1. Will the Cabinet Secretary make a statement on the Welsh Government's £2.5 million investment in TVR? 103

That does help; now we all know what you're talking about. 

I do indeed share the Member's excitement about the investment the Welsh Government has made in TVR, which follows a process of thorough due diligence, and we provided a repayable commercial loan of £2 million in early 2016. This was made alongside a private sector lender. We've also invested £500,000 into equity on the same terms as other investors, giving the Welsh Government a minority stake of 3 per cent in TVR, ensuring that the Welsh taxpayer benefits from the company's success. 

Thank you, Cabinet Secretary, and sorry, Deputy Presiding Officer—I got too excited myself in my question there.

There is, of course, the prestige of the TVR badge, but that's of course not the only thing that's of consideration. Two and a half million pounds is a significant investment, and the public, of course, want to see the evidence that taxpayers' money is properly being safeguarded. Now, papers filed with Companies House suggest that the Welsh Government has told the company that £2 million of the loan will not be called on for repayment, provided that the company secures private sector investment equal to or greater than £5.5 million. Can I ask you to confirm if that's correct?

During committee this morning, you were unable to confirm whether the Welsh Government has an observer on the board of TVR. I wonder if you could also clarify that position. And, to date, the two listed companies connected with this investment have a headcount of just six jobs. Now, commercial common sense and respect for taxpayers' money dictate that there must be an economic benefit to this spending. So, can I ask what conditions the Government has placed on TVR in return for investment, and what is the delivery date by which the promised 150 jobs will materialise? And finally, do you agree that the Welsh Government does have a moral and economic duty to the people of Blaenau Gwent to ensure that this exciting project doesn't turn into another disappointment for that area?

Can I thank the Member for his questions and say that the car received, importantly, a commercial and critical success? The reception was quite astonishing at Goodwood in the autumn when it was unveiled. It's a remarkable machine. The design incorporates unique and cutting-edge elements of automotive design by Gordon Murray, who himself is well known to automotive experts as being one of the best designers anywhere on the planet. His contribution to the vehicle, I think, has made it an immediate success in terms of orders. The order book is extremely healthy. I would encourage Members to take the opportunity to visit the car when we have the Welsh launch.

In terms of the conditions that have been attached to the loan and the equity stake, I think the Member raised an important point about the repayable element of the finance that we've offered. It's not correct that Welsh Government has said that the £2 million is non-repayable. The £2 million is fully repayable. The loan will last for a five-year period. It became active in March 2016. However, if they don't bring—. I think where some of the confusion has been created is that there was a condition in the support stating that, if they didn't bring manufacturing to Wales then we could demand immediate repayment of that loan. As a consequence of us not demanding immediate repayment of that loan, I think it's been viewed wrongly as Welsh Government saying that the loan needn't be repaid. The fact is: it will be repaid.

In terms of the equity stake that we've taken in the company, again, that is protected because we can require the company to buy back at the greater of the market price or the original cost the equity that we've taken in the company. But, as I said earlier, the car has received an incredible reception at launch, the order book is very healthy indeed, the market for this type of vehicle is buoyant globally, and I believe that the car will be a huge success. It resurrects one of the most popular British automotive brands in our history, and the orders that were taken at Goodwood in particular showed that, when people see the vehicle in the flesh, people respond by handing over cheques.

Now, in terms of the benefits of the scheme and the time frame moving forward, TVR identified that a privately owned building at the Rassau industrial estate offered the best option for their manufacturing and, as a consequence, Welsh Government officials spent many months negotiating with the private owners to secure that building. Having completed that agreement, lawyers for both Welsh Government and for TVR are finalising an agreement for lease. In the meantime, we are pleased that TVR are negotiating to take a short-term lease on a small factory nearby in order to complete the engineering development work, but they've also got an office at the works, which is where a small number of people are currently working on the project. Longer term, by quarter 2 of 2019, we aim to have TVR manufacturing the vehicle for sale next year. At that point, we also expect a considerable number of people to be employed at the site—over 100 people. This will be hugely important to Blaenau Gwent, not just in terms of the employment offer, but also in terms of reshaping perceptions and giving that area huge confidence.

Did the Cabinet Secretary answer the question in relation to the membership of the board, because he was unsure, when he was asked this morning, whether the Government had nominated, presumably not a director according to the company accounts, but a nominated observer, at least? Is it Government policy to have nominated observers in situations like this where the Government has taken an equity stake? He said this morning that the reason the Government had taken a direct stake in this instance, rather than going through the development bank, because the development bank hadn't been established—. But will it now be the policy, from now on in, for those equity stakes to be held via the development bank, which deals with investments on a regular basis, and would therefore seem a more sensible approach?

Can we have a Government statement every time an equity stake—? I mean, this is different, surely, from a grant or a loan. If the Government is taking part ownership in a company, then surely it shouldn't be up to the BBC to report that—that should actually be provided either in a written statement or a statement on the floor of the Assembly.

