Politics
WG settles ‘scandalous’ land sale case
THE WELSH GOVERNMENT has settled a claim against its former advisors about land sales which took place under a purported regeneration scheme.
The Regeneration Investment Fund for Wales (RIFW) had issued proceedings against Amber Fund Management and Lambert Smith Hampton concerning the portfolio sale of 15 properties in 2012.
The settlement has been reached on a commercial basis and without any admission of liability by any party.
The detailed terms have been incorporated into a confidential settlement agreement between the parties.
The Welsh Government Minister for Local Government, Julie James, said the £40.7 million tied up in the Fund can now be made available to support future investments across Wales.
RIFW was set up as an arms-length body by the Welsh Government to allow the Welsh Government to raise money which could then be used to fund regeneration and investments in Welsh businesses.
It was a complete shambles.
One of the advisors appointed had previous connections with one of the parties which bought some of the land at an undervalue.
Vital information was not relayed to the RIFW’s board by the Welsh Government and Board members were kept in the dark about transactions carried out in their name.
Under the oversight of their appointed agents and Welsh Government civil servants, RIFW sold publicly owned assets by private treaty and without prior valuation at a price that reflected the assets’ existing use, under sale terms that provided only limited protection to the public interest in their significant future development values, and via a negotiation process that left RIFW lumbered with undesirable assets.
The Chair of the Senedd Public Accounts Committee, Nick Ramsay MS, said: “The out of court settlement between the Welsh Government and the former advisors of RIFW effectively brings a curtain down on a very sorry and lamentable episode.
“The hasty sell-off of publicly-owned land at bargain-basement prices effectively deprived Welsh taxpayers of tens of millions of pounds which could’ve been used for essential services.
“We look forward to examining matters further with the Permanent Secretary and Head of the Welsh Government Civil Service, Shan Morgan, at our next meeting on Monday, November 23.
“We will be asking what robust steps have been taken to avoid history repeating.”
RIFW was set up as an arms-length body by the Welsh Government to sell off land around Wales including in north Wales, Monmouthshire and Cardiff, and use the money, in conjunction with European funding, to reinvest in areas in need of regeneration.
But the Public Accounts Committee found that the body was poorly managed, poorly overseen by the government, and that, because of a change in the direction of RIFW, from one of regeneration to property asset disposals, some of the Board members felt they lacked the necessary knowledge and expertise to fulfil their roles.
It also learned that the Board was not presented with key information regarding the value of the land in its portfolio, or of expressions of interest from potential buyers.
Fifteen plots of land, originally supposed to be sold separately, were instead sold as a single portfolio at a price which did not take into account potential use of the land in the future. This decision resulted in Welsh taxpayers missing out on tens of millions of pounds of funding.
The Committee learned that one of the organisations charged with offering expert advice to the Board, Lambert Smith Hampton Ltd, had previously acted on behalf of a director of the buyer of the land, South Wales Land Developments Ltd (SWLD), and signed an agreement to do so again one day after the sales went through.
The Committee concluded that the RIFW Board had been poorly served by its own expert advisors.
Angela Burns MS – Shadow Minister for Government Resilience and Efficiency – said: “The Fund was established to sell valuable packages of Welsh Government land, with the money used to support regeneration schemes. However, evidence has since emerged that shows that the sale of RIFW’s assets was undertaken at a loss of tens of millions of pounds. A loss which was borne ultimately by the Welsh Taxpayer and yet another example of the complete inability of this Labour Government to be fiscally prudent.
“Millions of pounds have been squandered, millions that could have been invested in our education and health systems or spent building Wales’ economy or supporting some of our more vulnerable citizens. It’s an absolute scandal and the real scandal is the Welsh Government can slide out of their responsibility for this debacle”
Included in the scandal are:
- Fifteen sites sold for £21 million; with the taxpayer missing out on staggering sums of money
- A site in Rhoose purchased from RIFW for less than £3m – sold on for almost £10.5m South Wales Land Developments Ltd. Taxpayers losing out
- An Abergele site purchased from RIFW for £100,000, without overage, and sold for £1.9million. Taxpayers losing out
- Land in Lisvane sold for £1.8million – worth £39million.
