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Politics

Welsh Government pays £13m to settle contract claims

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THE WELSH Government made a £13m “special payment” to settle claims over road contracts and lost more than £2m on defunct technology, according to scrutiny of annual accounts.

Welsh ministers shelled out £13.1m, excluding VAT, after contractual claims for additional money for three road projects amid spiralling costs due to high inflation.

Andrew Goodall, the Welsh Government’s permanent secretary, said in a letter that his officials sought to settle all claims with the contractor in the interests of value for money.

Pressed by the Senedd’s public accounts committee about the consequences of not settling, Dr Goodall raised the risk of delays to roadworks and the loss of European funding.

He wrote: “Not settling all claims would have left the Welsh Government open to the risk of unsettled claims being leveraged by the contractor at a later date.”

Wales’ most senior civil servant added: “Whilst there’s no guarantee the contractor would have commenced formal dispute proceedings for amounts they considered were due, it was deemed that there was a real chance of them doing so.”

He said such push back was not unique to the Welsh Government, with other public bodies also grappling with the reality of contractors no longer being willing to take on certain risks.

In his letter to the public accounts committee, the ex-NHS Wales chief confirmed the payment was discretionary and made as a result of the government’s policy position.

Politicians on the committee called for more information in their scrutiny of the Welsh Government’s 2023-24 accounts which provided few details of the “special payment”.

Members questioned how the £13.1m compares to the overall value of the road projects and whether it represents a negotiated settlement below the total value of the contractor’s claims.

The committee also called for clarity after the accounts revealed a £2.27m loss to the public purse from spending on “defunct” equipment for a green social housing scheme.

As part of its “Optimised RetroFit Programme”, the government made a “fruitless payment” for intelligent energy systems (IES) only to discover the devices could not be upgraded.

Explaining the loss, Dr Goodall pointed to a lack of clarity in reporting and escalation which meant the Welsh Government was unaware the units were useless until it was too late.

He wrote: “A detailed and thorough lessons learnt process has been completed, in which all parties have considered and reflected upon their role and responsibilities….

“The initial IES devices represented one of the first tranches of monitoring units of this kind, so were exposed to the inherent risks associated with new technologies.”

In his foreword to the report, chair Mark Isherwood outlined serious concerns about the Welsh Government’s “unsatisfactory” oversight of 48 arm’s-length bodies.

Conservative MS Mark Isherwood
Conservative MS Mark Isherwood

Ministers have paused a programme of tailored reviews, with only two completed – for the National Library of Wales in 2020 and Amgueddfa Cymru (Museum Wales) in 2023.

The public accounts committee has criticised a move to an alternative lighter-touch, self-assessment model which has taken more than six years to implement.

The report, which makes 18 recommendations, also expressed concerns about a data breach as the Welsh Government rolled out a new HR system called Pobl.

Dom Houlihan, director of people, told the committee: “Some line managers were able to view data they shouldn’t have been able to,” prompting an immediate security review.

The scrutiny report, which was published on Monday, called for an update on the Welsh Government’s £14m attempt to attract sports carmaker TVR to Wales.

Ministers spent £4.75m buying a factory in Ebbw Vale in 2021, £7.6m on refurbishment, £2m on a five-year loan for TVR and £500,000 on shares – only for the venture to fall through.

The committee said: “We are concerned the property remains vacant and the investment as it currently stands is not generating any income nor representing value for money.”

Senedd members also expressed concerns about the damning “no assurance” findings of internal audits of the Welsh Government’s framework for managing major projects.

Their 60-page report similarly raised alarm bells about a leaked staff survey which painted a picture of a culture department in “chaos”, with “no sense of longer-term strategic planning”.

 

Business

Pembroke South Quay boat shed expansion plans submitted

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A PADDLEBOARDING and canoeing company’s call for an extension to a boat shed at Pembroke’s South Quay, below its historic castle, has been submitted to county planners.

In an application to Pembrokeshire County Council, G Booth of Paddle West CIC, through agent James Dwyer Associates, seeks permission for an extension to the stone-built boathouse, adjacent to the cliff on South Quay fronting the Mill Pond, Pembroke.

A supporting statement says: “It is intended to erect a single storey ‘lean-to’ building, or ‘shed’ for the storage of boats, such as canoes and kayaks, and related equipment, on a vacant space adjacent to the existing stone-built boathouse.”

