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Welsh Government’s TVR investment probed

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TVR: Questions remain over Government role

THE WELSH G​OVERNMENT has been questioned about its investment in sports car manufacturer TVR.

On Tuesday (Jan 16), the Government announced that it had acquired a 3% stake in TVR; it has also provided a £2m loan to the company, which says there is another 12 months of research and development to go before it begins constructing cars in Ebbw Vale.

The planned TVR site was acquired by the Welsh Government last year and includes the 200,000 sq ft former Techboard building.

The terms of TVR’s lease have not been revealed by the Welsh Government. The TVR deal is part of a Welsh Government plan to build up automotive and manufacturing industry in Ebbw Vale and the surrounding areas following the Welsh Government’s withdrawal from involvement in the Circuit of Wales plan.

TVR claims that moving the car maker there will create up to 150 jobs.

However, official accounts lodged with Companies House indicate a headcount of just six jobs at TVR Manufacturing Ltd, despite that jobs pledge. The headcount at its ‘parent company’, TVR Automotive Ltd was recorded as ‘0’.

Official company accounts also reveal the extent of Welsh Government financial support for TVR: Shareholding of 100,000 shares in TVR Automotive Limited (a company listed as ‘dormant’ on Companies House) £2,000,000 in the form of a ‘long term loan’ which is repayable on demand until TVR secures £5.5m in further equity funding – though the company’s accounts suggest that the Welsh Government ‘has indicated that they have no intention of demanding repayment’.

Shadow Economy Secretary – Russell George – is calling for assurances from the Welsh Government that taxpayer money is being properly safeguarded.

He said: “We need to see tangible evidence that this investment represents value for money.

“The prestige of the TVR badge is one thing – and there is understandable excitement around their decision to locate in Wales.

“However, we need to see the jobs that were promised, and as major shareholders in the company the Welsh public will want to see genuine progress.

“Ultimately, commercial common sense dictates that there must be an economic benefit to this spending.

“Millions of pounds have been invested in TVR, and the Welsh Government must ensure that this exciting project doesn’t turn into another disappointment for the people of Blaenau Gwent.”

The Welsh Government has been repeatedly criticised by the Wales Audit Office and Assembly scrutiny committees for its participation in a series of commercial investments.

A scathing report delivered in 2016 revealed that the Welsh Government had ignored the views of its own senior civil servants in saying it was pressing on with the Circuit of Wales development in the run up to the last Assembly election and blew £9.3m of public money on the scheme, including funding the acquisition of a motorcycle company in Oxfordshire.

The Welsh Government accepted ten out of eleven recommendations made by the Assembly’s Public Accounts Committee following the collapse of steel coating firm Kancoat in Swansea.

Kancoat had received £3.4m of public funds in the teeth of advice to then Economy Secretary Edwina Hart that the investment was high risk and Kancoat’s business plan was ‘weak’. Moreover, there was no record of a key meeting in which funding to Kancoat was discussed.

A 2015 report revealed that 54 companies that had received Welsh Government support had either ceased trading or become insolvent, owing the taxpayer over £11m; in 2016 Main Port Engineering in Pembroke Dock, which had received £650K from the Welsh Government the previous year went bust owing £1.1m; £1m was given to Kukd, in Cwmbran, which then outsourced jobs supposed to be in Wales.

An investment in Pinewood studios resulted in the creation of only 50 of a promised 2,000 jobs.

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Politics

Public feel ‘disengaged’ from Parliament

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RESEARCH by The Hansard Society suggests that the public is increasingly disenchanted with the UK’s system of government.

Founded in 1944, the Hansard Society is dedicated to expounding the principles and practice of parliamentary democracy and its challenges. It is widely recognised as the Westminster Parliament’s ‘critical friend’.

Contrary to a belief peddled by some commentators, the research, published in the 16th Audit of Public Engagement, finds that the public care about political issues. However, the research also shows that many are unhappy and frustrated about the way in which Parliament works. As a result, a significant proportion of voters are ready to consider a radical change to our system of government.