Welsh Conservatives also claim the Welsh Government has squandered £1 billion on other projects, including:
- £221m on uncompetitive Enterprise Zones
- £9.3m on flawed initial funding of the Circuit of Wales
- £97.9m on delays and overspend on the A465 Heads of the Valleys Road
- £157m on the M4 relief road inquiry
- Over £100m propping up Cardiff Airport
News
Campaigners urge Welsh Government to adopt proportional representation for Local Elections
CAMPAIGNERS are calling on the Welsh Government to introduce the Single Transferable Vote (STV) system for local elections, following moves by two councils to shift away from the First Past the Post (FPTP) system being blocked on technical grounds.
Yesterday (Nov 14), Ceredigion Council voted narrowly, with an 18 to 17 majority, in favor of adopting STV. This follows Gwynedd Council’s decision last month, where 65% of councillors backed the move. However, both councils have been prevented from implementing STV due to a requirement for a two-thirds majority under the Local Government and Elections (Wales) Act 2021.
In recent consultations, public support for STV has been overwhelming, with over 70% in Gwynedd and 67% in Ceredigion favoring the change. Only Powys Council rejected the proposal, despite 60.5% of its respondents supporting STV. Campaigners argue that the current system deprives voters of representation, citing that over 100,000 people were denied a vote in the 2022 elections due to uncontested seats.
The Electoral Reform Society Cymru (ERS Cymru) highlights the contrast with Scotland, where the introduction of STV for local elections in 2007 has significantly reduced uncontested seats. According to ERS Cymru, Scotland has had fewer uncontested seats in the last four elections combined than Gwynedd Council recorded alone in 2022.
Jess Blair, Director of ERS Cymru, said:
“Decisions made in council chambers affect everyone in those areas, so every vote should count. It’s absurd that councils choosing STV are blocked by a technicality, leaving them stuck with an outdated system that denies representation to thousands. The Welsh Government must act to avoid repeating the undemocratic outcomes of the last elections.”
Campaigners are now calling on the Welsh Government to introduce STV across all councils in Wales, ensuring representation that reflects the electorate’s wishes.
Politics
Alarm over Wales’ domestic violence ‘epidemic’
DOMESTIC violence against women and girls is the scourge of Wales and a national emergency, Senedd Members warned.
Mabon ap Gwynfor said Welsh police reported more than 45,000 cases of domestic abuse in 2022/23 and almost 10,000 sexual offences the previous year, with many more unrecorded.
Leading a Senedd debate, the Plaid Cymru politician challenged a tendency to believe rural Wales is an exception, with domestic abuse “limited” to urban areas only.
“The evidence shows otherwise,” he said. “Rates of domestic abuse in north Wales are higher than those in the city of London.
“North Wales even faces the same level of sexual crimes as Greater Manchester, which has a population five times the size.”
Mr ap Gwynfor added: “I am afraid the election of President Trump in the US is going to make things much worse as he makes misogynistic attitudes acceptable again.”
He said victims wait a year for support in Cardiff or Merthyr but four months in Swansea, asking: “How can we justify someone’s trauma being dependent on a postcode lottery?”
He told the Senedd that 16 children per 1,000 in north Wales are being seen by sexual assault referral centres compared with a rate of 2.9 per 1,000 in London.
Mr ap Gwynfor said the NSPCC found one in five children have experienced domestic violence, with Childline Cardiff holding 4,000 counselling sessions in the past year.
Calling for urgent devolution, he warned that prosecution statistics suggest sexual violence has effectively been legalised, with victims let down and public trust eroded.
Labour’s Joyce Watson said a vigil will be held outside the Senedd on November 25 to mark White Ribbon Day, the international day for ending violence against women and children.
Ms Watson highlighted her party’s pledge to halve violence against women and girls over the next decade, calling for funding from Westminster to further the aim in Wales.
She told the Senedd: “It is a national threat and it is an epidemic. There’s no getting away from that. It’s deep-rooted, it’s wide-reaching.”
Sioned Williams raised the NSPCC’s calls for sustainable long-term funding for specialist support for children and young people who are survivors of domestic violence.
