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Enterprise Zones to be reorganised

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Enterprise Zone: 'Little to show for the money', claim Conservatives

ECONOMY Secretary, Ken Skates has announced an intention to streamline the operation of Wales’ eight Enterprise Zones while increasing their focus on delivering prosperity for Welsh communities.

During an appearance at the Economy, Infrastructure and Skills Committee, Ken Skates announced the conclusions of his review of the governance of Wales’ Enterprise Zones while stressing his commitment to the continuation of all eight of the zones.

Speaking after Committee, Ken Skates said: “I am very proud of the achievements and success of our Enterprise Zones and grateful for the hard work and commitment of the Chairs and Advisory Boards in driving their success.

“Collectively our Enterprise Zones supported over 10,700 jobs to the end of the last financial year at a cost per job of less than £6k per job, and whilst the pace of delivery has varied between the Zones, this very much reflects each Zone’s economic context and starting position.

“All eight Enterprise Zones have made significant progress, and are continuing to deliver value for money by laying the foundation for future prosperity and creating the right environment to support the development of sustainable job opportunities in communities right across Wales, both in the short and longer term.

“The changes I have outlined are about streamlining bureaucracy and utilising other governance structures where I believe that represents the most sensible way forward. They have also been made as part of a wider review of advisory architecture across my portfolio.

“The views of the Chairs of the Enterprise Zones have been invaluable in shaping my decisions.”

Mr Skates announced that f​our of the eight boards that advise the government on Wales’ enterprise zones are to be wound up this summer. The boards overseeing the zones in Cardiff, St Athan, Deeside and Ebbw Vale will cease to exist from July 31. But the zones themselves – designed to support business growth with some tax incentives – will continue to exist.

Boards in Port Talbot and West Wales will continue, while those for Snowdonia and Anglesey will merge.

Mr Skates also said more enterprise zones could be created, in places such as Wrexham.

Responding to Ken Skates’ comments, Welsh Conservative leader, Andrew RT Davies, said:​ ​“Labour’s enterprise zones have cost the Welsh taxpayer hundreds of millions of pounds – with very little to show for the money and Welsh workers still receiving the lowest average weekly wage in the UK.

“The Cabinet Secretary’s comments indicate the Welsh Government might well continue down the road of Enterprise Zones, potentially throwing good money after bad.

“The approach outlined by Ken Skates seems haphazard at best, utterly shambolic at worst and certainly does not fit into the rhetoric of the Welsh Government’s recently launched economic action plan. Some new enterprise zones are to be created, some boards are to merge, and some wound up altogether!

“The Welsh Government must now make clear its long term plans for the zones and ensure that any future funding produces tangible economic results for Wales and our local communities.”

Wales’ eight Enterprise Zones were first launched in April 2012. The then Cabinet Secretary for Business, Edwina Hart, stated that “My aim in developing enterprise zones is to strengthen the competitiveness of the Welsh economy.​”​

Since the creation of the zones, £221 million of public funds have been allocated to support that policy initiative. Despite huge injections of public funds however, serious questions remain as to whether the Enterprise Zones have delivered their key objectives:

In the Ebbw Vale Enterprise Zone £94.6 million has been spent to create, safeguard or assist just 390 jobs (at a cost of around £250,000 per job)

In the Snowdonia Enterprise Zone £2.1 million has been spent to create, safeguarded or assist just 20 jobs (at a cost of £108,333 a job)

A further issue is the question of whether or not Enterprise Zones have come close to fulfilling their original intent.

Enterprise Zones were set up by the Welsh Government to ‘grow the local economy and provide new jobs’.

However, while Mr Skates claims that over 10,700 jobs were ‘supported’, Welsh Government figures suggest that, in practice, the zones have not been used to create new jobs.

The average cost of each new job created by Enterprise Zones has been £74,000

The St Athan Enterprise Zone was supposed to deliver 10,000 jobs by 2025 – but in five years the number of new jobs actually created was 137.

In Ebbw Vale, £94 million has been spent on just 175 new jobs, the equivalent of £500,000 a head.

In Snowdonia, £2.1 million has been spent on creating 6 new jobs.

Looking at the figures revealed for the Haven Enterprise Zone, reveals that 356 jobs have been created, 561.5 safeguarded, and 196 assisted: 1,113.5 jobs.

Using a crude measure – the total number of jobs involved came at a cost of under £8,500 each. However, under one third of those jobs are the sort of new jobs the Enterprise Zone was supposed to create.

Business

Plans for house in Dinas Cross pub car park in Pembrokeshire refused

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AN APPLICATION to build a three-bedroom house on the site of a north Pembrokeshire pub car park has been refused by national park planners.

Julian and Alison Parkes, of The Ship Aground public house, Dinas Cross, sought permission to build the house on nearby land used as a car park for the pub, creating seven new parking spaces nearby to replace the site.

A report by Pembrokeshire Coast National Park planning officers, recommending refusal, said: “The principle of residential development is normally acceptable within centre boundaries, subject to detailed design considerations and compliance with other policies in the local development plan.

“Following consultation, objections have been received from statutory consultees including the Welsh Government Truck Road Agency who have concerns regarding the proposed parking that will serve the Public House. They have directed that planning permission is not granted on the basis of insufficient information.  Concerns have also arisen from third-party letters.”

