News

MP wants answers over Mustang cash

Published

10 years ago

June 24, 2014

A LOCAL MP is now looking into the circumstances surrounding the collapse of boat building firm Mustang Marine in Pembroke Dock, the Herald can reveal.

Simon Hart MP has this week met with both Stephen Hammond, Parliamentary Under-Secretary of State for Transport, and David Jones, Secretary of State of Wales, to express his concern that local firms, who are owed hundreds of thousands of pounds, will not get a penny after the firm went into administration. He has also contacted Alec Don, Chief Executive of Milford Haven Port Authority, seeking clarification regarding a number of points which he feels are a cause for concern. MHPA has confirmed they have replied to the MP. Mr Hart told The Herald: “Milford Haven Port Authority (MHPA) is being disingenuous about the Mustang affair. As a Trust Port, it has both a moral and legal responsibility to the community, including the creditors.” He added: “I understand that Alec Don and Andrew Jones were the directors who signed off Mustang Marine’s accounts for 2012, which correctly stated under accounting guidelines that the company was a subsidiary of MHPA. “It is for this reason that I find Alec Don’s comments that he cannot account for the different terminology used by the respective auditors of the Port Authority and Mustang Marine confusing. “As a Trust Port accounts should be accurate, informative and in particular transparent. “Suppliers and sub-contractors have stated that they took comfort from the fact that they were dealing with a Trust Port’s subsidiary.” Local firms are owed around £600,000. Simon Hart told The Herald: “The reality is that in some 22 months after the Port’s involvement and management control of Mustang Marine, the Authority has suffered a loss of £2.7m and other parties have lost up to a further £2m. Many people have lost their livelihood and local companies have suffered substantial losses from which it may take years to recover.” In a further development, documents submitted by Mustang’s administrators, Grant Thornton UK LLP, have revealed that losses at the company were due to the failure to achieve assumed margins on new build projects – as well as other disruption and delays. They also revealed that an unprecedented expenditure of £375,000 on refurbishing the firm’s Pembroke Dock offices – which were leased from MHPA – had placed huge pressure on the company’s cash flow. A lack of robust business procedures in quoting for contracts; sub-standard project and performance management and inadequate reporting were all ultimately causes of the firm’s demise, according to documents now lodged with Companies House. Last week, The Herald revealed that MHPA were unwilling to pay the debts owed by Mustang. Alec Don said that the port had “a responsibility but not a legal liability to the creditors.” But Simon Hart told The Herald: “In its accounts, the Port Authority described Mustang Marine as a subsidiary company – credit searches made by businesses supplying Mustang also confirmed this – but once the company entered into administration the Port decided to distance itself from the firm. “It is questionable that when the rain started coming in, they took a step back”, he added. The Herald can reveal that what money is left is quickly dwindling – Grant Thornton is being paid on average £253 per hour to administer the firm and have so far billed hundreds of hours. There are also questions being asked this week about £103,000 which was paid by the struggling firm to directors by way of fees before it collapsed – this is a similar figure to the £104,290 currently owed to Mustang employees. Last week The Herald confirmed that HSBC Bank Plc and Mustang Director Huw Thomas Lewis, who are owed £274,000 and £296,000 respectively, are likely to be paid out as their loans to the company are secured by way of a debenture. Unsecured creditors are owed £3,143,725.

The Herald put questions to Alec Don, chief executive, Milford Haven Port Authority

THE PEMBROKESHIRE HERALD met with Alec Don, MHPA Chief Executive, at his office yesterday (Thursday).

The Herald put it to Alec Don that as a Trust Port, the Authority had a responsibility to all stakeholders: including port users, employees and the local community over Mustang, and the trail of debt left behind. He replied: “We do not feel there is a moral or legal responsibility but at the same time, as a Trust Port, we want to be on standby to do what we can to help. We have done masses to assist including giving extra time to pay rent.” “We will be putting money into a community interest company which will be operated by Haven Marine Services Limited. The aim of the CIC will be to help the creditors of Mustang get back some of the money they are owed.” Asked if the Mustang project was too much of a gamble for the Port, Alec Don said: “Mustang was a joint venture with MHPA. We wanted it to succeed. We wanted to support them as a business that was trading around the port.” He added: “The reason for the failure of the company in my view was due to the company trying to build two boats – both the first of their class – at the same time. Those projects went wrong. In fact, the whole Mustang project was a hell of a challenge.” Alec Don said: “It is easy to make comments after the event with the help of hindsight. What was clear is that the customers of Mustang felt that the products it was delivering were of the highest quality.”

THE NEW MUSTANG

Alec Don said: “The new Mustang company – Mustang Marine Ltd – will now have to prove themselves in the market. But, they are led by a strong management team. Kevin Lewis (A former director of Mustang Marine (Wales) Ltd) is working with the new company, and he is the person who brings most knowledge from the old business to the new business. There are new people and new capital. There are new investors to bring strength. The new chairman of Mustang is Mark Meade, who has strong commercial skills.” He added: “We cannot pay Mustangs debts because we have a responsibility to the rest of the business. We have volatile earning streams. Earnings are going up and down. We need to maintain a strong balance sheet. We cannot honour the aspirations of the Port if we act as charity.” “We want to do what we can to support businesses in the port, but we have to remember that we are building the haven’s future, where the future is unpredictable.” Andy Jones from MHPA, also at the meeting said: “We are here to ensure the stewardship of the port for future generations, and this is something that we have to do diligently.” Mr. Don did not wish to comment about reports that MHPA had sent a report to the Department of Transport following the collapse of Mustang. But he did say: “The DoT, as an important stakeholder, would be interested on the impact the collapse of Mustang might have in the Port.” He also said that the reasons why £103,000 was paid to directors of Mustang as it was losing money was now a question for the administrators. Alec Don concluded the meeting by saying: “I bitterly regret that Mustang went down. We lost £2.7m. We are pleased though, that new businesses have emerged safeguarding 40 jobs in and around the haven.” He also said that a reference in the MHPA annual report to Mustang as ‘subsidiary’ was actually a mistake, and it was not meant in the “true legal sense”.

News

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

Published

16 hours ago

April 25, 2024

Tom Sinclair

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.”

Crime

Welsh constabulary areas record another increase in shoplifting

Published

16 hours ago

April 25, 2024

Tom Sinclair

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.”

Business

Paramount’s key role in transformation of McArthurGlen Designer Outlet

Published

16 hours ago

April 25, 2024

Tom Sinclair

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.