'Further work' needed on Circuit of Wales proposal

"Further work" is needed before the Welsh Government will underwrite revised plans for the proposed £375 million Circuit of Wales racing track.

In a statement today, Ken Skates AM, Cabinet Secretary for Economy and Infrastructure, said: "In our view, this project does not currently provide the level of value for money necessary for the amount of public funding being put at risk".

He has urged Michael Carrick, chief executive officer of the Heads of the Valley Development Company, and Martin Whitaker, chief executive officer of Circuit of Wales, to revise the bid so that the private sector takes more of the risk.

The Welsh Government has previously refused to underwrite the project, questioning the viability of the project and saying it presented an "unacceptable risk".

Backers say the multi-million-pound project would bring jobs and investment to Ebbw Vale.

Martin Whitaker, chief executive officer of Circuit of Wales, said: “The discussions were positive and we welcome the Cabinet Secretary’s support for the development and confidence that a financial proposal that will allow the project to move forward can be agreed.

“The Welsh Government clearly recognises the enormous benefit the development will bring to the people of Blaenau Gwent and the profile of Wales, and in the coming days, under instruction from the Cabinet Secretary, we will work with his team to reach agreement and deliver a successful conclusion to discussions."

Blaenau Gwent MP Nick Smith said he wanted to a fair deal between the public and private sectors.

In a statement, he said: “Like everybody else locally I want this project to be a success for Blaenau Gwent, not a burden.

“Just this week I wrote to the Welsh Government Minister Ken Skates seeking support for the project.

"It’s no surprise the Welsh Government want the developers to properly pull their weight.

“I’ve contacted Michael Carrick of the Circuit and, alongside Alun Davies AM, want to hear what he has to say about taking on a fair share of the risk for the underwriting of the project."

Meanwhile Adam Price, Plaid Cymru Shadow Cabinet Member for Finance, said the Welsh Government had handled the Circuit of Wales project "very badly".

He said the Welsh Government should "get on with the job", adding: "The Welsh Government claims that it is open for business, yet this project has been on the Cabinet Secretary’s desk for many weeks, and company has repeatedly been trying to engage with him on many occasions but have failed. This is no way to conduct a consultation on a large and complex project such as this."