FUNDAMENTAL flaws in the way the Regeneration Investment Fund for Wales (RIFW) was managed, overseen, and advised, cost Welsh taxpayers tens of millions of pounds, according to a National Assembly for Wales committee.
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 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 fulfill 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.
Members also agreed that, in light of South Wales Land Developments Ltd onward sales, the Welsh Government’s contention that it is not possible to demonstrate that the sale was under value, is unconvincing, pointing to the following as evidence (overage is an agreed sum of money to claw-back in addition to the sale price if the buyer meets certain conditions):
- The Rhoose site was purchased from RIFW for less than £3 m, without overage, and sold on by SWLD for nearly £10.5 m;
- The Abergele site was purchased from RIFW for £0.1 m, without overage, and sold for £1.9m.
- Lisvane, near Cardiff, was / is the ‘jewel in the crown’ and should have been disposed of via a properly marketed open and competitive sale process. The Committee believed it incomprehensible that this was sold to SWLD at an agricultural land value of £1.835 million (even with overage) when its potential open market value for residential housing is at least £39 million.
“The Public Accounts Committee’s inquiry into the Regeneration Investment Fund for Wales (RIFW) has been one of the most significant and deeply troubling inquiries undertaken by the Committee,” said Darren Millar AM, Chair of the Public Accounts Committee.
“The fact that one of the largest sales of publicly owned land in Wales should have generated tens of millions of pounds more for the taxpayer than it did, is inexcusable.
“While the Committee found the concept of RIFW to be innovative, we concluded that it was poorly executed due to fundamental flaws in Welsh Government oversight and governance arrangements, and that the Fund was poorly served from those appointed and trusted to provide the Board with professional advice and expertise.
“It is regrettable that many of the flaws we identified are consistent with issues this Committee has considered during previous inquiries.”
The Committee makes 18 recommendations in its report including:
- The Welsh Government must strengthen monitoring and oversight arrangements of its arms-length bodies and, in particular, ensure that any concerns are swiftly identified and escalated internally;
- That measures are put in place to ensure that Board Members have the appropriate expertise and capacity to fulfil their duties and receive adequate and appropriate induction training, and;
- The Welsh Government should ensure that robust overage arrangements are considered whenever it disposes of public assets that possess future development potential.
The Regeneration Investment Fund for Wales (RIFW) was established in December 2009 in response to the constrained financial climate which restricted access to capital for investment in regeneration in Wales. RIFW was created as a Limited Liability Partnership (LLP) wholly-owned by the Welsh Government. RIFW’s purpose was to invest £55 m initially in urban regeneration schemes across Wales, comprising £25 million of European Regional Development Fund (ERDF) and £30 m of Welsh Government funding. The Welsh Government provided RIFW with £9.4 m cash, and a portfolio of 18 land and property assets valued in existing use at £20.5 m , based on a valuation commissioned by the Welsh Government.
Next stage of the rollout by Open Reach
Local member of the Welsh Parliament Lee Waters has welcomed news that Open Reach is bringing super-fast fiber broadband to new parts of the Llanelli constituency.
The next stage of the rollout by Open Reach will bring full fibre to the premises broadband to thousands of homes over the course of the next few years. Provision of super-fast broadband has been a priority of Welsh Government, and the new roll out will increase provision across Wales and Carmarthenshire. The provision of broadband is the responsibility of the Westminster Government, but the Welsh Labour Government have stepped in to fill gaps in the network in Wales that commercial providers have left behind.
Lee Waters MS said:
“I’m really pleased that super-fast fibre broadband is being rolled out to more homes in the area.
“Burry Port, Llanedi, Cross Hands, Hendy, Llannon, Pembrey and Tumble will all start having full fibre installed later this year. This stage of the roll-out is being fully funded by OpenReach.
“This is on top of the investment made by the Welsh Government to get 95% of households connected to fast broadband.
AM seeks assurances for Llanelli car industry
Mid and West AM Helen Mary Jones has asked for assurances in the Senedd from the Welsh Government about the future of automotive industry in Llanelli.
Car production in the UK fell to its lowest level in almost a decade last week. It was revealed output fell 14 per cent to 1.3 million, according to figures from the Society of Motor Manufacturers and Traders.
Production shutdowns in anticipation of Brexit is one of the factors impacting on the decrease in output.
Shadow Minister for Economy, Tackling poverty and Transport for Plaid Cymru, Helen Mary Jones AM said:
“It is just over a year since the Schaeffler automotive factory in Llanelli announced that it would be closing with the loss of 220 jobs. These were good-quality jobs, jobs that could sustain families productively. There are real concerns in the sector about the access to markets. I asked the Brexit Minister about further discussions the Welsh Government could have with the UK Government to try and ensure that we do have a voice around the table when negotiations are being made.
“This is especially important with regard to both the new trade deal that we’ll hopefully have with the European Union and any other free trade deals, to ensure that there are no unintended consequences. For example, allowing access to markets for vehicles and vehicle parts from outside Wales that might have a negative effect on the supply chain that companies have put a lot of effort into building up over many years.”
The automotive sector in Wales is comprised of about 150 firms, mainly component manufacturers, employing over 18,000 workers adding £3 billion to the Welsh economy.
