Circuit of Wales claims Welsh Government misunderstood risks

The Circuit of Wales developer has hit back at the Welsh Government after it elected not to part-fund the prospective MotoGP circuit, citing a "fundamental misunderstanding" of the risks involved

Circuit of Wales claims Welsh Government misunderstood risks

Previously the government had indicated it might guarantee against 50% of the £433million project if the developer, the Heads of the Valleys Development Company (HotVDC), met the other half.

On Tuesday, the Welsh Government's cabinet secretary for economy and infrastructure, Ken Skates said the authority would be exposed to more than 50% of the risk and was not willing to help fund the project.

In a lengthy statement that replied directly to many of the due diligence findings on the project, the HotVDC insisted it is "commercially viable even under downside scenarios".

The statement read: "The Welsh Government would receive a fee of £2.5 million per year, with the project delivering a net economic contribution to Wales of £45 million, every year for the future.

"There appears to be a fundamental misunderstanding of the project risks born by the private sector and we encourage an early meeting with the First Minister to reconsider the decision."

The report from cabinet also questioned the 6000 jobs the circuit developers claimed it would create, and said that that was "overstated".

Instead, Skates claimed "the number of direct full-time-equivalent [FTE] operational jobs would be little over 100" and that "circuit development could create around 500 indirect FTE jobs... as well as approximately 500 FTE construction jobs while the track was being built".

Responding to this issue, the HotVDC said: "This is factually incorrect and indeed does not reflect the figures we provided during the due diligence process."

It also revealed that a third-party report it had commissioned claimed that "4,358 permanent jobs and 4,809 part time jobs would be created by the circuit, technology park and property development.

"Even if we did make the claim of 6,000 jobs this does not support Mr Skates' statement that, 'both the circuit and the technology park, according to due diligence, would likely fall substantially short of the 6,000 jobs figure'."

Instead of backing the Circuit of Wales the Welsh Government intends to go ahead with a new automotive technology business park on the same land in Ebbw Vale, Blaenau Gwent county.

The HotVDC added: "At a time when the Welsh Government is trying to demonstrate that Wales is "Open for Business", the rejection of this significant infrastructure project will do little to breed confidence within the private sector for future investment in the country."

shares
comments
'Not great' Jorge Lorenzo knows he must 'escape' Ducati situation

Previous article

'Not great' Jorge Lorenzo knows he must 'escape' Ducati situation

Next article

MotoGP leader Dovizioso heads Vinales in tight Sachsenring FP1

MotoGP leader Dovizioso heads Vinales in tight Sachsenring FP1
Load comments
How KTM has wrestled control of young MotoGP talent from Honda Plus

How KTM has wrestled control of young MotoGP talent from Honda

There once was a time when Honda controlled any young rider who emerged in motorcycling, but its market dominance has now swung to the side of MotoGP rival KTM and, to a lesser extent Ducati. Could this development have significant ramifications for the future?

MotoGP
Oct 12, 2021
Why Marc Marquez has to reinvent himself as a MotoGP rider Plus

Why Marc Marquez has to reinvent himself as a MotoGP rider

Marc Marquez's romp to victory at the Grand Prix of the Americas led many to believe the 'old' pre-injury Honda rider was close to coming back to his full powers. However, the 'old' Marquez will probably never exist again and instead he'll have to adapt to his new reality to return to title-winning ways in 2022

MotoGP
Oct 6, 2021
The Marquez self-preservation that fulfilled a COTA MotoGP “dream” Plus

The Marquez self-preservation that fulfilled a COTA MotoGP “dream”

Marc Marquez scorched to his seventh Circuit of the Americas victory in MotoGP last Sunday with a display reminiscent of his pre-injury form. However, his path to the win across the weekend was in keeping with the current reality of his physical limitations, with self-preservation on Saturday key to his Sunday success

MotoGP
Oct 4, 2021
How Ducati has developed MotoGP's most versatile bike Plus

How Ducati has developed MotoGP's most versatile bike

His third place at Misano made Enea Bastianini the fifth different Ducati-mounted rider to score a podium in 2021. Amid a season that has seen one rider amass the bulk of Yamaha and Honda's success, the Ducati's versatility makes for a potent weapon, but the contribution of a former leading light shouldn't be forgotten

MotoGP
Sep 23, 2021
The next steps in the rebuilding of a stalled MotoGP career Plus

The next steps in the rebuilding of a stalled MotoGP career

Maverick Vinales’ early debut with Aprilia has been one of the most interesting plots of the recent MotoGP rounds. The results may not look standout on paper, but a closer inspection reveals just how much progress Vinales has truly made in understanding a bike that has taken him well out of his “comfort zone”

MotoGP
Sep 22, 2021
How ‘El Diablo’ and ‘the Beast’ starred in MotoGP’s Misano contest Plus

How ‘El Diablo’ and ‘the Beast’ starred in MotoGP’s Misano contest

On a day each of the podium trio could claim to be the star of the show, the San Marino Grand Prix will be remembered as a pivotal race in both MotoGP’s present and future. While Fabio Quartararo demonstrated his world title credentials just behind Francesco Bagnaia’s flawless victory charge, a new threat emerged from the shadows

MotoGP
Sep 20, 2021
How Ducati’s Aragon MotoGP win harks to its past and its future Plus

How Ducati’s Aragon MotoGP win harks to its past and its future

Duelling against Marc Marquez at the Aragon Grand Prix, Francesco Bagnaia came out on top to secure a long overdue MotoGP victory. As Marquez likened Bagnaia to a Ducati title contender of old, it appears the Italian rider could finally start to fight for wins on a more regular basis

MotoGP
Sep 13, 2021
Why Dovizioso is more of a temporary fix than a Yamaha gamble Plus

Why Dovizioso is more of a temporary fix than a Yamaha gamble

OPINION: The return of Andrea Dovizioso to the grid at Misano will be an interesting subplot to the remainder of the 2021 MotoGP season. But the circumstances that have led to the former Ducati rider ending his sabbatical point to his signing being one more of convenience than a long-term commitment

MotoGP
Sep 8, 2021