I have just had a message from someone closely involved with the Dolgarrog Aluminium story that the Welsh Assembly Government is dragging its heels over support for the management team bid for the plant and that it looks likely to close.I hope my source is wrong but unless two mystery buyers come in, then one of the largest private sector employer in the Conwy Valley will close.
Not only that, whilst WIDAB - the Assembly's grant decision body - have approved financial support in principle, Finance Wales have refused to support any such plan. Indeed, I was told that they did this in less than 24 hours without visiting the plant or having any discussion with the management.
If this is the case, then what on earth is going on?
How can a business plan backed by one part of the Assembly be turned down by another?
Heads should roll for this if the plant closes because something could and should have been done to keep it open, as I have discussed previously.
Heads should roll for this if the plant closes because something could and should have been done to keep it open, as I have discussed previously.
It is an enormous risk for the Assembly to wait on two potential buyers from overseas when there is a perfectly legitimate bid backed by the management, the workers and, more importantly, a list of orders from key customers in the aerospace industry.
Do not be surprised that the only legitimate bidders will pull out by the end of the day because of governemnt inaction.
I would have thought that lessons had been learnt from the Burberry experience but clearly not. To lose such highly paid jobs within rural Wales when there is a viable business plan on the table would be a disaster for the Conwy Valley and for Dolgarrog, and would be on the same scale as any of the steel closures in the South Wales Valleys.
It would also undermine any credibility that this new coalition has in terms of supporting indigenous businesses and safeguarding well paid skilled jobs, especially within our rural communities.
Comments
No bid is legitimate unless the sums all add up. The management-backed bid depends on money from the Assembly. How much of that money can the Assembly spare? Would a Tory back cutting funding for schools, the NHS, or other economic development plans in order to fund this bid?
dragging heals, not learning lessons this is Classic Welsh Labour and Civil Servant reluctance to do anything out of their comfort zones, point is what can we do apart from keep exposing their lack of urgency on these matters?
I'm as anxious as Dylan to see Dolgarrog remain open. The point that I was making is that in his eagerness to slate the One Wales government, Dylan made a few assertions that are of questionable accuracy.
The management-backed bid needs Assembly money. But, especially in light of the poor deal from theCSR which Dylan has written about, money is in short supply. Nobody can magic the cash out of thin air? So Anon, what's your solution?
The prof has forgotten more about the welsh economy than you will ever learn. Your party are a bunch of hypocrites who criticised labour for eight years about their economic policies. Yet at the first opportunity to back welsh manufacturing firms, they bottle it and then have a little squirt like you to give the party line.
There is plenty of money available to support businesses in Wales - just look at the RSA budget. Your lot have just been taken in by the risk averse civil service who won't back anything welsh but are happy to give millions to any foreign firm.
The 170 workers who will lose their jobs and will be wondering how to pay their bills next week deserve far better than excuses from the so-called party of wales.
You and your lot should be thoroughly ashamed at your cowardly actions.
Rhydian is totally incorrect about being economic with the truth. The information I have received is directly from those close to the management team, who probably know a little bit more about this case than him and have been totally frustrated with the lack of urgency by the Assembly over this matter.
Moreover, as a founding director of Finance Wales, I also know exactly what the organisation was set up for. It has clearly changed its mission during the last couple of years and if it now chooses not to support welsh businesses despite having funds available, then that is a decision it will have to justify to the Assembly, its sole shareholder, in the long term.
As for WIDAB, Dafydd Wigley, quite rightly, criticised the Welsh Assembly Government in 2000 when it initially failed to give BAE regional selective assistance for the Broughton plant.
In this respect, I am merely following his lead in pointing out the discrepancies in the grant system in Wales, especially if WIDAB, as it has been suggested to me, approved the management bid for RSA support for Dolgarrog, but a bid for funding, based on the same business plan, was subsequently turned down by Finance Wales.
Finally, I don't think desperation has anything to do with my comment as I have been totally consistent during the years about the faults within the economic support system in Wales, as regular readers of this blog will know.
I sincerely hope that buyers are found for the business. However, given the rumours about who the possible buyers may well be, it is by no means a certain future.
On the other hand, if there has been a failure in supporting the rescue of a viable business through a local management team which is supported by the unions, key customers and the staff then at least the Assembly Government should have the common decency to let the 170 workers at Dolgarrog know why they have reached such a decision, especially when there are millions of pounds available within its budget for business support (even after the CSR settlement).