The report said the design “incorporates a traditional form with modern features and design detailing and will ensure the privacy of neighbours is protected along with the special qualities of the National Park when viewed from the immediate and wider landscape” but added: “Key information relating to the loss of parking to the Public House has not been addressed and how the loss of parking could have an economic impact, also considering that the proposed parking does not meet parking safety standards and further amendments would be required.”

The application was refused on the basis of Trunk Road Agency concerns including a lack of information to demonstrate the number of parking spaces offered would comply with current car parking standards, layout designs for the proposed replacement spaces, and also that insufficient evidence submitted to support the granting of permission for the car park spaces to serve the public house.

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Scheme to upgrade Dinas Cross holiday park withdrawn

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PLANS to create a ‘five-star resort’ in one of Wales’s most popular holiday locations have been withdrawn.

In an application submitted to Pembrokeshire Coast National Park, Chester-based Boutique Resorts Ltd sought permission to relinquish 50 mixed touring pitches (caravans and tents) at Fishguard Bay Resort, Dinas Cross, replacing them with “36 high quality timber-effect holiday lodges”.

The application, recommended for refusal at the April 24 meeting of the national park’s development management committee, also included an increase in the site area of the approved park, a new entrance, a new reception lodge, staff and visitor parking area, with extensive environmental improvements.

The site, established in the 1950s, currently has planning permission for 50 static caravans and 50 mixed touring units, and it is intended 23 of the proposed lodges to be sited at the entrance, with a further 13 throughout the site.

Despite the proposals seeking a reduction in outright numbers, the applicants say the scheme would see an increase in the number of full and part-time jobs associated with the resort, from 29 to 62 jobs.

A previous application was refused in 2019, mainly on visual impact, ecological impact and highway impact, and the applicant has sought to address the issues raised by that refusal, a supporting statement says.

It adds: “The applicant purchased the site in 2014 with the intention to upgrade the site into a five-star luxury resort. This is very much still the applicant’s intention and whilst he has replaced some existing static caravans with luxury lodges, he also seeks to replace the touring caravans and tents with luxury lodges too.

“The resort is now considered one of the most desirable holiday parks on the Pembrokeshire Coast which is evident on the number of holidaymakers who return to the resort year on year. Such is demand for luxury lodges on the site, the applicant requires additional units.

“The applicant now wishes to move the resort further by replacing the mixed touring pitches with luxury lodges but also provide a much-needed new entrance into the resort.”

Objections to the scheme were received from the National Trust, the national park’s strategic policy and ecologist, and the South Wales Trunk Road Agency, and 12 members of the public, along with one letter of support.

The application was recommended for refusal for reasons including it was “likely to have a significant detrimental impact on the special qualities of the National Park by intensifying the visual impact and intrusion of a large static caravan site within the extensive coastal views of this section of the National Park,” it would represent an intensification of the site, and was likely to “have an unacceptable impact on neighbouring residential amenity through increased noise and traffic movements”.

The application, listed for consideration by park planners next week, has since been withdrawn.

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Business

Bluestone National Park Resort payments expected to end 

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A CALL to end a legal agreement for financial contributions associated with the creation of Pembrokeshire’s Bluestone National Park Resort is expected to be backed next week.

In a submitted application to Pembrokeshire Coast National Park on behalf of Bluestone Resorts Ltd, legal firm Red Kite Ltd asks for a cessation of a 2004 Section 106 legal agreement used to pay towards various projects including enhancements to footpaths and bridges.

In a supporting statement says most agreements of this type are time limited, and “today such an arrangement without a timeframe would likely not be considered acceptable by either side.

“However, no such end date was placed on this one. More recently, it was agreed between the parties that the payments would cease in 2025, also known as a ‘statement of common ground’. This is why a formal agreement now has to be made by each of the parties involved.”

The statement says that, since the agreement was made, Bluestone has paid nearly £280,000 through the agreement, adding: “As part of the Statement of Common Ground, it was agreed by Pembrokeshire County Council, Pembrokeshire Coast National Park Authority and Bluestone that a final fee of £113,000 would be paid, spread over 2023, 2024, and 2025 in annual payments of £38,000.”

A report by national park officers, ahead of the Pembrokeshire Coast National Park Development Management Committee meeting of April 24, where it is recommended for approval, says: “The applicant has applied to discharge the Section 106 Legal agreement but the supporting text notes that they applicant is agreeable to making two final payments.

“Having considered the information submitted, officers consider that provided the two final payments are received the legal agreement has served its purpose and can be discharged.

“In order to ensure the two final payments are made, a modification to the Section 106 legal agreement is supported.  This decision is supported by Pembrokeshire County Council, who have received a concurrent application which is also recommended by officers for modification.”

The report says the £280,000 figure presented by Bluestone actually amounted to £318,703.87, taking into account a 2023 payment of £38,891.73, with Pembrokeshire County Council’s S106 monitoring officer confirming the contributions have been spent on a range of public rights of way improvements, primarily in nearby Canaston Woods.

Recommending approval, the report adds: “The authority is satisfied that subject to two further payments of £38,000 to be made in August 2024 and August 2025, the obligation no longer serves a planning purpose and can be discharged and as such the obligation should be modified accordingly.”

The 500-acre Bluestone resort near Narberth has, since its opening, contributed to “more than £100 million to local suppliers, £7 million annually into the local supply chain, £13 million annually into the Pembrokeshire economy through its payroll, and more than £1.5 million spent annually on marketing Bluestone and Pembrokeshire.”

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