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Welsh Government releases additional £100M business support

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The latest phase of the Welsh Government’s Economic Resilience Fund has benefited from the release of a further £100million from ministers within 72 hours of launch, due to a massive demand.

More than 6,000 grant applications from small and medium sized businesses and social enterprises were received within 24 hours of the launch on Friday – an unprecedented response, revealing the scale of the challenges facing Welsh businesses.

The Fund aims to complement and fill the gaps left by UK Government schemes such as the Job Retention Scheme, with grants of up to £10,000 for micro-enterprises and up to £100,000 for SMEs and a light touch appraisal system designed to get money to businesses with the minimum of delay – as well as a new loan fund administered by the Development Bank of Wales.

Less than three weeks since the First Minister announced the intention to create the Fund, the Welsh Government has released a further £100 million, taking the grant fund to £300 million. This will supplement this latest phase of support, providing non-repayable grants to microbusinesses, SMEs and those large businesses of critical, social or economic importance to Wales.

The Fund has been warmly received by trade union and business organisations, with the Institute of Directors calling it ‘very welcome news for business owners and managers who are desperate for all the help they can get at this difficult time’. The South and Mid Wales Chambers of Commerce has called ‘the rapid response to date’ of the Welsh Government in supporting the economy of Wales ‘impressive’. The Wales TUC welcomed ‘additional funding to address the gaps’.

Minister for Economy, Transport and North Wales Ken Skates said:  “We knew that even with the help offered by initiative such as the Job Retention Scheme, there was a massive need for quick access to grant funding if Welsh businesses were to survive this unprecedented economic shock. Whilst in order to make the scheme quick and simple we needed to take tough decisions over eligibility – like requiring businesses to be registered for VAT as a way of having to check on their trading history – it is clear from the level of response received that the Economic Resilience Fund is plugging a gap in UK Government support and providing much needed financial reassurance to many businesses at this challenging time. We will continue to review support and consider how we can develop it over the coming days.

“The rate of applications has been massive and unprecedented. This is the second time in a matter of weeks that access to Welsh Government funds aimed at easing cash flow pressures for Welsh business have quickly reached capacity, and we have responded with pace to release a further £100m into this phase of the fund.

“In these difficult and demanding economic times we have worked hard to free up resources to create such a large Fund despite the huge demands on our budget, and to strike a balance between supporting as many enterprises as possible and making a meaningful contribution to each one’s survival, as well as asking each recipient to sign up to the principles of the economic contract.

“Though we applaud much of what the UK Government has done, there is an urgent need to see more of the promised lending guaranteed by the UK Government getting to the front line. The UK Government must continue to support and press the high street banks to be much more responsive to the needs of our businesses at this difficult time.”

Finance Minister Rebecca Evans said: “The Economic Resilience Fund is part of more than £2bn of support that we have made available to help businesses and charities during these incredibly difficult times.

“We know that support for business is crucially important but whilst we are doing everything we can in Wales to plug any gaps and provide the best possible financial support to businesses, it is clear there are further steps that the UK Government needs to urgently take.”

The Economic Resilience offers financial support to help businesses, charities and social enterprises deal with the coronavirus crisis and will be vital in helping organisations manage cash flow pressures. It is a unique additional funding stream for Wales and was designed to address gaps not currently met by schemes already announced by the UK Government, Welsh Government and Development Bank of Wales.

The first stage of the Fund saw the £100 million Development Bank of Wales’ loan scheme fully subscribed in little more than a week. Applications are currently being processed and some businesses have already received funding. It is anticipated that the Development Bank will have processed all applications received within the month.

To ensure that money reaches businesses as quickly as possible more than 120 additional Welsh Government and Business Wales staff have been diverted onto processing applications and supporting businesses and organisations in this latest stage of the Fund.

Business

Port of Milford Haven now official ‘a great place to work’

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THE PORT of Milford Haven has been officially accredited as a Great Place to Work-Certified™ organisation. As the first Port Authority in Britain to secure this Certification™, it is a significant achievement.