Her Plaid Cymru colleague Luke Fletcher warned of the “corrosive” effect of social media, calling for a crackdown on misogynistic content targeted at young men.
Responding to the debate on November 13, Jane Hutt pointed to progress made in tackling violence against women and girls but she recognised “so much more needs to be done”.
Ms Hutt, who is Wales’ social justice secretary, highlighted horrifying statistics from July showing that two million women in the UK are victims of male violence every year.
She described domestic violence as a national emergency, with one woman killed by a man every three days and the number of recorded offences up 37% in the past five years.
She hailed the 20th anniversary of the Live Fear Free helpline, a free 24/7 service run by Welsh Women’s Aid and funded by the Welsh Government.
Ms Hutt said she raised evidence of failures in the justice system with Jess Phillips during a meeting with the UK minister
Politics
Senedd debates Eluned Morgan’s first 100 days as First Minister
SENEDD members debated Eluned Morgan’s record following her first 100 days, with the First Minister rejecting claims she has failed to stand up for Wales.
Andrew RT Davies led a Conservative debate on the eve of November 14, which marks Eluned Morgan’s hundredth day in office.
He accused the First Minister of letting the country down, pointing to the withdrawal of the universal winter fuel allowance for pensioners and warnings of 4,000 premature deaths.
The leader of the opposition also criticised Labour’s decision to raise national insurance contributions for employers, with unemployment in Wales at 5.3% and rising.
Mr Davies said 4,000 patients have been added to NHS waiting lists since the First Minister took office in August, with a total of 614,000 people now waiting for treatment.
He told the Senedd: “That is a damning indictment of government failure here …. That is not standing up for patients here in Wales, it’s not standing up for clinicians, and it’s not standing up, importantly, for the workforce.”
Rhun ap Iorwerth said Baroness Morgan’s first 100 days have shown little evidence of a change in direction from the Welsh Government.
The Plaid Cymru leader said: “By any objective measure, nothing has fundamentally changed in those 100 days.”
He said Baroness Morgan has no plan to grow the economy nor tackle a crisis in the NHS.
Mr ap Iorwerth accused the First Minister of failing to make the case for replacing the Barnett formula, devolving the Crown Estate, and compensating Wales for HS2 spending.
He said: “I’m afraid that what we’ve seen is Labour in Welsh Government, under the new First Minister, shifting into the mode of defending their masters at Westminster….
“A fundamental difference between Plaid Cymru and Labour is that we will never let Westminster diktat hamper our ambitions for Wales.”
Labour’s Hefin David was unconvinced by the 100-day measure of success, which was coined by former US President Franklin Roosevelt in the 1930s.
He said: “It worked for him; I’m not sure it’s going to work so much across modern politics, which moves so quickly and so differently.”
He suggested the next Senedd election in 18 months will be a much better yardstick.
The Caerphilly Senedd Member pointed out that Wales’ first female First Minister, from Ely, Cardiff, one of the poorest parts of the UK, succeeded against the odds.
Describing Baroness Morgan as a “listening First Minister”, Dr David joked: “She’s the only First Minister who gives me a cwtch every time I see her. I can see Mark Drakeford getting a little worried there. I’m not expecting anything, finance minister.
“But I do think it demonstrates the warmth of Eluned Morgan.”
Responding to the debate, Eluned Morgan reeled off a list of achievements including £28m to cut waiting times, £13m on better end of life care and a new north Wales medical school.
She said £7.7m has been invested in a specialist burns and plastic surgery centre at Swansea’s Morriston Hospital, serving ten million people from Aberystwyth to Oxford.
Baroness Morgan lauded a “landmark” £1bn investment in the redevelopment of Shotton Mill, Deeside, protecting 137 jobs and creating 220 more.
She claimed the Labour Welsh and UK Governments also secured a better deal for Tata steelworkers, accusing the Tories of failing to budget for a £80m transition fund.
“This is a lengthy list,” she said. “But it could be longer and it will be longer as we continue to deliver…. The first 100 days demonstrates how Welsh Labour is delivering real investment, real jobs, real support for communities – not promises and pledges but delivery.
“I am so proud of everything this government has already delivered since I became First Minister and I’m optimistic about what we can achieve as we move forward.”
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