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Scarlets in the red

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Scarlets accounts reveal debt crisis

Scarlets accounts reveal debt crisis

THE ANNUAL accounts of the regional rugby company show that it incurred a loss of over £1.7m in the year to June 2014 and that Scarlets Regional Ltd now has a cumulative deficit of over £14m.

In addition, the report shows that the Scarlets are barely half-filling their stadium for home games. Parc y Scarlets capacity is 14,870. Average attendance at home games is recorded as being ‘over 7,000 per game’.

In light of the appalling figures, the accounts go on to set out that the region’s continued operation is possible only with the support of the WRU (through payments made to the region) and the continued willingness of shareholders to plough money into it. The region recently made what amounted to a debt for equity swap, by which larger shareholders increased their own holdings at the expense of small shareholders. The rights issue conditions also provided that first preference in any other offering would be given to those larger shareholders and not to supporters. While the Directors’ report is upbeat on the prospect of the future of the Scarlets region, much of that confidence stems from the agreement with the WRU continuing and the Scarlets providing sufficient international players who qualify to receive dual contracts from the Welsh governing body. The accounts reveal that the region spent £200,000 on battles with the WRU over the level of support offered to regional rugby and the dual contract issue.

More worrying, however, is the conclusion reached by the auditor – James & Uzzell Ltd. The auditor’s comments on the accounts point out ‘the existence of a material uncertainty which may cast significant doubt about the company’s ability to continue as a going concern’. The stadium, construction of which was largely bankrolled by the local authority, is given a ‘carrying value’ (the original cost of an asset, less the accumulated amount of any depreciation) of around £9.9m.

A particular thorny matter for the local authority is the fate of the Scarlets involvement in the Eastgate Centre, into which further considerable resources were ploughed by the authority.

Way back in December 2013, The Pembrokeshire Herald published details of the sale of a car park to the Marston’s chain of pubs. Carmarthenshire Council were the freeholders of the property while the Scarlets held a 150 years’ leasehold on it granted by the Council. The car park was originally ear-marked for a retail development, but instead was transferred to Marston’s for £850,000.

Controversy then arose in relation to the division of the sale proceeds between the Council and the Scarlets. The council received £200,000 for its interests and the Scarlets £200,000. Questions have been raised, however, about approximately £280,000 being given to the Scarlets for what are described as ‘allowable expenses’. The ‘expenses’ were allegedly used for paying off a commercial loan the Scarlets had taken out to fit out its shop and restaurant within Carmarthenshire County Council’s Eastgate development and were a further example of the council’s willingness to bankroll the rugby region with public money.

The Scarlets’ accounts disclose that the £280,000 ‘investment’ by the council in the Scarlets’ project at Eastgate has been written off as a complete loss by the region, who have also sublet the shop units. The region’s accounts imply that without the free rent period, which is coming to an end, the lease is not commercially viable.

Eastgate has never been fully let since opening.

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Cllr Kevin Madge elected as new county council Chairman

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THE new chair of Carmarthenshire County Council said he will work tirelessly during his term of office.

Cllr Kevin Madge, member for Garnant, takes the chain of office whilst celebrating 40 years as a councillor.

Taking the chair, Cllr Madge paid tribute to outgoing chairman Cllr Mansel Charles, member for Llanegwad, saying he had fulfilled his duties with passion.

Cllr Madge will chair the council for the next 12 months, with Cllr Ieuan Davies, member for Llanybydder, as his vice chair, and his wife Catrin as his consort.

“I’m very much looking forward to the year ahead, I will do my best for everyone. I will work tirelessly,” he said.

Cllr Madge has chosen the Trussell Trust, which supports a nationwide network of food banks and emergency food provision for people in crisis, as his Chairman’s Charity of the Year.

The Chair is the first citizen of Carmarthenshire County Council, and is elected at the Annual General Meeting.

Duties include chairing full meetings of the council, representing the council at formal and ceremonial occasions, welcoming visitors to the county, and attending and supporting events organised by local people and organisations.

Cllr Madge has been a county councillor since 1996, and a member of Cwmaman Town Council since 1979.

He also serves as chairman of the Royal British Legion Garnant branch, Garnant Family Centre and Cwmaman Meals on Wheels, and is a member of Amman Valley League of Friends.

He represents the county council on the Brecon Beacons National Park Authority, and the Mynydd y Betws Wind Farm Community Fund, and is on the governing body of Ysgol Y Bedol.

