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Politics

WG settles ‘scandalous’ land sale case

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THE WELSH GOVERNMENT has settled a claim against its former advisors about land sales which took place under a purported regeneration scheme.

The Regeneration Investment Fund for Wales (RIFW) had issued proceedings against Amber Fund Management and Lambert Smith Hampton concerning the portfolio sale of 15 properties in 2012.

The settlement has been reached on a commercial basis and without any admission of liability by any party.

The detailed terms have been incorporated into a confidential settlement agreement between the parties.

The Welsh Government Minister for Local Government, Julie James, said the £40.7 million tied up in the Fund can now be made available to support future investments across Wales.

RIFW was set up as an arms-length body by the Welsh Government to allow the Welsh Government to raise money which could then be used to fund regeneration and investments in Welsh businesses.

It was a complete shambles.

One of the advisors appointed had previous connections with one of the parties which bought some of the land at an undervalue.

Vital information was not relayed to the RIFW’s board by the Welsh Government and Board members were kept in the dark about transactions carried out in their name.

Under the oversight of their appointed agents and Welsh Government civil servants, RIFW sold publicly owned assets by private treaty and without prior valuation at a price that reflected the assets’ existing use, under sale terms that provided only limited protection to the public interest in their significant future development values, and via a negotiation process that left RIFW lumbered with undesirable assets.

The Chair of the Senedd Public Accounts Committee, Nick Ramsay MS, said: “The out of court settlement between the Welsh Government and the former advisors of RIFW effectively brings a curtain down on a very sorry and lamentable episode.

“The hasty sell-off of publicly-owned land at bargain-basement prices effectively deprived Welsh taxpayers of tens of millions of pounds which could’ve been used for essential services.

“We look forward to examining matters further with the Permanent Secretary and Head of the Welsh Government Civil Service, Shan Morgan, at our next meeting on Monday, November 23.

“We will be asking what robust steps have been taken to avoid history repeating.”

RIFW was set up as an arms-length body by the Welsh Government to sell off land around Wales including in north Wales, Monmouthshire and Cardiff, and use the money, in conjunction with European funding, to reinvest in areas in need of regeneration.

But the Public Accounts Committee found that the body was poorly managed, poorly overseen by the government, and that, because of a change in the direction of RIFW, from one of regeneration to property asset disposals, some of the Board members felt they lacked the necessary knowledge and expertise to fulfil their roles.

It also learned that the Board was not presented with key information regarding the value of the land in its portfolio, or of expressions of interest from potential buyers.

Fifteen plots of land, originally supposed to be sold separately, were instead sold as a single portfolio at a price which did not take into account potential use of the land in the future. This decision resulted in Welsh taxpayers missing out on tens of millions of pounds of funding.

The Committee learned that one of the organisations charged with offering expert advice to the Board, Lambert Smith Hampton Ltd, had previously acted on behalf of a director of the buyer of the land, South Wales Land Developments Ltd (SWLD), and signed an agreement to do so again one day after the sales went through.

The Committee concluded that the RIFW Board had been poorly served by its own expert advisors.

Angela Burns MS – Shadow Minister for Government Resilience and Efficiency – said: “The Fund was established to sell valuable packages of Welsh Government land, with the money used to support regeneration schemes. However, evidence has since emerged that shows that the sale of RIFW’s assets was undertaken at a loss of tens of millions of pounds. A loss which was borne ultimately by the Welsh Taxpayer and yet another example of the complete inability of this Labour Government to be fiscally prudent.

“Millions of pounds have been squandered, millions that could have been invested in our education and health systems or spent building Wales’ economy or supporting some of our more vulnerable citizens. It’s an absolute scandal and the real scandal is the Welsh Government can slide out of their responsibility for this debacle”

Included in the scandal are:

  • Fifteen sites sold for £21 million; with the taxpayer missing out on staggering sums of money
  • A site in Rhoose purchased from RIFW for less than £3m – sold on for almost £10.5m South Wales Land Developments Ltd. Taxpayers losing out
  • An Abergele site purchased from RIFW for £100,000, without overage, and sold for £1.9million. Taxpayers losing out
  • Land in Lisvane sold for £1.8million – worth £39million.

