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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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UK Budget must take crucial steps to help recovery

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LLANELLI Labour representatives are urging the UK Government to take the necessary steps to begin recovery and secure prosperity across all parts of the UK.

Llanelli’s MP Nia Griffith and MS Lee Waters set out Wales’ priorities ahead of the UK Budget on Wednesday March 3 2021.

They are urging the UK Government to make a series of commitments to Wales, including:

• sustaining UK-wide business support
• delivering welfare and taxation measures to support the most vulnerable
• redressing the historical under investment in Wales on research and development and rail infrastructure
• providing an injection of funding to support the transition to Net Zero carbon emissions
• providing guarantees for Wales’ specific funding pressures

Speaking ahead of the UK Budget announcement, Nia Griffith MP reiterated her calls for continued business support for those on the lowest of incomes. She said:  

“It is vital that the Job Retention Scheme and Self Employed Income Support Scheme are retained – not threatened with being removed at the eleventh hour and putting livelihoods at risk. A delay to repayments should also be introduced for the Coronavirus Business Interruption Loan Scheme with recognition given to the self-employed who are facing deferred bills.”

“It is also vital that the £20 per week increase to Universal Credit is maintained and put on a permanent basis, making it available to people in receipt of legacy means-tested benefits. More than 300,000 families in Wales have benefitted from an extra £1,000 a year as a result of the uplift and removing this now would have a detrimental and long-lasting effect on thousands of households across Wales.”

Lee Waters MS said:

“The UK Government should continue to take advantage of historically low interest rates to invest in Wales’ infrastructure and public services. Particularly on rail, where we have been underfunded to the tune of billions since the start of devolution, this is the moment where Rishi Sunak can demonstrate his commitment to ‘levelling up’ all four nations of the UK.”

“This budget is a chance to hardwire a greener, fairer way of doing things into our recovery from Coronavirus. We are ambitious about our target of being Net Zero carbon by 2050, and averting the climate crisis which is increasingly affecting Wales through flooding. But to make that transition, we need a step change from the UK Government’s budget that allows us to invest in renewable energy and green jobs.”

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Politics

MS summoned to Court over tweet

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PLAID CYMRU’s Mid & West Wales Regional Senedd Member Helen Mary Jones has been summoned to appear at Swansea Crown Court.

HHJ Paul Thomas QC ordered Ms Jones to court after she retweeted a third-party’s post which expressed the hope a defendant in an ongoing murder trial would be convicted.

The tweet referred to the trial of 70-year-old Anthony Williams, who killed his wife shortly after the start of the first lockdown in March last year.

Mr Williams had pleaded not guilty to murder but guilty to manslaughter.

However, while the trial was ongoing, a domestic violence campaigner tweeted:: “Another perp using the ‘I just snapped’. It is complete b******t! As so many of us will know, there would have been history of domestic abuse.
“I hope this jury finds him guilty of murder. Rest in peace, Ruth.”
On Saturday, before the jury returned its verdict, Ms Jones shared the tweet.

There was no history of domestic abuse and no suggestion of it was raised during Mr Jones’ trial.

When the Jury returned to Court on Monday, HHJ Paul Thomas said: “It’s come to my attention that, over the weekend, there have been some highly inappropriate comments made on social media about this case.
“I should make it abundantly clear that those comments have not come from anybody connected with the case and, having been shown the contents of one such piece of social media, they clearly don’t have any idea about the evidence in this case or the issues in this case.”
None of the jurors saw the offending post and continued their deliberations.

On Monday afternoon, the jury acquitted Mr Williams of murder.

By retweeting the remarks made by a third party, the risk existed that the jury could have been influenced and their decision-making compromised.

On Thursday, Helen Mary Jones will have the chance to explain her actions to Judge Thomas in person.

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Welsh budget ‘very much a draft’

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THE SENEDD’s Finance Committee’s report on the Welsh Government’s Draft Budget for 2021-22, voices serious concerns for public services, inequality and the economic impact of the COVID-19 pandemic. 

The Committee is clear that the need to address and alleviate poverty is more critical than ever, with the pandemic deepening the problems already faced by low-income and disadvantaged households.

HEALTH AND SOCIAL CARE

The Finance Committee is worried about the impact of the pandemic on non-COVID care, due to sustained pressure on the NHS and its healthcare workers. The Finance Committee also believes the impact of the pandemic on mental health will be considerable over the next year and beyond.

The Health, Social Care and Sport Committee agrees that the public health emergency Wales is facing should not be underestimated, either in terms of responding to the immediate challenges of the pandemic, or the need to do what can be done to maintain the vital non-COVID services on which people rely.

The Committee believes the true scale of the implications for the health and wellbeing of people in Wales, may not become clear for years. The crisis has also exacerbated underlying issues, including the fragility of the social care sector, the ongoing health inequalities across Wales, and the need for a clear strategic vision to drive health and social care integration and service transformation.

LOCAL GOVERNMENT AND EDUCATION

The Finance Committee is concerned that increased funding in the local government settlement will not cover all cost pressures, such as social care, childcare, and education.

The Finance Committee is deeply concerned about the risks to children, particularly those from disadvantaged backgrounds and those in early years, falling behind in their education as a result of the pandemic. The Finance Committee is calling for more information about how funding will support learners to ‘catch up’ while also delivering the current ways of learning.

ECONOMY, SKILLS  & REGENERATION

The Finance Committee heard evidence that the Draft Budget does not provide a coherent approach to supporting businesses through the pandemic. While recognising that it may be sensible to allow some degree of flexibility, the Committee is concerned that the implementation of the business support packages has been “patchy” with smaller businesses finding it harder to access funds. This has been further complicated by the different approaches to business support from different Governments within the UK.

The Committee believes the Draft Budget could have been clearer in outlining the Welsh Government’s long-term approach to potential shifts in consumer behaviour towards online retailers and the effect on local economies. The Welsh Government should rethink previous policies on revitalising town centres in light of the pandemic.

CHALLENGES NEED LONG-TERM APPROACH

Llyr Gruffydd MS, Chair of the Finance Committee said: “This is the final Draft Budget of the Fifth Senedd. This year the pandemic has delayed UK fiscal events, resulting in delays to publication of the Welsh Government’s Draft Budget. This has reduced our time for scrutiny which is particularly concerning given that COVID-19 will have an impact on public spending for years to come.

“This Draft Budget is very much a draft. A lack of forward-funding figures with only a one- year revenue funding settlement, and the timing of the UK Government’s Budget set later for 3 March has made budget-setting even more challenging for the Welsh Government.

“Much of our work is focused on the COVID-19 pandemic. Whilst welcoming the extra money for health and social services, the Committee is concerned about the long-term impacts on non-COVID care. We also have serious concerns over workforce capacity and mental health.

“Our businesses need support more than ever, with many being forced to close. For them to have a future after this pandemic, we support calls for the simplification and consolidation of the financial assistance schemes available.

“COVID-19 has brought many serious challenges and the financial impact on health, the economy and public services will be felt by society for years to come. While there is a need to respond to the immediate situation we are hopeful that there is an opportunity for longer-term planning to ensure that Wales can recover strongly.”

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