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Mustang creditors furious

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creditors furiousANGER is growing amongst creditors of insolvent Pembroke Dock company Mustang Marine.

Local companies that have extended credit to the boat building firm have been left vulnerable, and in financial difficulty.

The Herald understands that other Pembrokeshire businesses are owed £330,000, with one firm claiming that they are owed nearly £70,000.

Speaking on the grounds of anonymity, the director of one local firm said: “We felt safe doing business with Mustang because it was listed as a subsidiary company of Milford Haven Port Authority.”

He added: “The Port Authority is sitting on a bank balance of millions of pounds, there is a moral responsibility to sort this mess out. That would provide economic and social benefits as it will prevent companies such as mine from laying off staff.”

The Milford Haven Port Authority Act 2002 says that the Port Authority’s right to invest in local firms ‘may be exercised if, and only if, in the opinion of the Authority the exercise of the powers is likely to provide economic, social, cultural or environmental benefits to all or some of the population of Pembrokeshire or any part of Pembrokeshire.’

Questions have been raised by the Welsh Government in Cardiff regarding the Port Authority’s responsibilities to local firms, but last week, Alec Don, Chief Executive of the Port Authority said: “The Port of Milford Haven is a 50% shareholder and remains a separate corporate entity to Mustang Marine. The Port is not liable for Mustang’s debts. Any specific questions about that business, including queries about creditors, must be directed to the administrators Grant Thornton.

“As a Trust Port we continually look to invest in growth and economic activity in the Port. On this basis, and in good faith, the Port of Milford Haven invested in Mustang Marine. The company approached us with a firm business plan and orders that required our support and investment to achieve.

“Any investment we make has to be balanced with our central commitment to keep the UK’s largest energy port operating efficiently, and safe for everyone who uses the waterway.

“This is a difficult time for all those involved in Mustang. Our priority now is to get new and sustainable businesses established as quickly as possible, both for employees and for businesses up and down the Haven who rely on this busy working port.”

MP’s questions

Simon Hart MP has written to Port Authority raising questions about the organisation’s responsibilities to local firms who are out of pocket. He spoke exclusively to the Pembrokeshire Herald yesterday about his concerns.

Simon Hart said: “The fact that Pembrokeshire companies are owed hundreds of thousands of pounds seems to have been glossed over. They cannot talk about growth and activity on the one hand and then refuse to even consider the plight of local people left out of pocket on the other. These people undertook work for Mustang as they felt comfortable that the company was part of a larger trading operation of which the Port was a central part.”

He added: “As far as the port accounts are concerned, Mustang was listed as a trading subsidiary. The Authority’s responsibilities are a legal question that I have put to chief executive, Alec Don. If you have a trading subsidiary then this is a different position, in my view, than if you are a minor shareholder. The Port Authority has always referred to Mustang as a subsidiary company. Every conversation that I have had about Mustang has been with Alec Don. He was very much sewn in the structure at Mustang. At the very least, the Port Authority should explain why it thinks it has no obligation at all to the many local creditors.

“I know that local companies did business with Mustang because they felt comfortable that it was part of a bigger organisation. Nothing was ever done to suggest that MHPA had no responsibilities. Rather than just say it’s not our problem, Alec Don should explain what the true legal position is.”

“The Port Authority’s employees have been embedded in the company. Frankly, I can understand why creditors may want to challenge the assertions of the Port Authority.”

Simon Hart concluded: “A question that I would like to ask is – Who in the Port Authority did the due diligence over the purchase of 50% shares in Mustang? Alec Don should explain very clearly, after the Port Authority has had such an intimate relationship with the company, why is it that now they are distancing themselves.”

Help for workers

Rebecca Evans, AM for Mid and West Wales, has welcomed an update from the Minister for Business, Enterprise, Technology and Science on the situation facing Mustang Marine and its workforce. In a letter to Assembly members, the Minister said: “The administrator is currently exploring all options for securing the future of operations at the site within the Enterprise Zone. My officials are working with the administrator and a number of potential third party investors to seek to secure the long term viability of the company. Those discussions are on-going and I will update members of the outcome of those commercial discussions as soon as I am able.

