The Dawnus Construction Company

Part of 3. Topical Questions – in the Senedd at 3:18 pm on 20 March 2019.

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Photo of Ken Skates Ken Skates Labour 3:18, 20 March 2019

Thank you. Can I thank the Member for her questions? In all fairness to those subcontractor businesses engaged through the supply chain, I do believe that many of them have already engaged with their respective banks, but the Development Bank of Wales will be working very closely with Welsh Government through the taskforce to identify any additional need that might be required.

I can't comment on other debtors at present, but it's my understanding, with regard to the specific question about the Kingsway project, that the WEFO funding is unaffected. However, I will be seeking a guarantee of that, and I will, clearly, update Members once I have confirmation.

With regard to the investment through the £3.5 million commercial loan by Welsh Government, that was matched by £3.5 million from the business's own bank, under the same terms and conditions, and also the same level of security and support was provided in order to help the business and its employees, as I've already stated, through a very difficult period concerning its cash flow. Now, to date, we've received £2 million back, and we're confident that the terms of the loan will see outstanding moneys repaid in due course. But I think it's absolutely right that, at this moment in time, the focus of our attention should be on the employees and on subcontractors and suppliers who, undoubtedly, are being badly affected by the developments at Dawnus. So, we are clearly focusing our attention on ensuring that the impacts of the company's demise are minimised, both in terms of local communities and the national economy. I think it's important to say that, with regard to previous Welsh Government support—and I make no apology for supporting the company in the past to ensure that they could deliver projects and to ensure that they could go on employing 700 people—extensive and intensive due diligence is carried out before contracts are signed, and I am very confident that those contracts that were signed were done so in good faith and in the belief that the company could deliver them through to completion.