[R] signifies the Member has declared an interest. [W] signifies that the question was tabled in Welsh.

The next item on our agenda is an urgent question, and I have accepted one question under Standing Order 12.66. I call on Adam Price to ask the urgent question.

Will the Cabinet Secretary confirm whether he now intends to support the Circuit of Wales development following reports that the Heads of the Valleys Development Company have secured the private funding required for its construction? EAQ(5)0120(EI)

Yes, the Heads of the Valleys Development Company has submitted a fresh proposal for the Circuit of Wales. We will now consider the submission in detail and commence a rigorous process of due diligence. Members should now have received a written statement in both English and Welsh.

I’m grateful to the Cabinet Secretary for his response, and also for the written statement that was circulated a few minutes ago. After many years of waiting, I hope that this latest development signals that we are through the last chicane in the final straight. But, if the Cabinet Secretary is able to, could he confirm that the two criteria, the two conditions that he has set, firstly in July of last year in relation to the 50 per cent level of public sector guarantee, and, more recently, the need for named investor term sheets, have now both been met? And in relation to the due diligence process, is he able to tell us who will conduct that due diligence? Will it be done externally? In relation to the criteria, will they follow the standard due diligence procedure in terms of the criteria to assess the project, or will there be project-specific criteria? And, given the fact that it’s a decision, if it is positive, will inevitably bind future administrations, will a copy of that due diligence be shared on a commercial-in-confidence basis with spokespersons of all parties represented in the Assembly? In that regard, I’m happy to place on record that my party believes that this has huge potential for the communities of Blaenau Gwent, for the wider south Wales Valleys and, indeed, Wales as a whole, and we will be very pleased to support the project moving forward, subject to those normal due diligence requirements being met.

And finally, in anticipation of a positive final decision, has he instructed his inward investment team to begin preparatory work, scoping the potential demand for inward investment in the technology park, which will be a key element within the Circuit of Wales development?

Can I thank Adam Price for his question and say—I’ll try to avoid motoring metaphors today—that, according to my officials, it does appear that the criteria—the two points that the Member has identified—have been met, so that’s why we’re in a position today to proceed with due diligence and consideration of the proposals before us? Nobody should ever fear due diligence that is carried out on behalf of Welsh Government or by Welsh Government. It’s my anticipation that the due diligence process will be pursued externally. I’ve never come across a situation personally in this role where I’ve shared commercial-in-confidence details of due diligence with opposition spokespeople, but I will happily look into this question that the Member raised, and come back to him with an answer. It may well be that we would also require permission from the Heads of the Valleys Development Company as well.

In terms of the considerations that will form the due diligence process, this will be carried out over the forthcoming weeks once we’ve got all of the information required. It will encompass all information that is being provided to Welsh Government. All of that information will be considered. We will follow the process that is normal for a project of this scale, and I’ve outlined, in the written statement, some of the points that will be examined as part of that process.

In terms of demand from potential investors for the technology park, well, of course, this will form part of the due diligence process and assessment of the likely demand and the likelihood of automotive clustering taking place. I can’t go into any details of the latest business plan that’s been submitted, I’m afraid, so I can’t give any details at this moment about what the exact proposals are concerning a potential automotive cluster, but that will form part of the due diligence process.

Cabinet Secretary, I think your decision to issue the Heads of the Valleys Development Company with that two-week deadline two weeks ago—two weeks ago today, or two weeks yesterday—was exactly the right thing to do and I made that clear in the business statement yesterday. I also agree with you on the issue of due diligence. It’s clear now that that will play a vital role in the next part of this process.

Cabinet Secretary, it’s clear that the HOTV company—. Well, it now appears clear that they have the money in place to proceed at this point, and that the private finance part of this package is the majority part of the overall financial deal with the Welsh Government underfunding coming in as a minority. Can I ask you, first of all, are you fully satisfied that that private finance is in place, and if so—and I believe you are—how quickly will the Government be in a position to give the green light to this project, as long as the due diligence checks out? Because I understand that the private finance involved is of a type that can be fluid, and given that you now feel that this part of the deal has been met, it would be sad if this project was lost as a result of unnecessary delays from this moment on.

Can I thank the Member for his question, and also welcome the fact that he recognised that the two-week deadline was significant and important? I decided to issue the two-week deadline for a number of reasons. One was that we were assured that the Heads of the Valleys Development Company, back in July, would be able to come to us within a matter of weeks with a revised proposal. So, I felt in the new year it was important to lay that deadline. But above all, I felt that the people of Ebbw Vale had shown considerable patience in waiting for the proposal to come forward. And I felt that in the new year it was necessary to give the company that deadline. It has now been met. We are examining the private finance details under a non-disclosure agreement. I can’t comment further, I’m afraid, on the examination of the private finance that’s taking place.

In terms of the due diligence process that will commence upon us receiving all of the information, it will enable us to begin that process. We expect it to take place and be completed in approximately four to six weeks, which is a normal time frame for a project of this scale, upon which Cabinet will then be able to consider it.

As the Cabinet Secretary knows, I’ve been a strong supporter of this proposal all along, and whilst I do understand the necessity for doing proper due diligence in proposals of this kind, this is a transformational project. If it succeeds, then it’s going to completely transform the economy of Wales, certainly in the south-east and mid Wales. It’s important, I think, to point out that there isn’t actually any public money going into this development, apart from the £9 million that’s already been committed for development funds, but all that’s been sought is a guarantee of less than half the private capital that is going to be invested. The Government will actually be paid £3 million a year for that guarantee, so the Government is actually getting something in exchange, and the guarantee itself will not actually become executable until the assets are actually built on the site. So, there will be solid security, as and when the guarantee might, as we hope not, ever be called. Consequently, this is a very good deal, I think, for the Welsh Government, and for the people of Wales, and so he should give it as fair a wind as he possibly can.

Can I thank Neil Hamilton for his question, and for recognising that the deal that is on the table is certainly better than the one that was presented back in July? I think it justifies the position. I recognise they came under a lot of criticism back in July, but it justifies the position that was taken back then, when we were presented with a request for guarantees amounting to 83 per cent, which is more than £100 million more in guarantees than what we have been able to drive through with this deal. However, due diligence is required, as normal, as in every project of this type, to give us confidence that the investment, the potential guarantee drawdown, is something that the taxpayer is comfortable with, something that we are comfortable with. And, as I said in my answer to Adam Price, no investor should fear the due diligence process.

I thank the Cabinet Secretary.