I'm happy to issue written statements confirming whenever Welsh Government takes an equity stake in a company. The Member asked about the role of Finance Wales as it was, and the development bank as it now is. The development bank is monitoring the progress of the business, but the reason that Finance Wales was not able to take an asset investment in TVR was, in part, because it could not take an investment in TVR, because the company was, at the time, located outside of Wales. We were able to, on the condition that manufacturing came to Wales. 

In terms of representation on the board, as a minority shareholder, with just 3 per cent, we would not be expected to be able to present a board member. However, as I indicated this morning, a Welsh Government official does attend board meetings as an observer, and, of course, I closely scrutinise activities and progress with regard to this particular vehicle, but the company as a whole as well.

Hewlett-Packard, of course, started with two people, and Facebook with one, so I don't think the number of people you're starting with is of great importance; the number of people you end up with is the most important.

There are three ways of funding: grants or non-repayable loans, as they used to be described, loans and equity. Will the Cabinet Secretary explain why he's chosen equity in this case?

We chose a mix of both a loan and equity: equity, in part, to ensure that we were able to benefit from the success of the company, as I've already said, and the loan in order to make sure that we get manufacturing to Wales. There are risks and rewards in any investment, but with this particular investment, the brand is incredibly strong and the potential of the reward is therefore immense. The potential of the reward for Blaenau Gwent, again, is potentially huge, and so I think the balance of risk versus reward is heavily skewed towards reward.

Cabinet Secretary, I rise today not so much to pose a question, but simply to say that UKIP unreservedly welcomes and congratulates the Welsh Government on this investment, particularly as it's in an area that is one of the most deprived in Wales, and I'm absolutely certain that the constituents of Ebbw Vale will wholeheartedly welcome this announcement. TVR ticks all the boxes as far as desirability is concerned: a high-tech iconic brand and a global image for design excellence, with a proven and loyal customer base. There is huge export potential from the newly emerging wealthy economies for this designer-style vehicle. If we are to expand our manufacturing base in Wales, I see no better recipient for funding than this type of company. Again, I congratulate the Welsh Government on this announcement. Perhaps there is a question: when can we have more of the same?

Thank you. You redeemed yourself there in your last statement.

Can I thank the Member for his endorsement of our decision to invest in TVR? I share his belief in the company. It has one of the biggest followings of enthusiasts of the brand of any British motor manufacturer, and I think the naming of this particular car the Chimaera, as well, recognises the strong heritage that the brand has. In the past, there have been two Chimaeras; this is the third. Currently, if you're looking at investing in a classic car, it's said that the Cerbera and the original Chimaera are two of the fastest rising classic cars available at the moment. I'm in no doubt that the new Chimaera, to be produced from next year, will prove equally popular, not just amongst existing enthusiasts of TVR, but also amongst new purchasers globally.

I thank the Minister for his answers so far. I want to make it quite clear that we're very supportive of Government support for companies, especially when they offer exciting and dynamic propositions. Where we do have concern is where other businesses point to support being given to companies, and they themselves are refused support. In particular, they draw attention to the last set of published accounts from TVR that clearly indicate, and I read from the accounts, that the £2 million loan has been given by the Welsh Government, and it goes on to say that the lender—that is your good self—

'has indicated that they have no intention of demanding repayment'  of this loan. I do think that does need clarifying, because it doesn't go on to say that that money would be repayable in five years' time, as the Minister has indicated, or it's on commercial terms. That statement is, from just an observational point of view, quite misleading.

It also says that the company is obliged to raise an additional £5.5 million of equity. The Minister has indicated that the Welsh Government have put £500,000-odd in as an equity stake. Could he also inform us how much of that £5.5 million of equity has been raised, separate to the £0.5 million that the Welsh Government has put in, to give us an indication of how much confidence other investors have in what, potentially, if it comes through as promised, could be an exciting development for Blaenau Gwent?

Can I thank the Member for his question and suggest that, in order to really show his support for TVR, he puts an order in today for the new Chimaera? The last set of accounts do indeed state that, but it's incorrect to assume that the loan is non-repayable. We were not responsible for submitting those notes, but the quote 'no intention of demanding repayment', as I said to Russell George, relates to the clause that we had built into the support that would have enabled us to demand immediate repayment should the company decide not to bring the manufacturing of the Chimaera to Wales. That's clearly not the case, because of the investment already made in the works and the negotiations under way to acquire the small factory and, indeed, the work that's under way by our officials in making the full facility ready for the commencement of production. Therefore, the loan will be repaid in full.

In terms of equity, of course, our equity was significant. However, the company has been successful in drawing the required equity to get this motor vehicle into production. In addition to the scrutiny of the business plan that KPMG carried out prior to the March 2016 decision, I'm pleased to say that Deloitte have been operating on our behalf more recently and they have given us confidence in the company's ability to take the project forward, to take the car forward and to deliver, not just for the investors, but also for the customers. 

Thank you very much.