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| Silverstone boss contacts Cameron over Circuit of Wales | Silverstone boss contacts Cameron over Circuit of Wales |
| (about 2 hours later) | |
| Silverstone racetrack bosses have asked David Cameron to prevent tens of millions of pounds of potentially "illegal" state aid being used for a new £280m circuit in Wales. | Silverstone racetrack bosses have asked David Cameron to prevent tens of millions of pounds of potentially "illegal" state aid being used for a new £280m circuit in Wales. |
| Developers behind the Circuit of Wales scheme in Ebbw Vale, Blaenau Gwent, are said to be asking the Welsh and UK governments to commit up to £50m. | Developers behind the Circuit of Wales scheme in Ebbw Vale, Blaenau Gwent, are said to be asking the Welsh and UK governments to commit up to £50m. |
| Silverstone's MD has written to the prime minister to intervene. | Silverstone's MD has written to the prime minister to intervene. |
| Planning issues have delayed the start of work at the site. | Planning issues have delayed the start of work at the site. |
| Heads of the Valleys Development Company wants to create 6,000 jobs and bring 750,000 visitors a year to the area as part of its plans but doubts have been raised over the number of jobs claimed. | Heads of the Valleys Development Company wants to create 6,000 jobs and bring 750,000 visitors a year to the area as part of its plans but doubts have been raised over the number of jobs claimed. |
| 'Level playing field' | 'Level playing field' |
| The development promises to transform one of Wales' most deprived communities. | The development promises to transform one of Wales' most deprived communities. |
| Alongside the racing circuit, there are plans for hotels, a grandstand, a technology park and a solar park. | Alongside the racing circuit, there are plans for hotels, a grandstand, a technology park and a solar park. |
| But those projects all rely on the racetrack going ahead. | But those projects all rely on the racetrack going ahead. |
| The Circuit of Wales would host all motor racing events except Formula 1. | The Circuit of Wales would host all motor racing events except Formula 1. |
| A spokesperson for Silverstone confirmed on Monday that its managing director Richard Phillips had written to Mr Cameron about funding for the Circuit of Wales. | A spokesperson for Silverstone confirmed on Monday that its managing director Richard Phillips had written to Mr Cameron about funding for the Circuit of Wales. |
| The letter said: "An injection of funds by the Welsh and/or UK governments to the Circuit of Wales project would amount to a transfer of state resources, which gives Circuit of Wales an economic and selective advantage over other circuits. As such, it could amount to illegal state aid. | The letter said: "An injection of funds by the Welsh and/or UK governments to the Circuit of Wales project would amount to a transfer of state resources, which gives Circuit of Wales an economic and selective advantage over other circuits. As such, it could amount to illegal state aid. |
| "There are a number of well-established, privately funded circuits in the UK, including Wales, that feel that the British motor sport industry would be threatened by the addition of a government-funded circuit." | "There are a number of well-established, privately funded circuits in the UK, including Wales, that feel that the British motor sport industry would be threatened by the addition of a government-funded circuit." |
| 'Own merits' | 'Own merits' |
| A statement added: "Silverstone has no objection to competition between UK circuits, but it has to be a level playing field. | A statement added: "Silverstone has no objection to competition between UK circuits, but it has to be a level playing field. |
| "Silverstone reiterates that it is sympathetic to the economic situation in Ebbw Vale, but motor sport at circuit level is not particularly profitable and is often loss-making. | "Silverstone reiterates that it is sympathetic to the economic situation in Ebbw Vale, but motor sport at circuit level is not particularly profitable and is often loss-making. |
| "Many UK circuits are under-utilised and struggle for revenue. It is unrealistic to suggest Circuit of Wales will be the exception." | "Many UK circuits are under-utilised and struggle for revenue. It is unrealistic to suggest Circuit of Wales will be the exception." |
| Downing Street confirmed a letter had been received from Silverstone regarding the Circuit of Wales. | |
| Nick Smith, Labour MP for Blaenau Gwent, said Silverstone had received local and UK government funding, and said its objection "feels a bit like the pot calling the kettle black". | Nick Smith, Labour MP for Blaenau Gwent, said Silverstone had received local and UK government funding, and said its objection "feels a bit like the pot calling the kettle black". |
| No request | |
| He said potential public funding for the Circuit of Wales "should be treated on its own merits", adding: "What wouldn't be fair would be if assistance for the Circuit of Wales were stymied by the self-interest of a competitor such as Silverstone." | He said potential public funding for the Circuit of Wales "should be treated on its own merits", adding: "What wouldn't be fair would be if assistance for the Circuit of Wales were stymied by the self-interest of a competitor such as Silverstone." |
| The Association of Motor Racing Circuit Owners, which represents 17 UK race tracks, said last summer the circuit would harm motorsport. | The Association of Motor Racing Circuit Owners, which represents 17 UK race tracks, said last summer the circuit would harm motorsport. |
| Developers have asked both the Welsh and UK governments for up to £50m in total towards the scheme, it was revealed this month. | Developers have asked both the Welsh and UK governments for up to £50m in total towards the scheme, it was revealed this month. |
| BBC Wales understands the Welsh government is considering investing £30m in the project. | BBC Wales understands the Welsh government is considering investing £30m in the project. |
| The Welsh government told BBC Wales on Monday the Circuit of Wales had not asked it for money. | The Welsh government told BBC Wales on Monday the Circuit of Wales had not asked it for money. |
| A spokesperson said: "Apart from an initial grant to fund the early stages of project development there has been no request or offer for any funding support for this project." | |
| Michael Carrick, chief executive of the Heads of the Valleys Development Company, said they were disappointed with the letter's contents, adding: "It sounds like Silverstone is resistant to investment within the automotive sector which is vital to its continued growth and development in the UK. | |
| "The suggestion of "illegal state aid" made by Silverstone also highlights they do not understand the basic process of applying for state funding of this nature." | |
| Prestigious event | Prestigious event |
| A key part of the racing circuit development involves securing the rights to host MotoGP - the motorbike racing equivalent of Formula 1 - which attracts global audiences of up to 300 million. | A key part of the racing circuit development involves securing the rights to host MotoGP - the motorbike racing equivalent of Formula 1 - which attracts global audiences of up to 300 million. |
| The company has said it aims to build the circuit in time to host the prestigious event in September 2015 but it is understood no deal has yet been signed. | The company has said it aims to build the circuit in time to host the prestigious event in September 2015 but it is understood no deal has yet been signed. |
| It was hoped that building work could start on the site last December but there have been delays because of planning issues. | It was hoped that building work could start on the site last December but there have been delays because of planning issues. |
| The circuit is being built on 332 hectares (820 acres) of common land so the company has to deregister it, find an equivalent amount of land elsewhere and re-register that as common land. | The circuit is being built on 332 hectares (820 acres) of common land so the company has to deregister it, find an equivalent amount of land elsewhere and re-register that as common land. |
| The Planning Inspectorate for Wales said the process could take almost a year to complete. | The Planning Inspectorate for Wales said the process could take almost a year to complete. |