3. Topical Questions – in the Senedd on 18 May 2022.
1. Will the Minister provide a statement on the purchase of Gilestone Farm in Talybont-on-Usk? TQ622
The Welsh Government undertook the freehold acquisition and short-term leaseback of Gilestone Farm for £4.25 million. The acquisition of the property is being progressed in order to facilitate investment in local businesses, the community and the Welsh economy.
Thank you for your statement, Minister. Over the last week, I have been inundated with phone calls, e-mails and social media comments around the Welsh Labour Government's decision to buy Gilestone Farm in Talybont-on-Usk. I, and many of my constituents, have some very valid questions over the purchase and letting of the farm to the owners of the Green Man Festival. They have some varied points that they would like to put to you, and I am going to do that now.
Minister, you have told us what the purchase price was. So, I'd like to know: was that subject to an independent evaluation by a district valuer? What tendering exercise was carried out to find a suitable tenant for the farm? Was anybody local offered the opportunity to apply for it, and if not, why not? What is the long-term ambition for the farm, given the current food security issues that we have, and why has a productive farm been taken out of use?
What economic exercise was done by the Welsh Labour Government to ensure that the 174 jobs that have been quoted can be realised when farms in my constituency can hardly employ a single person? Finally, Dirprwy Lywydd, is it now the Welsh Labour Government's policy to use taxpayer money to purchase farms and rent them out to private businesses and individuals to deliver on its biodiversity and climate change projects?
There were a range of questions in there. I will try to deal with them as best I can, and as succinctly as I can—I'm looking at the Deputy Presiding Officer. The purchase price was independently certified by our consultant surveyors. You'll be pleased to know that we did not pay above the market value for it. When it comes back to where we are now, it has been leased back to the current owners. They have a range of issues to do to maintain the property, to harvest existing crops and to honour existing bookings on the site.
We are in discussion with the owners of the Green Man Festival about their potential leasing of the site, to give a greater level of certainty for them to invest in the festival, which, as the Member will know, is supported across a range of different sectors. It is one of five major independent festivals that still exist across the UK, with significant economic benefit to Wales, and they have plans and ambitions to be able to expand. We will need to see from them a business plan before going ahead with any further arrangement. We would then be looking at whether to have a short-term lease to manage the entire property for a period of time. But we do need to have further negotiations with them, either to look at the purchase or a further lease arrangement for the site.
The overall ambition is to make sure that one of the most significant economic undertakings in the festival scene, which has a particular group of people who are interested in it for the way that it's run and the values that underpin it as well, has a permanent home in Wales, because there has been significant interest from other festival providers who want to purchase the brand. We're very keen to keep that in Wales, with the significant economic benefit that has already been generated and will be in the future. I'll be more than happy, as those negotiations continue, to further update the Member and indeed other Members who will no doubt have an interest.
Minister, thank you for the answers you've given this afternoon. I think it clarifies that the purchase of Gilestone Farm is more a case of securing an exhibition/festival space rather than an agricultural space. If you could confirm that to be the case, as that was my understanding from the answer you gave. If it was to include an agricultural component to it, are you minded to give significant funding, like you've done with this particular purchase, to other areas in Wales that could release opportunities for agriculture and for new entrants into the business? Obviously, there has been a growing problem in accessing the agricultural industry for new entrants, and to hear that £4.25 million has been spent on one farm in one particular location, I think, would be quite depressing for some farmers, when their own family members are struggling to get their foot on the ladder. So, can you just confirm for me that this is an exhibition space you've secured rather than—[Interruption.] The Royal Welsh was purchased by members of the show, not by Government, I'd point out.
As I say, the purchase price has been independently certified for us, and we're looking at the opportunity that does exist around the long-term future for Green Man. As ever, there are competing interests about land use and about economic benefit. I expect to see in the business plan how the whole estate would potentially be managed. It would be wrong for me to try to set out a land use policy for the entire estate when that's what we're looking to see delivered. We have, as I say, in the agreement that we already have, the leaseback to ensure that the crops that are already growing are harvested and that current bookings are honoured. As I say, I will further update the Chamber and Members as we receive a business plan from the people who own and run Green Man. I think it's important to maintain the independence of that festival and its link to Wales, which does in itself provide significant economic benefit. I'll then be able to provide more detail on answers about the whole land use that exists. I should also say that Powys County Council are supportive of the proposal and what it will allow us to do on that site.
Thank you to James Evans for bringing this important question before us. What we've got here in Gilestone Farm is good agricultural land, and the danger is that we're going to see good agricultural land once again being lost for other commercial purposes. We know that the Welsh Government doesn't have a good record when it comes to buying agricultural land, because we've seen agricultural land being bought by the Government and being turned into forests. So, what assurances can you provide us today for the long term that this land and this farm will be retained and kept for agricultural purposes, namely producing food?
Also, a number of local farmers have got in touch with my office to complain that they haven't had any opportunity to be part of this process to tender for the farm, for the land, and to be tenants. What consultation did you undertake locally in order to ensure that the new tenants would be the best ones for this land, and why were other local farmers not given the opportunity to be tenants on the farm?
And finally, it's good to see that Welsh Government is providing funding for agriculture. Unfortunately, we've seen local authorities having to sell farms over the years. Are we now able to look forward to Welsh Government giving more money to local authorities to rebuy these farms so that there are opportunities for young farmers to return into agriculture again?
With respect, I think we're confusing more than one issue in the series of questions that are being asked. I won't go into the historic matters that the Member invites me to relitigate today. The issue is about the vendors and their desire and willingness to sell, where the festival has currently been based, our ability to keep the festival in Wales with all the significant economic benefit that is returned, including, of course, significant economic benefit within rural Wales, and how we then make sure that this particular event, with a particular importance, isn't taken away and the brand used for an entirely different commercial purpose with all the jobs and the wider benefit disappearing to a different part of Wales. As I've indicated, we expect to receive a business plan. We'll then look at that business plan for the entire land use, but then also about whether this would be an issue where there'd be a longer term lease or purchase. So, when it comes to the amount we've invested in this area, it is about securing the longer term future for Green Man in Wales, and I believe we've made the right choice in doing so, but I will, as I say, happily update Members about the longer term question that Members have raised today about the entire land use for the estate that has been sold by the vendors.
Thank you, Minister. The next question is to be answered by the Minister for Health and Social Services, and I call on Llyr Gruffydd.