Meetings

NDM6006 Darren Millar (Clwyd West)

The National Assembly for Wales:

Notes the Report of the Public Accounts Committee - Regeneration Investment Fund for Wales, which was laid in the Table Office on 26 January 2016.

Note: The Welsh Government's response to the report was laid in the Table Office on 8 March 2016.

Supporting Documents:

Public Accounts Committee’s report
Welsh Government’s Response

The item started at 16.02

NDM6006 Darren Millar (Clwyd West)

The National Assembly for Wales:

Notes the Report of the Public Accounts Committee - Regeneration Investment Fund for Wales, which was laid in the Table Office on 26 January 2016.

Note: The Welsh Government's response to the report was laid in the Table Office on 8 March 2016.

The motion was agreed in accordance with Standing Order 12.36.

PAC(4)-10-16 Paper 1 – Letter from the Minister for Communities and Tackling Poverty

PAC(4)-10-16 Paper 2 – Welsh Government’s response

PAC(4)-10-16 Paper 3 – Letter from the Auditor General for Wales

3.1 Jocelyn Davies excused herself from the meeting whist this issue was considered.

3.2 Members noted and discussed the response from the Welsh Government and agreed that the Chair should reply to the Welsh Government seeking more specific details on timescales and intended completion dates for implementing actions on Recommendations 2, 6, 17 and 18.

PAC(4)-02-16 Paper 1

3.1 The Members considered and subject to a few minor amendments, approved the report.

3.2 The report will be published on 26 January 2016.

PAC(4)-01-16 Paper 6 – Draft Report

5.1 Members considered the draft report noted that a revised draft would be available for further discussion at the Committee meeting on 19 January.

1.1 The Auditor General for Wales discussed PAC(4)-34-15 paper 1(Item 4)  with the Committee.

PAC(4)-34-15 Paper 1

Research Briefing

Owen Evans – Deputy Permanent Secretary, Education and Public Services Group, Welsh Government

James Price – Deputy Permanent Secretary – Economy, Skills and Natural Resources Group, Welsh Government

John Howells – Director, Housing and Regeneration, Welsh Government

Christopher Munday – Deputy Director, Business Solutions, Welsh Government

4.1 The Committee scrutinised Owen Evans, Deputy Permanent Secretary, Education and Public Services Group; James Price, Deputy Permanent Secretary, Economy, Skills and Natural Resources Group; John Howells, Director, Housing and Regeneration and Christopher Munday,  Deputy Director, Business Solutions, Welsh Government

as part of the inquiry into the Regeneration Investment Fund for Wales.

7.1 Members discussed the evidence received.

5.1 Members considered the evidence received.

PAC(4)-33-15 Paper 1

Research Briefing

Langley Davies – Director, South Wales Land Developments Limited

3.1 The Committee scrutinised Langley Davies, Director of South Wales Land Developments Limited, as part of the inquiry into the Regeneration Investment Fund for Wales.

PAC(4)-29-15 PTN1 – Additional information from the former RIFW Board Members

PAC(4)-29-15 PTN2 – Letter from the Deputy Permanent Secretary, Education & Public Services Group (28 October 2015)

PAC(4)-29-15 PTN2A – Letter from the Deputy Permanent Secretary, Economy, Skills & Natural Resources Group (22 October 2015)

PAC(4)-29-15 PTN2B – Letter from the Deputy Permanent Secretary, Education & Public Services Group (28 October 2015)

PAC(4)-29-15 PTN3 – Additional information from Amber Infrastructure Limited (26 October 2015)

PAC(4)-29-15 PTN4 – Additional information from Lambert Smith Hampton Limited (28 October 2015)

1.1       The papers were noted.

1.2       Members considered the additional information that has been submitted from witnesses and also discussed the evidence received from the earlier evidence sessions.

1.3       Members agreed that the Chair should write to Mr Langley Davies with some specific questions that have arisen from the evidence received. 

1.4       Members agreed that the Chair should write to Lambert Smith Hampton with a specific question from the additional evidence received. 

1.5       The Committee agreed to reschedule the evidence session with the Welsh Government to 1 December. In advance of that session, it was agreed that the Chair would write to the Welsh Government with some specific questions that have arisen from the evidence received. 

1.1 Members considered the evidence received at the meeting held on 13 October.

6.1 Due to time constraints, this item as not reached.

PAC(4)-28-15 Paper 1

PAC(4)-28-15 Paper 2

Research Briefing

Jeremy Green - Lambert Smith Hampton Ltd

Lee Mogridge - Lambert Smith Hampton Ltd

4.1 The Committee scrutinised Jeremy Green and Lee Mogridge from Lambert Smith Hampton Ltd as part of the inquiry into the Regeneration Investment Fund for Wales.

4.2 Jeremy Green and Lee Mogridge agreed to send the following information to the Committee:

·         Check and confirm the dates they met with planning officials from the City of Cardiff Council and Monmouthshire County Council and submit any relevant correspondence;

·       Check and confirm when, if all interest shown from potential purchasers was communicated to the RIFW Board and specifically the interest shown from Legat Owen;

·       Details of the meetings held with the proposed purchaser between February 2011 and March 2012;

·       Check when relationship was established with Mr Langley Davies, who from LSH acted for him and in what capacity and on what other projects (where he is a Director);

·       Provide exchanges of email and other correspondence with the potential purchaser when the purchaser suggested that it would harm his interests and could prejudice the portfolio transactions if he was forced to carry out a formal valuation, and

·         Clarify when LSH commenced marketing the Monmouth site for SWLD.