 

Welsh Conservatives also claim the Welsh Government has squandered £1 billion on other projects, including:

  • £221m on uncompetitive Enterprise Zones
  • £9.3m on flawed initial funding of the Circuit of Wales
  • £97.9m on delays and overspend on the A465 Heads of the Valleys Road
  • £157m on the M4 relief road inquiry
  • Over £100m propping up Cardiff Airport
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Politics

Fears new 4G phone mast would impact on historic building

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A SCHEME for a 20-metre high 4G phone mast will need a full official application due to concerns about its impact on a nearby 19th century listed building, Pembrokeshire planners have said.

Applicants Cornerstone – in a ‘Prior Notification’ application to Pembrokeshire County Council, gave notice for the mast and ancillary works scheme at Ty Mawr Farm, Station Road, Boncath.

The development would allow a shared rural network for two of the main phone operators to provide 4G connection, a report for planners said.

The council’s Historic Environment Conservation Officer has objected to the proposal due to the impact on the Grade-II-listed 19th century Ty Mawr Lodge, just under 200 metres from the site.

“The conservation officer considers that given the historical connection with Ty Mawr Farm, the track to the south of Ty Mawr Lodge would be an essential part of the building’s historic setting, as the entranceway to Ty Mawr Farm,” the report says.

“The proposal would be clearly visible along the track with intra-visible views of the monopole and lodge from the track.  It has been concluded that the proposed development would have a negative impact on the setting of the listed building in its current proposed location.”

The need for a prior approval, meaning a full application, was also raised by the Ministry of Defence (MOD) as the site falls within an area within which military aircraft may conduct low-level flight training.

The report for planners concluded that prior approval is required for the scheme.

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News

‘Honest’ caravan site owner ran site ‘under the radar’ for 20 years

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A PEMBROKESHIRE caravan site owner who “honestly” admitted “dodging under the radar” by running his site without permission for some 20 years will not be allowed to continue doing do.

In an application before Pembrokeshire County Council’s April planning committee, Nicholas Kinahan sought retrospective permission to continue operating his caravan site with 19 touring pitches, along with caravan storage and the erection of a storage shed at Penrath Farm, Ryelands Lane, Kilgetty.

The long-running site operation, a kilometre from nearby Kilgetty, off the narrow Ryelands Lane, was discovered as part of an ongoing enforcement action.

The application was recommended for refusal on a long list of grounds including the site was in the open countryside, did not propose any community facility, was not supported by a Green Infrastructure Statement, no biodiversity enhancement features, the nearby road being a narrow single-track lane with no visibility splays for access, and concerns over foul waste disposal.

Kilgetty/Begelly Community Council has objected to the scheme on the basis of a lack of information provided within the application and access safety.

One third party representation was also received, raising concerns including a lack of information in respect of type of caravans and their use, no surface water or foul waste drainage details, a lack of an ecology survey, and no highway impact assessment.

Speaking at the meeting, farmer and caravan site owner Mr Kinahan said there were three caravans on-site after he moved to Kilgetty in 2004, housing tenants “on benefits,” with nine caravans on-site by 2010 and ‘vans from other sites stored on site later.

“We’ve done wrong and we know we’ve done wrong,” he told councillors, adding: “I can’t afford to live there without this little bit of extra income.”

Speaking on behalf of neighbour Micheal Ormond of Ryelands Caravan Park and his concerns, Andrew Vaughan-Harries – a planning agent who normally represents applicants – said to the applicant: “When I look at this application, personally, I think you’ve tried to do the application yourself.

“We see many, many problems with this application, a septic tank is not acceptable in 2024, there are lots of issues; it’s unsustainable and has to fail.”

Councillor Mark Carter said: “What can I say really? I think we’re looking at a very honest man, unfortunately in this case he’s got it wrong; he’s had a 20-year run of dodging under the radar.

“We have to respect the law and the policy and be fair to every caravan site.”

Moving the application be turned down, he said: “Much as I admire the gentleman for his initiative, I have to go with the officer recommendation for refusal.”

Councillor Rhys Jordan thanked the applicant for his honesty, adding: “I don’t think he’s tried to ride roughshod over planning, I think he’s been naïve, but I can’t support this application.”

The application was unanimously refused by planners.