A former pupil of Amman Valley School, Cllr Madge has worked in the Amman Valley throughout his life, most recently as agent and researcher to Dr Alan Williams MP until 2001.

A keen football supporter, he has served as chair and president of Cwmaman Football Club and spent 25 years as a Welsh League and Neath and District football referee.

He is married with two children and three grandchildren.

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‘UK Government should work with the Welsh Labour Government on Tata’

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LOCAL Assembly Member Lee Waters and Nia Griffith MP have called on the UK Government to work with the Welsh Labour Government to come up with a deal to protect steel making at Trostre, and across Wales and the UK.

Lee Waters AM met with representatives from Tata Steel on Wednesday to discuss the future for steel making at the plant following the reported collapse of the proposed joint venture with Thyssenkrupp.

During the meeting he stressed the need to protect the entire steel supply chain in Wales, including the high quality jobs at Trostre, and those that depend on its presence in Llanelli.

Lee Waters AM said “It’s clear that the support Welsh Government provided during the crisis of 2016 has been critical in getting extra investment into Port Talbot which will secure the works for years to come. However, Tata is a company run from India, and we simply don’t know what the board will decide about its future strategy. They may well be looking for a new joint venture partner, so we’ll have to vigilant about the implications for our local plants.”

“Tata has said it intends to continue with its existing business plan, and honor commitments made to the Trade Unions, so Nia and I will be keeping a close eye to make sure that happens.”

Welsh Government has been in active discussions with Tata steel following the collapse of the merger with Thyssenkrupp. In a written statement and during questions on Wednesday, the Welsh Government committed to invest in Welsh steel to protect its future and is looking at a range of measures to assist on energy costs, business rates and procurement of steel for public sector contracts.

Lee Waters AM said “The Welsh Government have given significant support to the steel industry here but it can’t do everything, and we now need the UK Government to work with them to ensure a future for skilled work in the steel industry in Llanelli and elsewhere in Wales.”

Nia Griffith AM said ““This latest news from Tata means yet more uncertainty for steelworkers. Their announcement about keeping Port Talbot is a start, but now we need real commitment from Tata on Trostre.

“We also need close cooperation from the company with the Trade Unions. Lee Waters AM and I will be urging the UK Government to follow Welsh Government in doing everything possible to secure the future of our steel industry.”

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MP and AM call for Trostre certainty after merger fails

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LOCAL ASSEMBLY MEMBER Lee Waters and Nia Griffith MP have called on the UK Government to work with the Welsh Labour Government to come up with a deal to protect steel making at Trostre, and across Wales and the UK.

Lee Waters AM met with representatives from Tata Steel on Wednesday to discuss the future for steel making at the plant following the reported collapse of the proposed joint venture with Thyssenkrupp.

During the meeting he stressed the need to protect the entire steel supply chain in Wales, including the high quality jobs at Trostre, and those that depend on its presence in Llanelli.

Lee Waters AM said “It’s clear that the support Welsh Government provided during the crisis of 2016 has been critical in getting extra investment into Port Talbot which will secure the works for years to come. However, Tata is a company run from India, and we simply don’t know what the board will decide about its future strategy. They may well be looking for a new joint venture partner, so we’ll have to vigilant about the implications for our local plants.”

“Tata has said it intends to continue with its existing business plan, and honor commitments made to the Trade Unions, so Nia and I will be keeping a close eye to make sure that happens.”

Welsh Government has been in active discussions with Tata steel following the collapse of the merger with Thyssenkrupp. In a written statement and during questions on Wednesday, the Welsh Government committed to invest in Welsh steel to protect its future and is looking at a range of measures to assist on energy costs, business rates and procurement of steel for public sector contracts.

Lee Waters AM said “The Welsh Government have given significant support to the steel industry here but it can’t do everything, and we now need the UK Government to work with them to ensure a future for skilled work in the steel industry in Llanelli and elsewhere in Wales.”

Nia Griffith AM said “This latest news from Tata means yet more uncertainty for steelworkers. Their announcement about keeping Port Talbot is a start, but now we need real commitment from Tata on Trostre.

“We also need close cooperation from the company with the Trade Unions. Lee Waters AM and I will be urging the UK Government to follow Welsh Government in doing everything possible to secure the future of our steel industry.”

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