• 65 jobs lost • Local firms owed hundreds of thousands • Politicians want reassurances over remaining jobs

THE WELSH GOVERNMENT MINISTER for the Economy, Science and Transport, Edwina Hart, has confirmed to The Herald that Pembroke Dock based Mustang Marine is now in the hands of administrators Grant Thornton, but is continuing to trade. Around 65 employees have been laid off and 50 staff will remain, according to the firm.

Interim managing director Stewart Graves said he was still hopeful a buyer could be found.

Mustang has had millions of pounds in funding from the Milford Haven Port Authority and a cash injection from the Welsh government. Last week, the interim managing director said the company had a significant cash shortage in December which left it facing closure.

He said with assistance from a new management team and external advisers a long-term funding package was secured in February from the Welsh government and Milford Haven Port Authority and an external third party.

However, after completing its review of the business, the external party withdrew its offer, and “without that party the long-term funding package could not proceed”.

Alec Don, Chief Executive of the Port of Milford Haven said in a statement: “Mustang Marine is 50% owned by the Port of Milford Haven and therefore is an associate company.”

“We are obviously concerned about the great anxiety amongst staff and other stakeholders that this administration announcement will be causing. We have always been supportive of Mustang’s efforts to grow their business and establish themselves as a manufacturer based in West Wales in competition with other ship builders in the UK and beyond.”

“As a Trust Port we remain committed, more than normal commercial considerations would allow, to working with the administrator and other stakeholders to see a viable business re-established. We will do all we can to attract investors who can make a success of the outstanding facilities and location we have here, and employ as many of the highly skilled staff as possible.”

Politicians express concern

Delyth Evans, Parliamentary Candidate for South Pembrokeshire said: “I am extremely disappointed to learn of the news that administrators have been appointed to Mustang Marine. This is very bad news for the employees and their families and other local businesses that are also affected. I know the Welsh Government has been working hard to help the company find a way out of its difficulties. It is vital that every opportunity is explored to secure a future for the business and to support the workforce.”

Cllr Paul Miller, said: “I share Delyth’s concern for those people who are affected by this difficult outcome. Mustang Marine has been a major employer over the years and has directly and indirectly contributed to the Pembrokeshire economy.”

“I’ll be raising this with officers of Pembrokeshire County Council and with the Milford Haven Enterprise Zone Board. It’s critical that both organisations re-double their efforts to support job creation around the waterway.”

Rebecca Evans AM, Assembly Member for Mid and West Wales, has asked the First Minister what advice and support the Welsh Government will make available to members of the Mustang Marine workforce facing redundancy.

AM seeks assurances over jobs

Speaking at the weekly questions to the First Minister, Mrs Evans said: “The news that Mustang Marine in Pembroke Dock has gone into administration with the loss of 66 jobs is a bitter blow for the area.

“What support and assistance will the Welsh Government offer to those 66 workers facing redundancy, and how can you help to work towards safeguarding the remaining 48 jobs?”

In response, the First Minister, Carwyn Jones confirmed that “We are exploring a number of options at the moment, but I can say that those threatened with redundancy will be offered ReAct support and advice.”

ReAct is the Welsh Government’s Redundancy Action Scheme which has been put in place to help people affected by redundancy gain new skills and encourage recruiting employers to employ a redundant worker.

ReAct can offer help to individuals facing redundancy, or those who are newly out of work, by offering recruitment and training support, as well as discretionary awards toward vocational training. Help can include 100 per cent of training costs to acquire new skills (up to a maximum of £1,500), help with the cost of special equipment to remove barriers to training, help towards the cost of travelling to training courses, overnight accommodation costs – where appropriate, and a contribution towards childcare costs whilst training.

Mrs Evans said: “ReAct also offers packages for employers taking on someone who has been made redundant.

“The Welsh Government’s employer recruitment support initiative funds employers who recruit individuals who have been made redundant in the past six months. The award offers up to £3,000 paid in four instalments as a contribution towards wage costs.

“There is also an employer training support fund, which is a separate discretionary fund of up to £1,000 that an employer can put towards the cost of the new recruit’s job-related training.

“I urge local employers to consider whether this funding would be right for them.”

Uncertainty for suppliers

Last month The Herald reported that there were hundreds of thousands owed to local businesses by Mustang Marine. The administrators have now confirmed that the figure is around £350,000 and that there are over sixty firms owed cash. A local business man who spoke to the Herald on condition of anonymity said: “Our company is only a small firm, and we have been waiting for payment since before Christmas. If we do not get paid, which is now looking unlikely, we will be forced to lay off staff at our company too. The knock on effect of Mustang going into administration may very well be greater than the job losses at the firm itself.”

Alec Don said: “The interests of creditors and employees will be best served by all parties working together to ensure a strong business emerges from the administration process.”