Latest news with #Brocklesby
Yahoo
13 hours ago
- Business
- Yahoo
Welsh councils face £5.25m power station pay-out
There are serious questions to answer over why a legal row over a defunct power station has left a group of ten Welsh councils footing a bill in the millions, a senior Tory has said. Earlier this year a High Court judge declared that a contract to demolish Aberthaw Power Station for the Cardiff Capital Region was awarded unlawfully. At a Senedd committee the chair of the consortium, Mary Ann Brocklesby, said the region will pay a settlement of £5.25m to a rival company that lost out. Andrew RT Davies, Conservative MS for South Wales East, said it was "frankly unacceptable". Brocklesby told the Senedd's economy committee, which Davies chairs, that an independent review handled by accountancy firm Deloitte is underway. The region's director Kellie Beirne assured Members of the Senedd (MSs) the region will take steps to ensure it does not happen again. Ms Beirne admitted it had caused "a lot of pain and anguish for many, many people". Under the region's plans the site, which hosted a coal fired power station until 2019, will be used to support the production of renewable and green energy projects. The region says the legal settlement has been funded from "commercial returns on interests" generated, and that no further public money is required for it. Is this old power station about to turn green? Power station set to close, risking 170 jobs End of Welsh coal era at Aberthaw A company set up by the city region - a consortium of a number of local authorities including Cardiff and the Vale of Glamorgan - awarded a contract for the demolition of the power station last year to a company called Erith in 2023. Cardiff council - which had run the procurement - admitted liability in court after lawyers for a rival company, Brown and Mason Limited, challenged the contract. According to a court document, High Court judge Justice Jefford declared that the procurement "was unlawful" and that the claimant would have otherwise been awarded the contract. Brocklesby, who is also Labour leader of Monmouthshire council, told the economy committee "the amount of the settlement... was £5.25m". "I'm not able to say much more at this point, because we are undergoing an independent review, which we commissioned as political leaders," she said. Ms Beirne added that the region was "taking this extremely seriously - we recognise the gravity of it." She indicated the body was in touch with Audit Wales "throughout this process". The director added: "When that review concludes and we have findings, we'll be able to be much more open about what happened and take steps to ensure that this can't happen again." Brocklesby added that the figure was "final", but said there were "legal processes that we need to go through". Andrew RT Davies, who chairs the committee, questioned the pair on how the region was securing "hundreds of millions" needed to seek the project through. He asked how the body was "giving confidence to the private sector, and the independent sector more generally, to come in as partners in light of what's gone on". Brocklesby said the future of Aberthaw "does actually look very bright, and we're not feeling any effects from the impact of this highly regrettable procurement issue". Challenged on that point by Davies, she added: "I wouldn't be so foolish as to say that there is no risk to reputation or to Aberthaw. What I am saying is that we are mitigating it in various ways". Bernie said that "maybe bigger figures" than "hundreds of millions" could be needed for Aberthaw. £38.6m is being invested on acquiring, clear and remediating the site. Davies said: "Taxpayers will pick up this £5.25million bill thanks to the Labour-run Cardiff Capital Region's bungled handling of this contract. "This is frankly unacceptable, as this cash should be going towards improving our public services. "CCR's Labour leadership have serious questions to answer." A statement from the region said: "A legal challenge was made following a procurement exercise for the demolition contract relating to the Aberthaw Power Station, which was awarded in July 2023. "A mediated settlement with the claimant has now been reached and an independent review of the procurement arrangements is underway. "The settlement has been fully funded from commercial returns on interest generated on balances held, with no impact on core programme budgets or any requirement for further public funding. "In line with Cardiff Capital Region's commitment to transparency and accountability, the independent review will examine the procurement process in full in order to ensure that all issues are identified and acted upon. "While the independent review is being conducted and until that process is concluded, we are unable to comment further. "This matter does not affect the wider work of Cardiff Capital Region or the progress of the Aberthaw project. The redevelopment of the site into a flagship green energy park is progressing at pace."
