This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/uk-wales-politics-35418829
The article has changed 10 times. There is an RSS feed of changes available.
Version 2 | Version 3 |
---|---|
Cardiff Airport purchase wasted millions, Welsh Tories claim | |
(35 minutes later) | |
Ministers have been accused of wasting tens of millions of pounds buying Cardiff Airport for around double an accountants' valuation of £20m-£30m. | |
BBC Wales understands the estimate from accountants KPMG appears in a report to be published by the Wales Audit Office. | BBC Wales understands the estimate from accountants KPMG appears in a report to be published by the Wales Audit Office. |
Months later, after negotiation and a further valuation, the Welsh government bought the airport for £52m in 2013. | |
Welsh Tory leader Andrew RT Davies accused Labour of a "stunning failure to safeguard taxpayers' money". | |
The Welsh government's purchase of Cardiff Airport from its Spanish owners Abertis followed years of concern about its performance and long-term viability. | The Welsh government's purchase of Cardiff Airport from its Spanish owners Abertis followed years of concern about its performance and long-term viability. |
First Minister Carwyn Jones defended the deal at the time as a means of securing the airport's future as "a vital gateway to Wales", to be run at arm's length from government. | |
Bristol Airport chief executive Robert Sinclair had claimed the purchase price was well above market value, while the Welsh Conservatives demanded proof that "nationalising" the airport was value for money. | |
'Over the odds' | |
Reacting to the revelations on Wednesday, Mr Davies said it was "unforgiveable", following Tuesday's apology from Mr Jones for the handling of land sales to raise money for regeneration. | |
"This is yet another example of the Welsh Labour Government's stunning failure to safeguard taxpayers' money, with tens of millions of pounds going to waste - despite clear, professional advice which should have told them that the price they were prepared to pay for the airport was over the odds," the Tory leader said. | |
"At a time when councils, hospitals and schools are facing a financial squeeze we have two clear examples of Labour wasting huge sums of money." | |
Welsh Liberal Democrats economy and transport spokesperson Eluned Parrott added: "This is another huge blow to the Labour Government's already tattered economic reputation." | |
The revelations came as airport chairman Roger Lewis called on the UK government to give Welsh ministers the right to cut air passenger duty as a means of boosting the airport's fortunes. |