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Concerns over risk to public funds in TVR deal

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TAXPAYERS could face a multi-million-pound bill after the Welsh Government spent more than £14m on a failed attempt to attract sports car manufacturer TVR to Wales.

Adrian Crompton, the auditor general for Wales, said the Welsh Government spent £4.75m buying the former Techboard factory in 2021 and £7.6m on refurbishment.

TVR received a £2m five-year loan and a £500,000 investment from the public purse, with the aim of creating 150 jobs and building 2,000 sports cars in Ebbw Vale by 2020.

But at the turn of 2024, the carmaker confirmed it no longer wants to lease the factory – or locate production in Wales – after announcing a new base in Hampshire.

Mr Crompton, who oversees the annual audit of some £24bn of public money, said selling the building for a market value of about £7.5m would net taxpayers a loss of £4.85m.

In a letter dated July 12, he told a Senedd committee that ministers have been trying to find an alternative tenant since November, with TVR paying a £322-a-month rent in that time.

Mr Crompton wrote that the 180,000 sq ft factory – which could generate an income of about £735,000 a year – has attracted some market interest but no formal offers.

Wales’ auditor general said Welsh Government officials’ advice was not to award a contract for the factory refurbishment in advance of a lease agreement with TVR

But he told the public accounts committee: “In August 2020, the minister wrote to TVR telling them the Welsh Government would progress refurbishment with or without them.”

Refurbishment of the factory, which was initially expected to cost £4.5m in 2017, was finally completed in July 2023 with the budget having ballooned to £7.6m.

Taxpayers could be on the hook for a botched investment in the company’s shares, the letter revealed, despite TVR being deemed a high-risk business at the time.

The Welsh Government bought 3.3% of the sports car manufacturer in 2016 but the public’s stake in the company has since more than halved to 1.6%.

TVR received a multi-million investment as part of a joint venture with Ensorcia, a lithium-mining business, which diluted the Welsh Government’s shareholding in 2021.

In May, ministers received external advice about the TVR stake – including a lower valuation than paid in 2016 – and secured an option to sell the shares back to the company.

Officials are now preparing ministerial advice for a decision on whether to sell the shares at a loss or retain the investment in the hope the price increases.

Mr Crompton said TVR breached loan requirements in September 2016 because it had not secured a promised £5.5m private-sector investment to start production.

He added that TVR negotiated extensions to the Welsh Government’s loan default requirement, which otherwise would have led to early repayment in full

In April 2022, TVR paid the Welsh Government £4.3m, covering the £2m loan and accrued interest, which released the company from a requirement to base itself in Wales.

Mr Crompton wrote: “The Welsh Government had to extend the loan repayment period but still achieved a return on investment when TVR eventually repaid it….

“Full repayment has now removed the conditions that were originally attached to the loan.”

In his briefing, the auditor general said he reviewed Welsh Government support for TVR after receiving correspondence that expressed concerns about the risk to public funds.

Mr Crompton pointed out that the public purse will have incurred further costs in terms of officials’ time over many years, external advice and professional fees.

Ministers’ attempts to woo TVR coincided with the failed £425m Circuit of Wales project.

The proposals for a motor racing circuit in Blaenau Gwent collapsed in 2017, with Ken Skates, then-economy minister, refusing to underwrite a £210m loan.

In 2020, Mr Skates wrote off nearly £15m related to loans for the Circuit of Wales after failing to claw back taxpayers’ money.

Business

Amazon invests £2.4 billion in Wales since 2010

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Report highlights jobs, training and community support across the country

AMAZON has revealed it has invested more than £2.4 billion in Wales since 2010, according to its latest UK Economic Impact Report published this week.

The figures, drawn from the updated Amazon Economic Impact Hub, show the company’s contribution to jobs, regional growth and community initiatives across Wales and the wider UK over the past fifteen years.

Economic contribution

The report estimates that Amazon’s investment has generated £1.8 billion in goods and services for the Welsh economy since 2010.
During that time, the company has created more than 2,000 full and part-time jobs across Wales and supported hundreds of residents through skills development and apprenticeship programmes.

More than 430 people in Wales have completed Amazon’s career development and training initiatives, and over 90 apprentices have graduated through the company’s apprenticeship programme.

Community engagement

David Marcok of Amazon Swansea said: “Amazon is committed to strengthening the regional economy and supporting the broader Welsh community through strategic investments, employment creation, charitable contributions and community engagement initiatives.

“In 2025 so far, our team has worked closely with organisations such as Save the Children and Wales Air Ambulance through volunteering, product donations and direct financial assistance. We look forward to expanding these efforts further in the months ahead.”

Major UK expansion

Nationally, Amazon recently announced plans to invest £40 billion in the UK between 2025 and 2027. The investment includes the construction of four new fulfilment centres and several delivery stations, as well as upgrades to its existing network of over 100 facilities.

The move will create thousands of new permanent jobs, with most positions based outside London and the South East. These include 2,000 new roles at a state-of-the-art fulfilment centre in Hull and another 2,000 in Northampton.

As one of the UK’s top ten private sector employers, Amazon currently employs more than 75,000 people nationwide, with full-time salaries starting at £28,000 per year (£30,000 in London). The new sites will offer over 60 different job types, including roles for robotics technicians, safety specialists and mechatronic engineers.

