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Politics

WG settles ‘scandalous’ land sale case

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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

New Welsh Government urged to end ‘injustice’ of term-time only pay

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SCHOOL support staff in Wales are being pushed into poverty by “unfair” term-time only contracts, UNISON Cymru has warned.

The union is calling on the new Welsh Government to scrap the practice and establish a new body to negotiate pay for school support workers.

The call will be made at the TUC Cymru Congress in Llandudno today, Tuesday (May 19), where UNISON Cymru regional secretary Jess Turner will move a motion on the issue.

She will say: “Thousands of school support staff, mainly women, are trapped in poverty because of the unfairness of term-time only pay.

“Teaching assistants, cleaners, catering staff and admin workers support children and keep schools running, but many struggle to pay bills and have to take on second jobs just to survive.

“One in six school support staff in Wales has used a food bank. Many earn less across the year than they would on a full-time minimum wage job because they’re only paid when schools are open.

“This is a real opportunity for Wales to do things differently and reward people fairly. Ministers need to set up a body that can negotiate pay for school staff and end the injustice of term-time only pay.”

UNISON says evidence gathered from school support staff across Wales shows widespread financial hardship linked to term-time only contracts.

The union will also host a fringe event at the congress on Wednesday (May 20), calling for action on term-time only pay and further investment in public services.

 

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Community

Health chiefs to be questioned over Withybush hospital service changes

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HEALTH BOARD members are to be quizzed by Pembrokeshire councillors next month over changes to services at Withybush Hospital.

At the March meeting of Pembrokeshire County Council, an emergency notice of motion by the council’s 11-strong Conservative Party group demanded that the Welsh Government immediately reverses the decision to cease emergency general surgery at Withybush Hospital.

Last year, Hywel Dda University Health Board consulted with its communities on options for change in critical care, dermatology, emergency general surgery, endoscopy, ophthalmology, orthopaedics, stroke, radiology and urology.

At a two-day meeting earlier this year, the board, amongst its many other decisions, backed changes into emergency general surgery which will see no emergency general surgery operations taking place at Withybush, but a strengthening of the same-day emergency care (SDEC).

At the March council meeting, the Conservative council group, led by Cllr Di Clements, proposed a motion which read: “This council requests that the Labour Welsh Government intervenes in Hywel Dda University Health Board’s recent decision to cease emergency general surgery at Withybush hospital and immediately reverses their decision.

“We believe removing this service critically undermines the sustainability of Withybush hospital’s A&E department.

“Also, the decision by the Health Board does not take into account the impact and potential serious risks it will have on Pembrokeshire residents.”

Cllr Clements’ supporting statement, which included a call for the-then Leader Cllr Jon Harvery to write to the First Minister and Welsh Government, said Pembrokeshire residents “have seen continual downgrading of services over the years, and this has been detrimental to all residents,” adding: “We believe this recent decision is life threatening to those who need emergency surgery and a matter of resident’s safety.”

At the meeting, Cllr Michael John said “there had been an erosion of services for many years,” supporting Cllr Clements’ call, but proposing the addition of calling on the health board to meet with councillors.

Following the request by Cllr Clements, Leader Cllr Jon Harvey agreed to any letter writing, saying he had “fought long and hard to return services to Withybush”.

Members backed Cllr Clements’ call, with Cllr John’s amendment added.

Since then an update was received at the May 14 meeting of Pembrokeshire County Council.

A report for members said, following the March meeting, Cllr Harvey, wrote to the-then First Minister Eluned Morgan on March 10, with Chief Executive Will Bramble also writing to the chief executive of  Hywel Dda University Health Board advising him of council’s decision on the same date, requesting his and the Board chair’s attendance at the May council meeting.

It said, since then, Health Board Chair Dr Neil Wooding and Chief Executive Professor Phil Kloer have agreed to attend an Extraordinary Meeting of the council on June 15 to brief the council on service changes and specifically the issue of emergency general surgery, with members having the opportunity to ask questions on the presentation.

Members agreed to note the report ahead of the special June meeting.

 

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Education

New special education centre to be built in Milford Haven

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APPROVAL for a consultation for a special resource centre for pupils with complex needs when the new Milford Haven primary school is built was backed by councillors.

At the May 14 meeting of Pembrokeshire County Council, members were asked to back a consultation on a proposal to establish a Learning Resource Centre (LRC) for pupils with Autistic Spectrum Condition (ASC) and Complex Learning Needs at Milford Haven Community Primary School.

The establishment of an LRC forms part of the outline business case for the redevelopment of schools in Milford Haven.

A report for members said: “A Learning Resource Centre (LRC) is a classroom-based provision within a mainstream school for pupils with complex needs.

“A LRC provides pupils with a broad and balanced curriculum that is highly differentiated, to support them in achieving their full potential and at the same time offering pupils the opportunity to be part of mainstream activities and lessons to socialise with their peers whilst their individual needs are supported and met.

“Generally, LRCs are strategically located to minimise travelling time for pupils. There are currently 10 primary and five Secondary LRCs across Pembrokeshire.”

Primary LRCs in Pembrokeshire are at: Ysgol Glannau Gwaun, Waldo Williams, Fenton, Gelliswick, Monkton, Tenby, Johnston, Pembroke Dock, Neyland, and Ysgol Penrhyn Dewi.

Secondary LRC provisions are located in three areas: North Pembrokeshire – based in Ysgol Bro Gwaun, Fishguard, and Ysgol Penrhyn Dewi, St Davids; South Pembrokeshire – based in Ysgol Harri Tudur, Pembroke, and Ysgol Greenhill, Tenby; Mid Pembrokeshire – based at the Pembrokeshire Learning Centre, Neyland.

The council resolved back in 2019 to establish a LRC at Milford Haven Secondary School, which will replace the current provision at the Pembrokeshire Learning Centre (PLC).

The report added: “Within the Strategic Outline Case for the redevelopment of the Milford Haven schools, provision has already been made for a purpose built 36-place LRC within the new secondary school, replacing the existing provision at the PLC as part of the rolling programme.

“Establishing a 24-place LRC within the proposed primary school on the same site would further enhance local specialist provision and would deliver improved standards of accommodation for pupils with ALN through dedicated, purpose-built facilities designed in accordance with the Welsh Government’s latest area guidelines.

“Milford Haven Community Primary School represents an optimal location for the establishment of a new LRC. The school is the largest feeder to Milford Haven Secondary School and the co-location of primary and secondary provision on a single site creates a clear and coherent pathway for learners with additional learning needs.”

It went on to say the 24-place LRC would account for some £2.6m of the overall projected £143m cost of the overall Milford Haven Schools Redevelopment; the 24-place LRC would receive £316,000 of funding a year.

Approval was moved by Cllr Guy Woodham, backed by Cllr Aled Thomas, and unanimously supported by members.

 

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