Welsh Government raised an objection on the grounds that insufficient transport information had been submitted in respect of traffic generation and highway safety.”
It said the new scheme seeks to address those issues; the development largely the same with the proposed new garden centre building now only proposed to accommodate a relocated garden centre display sales area rather than a new retail sales area with other goods, but retaining a small ancillary coffee bar area.
“Additional information, in the form of an independent and comprehensive Transport Statement, has now been submitted to address the objection raised by the Welsh Government in respect of highway safety,” the statement said.
It conceded: “It is acknowledged that both the creation of the ornamental pond and ‘overspill’ parking area do not have the benefit of planning permission and therefore these aspects of the application are ‘in retrospect’ and seeks their retention.”
It finished: “Essentially, this proposal seeks to upgrade existing facilities and offer to the general public. It includes the ‘relocation’ of a previously existing retail display area which had been ‘lost’ to the ornamental pond/amenity area and to provide this use within the proposed new building and moves away from the previously proposed ‘farm shop’ idea which we thought had merit.
“This revised proposal therefore involves an ‘upgrading’ rather than an ‘expansion’ of the existing garden centre use.”
An officer report recommending approval said that, while the scheme would still be in the countryside rather than within a settlement boundary, the range of goods sold would be “typical of the type of goods sold in a garden centre and which could be sold elsewhere within the garden centre itself,” adding: “Unlike the recent planning application refused permission it is not intended to sell delicatessen goods, dried food, fruit and vegetables, pet products and gifts.”
It added that a transport statement provided had been reviewed by the Welsh Government, which did not object on highway grounds subject to conditions on any decision notice relating to visibility splays and parking facilities.
The application was conditionally approved.
Business
Tenby Poundland site could become retro gaming lounge
TENBY’S former Poundland and Royal Playhouse cinema could become a retro computer gaming lounge, plans submitted to the national park hope.
Following a takeover by investment firm Gordon Brothers, Poundland shut 57 stores earlier this year, including Tenby.
Prior to being a Poundland, the site was the Royal Playhouse, which had its final curtain in early 2011 after running for nearly a century.
The cinema had been doing poor business after the opening of a multiplex in Carmarthen; in late 2010 the opening night of the-then latest Harry Potter blockbuster only attracted an audience of 12 people.
In an application to Pembrokeshire Coast National Park, Matthew Mileson of Newport-based MB Games Ltd, seeks permission for a ‘CONTINUE? Retro Gaming Lounge’ sign on the front of the former Gatehouse (Playhouse) Cinema, White Lion Street, most recently used as a Poundland store.
The signage plans form part of a wider scheme for a retro gaming facility at the former cinema site, which has a Grade-II-listed front facade, a supporting statement through agent Asbri Planning Ltd says.
“The subject site is located within the settlement of Tenby along White Lion St. The site was formerly the Gatehouse Cinema and currently operates as a Poundland discount store, which closed on October 18.”
It adds: “This application forms part of a wider scheme for the change of use to the former Gatehouse Cinema. Advertisement consent is sought for a non-illuminated aluminium composite folded panel that will be bolted onto the front façade of the proposed building, in replacement of the existing signage (Poundland).”
It stresses: “It is considered that the proposed advertisement will not have a detrimental impact on the quality of the environment, along with being within a proportionate scale of the building. It is considered that the proposed signage will reflect site function.
“Furthermore, due to the sympathetic scale and design of the sign itself, it is considered that the proposal will not result in any adverse visual amenity impacts.
“The proposal is reduced in sized compared to the existing Poundland advertisement. The sign will not be illuminated. Given the above it is considered that such proportionate signate in association with the proposed retro gaming lounge is acceptable and does not adversely affect visual amenity.”
An application for a retro gaming lounge by MB Games Ltd was recently given the go-ahead in Swansea.
Business
Llandeloy cottage crochet plans given the green light
A CALL to change the use of a Pembrokeshire farm holiday cottage to a crochet workshop has been given the go-ahead by Pembrokeshire planners.
In an application to Pembrokeshire County Council, Mr and Mrs Evans of Lochmeyler Farm, Llandeloy, through agent Harries Planning Design Management, sought permission for a change of use of a self-catered cottage to a crochet workshop.
A supporting statement says the application, one of a number of historic farm diversification schemes on site “seeks to continue to evolve with current market demands,” the cottage proposed for the change of use once a former outbuilding that was originally converted in 1992 into “a well-established holiday let”.
It added: “Made by Margo is a well-regarded local business founded by Margo Evans, a passionate lifelong crafter who began knitting at a young age. Her company specialises in creating handcrafted, contemporary crochet products using high-quality natural materials.
“Accordingly, Margo is a highly sought-after teacher known for her popular crochet classes. This proposal is motivated by a recognised need for a permanent space for the business, as to date the applicant has needed to use community halls or similar spaces to accommodate clients.
“Thus, the proposed change of use will secure a permanent space for these workshops and will future proof the business against the lack of availability of public spaces.
“Other alternatives have been considered with the cottage being the most viable option, particularly as demand has waned for holiday cottage post Covid-19. The holiday cottage, whilst once popular, is no longer in high demand, with visitors requiring more modern amenities and larger spaces which without significant investment, this holiday cottage is unable to provide.
“Consequently, the cottage’s change of use will diversify the farm’s revenue, while simultaneously providing a permanent base for a small rural business. While the primary customer base is local, the space may also help attract seasonal tourism and broaden the business’s appeal.”
It says the operation would be on a small scale, with a maximum of six people per class and a three day per-week schedule.
An officer report, recommending approval, said: “The provision of a workshop would have both social and environmental benefits for the applicant and local community through the provision of business and income generated from the operation.
“With regard to environmental impacts, positive environmental impacts would be achieved through the re-use of the building. Whilst the proposed location is in the open countryside, which is not a sustainable location, the proposed operation of the business is low scale. It is considered that the number of trips would be of low frequency when compared to the potential number of trips that are generated from tourism.”
The application was conditionally approved.
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