“As a government, we are determined to do all that we can to support the employer and its workforce at this difficult time and are working with the administrator to provide support and advice to any of the workforce in Wales facing redundancy through our ReAct scheme.”

Mrs Evans continued: “The news that Mustang Marine in Pembroke Dock had gone into administration with the loss of 66 jobs was a bitter blow for the area.

“I am glad that the Welsh Government is working closely with the administrator to try and find a secure way forward for Mustang Marine, and to ultimately save the remaining jobs. I sincerely hope that the Welsh Government’s work with the administrator leads to a positive outcome.

“I recently asked the First Minister what support and assistance will the Welsh Government offer to those 66 workers facing redundancy, and he told me that ‘those threatened with redundancy will be offered ReAct support and advice.’ I am glad that this is in place.

“I look forward the next update from the Minister, and hope for good news.”

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 worker who has been made redundant.

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News

Too many children in Wales living in poverty – Lib Dems want action

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THIS week in the Senedd, the Welsh Liberal Democrats renewed their demands for the implementation of child poverty targets.

According to a report from the Bevan foundation, 29% of children living in Wales are currently experiencing poverty (an estimated 190,000 children).

The same report highlighted that the largest percentage of children living in poverty are from working households or in couple households.

The Welsh Lib Dems are now renewing calls for the Welsh Government to create a set of targets for reducing child poverty, which the party argues will allow for more accountability.

The party has previously called for the implementation of targets, citing recommendations from the Calling Time on Child Poverty Report published in November last year.

Commenting, the Leader of the Welsh Liberal Democrats Jane Dodds MS said: “The latest statistics on childhood poverty in Wales paints a very distressing image of families across the country struggling to make ends meet.

Over the course of the last six years, the proportion of children in poverty has skyrocketed. Fuelled by worsening economic conditions and a complete lack of action from both governments in Westminster and Cardiff Bay.

We cannot act complacent about these figures nor accept the clear lack of progress in fighting child poverty, behind each statistic is a child that the state has failed.

It remains painfully clear that the Welsh Government is failing to make any meaningful progress in this fight, which is why they must follow through with the implementation of clear set targets that will allow for further accountability.

We as a party have continuously called for the creation of these targets and we will not be silenced. For the sake of future generations we urge the Welsh Government to listen.”

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Crime

Welsh constabulary areas record another increase in shoplifting

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RETAIL trade union Usdaw is deeply concerned by today’s police recorded crime statistics showing that in 2023 there were significant increases in shoplifting across all constabulary areas in Wales. In the whole of England and Wales there has been a persistent upward trend since the pandemic, which continued with a 37% increase and has now risen to the highest level in 20 years.

The Office for National Statistics released figures showing a 39% increase in shoplifting incidents across Wales and by constabulary area as follows:

  • Dyfed-Powys +11%
  • Gwent +47%
  • North Wales +23%
  • South Wales +51% 

Usdaw’s 2023 annual survey of over 5,500 shopworkers found that 60% had suffered incidents of violence, threats and abuse that were triggered by shoplifting and armed robbery.

Paddy Lillis, Usdaw General Secretary says: “Shoplifting is not a victimless crime, theft from shops has long been a major flashpoint for violence and abuse against shopworkers. Having to deal with repeated and persistent shoplifters can cause issues beyond the theft itself like anxiety, fear and in some cases physical harm to retail workers. This 39% increase in shoplifting across Wales is further evidence that we are facing an epidemic of retail crime, which is hugely concerning.

“Our members have reported that they are often faced with hardened career criminals in the stores and we know that retail workers are much more likely to be abused by those who are stealing to sell goods on. Our latest survey results show that 7 in 10 retail workers suffered abuse from customers, with far too many experiencing threats and violence. 60% of respondents said theft from shops and armed robbery were triggers for these incidents.