“We are very proud to be Great Place to Work-Certified™,” said Vidette Swales, HR Director at the Port of Milford Haven. “It means so much that our employees have reported a consistently positive experience with their colleagues, their leaders and their jobs. Offering a positive employee experience is not only beneficial for the people who work with us but is also key for our continued business success.”

Tom Sawyer, CEO at the Port of Milford Haven added: “Our team is operating the UK’s leading energy port, and it is of the utmost importance that we do that safely, responsibly and effectively. We’re striving for excellence and aim to provide a world class service to our customers as well as supporting sustainable coastal communities for the prosperity of future generations. Our employees are clearly at the centre of this which is why I’m delighted that they feel supported in their role. I’m especially proud that this Certification™ demonstrates our core values of Safety, Excellence, Collaboration and Sustainability so perfectly.”

“We congratulate the Port of Milford Haven on achieving their Certification™,” said Benedict Gautrey, Managing Director of Great Place to Work® UK. “Organisations which put the employee experience at the heart of their business gain their employees’ trust and, in turn, are truly able to build a great workplace culture that delivers outstanding business results.”

Find out more about careers at the Port of Milford Haven here: www.mhpa.co.uk/about/careers-at-the-port/.

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One in five now accessing Ogi’s Wales-based full fibre network

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Welsh full fibre telco – Ogi – has reached two thirds of its planned first phase rollout with one in every five premises now signed up to one of its home or business services. 

Kick starting its ambitious FTTP [Fibre to the Premises] rollout in 2021, Ogi propelled onto the UK telcomms scene with a £200million plan to bring full fibre to south Wales much sooner than planned by the incumbent operators.

The business shifted its approach at the beginning of 2024 to focus on customer take-up – attracting thousands to the full fibre switch thanks to a new competitive pricing and shorter-term contracts strategy.

Gaining first mover advantage in places like Pembrokeshire and the post-industrial towns and villages of the south Wales valleys, the fresh approach has served the provider well, with a sector-leading high customer satisfaction score to match. This comes following a targeted period of investment in back office operations and customer service, with new 7-day opening hours and refreshed online resources among the changes introduced earlier this year. 

Amid rising competition from the UK’s largest telcos, increasing build costs and other market pressures, the Gigabit-capable provider continues to see customer adoption increase, with one in five joining the network in 2023, with places like Pembrokeshire seeing double that rate of growth.

Chief Executive Officer, Ben Allwright, said: “With one in five of the premises we can serve already signed up to Ogi, it’s clear to see we’re investing in the right places. Passing the 100,000 premises milestone – two thirds of our initial plan, completed – and seeing the massive benefits from this technology as adoption increases is encouraging. 

“Putting our ISP operations first since the start of the year, and harnessing the build machine as a tool for growth has allowed us to take a breath, and make sure we’re doing the right things for our customers and long-term sustainability. While we might not be as visible installing new network as we had been – we’ve been busy in the background, supporting our existing customer base and welcoming thousands more every month. 

“We’re building something really exciting here at Ogi; and the people of Wales are invested in our journey to create a real challenger brand – one that Wales can be proud of, and others are already envious of.”

The network is currently being rolled out in around 60 towns and villages across south Wales, with thousands of customers joining the full fibre ISP every month. The Wales-based telco offers broadband and phone services for home and a suite of IT, connectivity and security options for business, with a new wholesale opportunity recently added to the portfolio for high capacity users.

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Carmarthenshire cheese factory owner speaks out in bad odour row

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THE DIRECTOR of a mozzarella factory which supports 140 dairy farmers has insisted he wants to be a good neighbour following complaints from a small number of people about noise and odour.

Steve Welch, of Dairy Partners Ltd, said acoustic barriers were installed in February to dampen the noise of liquid natural gas (LNG) deliveries at the site in Aberarad, near Newcastle Emlyn, Carmarthenshire. He said the company employed 75 people and served a growing market. “We’re expanding – that’s an indicator of our success,” he said.

Environment regulator Natural Resources Wales (NRW) had visited three months earlier, in December 2023, and found that the noise of pressurised LNG deliveries did not comply with Dairy Partners’ site permit. The NRW officer’s report said there was “an offensive and continual tonal noise originating from the direction of LNG tanker and LNG tank”, but no odour problem was detected.

