News
Mismanagement of public accounts ‘has cost the people of Wales millions’
SIGNIFICANT funds for essential public services have been lost due to shortcomings in the Welsh Government’s accounting, according to a Senedd Committee.
A report published today by the Senedd’s Public Accounts and Public Administration Committee (PAPAC) has raised a number of issues with the accounts for 2020/2021.
- £155.5 million was lost to Wales due to poor account management
- Serious concerns about record keeping relating to £80,000 payment made to the former Permanent Secretary
- The current Permanent Secretary’s salary exceeds the advertised amount
- Concerns about the level of fraud and error in the COVID-19 business grants scheme
Welsh Government £155.5 million underspend
Today’s report notes the Committee’s disappointment that significant funding was lost to Wales as a result of the Welsh Government’s underspend in 2020-21.
A total of £155.5 million could have been utilised to fund essential public services in Wales – at a time when there are serious pressures on public funding.
This figure is the result of the difference between the balance of the Wales Reserve on 1 April 2021 – £505.5 million – and the Wales Reserve’s limit of £350 million. The Welsh Government said the Chief Secretary to the Treasury had rejected its request to carry forward funds in excess of the Wales Reserve limit.
It is equivalent to around two-thirds of the revenue raised from putting 1p on each of the Welsh rates of income tax.
The Committee found it difficult to understand why the Welsh Government waited so long to be told it could not do as it wished with the underspend, and why such a request was made retrospectively. The Welsh Government appears to have assumed, based on previous HM Treasury decisions, that it would be granted flexibility to use the funding.
It raises questions as to whether making a request sooner may have enabled the funds to be used. The Committee said lessons must be learnt to ensure such vital funding is not lost from Wales again.
Chair of the PAPAC, Mark Isherwood MS, said: “Our report highlights a number of serious issues within the Welsh Government’s Consolidated Accounts 2020-21, which was not only significantly delayed and signed nine months later than the timetable originally agreed, but qualified by the Auditor General on three separate issues.
“We are very concerned that significant funding was lost to Wales as a result of the underspend in 2020-21. This money could have been used to fund essential services and it is especially frustrating now when there are such pressures on public funding.
“It is one of many examples where poor record keeping and mismanagement of public accounts has cost the people of Wales.”
Arrangements surrounding current and former Permanent Secretaries
A payment made to the former Permanent Secretary, and arrangements around the current Permanent Secretary’s salary, raise a number of issues regarding the documentation of decision making and record keeping by the Welsh Government.
A payment of £80,519 was made to the former Permanent Secretary on her departure. This included £31,843 as payment in lieu of notice, £9,553 in unused annual leave and an extra-contractual payment of £39,123.
The Committee is concerned that deficient record-keeping about how important decisions were taken resulted in a lack of clarity and insufficient opportunity for this Committee to scrutinise this payment, and that Welsh Government did not provide the Auditor General with sufficient contemporaneous evidence to establish the change in the former Permanent Secretary’s working arrangements and to justify the payment made on her departure.
The report also details concerns about the process of appointing the current Permanent Secretary. In September 2021, the Welsh Government announced the appointment of Dr Andrew Goodall, who had since 2014 been seconded to the Welsh Government from the Aneurin Bevan University Health Board (ABUHB).
The post had been advertised with a salary between £162,500 and £180,000, but Dr Goodall confirmed after his appointment that he remained on the NHS chief executive pay framework – meaning his current salary exceeds the advertised salary.
This raises the question of whether the Welsh Government may have attracted different candidates had the post been advertised at a higher pay scale.
The report recommends that the Welsh Government review its reporting and record-keeping practices to ensure that internal decisions around the Permanent Secretary role, along with any other roles at Director General level or above, are clearly documented.
The 17 recommendations made in the report aims to tackle the poor recording keeping which came to light during the Committee’s inquiry.
News
Closure of Tata Steel’s coke ovens sparks political and union backlash
THE recent announcement by Tata Steel to close the coke ovens at its Port Talbot plant in South Wales has ignited a firestorm of political and industrial action, highlighting the deepening crisis within the British steel industry and the challenges facing the transition to green steel.
Jo Stevens MP, the Shadow Welsh Secretary, expressed her concerns over the impact of the closure on the Welsh steel industry and the workers affected. Stevens emphasized the need for assurances about the workers’ immediate future and pledged that a UK Labour government would invest in the steel industry to support the transition to green steel, harnessing the skills, talent, and ambition of Welsh steelworkers.
The closure, slated for Wednesday due to concerns over the ovens’ “operational stability,” has been criticized by regional Senedd Members for South Wales West, Tom Giffard MS, and Dr. Altaf Hussain MS. They accused the Labour Welsh Government of neglecting its support for the Tata Steelworks in Port Talbot, highlighting a lack of financial assistance since 2019 and calling for a change in response to the current developments.
Unite, the UK’s leading union, has been vocal in its opposition to Tata’s decision, describing it as a shock and a “result of years of betrayal.” The union criticized Tata for not disclosing the imminent risk of closure during recent consultations and announced a ballot for industrial action among 1,500 Tata workers. Unite insists there should be no job losses at Port Talbot or Llanwern and that a blast furnace should remain operational.
Peter Hughes, Unite’s regional secretary for Wales, called for Tata to halt its closure plans in anticipation of Labour’s promised £3 billion investment to rejuvenate the UK steel industry. He accused Tata of managing the decline of UK steel while accepting government subsidies, describing the company’s actions as “deliberate industrial vandalism.”
The closure has not only raised concerns about the future of steel production in the UK but also spotlighted the political and economic strategies required to ensure the industry’s survival and transition towards more sustainable practices. The unfolding situation underscores the need for a collaborative approach between the government, industry stakeholders, and the workforce to navigate the complex challenges ahead.
News
Firefighters tackle blaze at block of garages in Monkton
ONE person was injured as a result of a sunday afternoon garage fire in a block of garages in Monkton.
A spokesperson for Mid and West Wales Fire and Rescue Service told The Pembrokeshire Herald said: “At 1.31pm on March 17, Pembroke Dock and Milford Haven crews were called to extinguish a fire in an alight central garage and were forced to use two breathing apparatus and two hose reels.
“The firefighters reportedly left the scene at 3.02pm after continuing to dampen the fire and check for fire spread.
“The casualty was treated by ambulance service personnel also in attendance.”
The police confirmed that a garage fire had been dealt with by Mid and West Wales Fire and Rescue Service and Welsh Ambulance Service attended.
News
Air ambulance called following incident at Aldi Pembroke Dock
THE WALES AIR AMBULANCE, along with the Welsh Ambulance Service and police were called on Monday morning to an incident at the Aldi supermarket car park in Pembroke Dock.
The Herald understands that the alarm was raised after a car hit a person in the car park after 9am.
We have been told that the incident involved a local taxi.
The emergency services have been asked for a comment.
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