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‘Eyesore’ Pembrokeshire Roch Gate Motel demolition starts

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DEMOLITION works for a multi-million-pound scheme to redevelop a derelict Pembrokeshire motel, described as “one of the last true blots on our county’s landscape” have started.

In an application approved by Pembrokeshire Coast National Park’s May development management committee, Nick Neumann of Newgale Holidays was granted permission to redevelop the former Roch Gate Motel to a mixed commercial and community use hub called ‘The Gate,’ including a village shop/post office, bistro/restaurant, and a tourism development of 18 holiday lodges.

The vacant derelict former motel – dubbed an “eyesore” in previous applications – closed back in 2008 and has a history of later approved planning schemes, including as a bespoke hotel and an affordable housing scheme, but none came to fruition.

Speaking at the May meeting, applicant Nick Neumann, who has become a county councillor since the scheme was first mooted, said: “The former Rochgate Motel located at the gateway to the St Davids Peninsula on the A487 is somewhat famous for the wrong reasons as it remains one of the last true blots on our county’s landscape. Namely the ‘pink palace’ has remained dormant for nearly 20 years slowly deteriorating in condition whilst various proposals have come forward and never materialised.

“The site, originally a former World War 2 radar station which became a commercial premises including motel, restaurant, spa and events facility in the early 1960s, was a much-loved popular venue for nearly 50 years before closing its doors in 2008.

“Today we still receive comments from people who loved the motel back in the day.”

He added: “The proposal will bring a significant multi-million-pound investment into the community, create 18 FTE jobs, restore lost community provisions, and will see the revitalisation of the brownfield site with a new exciting provision to our growing community of Roch.”

Other speakers at the meeting raised their support for the proposals, with former community council chair, and chair of the Nolton and Roch community Land Trust, David Smith saying the scheme would “significantly enhance the convenience and wellbeing of local residents,” as well as creating jobs and would “replace a decaying eyesore that is a blight on the community”.

Current community council chair Michael Harries said the community has been “tarnished by a pink monstrosity eyesore” since the motel closed in 2008.

Speaking as the demolition got underway, Cllr Neumann said: “I’m just happy that we can finally make a start on the project and bring the vision for ‘The Gate’ to life. It’s been nearly three years since we bought the site so it’s great to be finally making a start. Thank you to everyone who has supported us thus far.”

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Business

‘Don’t follow suit’: Welsh tourism bill faces ‘horror story’ warning from Scotland

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TOURISM leaders have urged Wales not to follow Scotland’s lead by replicating a “failed” licensing scheme that has “harmed” the industry and created a “thriving black market”.

Last week, the Welsh Government unveiled a tourism bill in the Senedd which, if passed, will create a mandatory licensing scheme for short-term Airbnb-style rentals.

But industry representatives gave a damning account of a similar policy in Scotland, describing the experience since its introduction in 2022 as a “real horror story”.

Marc Crothall, chief executive of the Scottish Tourism Alliance, warned the policy has created “far greater harm than good” as he gave evidence in the Senedd.

He told the economy committee: “When policy is developed without a clear objective and without reliable data, it fails, and Scotland… is that case study.”

Fiona Campbell, chief executive of the Association of Scotland’s Self-Caterers, pointed to two successful judicial reviews brought against Edinburgh Council. She warned the entire Scottish scheme is “in breach” of the Human Rights Act.

She said: “I would just urge the Welsh Government and policy makers to really take heed of these warnings… don’t do it as Scotland has done it – or you may well end up in court.”

Ms Campbell argued that rather than solving housing problems, the policy was “harming the wrong people and regulating the wrong thing”.

Calling for extreme caution, she criticised the Welsh Government’s projected £75 annual fee for the new licence, labelling it “entirely uncredible” based on Scotland’s experience.

Ms Campbell – who has run a self-catering property for 23 years – told Senedd Members while low fees were promised in Scotland, the reality is they range from £205 to £5,698.

She also dismissed assurances that artificial intelligence and automation would keep administrative costs down as “entirely unrealistic”. “Unless Wales has come up with amazing AI that I’m not aware of, I just don’t think it’s credible,” she said.

She argued the Scottish policy was flawed from the outset because it wrongly tried to solve a housing crisis by regulating tourism, similar to the rationale in Wales.

Ms Campbell warned of the impact on small operators, with 70% of the Scottish self-catering sector made up of women aged over 55 – a figure she wagered was similar in Wales.

“These are the people you’re harming,” she said.

She told the committee the “horror story” in Scotland has seen operators “leaving in droves”.

Mr Crothall added this has led to empty homes, pointing to 230 properties on the Isle of Skye that “remain purely second homes” after their owners opted not to apply for a licence.

Both witnesses stressed they were not against regulation but they argued a separate licensing scheme was disproportionate.

Ms Campbell said the industry supports a national register that includes mandatory health and safety checks but she questioned the need for a second, more costly licensing layer.

“My question is: why do you need licensing on top?” she asked the committee. “If I were a policy maker in Wales, I would wait until I had all the data… it feels premature.”

Giving evidence during an earlier session on November 5, finance secretary Mark Drakeford defended the tourism bill as “good for the industry”. The former First Minister argued the bill would create a level-playing field and reassure visitors.

Prof Drakeford said Wales had learned from Scotland’s “locally based scheme” – which he said had caused confusion – by opting for a simpler, national model.

Finance secretary Mark Drakeford
Finance secretary Mark Drakeford
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