NRW issued what’s known as a compliance assessment report in February this year requiring the company to take action. The regulator said this wasn’t the same as a formal enforcement notice, and that it was continuing to monitor noise and undertaking “detailed dialogue” with Dairy Partners.

Mr Welch said the LNG supplier it had been using exited the market last autumn. This supplier, he said, had a “silent” gravity-fed tanker which took six to eight hours to complete its delivery. He said all the available alternative LNG suppliers used a pressurised delivery system which was quicker, reduced the risk of spillage and was more economically viable. The company switched to the pressurised delivery system, which led to complaints about the accompanying noise.

Mr Welch said Dairy Partners tried using different tankers and built a wooden pallet stack to try to mitigate noise before investing in the sound-dampening panels, which he said made a big difference. He added that Dairy Partners was working with NRW to modify its site permit to reflect the use of the pressurised LNG deliveries.

Site manager Daryl White said liquid natural gas powered the factory and that there was one delivery per week during daytime hours between Monday and Friday, lasting one hour.

Dairy Partners measures the decibel level of LNG deliveries and Mr Welsh said the noise rated as “moderate to soft” when heard at the nearby roadside. A resident living just across the road, Megan Ceiriog-Jones, said she had recorded a higher decibel level, and that the sound of other operations such as night-time “venting” which she had recorded on video were disruptive. “The noise videos are just a sample of noise complaints that are sent to NRW on a regular basis,” she said.

Dairy Partners said further noise-dampening measures would be added as a condition of planning approvals for wastewater and cleaning tanks which were decided by Carmarthenshire Council’s planning committee last month. A handful of objectors opposed the retrospective applications, including Ms Ceiriog-Jones and Stephen Rees, who both addressed the committee. Ms Ceiriog-Jones said the effects of “noise and sleeplessness are hard to quantify”, while Mr Rees said the reality for residents living by the cheese factory was “considerable disruption”. Ward councillor Hazel Evans addressed the committee to say that Dairy Partners was a large contributor to the local economy and that she was reassured by the many planning conditions proposed by the planning department. She said she understood that some nearby residents weren’t happy, although they didn’t wish to see the factory close.

Speaking to the Local Democracy Reporting Service, Mr Welch said the company logged all complaints, had attempted to talk to Ms Ceiriog-Jones, and wanted to have a positive relationship. He said: “We want to be good neighbours.”

Mr Welch said cheese had been made at the site since 1938, with previous owners including Canadian firms Saputo and McCain Foods, and an Egyptian family business.

Site manager Mr White said the factory was “on its knees” when Dairy Partners took over in 2013 and began investing in it and increasing production.

Every year around 200 million litres of milk arrives at the site from 140 nearby dairy farms. Nine hours after arriving the milk is turned into 2.5kg blocks of mozzarrella cheese, with the separated whey sent to another company where it is dried and sold in powdered sports nutrition products. Cream is also produced at the Aberarad site.

“Making cheese is really technical,” said Mr Welch, who is one of three Dairy Partners directors. “You’te taking milk and turning it into a stretchable cooking product which has a lot of different characteristics. You’re manipulating proteins, sugars and minerals in a reproducible product.”

Varying levels of salt can be added to the cheese blocks, which move slowly along a tray system in a brine solution before being packaged ready for onward delivery. Around a third of it ends up overseas in countries including Lebanon and China.

Mr Welch said the site produced around 22,000 tonnes of mozzarella and pizza cheese per year, and that it hoped to expand this to as much as 35,000 tonnes. He said the 75 jobs were highly skilled and that many more indirect jobs relied on the site. Mr White said haulage business Mansel Davies & Son had around 40 drivers who delivered to and collected from the Aberarad site.

Dairy Partners, which also has a base in Gloucestershire where its cheese is shredded, has an annual turnover of around £140 million. “The market is expanding – we can’t keep up,” said Mr Welch. “We’ve got to keep producing, and we are never going to be silent.”

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