PEMBROKESHIRE County Council’s Cabinet committed to the funding of the Pembroke Dock Marine Project at its meeting on Monday, November 4.
Council Leader David Simpson received the congratulations of Cabinet members for obtaining substantial concessions on the vexed question of who pays the interest on the borrowing needed for the project.
Cllr Simpson’s position on forking over Pembrokeshire Council Tax Payers’ money to fund borrowing for the project is well-known: he was vehemently opposed to paying penny one of a loan facility in which the Council acted as bankers for a third party.
The deal he has struck means that the County Council will meet one half of the maximum bill for interest, with the Port Authority paying the other half.
In a rare display of public exasperation, Cllr Simpson laid into former leader Jamie Adams over the interest question. At the last Full Council meeting when the Deal came before members, the IPG leader demanded that the Council should pay the full amount of the interest to ensure the Deal went ahead.

Cllr Simpson said he found Cllr Adams’ willingness to throw around public money ‘disturbing.’
He pointed out that, had he done as the former leader wanted, the interest cost to the Council would have been a fraction under £4m, as the interest rate charged on the lending required went up the same day as Jamie Adams’ plea, and the burden would have remained unshared.
Instead, Cllr Simpson said, holding firm had produced significant concessions. Firstly, the borrowing had been secured at the original and lower interest rate and secondly, the Port had agreed to pay half of the interest.
The Council Leader observed mordantly the Port Authority were about as happy with the deal struck as he was.
As things stood, the County Council would pay £1m plus a £420k top slice, while the Port Authority would pay £1.3m. David Simpson conceded that this was not the outcome he hoped for; he had not fulfilled his aim, to secure a nil interest cost to the Council. However, Cllr Simpson said he resented the way funding’s structure meant local authorities would be lumbered with significant debt.
On a more upbeat note, Cllr Simpson commended the members of the Cabinet and senior officers who had managed to structure funding for the interest so the Council’s future borrowing cap remained unaffected. This, he said, meant that the Council could achieve its own very ambitious investment objectives for the future.
He explained that Cabinet Member for the Economy, Paul Miller, had negotiated a funding grant which would meet the top slice of £420k, while funding of the £1m remainder had been obtained through other means.
Responding to Cllr Simpson’s comments, Paul Miller set out the importance of energy generation and the associated supply-chain industries to Pembrokeshire’s economy. He pointed out as carbon-based energy generation reduced, developing alternative forms of energy would become increasingly important. Pembrokeshire, he said, was well-placed to exploit the opportunities those represented.
Following Cllr Miller’s comments, Cabinet Member for Finance, Cllr Bob Kilmister, chided the Leader for selling his achievement short. He had delivered the best deal he could and a better deal than that which was initially offered.
He praised the ‘superb’ outcome of negotiations led by the Leader and assisted by other Cabinet members and senior officers. He noted a lot of work had gone into ‘a really terrific job’ hammering out a deal.
Like the Leader, Cllr Kilmister doubted whether 1,800 jobs would be delivered, as claimed. He said, however, that jobs would be created and that would be good for Pembrokeshire. The County, he said, needed a balanced approach and David Simpson had delivered a deal.
He concluded: “I would love to see it run. With our contribution, we help make sure it happens.”
Cllr Phil Baker, Cabinet Member for Infrastructure, observed: “It had to be the right deal at the right price. This is the right deal for the County.”
Director of Resources Jon Haswell explained how funding the interest payments would work. The funding secured by Cllr Miller covered the ‘top-slice’ payment needed. In the meantime, officers identified money held over from the financial year 2018/19 placed in an administrative reserve to meet the rest. That would be used, but only if needed.
Steven Jones, Director of Development, added that time-critical EU funding should now be secured. He noted the timeline remained very tight. Business case approval was needed before Christmas. However, he added, having got over this hurdle, the Council had a way through. The next stage, he advised, requires a WG panel to finally approve the business case.
Jon Haswell added that he hoped to improve the funding arrangements in a meeting with the Welsh Government and an officer from Carmarthenshire County Council on Thursday (Nov 7).
Cllr Simpson returned to address the question of interest payments: he wanted to reduce the amount of interest due for payment. To that end, he was still negotiating a shorter time frame for the funding’s delivery. The current funding is due over fifteen years. Cllr Simpson prefers a five-to-ten year period for delivery. If funding’s delivery was achievable over the shorter period, the amount due from the Council (and the Port Authority) in interest would fall. He re-iterated that the current provision for interest was the maximum and he would continue to work to reduce the bill to the Council.
The Cabinet unanimously approved the deal struck.
Everything is now out of the Council’s hands and depends on the willingness of the UK and Welsh Government to finally get their act together and come up with money often-promised but not yet delivered.