Wales Online
19 hours ago
- Business
- Wales Online
Cardiff Capital Region hit with £5.25m Aberthaw power station settlement
Cardiff Capital Region hit with £5.25m Aberthaw power station settlement An independent investigation has been launched how the Cardiff Capital Region handed the process The Aberthaw Power Station pictured before its decommissioning Taxpayers will have to pay £5.25m bill after a regional body responsible for handling the Cardiff City Deal bungled the awarding of a demolition contract for Aberthaw power station. The Cardiff Capital Region, a public body which was set up to invest more than £500m in the south Wales as part of the 2016 City Deal, was taken to court over how it awarded a demolition contract for Aberthaw power station, the disused power station it controversially bought from energy giant RWE. The body, which represents 10 councils, lost a high-court legal challenge brought by a losing bidder, Brown and Mason Group, which concluded in February. Welsh Government has to plunder reserves to fill national insurance blackhole READ MORE: The former coal-powered station was acquired for £8m by the city region in 2022, with contractors Erith beginning demolition work last year. For our free daily briefing on the biggest issues facing the nation, sign up to the Wales Matters newsletter here The region's chair Mary Ann Brocklesby gave an update to the Senedd, telling the economy committee that a settlement of £5.25m had been agreed. Brown and Mason had previously said they were seeking £10m. It has yet to be clarified if the £5.25m includes legal costs. "I'm not able to say much more at this point because we are undergoing an independent review which we commissioned as political leaders to set in train precisely at the point that we knew we were going through a legal process," she said. Article continues below Cllr Brocklesby said: "We had to wait until that legal process was over before that independent review could start. "We are awaiting the findings which – subject to legal caveats – we will be making public." Kellie Beirne, chief executive of the south-east Wales corporate joint committee and Cardiff Capital Region, said: "We're taking this extremely seriously, we recognise the gravity of it and again yes, [it's] something that we don't come and report. "Apologies again for the short notice but we had clearance, we briefed our internal stakeholders and we felt it important to be as transparent as we possibly could by conveying that this morning at this committee." She said a full independent review has been ordered. "When that review concludes and we have findings, we'll be able to be much more open about what happened and take steps to ensure that this can't happen again," she said. Asked whether the court case has impinged on work at the 500-acre site, Cllr Brocklesby insisted: "No, it continues at pace." Conservative MS Andrew RT Davies said: "When you came before this committee in September 2023, Kellie you said that £40m is but a drop in the ocean. "I think the words you used were hundreds of millions of pounds will be required. Obviously, this court case has not helped instil confidence in the private sector in coming on board as partners... so, how are you progressing in that goal?" Cllr Brocklesby replied: "Let's look at the wider ecosystem of CCR: one of the absolute strengths of it is that we have people across the region who are highly valued within their own sectors... who are highly respected not just in Wales but globally." "In terms of the future of Aberthaw, it does actually look very bright and we're not feeling any effects from the impacts of this highly regrettable procurement issue." Article continues below Ms Beirne said Cardiff Capital Region does not have deep enough pockets for what Aberthawr requires following the initial demolition and remediation phase.