6.1 Due to time constraints, this item was not reached.

PAC(4)-27-15 Paper 1

Research Briefing

Leo Bedford - Amber Infrastructure Ltd

Giles Frost - Amber Infrastructure Ltd

4.1 The Committee scrutinised Giles Frost and Leo Bedford from Amber Infrastructure Ltd as part of the inquiry into the Regeneration Investment Fund for Wales.

4.2 Giles Frost agreed to check the dates Amber Infrastructure Ltd attended meetings with the RIFW Board outside of the normal meeting arrangements, what meetings, if any, Amber Infrastructure held with Welsh Government Ministers, and confirm the date the Asset Realisation Plan was approved.

Research Briefing

James Price – Deputy Permanent Secretary – Economy, Skills and Natural Resources Group, Welsh Government

Christopher Munday – Deputy Director, Business Solutions, Welsh Government

Gareth Morgan – Deputy Director, Public Transport, Welsh Government

3.1 The Committee scrutinised Welsh Government officials who were previously responsible for the Regeneration Investment Fund for Wales, questioning James Price, Deputy Permanent Secretary, Economy, Skills and Natural Resources Group, Christopher Munday, Deputy Director, Business Solutions and Gareth Morgan, Deputy Director, Public Transport.

·       James Price was formerly the Director General and Additional Accounting Officer of the Department that created RIFW

·       Chris Munday was the lead official responsible for the establishment of RIFW, the appointment of the Board members  and the selection of the assets transferred from the Welsh Government to RIFW.  Mr Munday also acted as the Welsh Government observer on the RIFW Board until June 2011.

·       Gareth Morgan represented the Department as it is now, into the input into the responses on RIFW and has a knowledge of arms- length bodies.

3.2 James Price agreed to send further information on:

·       The line management structure applicable to Christopher Munday during his period as observer on the RIFW Board and the mechanism for reporting to Welsh Government including following RIFW Board meetings;

·       Clarify when the policy mind-set reverted back to being a more ‘normal’ environment and decisions could be taken more rationally to from an emergency thinking of a ‘fire sale’;

·       The Welsh Government’s stance with relation to the housing assessment by Cardiff Council;

·       Confirmation whether the then RIFW Board had sight of the King Sturge Valuation Report and when;

·       Check and advise as to what information was included in RIFW Board Members induction packs and whether this information outlined the Welsh Government’s expectation of the role of RIFW Board members.

3.3 Christopher Munday agreed to check and confirm if and when he reported his observations from attending RIFW Board meetings to Welsh Ministers

7.1 Members considered the evidence received.

PAC(4)-26-15 Paper 1 – Letter from the Auditor General for Wales (6 October 2015)

1.1 The Members received a briefing from the Auditor General for Wales.

PAC(4)-26-15 Paper 2 – Welsh Government Response to the AGW Report (7 September 2015)

PAC(4)-26-15 Paper 3 – Letter from the Permanent Secretary (23 July 2015)

Research Briefing

Owen Evans – Deputy Permanent Secretary, Education and Public Services Group, Welsh Government

John Howells – Director, Housing and Regeneration, Welsh Government

Richard Baker – Acting Joint Head of Property Division, Welsh Government

4.1 The Committee scrutinised Welsh Government officials who are currently responsible for the Regeneration Investment Fund for Wales, questioning Owen Evans, Deputy Permanent Secretary, Education and Public Services Group, John Howells, Director, Housing and Regeneration and Richard Baker, Acting Joint Head of Property Division.

4.2 Owen Evans agreed to send further information on the following:

·       Copy of the valuation report produced for the Welsh Government by King Sturge (now Jones Lang LaSalle);

·       How the assets that went into the portfolio transferred to RIFW were selected, together with details of any previous Welsh Government marketing of the assets in the RIFW land portfolio and a copy of the minutes of the meeting at which the portfolio selection was agreed;

·       The consideration that the Welsh Government gives to the implications for the UK Exchequer of future tax revenues when entering into commercial transactions with off-shore entities ;

·       Clarification of the legal status of the Welsh Government’s relationships and contract with Amber Infrastructure Ltd (as a fellow LLP Member, and as the RIFW Fund Manager), and the Welsh Government’s legal advice on the potential impacts of any Welsh Government decision to terminate the contract.

Owen Evans – Deputy Permanent Secretary, Education and Public Services Group, Welsh Government

John Howells – Director, Housing and Regeneration, Welsh Government

Richard Baker – Acting Joint Head of Property Division, Welsh Government

2.1 The Committee received a briefing from the Welsh Government and discussed the scope of the inquiry with them.

PAC(4)-26-16 Paper 4 - Paper from Former RIFW Board Members

Research Briefing

Former RIFW Board Members

Richard Anning

Ceri Breeze

Richard Harris

Chris Holley

5.1 The Committee scrutinised four former Regeneration Investment Fund for Wales Board Members who were each appointed to the Board by the Welsh Government. They questioned:

·       Ceri Breeze: Board member from March 2010, appointed as Chair in October 2011  resigned in October 2013;

·       Richard Anning: Board member from December 2010, resigned in October 2013;

·       Councillor Christopher Holley: Board member from November 2010, resigned in October 2013; and

·       Richard Harries: Board member from July 2012, resigned June 2013

5.2 The Chair advised that Jonathan Geen, a further former RIFW Board members, had declined the invitation to attend this session due to a conflict of interest.

5.3 The former RIFW Board Members agreed to review and send any comments they may have on the market valuations undertaken by Savills (January 2012) and the  District Valuer’s report of July 2015.

3.1 The Auditor General for Wales briefed the Committee on his forthcoming report (due to be published on 15 July) on the Regeneration Investment Fund for Wales (RIFW).