Over one-half of the Audit’s respondents think that what the country needs is a ‘strong’ leader, prepared to break the rules. Around 40% think that the government could better deal with the country’s problems if it was not tied to parliamentary votes.

72% say the system of governing needs ‘quite a lot’ or ‘a great deal’ of improvement. That figure is a significant increase on the previous year, itself at a worrying level of 67%. The number of people who say the system needs ‘a great deal’ of improvement has risen eight points in a year, to 37%.

Asked whether the problem is the system or the people, the largest group (38%) say ‘both’.

When asked which institutions are most likely to act in the public interest, UK citizens have more confidence in the military and judges than in politiciansPoliticians will be pleased to see that they still rank ahead of political parties, big business and newspapers as more likely to act in the public interest.

Strikingly, only 25% of the public have confidence in MPs’ handling of Brexit. People were asked whether key groups’ and institutions’ handling of Brexit had given them more or less confidence in these groups and institutions to act in the public’s best interest. 60% said they had less confidence in political parties, 60% in the government and 57% in MPs as a result of their handling of Brexit. Confidence had been driven down the least in civil servants (41%) and judges (35%) as a result of their handling of Brexit.

75% say the main political parties are so divided within themselves that they cannot serve the best interests of the country. 50% say the main parties and politicians don’t care about people like them.

Well over half the public are downbeat about the state of Britain – 56% think Britain is in decline, 63% think Britain’s system of government is rigged to advantage the rich and powerful, and 66% think most big issues facing the country today don’t have clear solutions.

The public is evenly split between those who prefer politicians who make compromises with people they disagree with (48%) and those who prefer politicians who stick to their positions (45%). 66% think politicians should be able to say what’s on their mind regardless of what anyone else thinks about their views.

Despite the legislative chaos following the last Brexit referendum, 55% still think that big questions should be put to the public in referendums more often than today.

The Audit suggests a dissolution of the ties between the governed and their representatives. Although core indicators of political engagement remain stable, beneath the surface the strongest feelings of powerlessness and disengagement are intensifying. The number who ‘strongly disagree’ that political involvement can change the way the UK is run (18%) has hit a 15-year high. 47% feel they have no influence at all over national decision-making – a new high for the Audit series.

At the national and local levels, the numbers of those feeling they have no influence at all have jumped by seven and nine points in a year, respectively. This intensification of the strongest feelings of powerlessness has occurred even as the overall measures of people’s sense of influence, which include those who feel less strongly, have declined only slightly since last year.

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Politics

Generation gap spells trouble for Tories

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ON MONDAY, the Conservative think-tank Onward published a report into generational voting patterns, policy priorities and political values.

The report considers why age has become the key dividing line in British politics, what has happened since the last general election, and what can be done to win over millions of younger people deserting the centre-right in considerable numbers.

The report follows a detailed 10,000 sample poll, conducted by Hanbury Strategy. It is the largest study of the generation gap since age became the key political dividing line in British politics.

Younger and older voters have always been politically different, but never by this much

In 2017, the gap between younger and older voters was 50 points larger than the post-war average since 1945 and five times higher than in 2010. It started, in 2015 before Brexit and Jeremy Corbyn became the leader of the Labour Party. This gap has grown, not narrowed, since the last General Election.

In 2017, “the tipping point age” – the median age at which a voter is more likely to vote Conservative than Labour – was 47 years old. The report establishes that, since the election, “the tipping point” has risen by 4 years to 51 years old.

The Conservative age curve is getting steeper. Among 18–24-year-olds, 14% said they would vote Conservative if there was an election today. 62% said they would vote Labour. 9% of this group said they would vote for the Liberal Democrats.

Among those over 65 years old, the opposite was true, 56% of respondents said they would vote Conservative, against 24% for Labour. The only groups with a net positive vote for Conservatives are 55–64s and voters over the age of 65.