Wales Online
a day ago
- Business
- Wales Online
Regional body's bungled handling of contract will cost the taxpayer £5.25m
Regional body's bungled handling of contract will cost the taxpayer £5.25m An independent investigation has been launched how the Cardiff Capital Region handed the process Aberthaw Power Station (Image: John Myers ) Taxpayers will have to pay £5.25m bill after a regional body responsible for handling the Cardiff City Deal bungled the awarding of a demolition contract for Aberthaw power station. The Cardiff Capital Region, a public body which was set up to invest more than £500m in the south Wales as part of the 2016 City Deal, was taken to court over how it awarded a demolition contract for Aberthaw power station, the disused power station it controversially bought from energy giant RWE. The body, which represents 10 councils, lost a high-court legal challenge brought by a losing bidder, Brown and Mason Group, which concluded in February. The former coal-powered station was acquired for £8m by the city region in 2022, with contractors Erith beginning demolition work last year. For our free daily briefing on the biggest issues facing the nation, sign up to the Wales Matters newsletter here Today, the region's chair Mary Ann Brocklesby gave an update to the Senedd, telling the economy committee that a settlement of £5.25m had been agreed. Brown and Mason had previously said they were seeking £10m. "I'm not able to say much more at this point because we are undergoing an independent review which we commissioned as political leaders to set in train precisely at the point that we knew we were going through a legal process," she said. Article continues below Cllr Brocklesby said: "We had to wait until that legal process was over before that independent review could start. "We are awaiting the findings which – subject to legal caveats – we will be making public." Kellie Beirne, chief executive of the south-east Wales c orporate joint committee and Cardiff Capital Region, said: "We're taking this extremely seriously, we recognise the gravity of it and again yes, [it's] something that we don't come and report. "Apologies again for the short notice but we had clearance, we briefed our internal stakeholders and we felt it important to be as transparent as we possibly could by conveying that this morning at this committee." She said a full independent review has been ordered. "When that review concludes and we have findings, we'll be able to be much more open about what happened and take steps to ensure that this can't happen again," she said. Asked whether the court case has impinged on work at the 500-acre site, Cllr Brocklesby insisted: "No, it continues at pace." Conservative MS Andrew RT Davies said: "When you came before this committee in September 2023, Kellie you said that £40m is but a drop in the ocean. "I think the words you used were hundreds of millions of pounds will be required. Obviously, this court case has not helped instil confidence in the private sector in coming on board as partners… so, how are you progressing in that goal?" Cllr Brocklesby replied: "Let's look at the wider ecosystem of CCR: one of the absolute strengths of it is that we have people across the region who are highly valued within their own sectors… who are highly respected not just in Wales but globally." "In terms of the future of Aberthaw, it does actually look very bright and we're not feeling any effects from the impacts of this highly regrettable procurement issue." Article continues below Ms Beirne said Cardiff Capital Region does not have deep enough pockets for what Aberthawr requires following the initial demolition and remediation phase.
Wales Online
24-05-2025
- Business
- Wales Online
Campaign for Severn tidal lagoon continues despite losing UK Government funding
Campaign for Severn tidal lagoon continues despite losing UK Government funding A report in March called for the UK and Welsh Governments to support the new scheme The M48 Severn Bridge (Image: Local Democracy Reporting Service ) A campaign in support of a tidal lagoon to generate energy from the Severn Estuary will continue despite the organisation behind it losing its UK Government funding. The Severn Estuary Commission published a document in March advocating for a tidal lagoon. The report urged both the UK and Welsh governments to back the project, which would be smaller than a previously rejected barrage spanning the Severn. The Cardiff Capital Region, representing the 10 local authorities in South East Wales, and the West of England Combined Authority will now collaborate on the proposal. The commission was previously hosted by the Western Gateway Partnership, which united 28 councils from Pembrokeshire to Swindon and Salisbury with businesses to focus on economic development. However, this partnership is set to formally disband in June. Initially formed as a collaboration between Cardiff, Newport and Bristol councils in 2016, the partnership expanded and received UK Government support from 2019. However, the Labour government announced in its October budget that it would withdraw core funding for what were known as pan regional partnerships. Instead, it wants the new system of elected mayors in England to take up their work. Article continues below Monmouthshire County Council leader Mary Ann Brocklesby stated that while the council wasn't directly involved in the partnership, it was