Members heard the saga of Kinahan’s caravans may not be ended with a planning refusal, the option of a potential certificate of lawfulness – if he could prove the development had been in place enforcement-free for a decade-plus – being mooted at the meeting.

Committee chairman Cllr Jacob Williams said: “If you can prove it’s immune from enforcement it could be a ‘trump card’.”

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News

Housing secretary plays down talk of Wales following Scotland on rent controls

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THE HOUSING secretary poured cold water on suggestions Wales could follow Scotland’s lead by introducing similar rent controls, saying early indications show it has not worked.

Julie James was pressed for her views on rent controls in Scotland while giving evidence to a Senedd inquiry on the private-rented sector.

Altaf Hussain quizzed the housing secretary about affordability, raising concerns about rent rises since the pandemic, with landlords asking for big deposits and months’ rent upfront.

The Conservative warned this is leading some into unmanageable debt as he questioned whether there is a need to regulate a maximum deposit and rent.

Asked about the Welsh Government’s current thinking on rent regulation, Ms James told the local government and housing committee: “It hasn’t really worked in Scotland, I’m afraid.

“We’ve got some evidence, although it’s early days, to be fair, so we’ll want to monitor that for a longer time period. But, so far, the evidence is it’s not having the desired effect.”

Ms James pointed to a Welsh Government green paper calling for evidence on the right to adequate housing and rent control policies, with a second consultation to follow in summer.

She said: “We’re very keen to look at international examples from all over the place in terms of what works to get affordable rents into the sector.”

Ms James said she was very nervous the renters bill and leasehold reforms will not make it through the UK Parliament before a general election is called.

She warned: “We’ve got two years left of the legislative programme and the possibility of bringing a large bill through to replicate this is slim to none.”

Lee Waters, who was Ms James’ deputy until last month, said many tenants have damp or disrepair issues, but are unaware of their rights or too frightened for fear of eviction.

Suggesting the Welsh housing quality standard should be extended to the private sector, the Llanelli MS warned of a fundamental power imbalance between landlords and tenants.

Ms James criticised the UK Government for reneging on a commitment to uplift quality standards for the private rented sector at the last minute.

The housing secretary said protections under Wales’ Renting Homes Act have led to a substantial drop in evictions since coming into force in December 2022.

Mr Waters said tenants who are forced to move because their landlord has decided to sell face an average cost of about £1,700, suggesting two months’ rent should be waived.

Jack Sargeant, also a Labour backbencher, asked about pet-friendly policies, warning some homeless people face the dilemma of having a place to stay or giving up a companion.

Ms James said she was not able to pick which parts of the UK’s renters bill would apply, but she accepted an offer to be involved in “no benefits claimants” and “no children” exclusions.

She pointed to guidance that landlords cannot unreasonably refuse the right to have a pet but Ms James stressed there must be sensible limits

Recalling how she was once called to a high-rise building while working for Swansea council, she said: “We took an engineer with us and the lift kept breaking because people on the seventh floor were keeping a horse in their kitchen.

“This horse was relieving itself in the lift on the way down and it was breaking the mechanism. It was quite something to see this horse in this kitchen, I have to say.”

John Griffiths, who chairs the committee, raised concerns about a mismatch between the number of students and the amount of purpose-built accommodation in university cities.

Ms James said she has tried to persuade council planning departments they have the power to enforce better standards for student accommodation, so it can be more easily repurposed.

She admitted: “I have not been terribly successful at this but I plan to have another go.”

The former lawyer told committee members other levers will be looked at, including any unintended consequences of the council tax exemption for students.

Mr Griffiths also asked about scope for institutional investment in build-to-rent schemes, which often include shared facilities such as gyms.

Ms James said: “It’s not huge in Wales. It’s a lot less huge than it has become in England,” as she argued build-to-rent is not the solution to the housing crisis.

Mr Waters asked about low take-up of Leasing Scheme Wales, which offers incentives for owners to lease homes to councils, amid concerns the application process is “a bit of a faff”.

Ms James said the housing maintenance allowance, which has been frozen for years until the turn of the financial year in April, has been the main barrier.

She vowed to continue pushing the UK Government to say as soon as possible whether it is a one-off or if it will be uplifted next year in line with inflation.

“I think it’s pretty awful that they haven’t said so,” she told the meeting on April 24.

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