Projecting the results of the survey forward to 2022 shows that the Conservatives face a wipeout in Wales.

If age continues to be a predictor of vote intention, the Conservatives are also in trouble in London. For example, Putney, which has a majority of just 3.3%, has 2.6 younger people for every older person. Other Conservative seats potentially affected by the demographic shift include the Cities of London and Westminster, Hendon, Chelsea and Fulham, and Uxbridge and South Ruislip (currently held by would-be PM Boris Johnson).

According to Onward, the dissonance between different age groups largely down to the Conservatives’ failure to win over younger voters. 28% of under-35s would consider voting Conservative, but fewer than 17% say they would do so if an election were held today. Onward says that this amounts to 3 million voters young Conservative considerers which could be won over but currently would not vote for the party.

Polling among the younger age group suggests that on some policies, the Conservatives could be knocking on an open door. 18-24s are most in favour (63%) of keeping more of their own money and paying less tax. However, they also favour making the economy fairer, not just bigger. Nearly two-thirds of people favour “reducing the gap between rich and poor” over “working to create faster economic growth”, with 18-24s most in favour (67%).

On immigration, there is net support for reducing immigration in every age bracket, within every ethnic group, and among Remain voters.

In terms of priorities, the environment is the third top issue for 18-24-year-old voters and younger voters. Notably, immigration is of far lesser importance to younger voters than older ones, a reverse of the position on welfare benefits, about which older voters are far less exercised. All age groups regard the NHS and Brexit as the top two priorities.

A disconcerting gap is rising in the Conservatives’ appeal to female voters. Only 8% of 18-24-year-old women would vote Conservative today, which correlates heavily with pessimism: 56% of women think the next generation will be worse off than their own. Meanwhile, Asian voters (42%) are nearly as likely to consider voting Conservative as White voters (44%), but only half as many would do so today.

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Lib Dems slam ‘botched’ scheme

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THE WELSH Liberal Democrats have slammed the Conservative Government for their “hapless treatment” of EU citizens after the Home Office released guidance on the new EU Settlement Scheme.

The Home Office has confirmed that for the duration of the trial period, until 30 March, EU citizens applying to stay in the UK must either use an Android phone or travel to one of 13 ‘document scanning’ centres instead.

For Holyhead, the closest ‘document scanning’ centre is Trafford.

According to an analysis by the Welsh Liberal Democrats, EU citizens travelling from Holyhead would face costs of £55 on the train for at least a six and a half hour round trip. The drive would be a 224-mile round trip costing around £56 in fuel.

The only document scanning centre in Wales is in Caerphilly. Travelling from Pembroke to Caerphilly and returning the same day by rail would cost £32.10 (the cheapest available fare at the time of enquiry), the cheapest off-peak fare from Aberystwyth would be £77.10 return. By car at an average of 40mpg, the cost of travel would be at least £27 to and from Pembroke, while from Aberystwyth the cost would be at least £25. Both car journeys represent round trips of over 180 miles.

Welsh Liberal Democrat Leader Jane Dodds said: “Too many people in Wales are deeply anxious about their right to stay. Many of them fill vital roles in the health service, our schools and the tourism sector. They want to register as soon as possible, but Theresa May’s hapless treatment of EU citizens could result in a new Windrush scandal.

“For anyone who doesn’t have an android phone, this botched scheme means they will have to travel. For people in Holyhead, that means facing a 224-mile round trip and paying over £50 for the privilege. This postcode lottery is simply unacceptable.”

Liberal Democrat Home Affairs Spokesperson Ed Davey MP said: “Following significant pressure, the Prime Minister said there will be no financial barrier for any EU nationals who wish to stay. How long did that commitment last?

“It is Conservative Ministers who have made a mess of Brexit. They should either pay the cost for EU citizens or change the application system and ensure EU citizens are made to feel welcome in the UK.

“Ultimately, the best way to avoid all of this mess is by giving the people the option to remain in the EU with a final say on Brexit.”

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