“The scale of assaults, abuse and threats towards shopworkers and extent of the retail crime epidemic has been a disgrace for many years. This has been made worse by police cuts and a failure to legislate to protect retail staff. Usdaw has long called for action that includes a standalone offence for assaulting a shopworker and that has been vehemently opposed by this Government and their Conservative MPs on many occasions.

“Recently the Government performed a long overdue U-turn after many years of sustained campaigning by Usdaw and others. Our members have had to wait too long for their voices to be heard and common sense to prevail. We will have to see the detail of what Ministers are proposing and we are clear that it must be at least what we won in Scotland three years ago. It also cannot fall short of Labour’s commitments to 13,000 more uniformed officers, patrols on high streets, banning repeat offenders and ending the perverse £200 threshold for prosecuting shoplifters.

“The dither and delay by this Government on this issue over many years, has led to thousands of shopworkers needlessly suffering physical and mental injury. Today’s stats should ensure that their promise to legislate is done speedily. We hope that whatever the Government is proposing will be substantial and effective in giving shopworkers, key workers in every community, the respect that they have long deserved and regrettably too often do not receive.”

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Business

Paramount’s key role in transformation of McArthurGlen Designer Outlet

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FAST-growing Welsh company Paramount is relishing the challenge of creating an “irresistible dining destination” after winning the contract to play a key role in the multi-million transformation of the McArthurGlen Designer Outlet Bridgend.

The Cardiff-based design, build, fit-out and refurbishment specialist will spearhead the re-development project of the shopping centre after being handed responsibility for revamping its popular food court over the summer.

In the coming months, the development will see the Food Court transformed into three modern, and bright restaurants, welcoming new food and beverage brands to the centre and creating more than 100 new job opportunities for the local community.

Paramount’s Construction Director, Paul Thomas, said: “The team behind the scenes at McArthurGlen Designer Outlet Bridgend have fantastic plans for the future and we’re delighted to have been entrusted with the mission to help turn their exciting vision into a reality.

“Paramount prides itself on creating places where people want to be, and my team are relishing the opportunity to help create what will be an irresistible dining destination. It’s certain to be a complex project, but we have the expertise and local knowledge to deliver outstanding results in close collaboration with our project partners.”

The owners of the shopping centre, which has been attracting local people and visitors for more than 25 years, have promised a “substantial investment to redevelop the Food Court area and replace it with new and exciting restaurants”. 

Now the Paramount team is ready to lay the groundwork by removing some existing structures around the Food Court and will then introduce a series of new features as part of the overall facelift. These include new glazed entrance doors within glazed curtain walling shopfront, render and a new entrance lobby with new stairs and lifts.

The work to completely develop the Food Court in the shopping centre starts this week, and is expected to be completed in late autumn. As a result, customer favourites including Nando’s, McDonald’s and Chopsticks will be closed while work is under way.

Patrick Finney, Head of European Construction, McArthurGlen Group, said: “After celebrating our 25th anniversary last year, we’re extremely pleased to welcome Paramount on board in this important step of revitalising the Food Court area. 

“These are exciting times for everyone at one of South Wales’ best-loved retail complexes and we know Paramount will work closely with us to create a truly special place for diners and shoppers of all ages.”

Paramount, whose turnover reached £45 million in 2023, employs 60 people who own a majority shareholding of the business – 51 per cent – following completion of an Employee Ownership Trust  (EOT) scheme in 2021, a deal which marked a major milestone for Paramount after a period of sustained growth. 

The company is well known across Wales and England where it has created high-quality inspirational space for a number of leading companies. These include the multi-million-pound redevelopment of Hodge House and Fusion Point One in central Cardiff, and the fit out of Par 59 bars in South Wales and South West. 

Over the next few months, Paramount’s construction team will also be completing on a multi-million-pound social housing development in Porthcawl, Mid-Glamorgan with Valleys to Coast.

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