WHILE there is much sympathy for those who have lost their jobs in the collapse of Main Port Engineering serious questions have been asked about government funding the firm recently received.
Administrators were appointed to the Pembroke Dock company last week with 69 staff losing their jobs immediately.
Another 88 remain at risk following a winding up petition issued by HMRC.
Main Port Engineering received £650,000 of Welsh Government funding from Welsh Economic Growth Fund in March 2015.
“The funding was granted to assist with a capital investment of £1,627,000 for a new purpose built facility in the Haven Waterway Enterprise Zone. The terms and conditions linked to this support were fully met at the time by the company,” a statement from Ken Skates AM, Cabinet Secretary for Economy and Infrastructure.
Regional AM Joyce Watson said that the plight of the engineering firm had implications for the area’s energy industry.
Speaking in the Senedd, Mrs Watson said the immediate priority must be supporting those who have lost their jobs but questions regarding the circumstances surrounding the winding up order must be answered, and called for a wider look at support for the energy industry.
“I think we need to stay focused that this was particularly highly skilled and highly paid work, and so the loss of that income to the local economy will be felt almost immediately, and how we can work with anybody else to ensure the viability of their businesses if they were equally dependent on these workers for their own income.”
Outside the chamber South Pembrokeshire AM Angela Burns also expressed sympathy for the workers but added: “One of the issues here is why the Welsh Government took the decision to award such a substantial sum of money to Main Port which had just lost a primary customer in the form of Murco and was already engaged in an ongoing dispute with HMRC.
“Was the Welsh Government aware of this situation when it awarded the grant and were there communication between government ministers and Finance Wales over this issue? If so, did the Welsh Government miss an opportunity to support Main Port through a more structured process?
“The Cabinet Secretary needs to examine how rigorously the long-term financial viability of Main Port was examined by officials before the decision was made to invest, and I look forward to further assurances from him on this matter.
“Given the loss of such a substantial sum of public money and the inestimable emotional cost of families now faced with an uncertain future it is vital that satisfactory answers are forthcoming.”
In response to Mrs Watson, Mr Skates, said he was aware of some developing interest in Main Port Engineering and its remaining employees.:
“All is not yet lost, and we will do everything we can to ensure that those people who have been working at the business have employment, either there or within the local area. I think it's essential that the enterprise zone continues to perform successfully. It’s created and secured hundreds of jobs since it was formed, but I recognise that, in the context of a post-Brexit Britain, we do need a new economic strategy for Wales, and I very much hope that, with a focus on place-based economic development, the enterprise zone area of the part of Wales that my friend so proudly represents will have a very, very strong future.”
Regional AM Eluned Morgan added: “I’ve been exploring whether we should come up with a more bespoke economic development model. One which best meets the very specific needs of West Wales.”
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