Business
Concerns over risk to public funds in TVR deal
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
Ferry Terminal ‘extremely busy’ due to ongoing Holyhead closure
PEMBROKE DOCK Ferry Terminal has been experiencing significant congestion today as ferry services remain under immense pressure following the closure of Holyhead Port earlier this month.
The disruption, caused by storm damage, has rerouted ferry traffic through Pembrokeshire, leading to long queues and crowded facilities at the terminal.
The Herald can confirm that it has been very busy today with cars, lorries, and foot passengers queuing in large numbers. Staff are working tirelessly to manage the influx, directing vehicles and assisting passengers as they prepare to board the heavily booked ferries.
A spokesperson for the Port of Milford Haven said: “We are working closely with ferry operators and local authorities to ensure traffic flows as smoothly as possible, but the sheer volume of vehicles is causing unavoidable delays.”
Travelers are being urged to arrive early for their sailings and to remain patient as the terminal operates at full capacity.
Both Stena Line and Irish Ferries have increased capacity on their Pembrokeshire routes, deploying larger vessels, including the Stena Adventurer and the MV James Joyce, to handle the surge in demand.
From our position at the terminal, our photographer has captured photos showing long lines of vehicles, groups of foot passengers carrying luggage, and port staff coordinating efforts to ease congestion.
Authorities are advising non-essential travelers to consider rescheduling their journeys where possible and to monitor updates from ferry operators closely.
(Photos: Martin Cavaney/Herald)
Business
52 homes to be built in Roch as scheme gets final sign-off
THE FINAL stage of approval for a near-£10m Pembrokeshire residential development of 52 homes has been given the go-ahead.
Back in April, members of Pembrokeshire County Council’s planning committee backed an application by Wakefield Pembrokeshire Ltd for the development, which includes four one-bed affordable housing units, on land near Pilgrims Way, Roch.
18 objections to the scheme were received, raising concerns including an “inadequate” affordable housing level, it being a high density development for a rural area, a loss of green space, the size of some of the homes, and pressures on existing services and facilities, and fears it may lead to an increase in second homes.
Nolton & Roch Community Land Trust (N&RCLT) has raised its concerns about a lack of affordable homes at the development, calling for a 20 per cent affordable homes element, as recommended by policy.
An officer report for members, recommending conditional approval, said: “It is apparent that the proposed development is not fully policy compliant, insofar as it cannot deliver the indicative 20 per cent affordable housing sought [by policy].
“However, a substantial positive social impact will arise through the provision of housing, including four one-bed affordable housing units, in meeting identified needs for both market and affordable housing.
“Financial obligations identified to mitigate adverse impacts arising from the proposed development cannot be met in full. However, [policy] acknowledges that in such circumstances contributions may be prioritised on the basis of the individual circumstances of each case.”
Speaking at the meeting, agent Gethin Beynon said the project had a “significant economic value” of around £10m, and the local applicant had “a sense of stewardship to the local community,” offering affordable housing and community infrastructure towards highways and education.
Approval was delegated to the council’s head of planning to approve the application, subject to the completion of a Section 106 planning obligation, making community financial contributions.
The Section 106 agreement was recently agreed, with the application now formally approved.
Business
World of engineering and welding SPARCs interest in Ysgol Harri Tudur’s female learners
AN EVENT hosted by Ledwood Engineering gave girls from Year 8 and 9 at Ysgol Harri Tudur first-hand experience of the world of engineering recently.
Engineering is a booming sector in Pembrokeshire with a high demand for skilled workers in exciting career pathways associated with the development of low carbon and renewable energy industry and the Celtic Freeport.
The young women heard from industry experts on the importance of engineering in Pembrokeshire, and had hands on experience using a welding simulator, at the company’s Pembroke Dock site.
The learners are part of the County’s SPARC (Sustainable Power and Renewable Construction) initiative aimed as inspiring and empowering young females to consider careers in science, technology, engineering and mathematics (STEM) pathways where females are under-represented in the workforce.
SPARC is funded through an alliance comprising Blue Gem Wind, Ledwood Engineering, Port of Milford Haven, RWE Renewables, Pembrokeshire County Council, Pembrokeshire College and the Swansea Bay City Deal.
Mrs Laura Buckingham, SPARC practitioner at Ysgol Harri Tudur said: “Our learners had a fantastic experience at Ledwood Engineering. They were given lots of advice by industry experts on the different career options and pathways within the engineering sector.
“They appreciated the opportunity to ask their questions and found the session very informative. Having the chance to trial their welding skills on the simulator was an experience they continue to talk about and has definitely piqued their interest.”
Poppy Sawyer, Year 8 SPARC learner added: ‘It was a really good trip. Talking to the different people there has helped me know more about the jobs we could get which will be very useful when making choices for my future.”
“They helped us a lot by giving us lots of information. We were able to look around and try welding. It was really fun,” added Tianna Marshall, Year 8 SPARC learner.
The Regional Learning and Skills Partnership also launched its Explore Engineering interactive website at the event.
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