It adds: “The boathouse and the intended adjacent boat storage shed is located, as is to be expected, in close proximity to water, the Mill Pond. The Mill Pond is the main area of activity for Paddle West, a Community Interest Company, providing boating activities, kayaking, canoeing and paddle boarding, frequently for young people and families.”

It goes on to say: “It is intended that the structure would be lightweight, erected on the exiting hard standing. The ‘shed’ would be used for the storage of boats and related equipment.”

With regard to the historic setting, it adds: “Although the stone-built boathouse appears not to be listed, it is recognised that the walls above are listed and together they are a piece.

“Accordingly, through form and external materials proposed, timber cladding and profile sheet roofing, the aim is to ensure that the structure would be subservient and muted and not detract or compete with the visual aesthetic of the boathouse or historic walls. In effect the addition would blend into the background.”

The application will be considered by county planners at a later date.

The boathouse is sited near to the new Henry Tudor Centre in South Quay, which is due to open in Spring 2027.

The centre, expected to receive around 30,000 visitors a year, will tell the story of Henry Tudor, son of Pembroke, his Welsh ancestry and his impact on our national story, Welsh culture and our wider British heritage.

The restored derelict South Quay buildings will also house a new library and community café, and a healthcare, social services and supported employment facility in the adjoining premises.

 

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Community

First person of colour to be elected mayor of Haverfordwest

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A PEMBROKESHIRE town council will soon have its first-ever person of colour as mayor, and its youngest mayor in a century.

Haverfordwest Town Councillor Randell Iziah Thomas-Turner, aged 37, is to become mayor this May.

Cllr Turner said: “Tonight [March 19], I had the honour of accepting the nomination as mayor-elect — a moment that will forever stay with me.

“In doing so, I am humbled to be making history as the first mayor of colour in Haverfordwest and the youngest mayor in a century. This is not just my achievement, it belongs to every person who believes in progress, representation, and the power of community. This is a new chapter for our town — one built on unity, opportunity, and hope.

“My mayor-making will take place this May, and I cannot wait to officially step into the role and begin serving the people of Haverfordwest with pride, passion, and purpose. Haverfordwest is the best in the West — and together, we are just getting started.

“Diversity is not a challenge to overcome, but a strength to embrace. When people from different backgrounds, experiences, and perspectives come together with respect and openness, we unlock new ideas, stronger solutions, and deeper understanding.”

It’s a double celebration for the Thomas-Turner family.

Wife, and fellow town councillor, Dani, has been voted as sheriff of the town for the second-year-running, the first woman to serve as sheriff for two consecutive years.

“The coming civic year will be one to watch as my husband Councillor Randell Izaiah Thomas-Turner is becoming the first mayor of colour in Haverfordwest’s history,” said Cllr Dani Thomas-Turner, adding: “It’s going to be a year of history and memory making for sure.”

 

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Business

Pembrokeshire hospitality rates relief scheme backed

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A WELSH Government-funded scheme to provide rates relief for hospitality businesses has been backed by senior Pembrokeshire councillors.

A report for members of Pembrokeshire County Council’s Cabinet at their March meeting said: “Welsh Government has introduced the Food and Drink Hospitality Rates Relief, this relief is aimed at eligible businesses in Wales in the food and drink hospitality sector for example, pubs, restaurants, cafes, bars and live music venues.

“The aim of the relief is to support eligible businesses to manage continued cost pressures. The relief will apply to all eligible occupied properties by offering a discount of 15 per cent on non-domestic rate bills for the period April 1 to March 31, 2027. The relief is capped at £110,000 per business across Wales.

“As this is a temporary measure, Welsh Government is providing the relief by reimbursing local authorities that use their discretionary relief powers under Section 47 of the Local Government Finance Act 1988.”

It concluded: “The food and drink hospitality rates relief 2026-27 requires the local authority to adopt a discretionary scheme [as outlined] and in accordance with the criteria and conditions specified in the guidance issued by Welsh Government.

“It is proposed that Cabinet resolve to adopt [the scheme] which can be applied to administer the relief. Welsh Government will reimburse local authorities for the relief provided in line with their guidance via a grant under section 31 of the Local Government Act 2003.”

Members backed the recommendation.

All eligible businesses must apply for this relief by the March 31, 2027, and an application form will be available on the council’s website from the April 1.

The maximum cash value of the rates relief allowed, across all properties in Wales occupied by the same business should not exceed £110,000. Businesses claiming the relief must declare that the amount being claimed does not exceed those limits.

 

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