represented through the Cardiff Capital Region, which she chairs. She informed councillors that collaboration with English councils on economic development, including initiatives proposed by the Severn Estuary Commission, will persist. She remarked: "While the decision can be seen as disappointing it has not impacted the commitment of local authorities or other bodies on both sides of the border to continue to work together on projects that jointly benefit all our communities and businesses. "Particularly, the Severn Estuary Commission's suggestion, under the auspices of the Western Gateway Partnership, to capitalise on the tidal energy of the Severn, will be pursued in partnership by the Cardiff Capital Region and the West of England Combined Authority." She mentioned that a memorandum of understanding is being prepared for a formal partnership between the West of England Combined Authority and the Cardiff Capital Region, with shared goals of enhancing transport connections and seeking avenues for "green, sustainable growth." Labour Councillor Brocklesby revealed she has reached out to Helen Godwin, who was recently elected Labour's West of England mayor, and looks forward to meeting her. She also has engagements lined up with Jo Stevens, the UK Government's Welsh Secretary, as well as discussions with the Welsh Government and plans to meet Monmouth Labour MP Catherine Fookes. Article continues below She highlighted that the council engages with both governments to ensure Monmouthshire reaps the benefits from their respective "growth agendas", while she has also presented evidence before a Westminster select committee. Conservative councillor for Llanfoist and Govilon, Tomos Davies, questioning the UK Government's move to cut funding for a key partnership, inquired whether Cllr Brocklesby would "use her position to hold her Labour UK Government colleagues to account and ensure its devolution and growth agenda benefits the whole of the UK and doesn't abruptly stop at the Severn Bridge." He further pressed Cllr Brocklesby on how she intended to champion "further and deeper cross-border economic partnerships."
South Wales Argus
23-05-2025
- Business
- South Wales Argus
Tidal lagoon support from Cardiff Capital Region and WECA
A document calling for a tidal lagoon was published in March by the Severn Estuary Commission in a report that called for the UK and Welsh governments to support the project which would be smaller than a barrage spanning the Severn which it rejected. The Cardiff Capital Region, that represents the 10 local authorities in South East Wales, and the West of England Combined Authority will now work together on the proposal. The commission had been hosted by the Western Gateway Partnership, that brought together 28 councils from Pembrokeshire to Swindon and Salisbury with businesses, to work together on economic development but is formally disbanding in June. The partnership was first formed as a collaboration between Cardiff, Newport and Bristol councils in 2016 before expanding and receiving UK Government support from 2019. But the Labour government announced in its October budget it would withdraw core funding for what were known as pan regional partnerships and wanted the new system of elected mayors in England to take up their work instead. Monmouthshire County Council leader Mary Ann Brocklesby said the council wasn't directly involved in the partnership but represented through the Cardiff Capital Region that she chairs. She told councillors work with English councils on economic development, including the proposals put forward by the Severn Estuary Commission, will continue. She said: 'While the decision can be seen as disappointing it has not impacted the commitment of local authorities or other bodies on both sides of the border to continue to work together on projects that jointly benefit all our communities and businesses. 'Notably the recommendation of the Severn Estuary Commission, hosted by the Western Gateway Partnership, to harness the tidal power of the Severn will be taken forward jointly by the Cardiff Capital Region and the West of England Combined Authority.' She said a memorandum of understanding for a formal partnership between the West of England Combined Authority and the Cardiff Capital Region is being drafted and they share interests of improving transport links and exploring opportunities of 'green, sustainable growth.' Labour's Cllr Brocklesby said she has already written to Helen Godwin, who was elected as Labour's West of England mayor earlier this month, and is due to meet with her and also has a meeting planned with the UK Government's Welsh Secretary, Jo Stevens, as well as with the Welsh Government and meets with Monmouth Labour MP Catherine Fookes. She said the council works with both governments so Monmouthshire can benefit from their 'growth agendas' while she has also given evidence to a Westminster select committee. Conservative councillor for Llanfoist and Govilon Tomos Davies, who had asked for a statement on the UK Government's decision to withdraw the partnership's funding, asked if Cllr Brocklesby would 'use her position to hold her Labour UK Government colleagues to account and ensure its devolution and growth agenda benefits the whole of the UK and doesn't abruptly stop at the Severn Bridge.' He also wanted to know how Cllr Brocklesby would advocate for 'further and deeper cross-border economic partnerships.'
