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‘Fundamental flaws’ cost Welsh taxpayers

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Welsh TaxpayersFUNDAMENTAL 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.

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Moving the Welsh Economy Forward: “A Team Wales recovery, built by all of us” – Economy Minister

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THE WELSH GOVERNMENT will pursue a progressive economic policy that focuses on better jobs, narrowing the skills divide and tackling poverty, Economy Minister, Vaughan Gething, will say today.

At a hybrid Economic Summit, the Minister has invited businesses, trades unions and local government leaders to discuss how Wales can create a stronger, fairer, greener economic future.

In setting out his vision to move the Welsh economy forward, the Minister will commit to extending a Team Wales model to offer ‘as much certainty as possible’ for businesses facing a volatile recovery.  

He will promise a new era of partnership to strengthen regional economic development, a delivery plan to back the everyday economy and wide ranging support for workers in a fast changing economy.

The Welsh Government will work with unions and business to develop it’s ‘something for something’ approach so that Welsh public money is wedded to action on fair work, decarbonisation and skills.

The Minister will also start a conversation about the long term demographic challenge facing the Welsh economy. The proportion of the population aged 16 to 64 years old in Wales has been decreasing year-on-year since mid-2008 – and could be just 58% of the population by 2043.

In response, Welsh Ministers’ approach will be geared towards creating an economy where more young people feel confident about planning their future in Wales thus supporting job creation and more dynamic local economies.

The Welsh Government will set out a vision of what makes Wales an attractive place to live, study, work and invest – including the quality of life in an inclusive, open and green nation.

The Welsh Government will also call on the Chancellor to demonstrate the UK Government’s ambition for Wales by honouring promises made on EU successor funds, backing major renewables such as tidal energy and investing in Welsh research and development.

Later, the Minister will visit a family-run business that’s received Welsh Government support to grow, before delivering a speech to a predominantly virtual audience of business, trades unions and local government leaders and other partners at Transport for Wales’ new HQ in Pontypridd.

Speaking ahead of the summit, Economy Minister, Vaughan Gething said: “The Welsh Government is taking bold action to build a stronger, fairer, greener Welsh economy. It has taken a Team Wales effort to keep Wales safe and we will deliver a Team Wales Recovery, built by all of us. 

“A strong Welsh recovery will be based on the principles of fair work and sustainability as we invest in the industries and services of the future.

“As we face the headwinds of Brexit, I am determined that our credible plans will offer as much certainty as possible to help businesses plan ahead. 

“A new era of partnership for stronger regions, a young person’s guarantee, a plan to back our everyday economy and collaboration with world leading, advanced manufacturing. This is the cause for optimism for the future we are building in Wales.

“My ambition is to make Wales a place where more young people feel confident in planning their future here. You don’t have to get out to get on, make your future here in Wales.”

The Welsh Government’s approach includes:

  • Investing in our people – through the Young Person’s Guarantee and a strong employability and skills offer, including Apprenticeships;
  • Supporting those furthest away from the Labour market to find work. The upcoming Employability Strategy will highlight the support available for individuals, particularly those most impacted by the pandemic and furthest away from the labour market;
  • Accelerating the adaptation to new skills which are required for skilled, secure jobs, not least in the area of low carbon. The current recruitment challenge has also shown there is a need for some quick action on skills in certain sectors;
  • Exploring how we retain our graduates and talent in Wales by building strong linkages with universities, and between universities and businesses;
  • Support start-ups, including graduate start-ups, with possible incentives in some areas;
  • Ensure we have firms grounded in Wales who can provide future opportunities;
  • Wales can also benefit from the opportunities for far greater remote working and flexible commuting options.
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Welsh Conservatives pay tribute to murdered MP, Sir David Amess

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THE WELSH CONSERVATIVES have released a statement following the murder of serving Member of Parliament, Sir David Amess on Friday (Oct 15).

Paul Davies MS said: “We are horrified by the death of Sir David Amess.

“Sir David was a much-respected and well-liked MP who cared deeply about serving his constituents, something he had done with distinction for nearly four decades.

“One of the longest-serving Members of Parliament, his contribution to public life was vast and he will be sorely missed by those in Southend and in the Conservative Party.

Paul Davies MS said: “We are horrified by the death of Sir David Amess (Pictured)

“Sadly, this shocking and abhorrent incident once again highlights the dangers that public servants can face, all of whom should be able to conduct such duties helping those they represent in safety.

“Our thoughts are with his family and friends. May he rest in peace.”

Stephen Crabb MP took to social media to say: “Love and prayers for the family of Sir David Amess MP this afternoon. Just devastating. Funny, wise, compassionate, and such a good friend to so many of us.

“It was a delight to interview Sir David Amess back in May for a virtual book launch for his autobiography. So much warmth, humanity and love of the job he did so assiduously for almost 40 years. Parliament has lost one of its finest today.”

The MP for Southend West was stabbed at Belfairs Methodist Church in Leigh-on-Sea, in Essex. He was there for one of his regular Friday meetings with his constituents.

Just 15 minutes before the attack, the 69-year-old was standing on the church steps, chatting and laughing with locals.

At around 12:05 PM, Sir David walked into the church alongside two female members of his staff to meet some more constituents.

Local councillor John Lamb said that it was then that the attacker emerged from a small group of waiting constituents and attacked Sir David, stabbing him several times.

“I’m told that when he went in for his surgery there were people waiting to see him, and one of them literally got a knife out and just began stabbing him,” Mr Lamb said.

Police arrived at the scene in Eastwood Road North within minutes where they found the MP with multiple injuries and arrested a man.

“We knew it must be very serious because the paramedics had been working on Sir David for over two and a half hours and they hadn’t got him on the way to hospital,” Mr Lamb told the PA news agency.

At 14:13 an air ambulance arrived at a nearby sports ground to move him to hospital. However, members of his team began to fear the worst as paramedics remained at the scene.

Shortly before 15:00, Essex Police said Sir David had died.

At a press conference later Chief Constable BJ Harrington said officers and paramedics had worked extremely hard to save the MP.

Questions are now being raised about security arrangements for politicians working in their constituencies.

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Ambitious Attitude at Choose2Reuse

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LEE WATERS MS has spoken of how impressed he is with Llanelli based Choose2Reuse CIC who are doing their bit for the environment, community and for the local economy.

Llanelli’s Member of the Senedd, who is also Deputy Minister for Climate Change, recently revisited the social enterprise to meet with Tanya Igic and Tony Holmes co-founders of Choose2Reuse at their units in Trostre Industrial Park.

The local MS was keen to learn more about how Choose2Reuse operate and how its work helps the local environment. Mr Waters discussed future plans the founders have for Choose2Reuse.

Although the organisation already have number of clothing banks, they are hoping to place many more of the same with local shops and charitable organisations. They also have a smaller clothing bins/drums to go inside shop premises.

Lee Waters MS commented: “Choose2Reuse are already exporting 100-150 tonnes of recycled goods abroad each month and prevent them from ending up in a landfill site. It is great to know unused goods from our local community are being recycled and helping local and people all across the world”.

Tanya Igic said: “It was great that Lee could come to our Trostre site and see the work we are doing. We have had several constructive conversations and I am excited about what the future holds. We have ambition to develop our projects and I am glad our local MS can see that.”

Waters MS went on the comment: “We all have to do our bit to recycle the products we have. We must learn to either re-use items ourselves or give them to people who will. The Welsh Government has ambitious climate change targets, including reaching net zero Carbon emissions by 2050. Organizations such as Choose2Reuse will greatly help get closer to achieving our aims. “

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