Brexit Minister Jeremy Miles AM said:
“We are in regular dialogue with companies in the sector, with the Welsh Automotive Forum, and with national sector bodies regarding the potential impact of Brexit. Having an ongoing and frictionless trading relationship with the EU is very important for the automotive sector, and indeed for other sectors.”
Opinon: Matthew Paul
Well, you did it, you bastards. You won. At 11pm today, the UK will have left the European Union.
This hasn’t occasioned the cataclysm that –until 13 th December– the turbulent Brexit process might have led us to expect. The weeks since Boris Johnson’s thumping majority made Brexit an inevitability have been an anticlimax on the scale of The Godfather Part III.
Three and a half years of high political drama have ended in six weeks of Brexit bathos.
On Wednesday, our representatives in the European Parliament packed up their desks, emptied their lockers and –heavy of heart and misty of eye– signed off their final, Brobdingnagian claims for expenses. Pro-EU MEPs linked arms, waved EU flags and sang a maudlin rendition of Auld Lang Syne. In return, EU president Ursula von der Leyen told the UK she loved us and always will.
The love-in lasted about three minutes, until Nigel Farage, flanked by his gang of gruesomes, stood up to crow. In the graceless and disruptive manner he has diligently maintained over twenty years in the Parliament, Nigel rubbed fellow MEPs’ noses in the Brexit Party’s mess until the mike was switched off. Then his cohort started waving little Union flags so
enthusiastically you might have assumed Prince Harry had come back. Divorced.
The European Union (Withdrawal Agreement) Act 2020 passed through Parliament without a murmur of disapproval, a court case, any perversions of Parliamentary procedure or even a self-indulgent ORRRRDDEEEEEERRRRR from the excellent and austere new Speaker,
Lindsay Hoyle. At sundown, EU flags will be taken down from public buildings around the UK and furled forever, in a melancholy echo of the last time Britain’s influence in the world seriously declined. All except in that bastion of Brexit resistance, the Scottish Parliament, where Nicola Sturgeon –under what legal authority it is unclear– has decreed that the
twelve stars will stay put. Mark Francois no doubt imagines himself jogging up to Edinburgh with a crack TA troop to tear it down from Holyrood in a reverse Iwo Jima.
South of Hadrian’s Wall, the mood amongst Remainers is one of defeated realism. Re- joining on the terms available to accession countries is not a serious option; the EU has gone and it ain’t coming back. Even Plaid Cymru –after getting utterly pasted in December’s election, largely because their ur-Remainy stance went down like a cup of cold sick in the valleys– aren’t clinging to dreams of readmission to the continental club.
Now, having got your damned Brexit, you now have to work out what to do with the thing.
What was the point of leaving the EU? There are some fairly compelling reasons to be out of Europe if you incline to the Corbynite hard left, because the Commission always had unhelpful things to say about confiscatory taxation and state aid for lame duck nationalised industries. Get Brussels out of the way and you are only a few strands of barbed wire and an
empty supermarket away from the usual sort of socialist paradise.
On the right, the intellectual arguments of economically liberal Brexiters have always had force. There can and will be advantages to an economy where barriers to free trade are removed, where business is freer to hire and fire, and where innovation in our tech, pharmaceutical and agri-business sectors is not restrained by regulation which adheres too closely to the precautionary principle. Intellectual arguments are all very well, but the difficulty is that this hasn’t typically been the kind of economy or society around which a political consensus has settled.
Before the General Election, in a political landscape where a powerless Prime Minister was bossed around by a hopelessly divided Parliament, it was hard to expect that much could be achieved by leaving the European Union. Now, we have a PM more powerful than any British politician since Tony Blair in 1997; with just as much of a mandate to change the country.
To benefit economically from Brexit, he will have to be prepared to do things that are very, very unpopular.
Round these parts, things that damage the livelihoods of farming communities are likely to be pretty unpopular. But this week we saw Boris inviting a stampede of half-starved, flystruck Ugandan cows into the UK meat market. “I have just told President Museveni of Uganda” he said –following a conversation quite different from the sort of Ugandan
discussions with which our Prime Minister is usually associated– “that his beef cattle will have an honoured place on the tables of post-Brexit Britain.” What is good news for herdsmen around Kampala won’t be so well-received in Knighton, Keswick or Kirkaldy.
Boris will also have to decide whether we are a country closer to Europe or America. If we choose the latter, and unless the US Democratic Party seriously ups its game, we will be saddled with another four years of having The Donald as our psychopathic cell mate in a prison we built for ourselves. It’s in our interest to keep him happy, but this week’s decision to allow Huawei –the tech equivalent of coronavirus– to supply hardware for Britain’s 5g mobile networks was like carelessly reaching for the remote control in the middle of one of Trump’s favourite TV shows. There are worrying noises coming from the top bunk, as of someone sharpening a shiv to use on us in the first round of post-Brexit trade talks.
So, residents of workless Labour-voting constituencies in South Wales; farmers who didn’t like filling in the subsidy forms; anyone who hates being bossed around by foreigners but doesn’t count Donald Trump amongst their number. You voted for it. You got it. It’s here.
Enjoy it; it’s going to be a wild ride.
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