‘Reject Circuit ofWales, it’s a big white elephant’

TWO leading motorsport businessmen have urged the Welsh Government to reject the Circuit of Wales project, with one saying “it would be the biggest white elephant the South Wales Valleys have ever seen”.

Economy Secretary Ken Skates is considering whether or not to provide a public loan guarantee of more than £200m for the £425m scheme, which would see a racetrack built on moorland above Ebbw Vale.

Supporters say it could result in up to 6,000 jobs being created, but sceptics say the business model for the project does not stack up.

Now the owners of two motorsport businesses have spoken out against the project.

Anthony Hieatt has a controlling interest in Double R Racing, a motorracing team which races in Formula Three and other junior levels of formula racing.

Among the team’s founders in 2004 was Finnish driver Kimi Räikkönen, who went on to be Formula One champion in 2007.

The Circuit of Wales’ business case relies on renting out the track on a daily basis to racing teams for practice and test sessions.

Mr Hieatt, who was born in the Rhymney Valley and moved to England as a teenager, said: “I love Wales and I want Wales to succeed. But if this project went ahead it would be the biggest white elephant the Valleys have ever seen.

“It cannot succeed commercially and would constantly be coming to the Welsh Government for more financial support.”

In a letter to Mr Skates, Mr Hieatt states: “The race team is very busy and runs 12 months of the year and we test almost every week, mostly in Wales at Pembrey circuit [in Carmarthenshire] and less frequently at Anglesey.

“We average 35 to 40 days of circuit activity at Pembrey per year. Our spend on the circuit hire and hotels is about £4,000 per visit. Tyres, engine and race-car consumables account for a huge amount more.

“My interest in Circuit of Wales is that I am probably in a very small minority of being a native boy from the Valleys and involved in professional motor racing for over 30 years.

“To be honest the Circuit of Wales is going to be a massive mistake and if you invest from Welsh funds it will be impossible to ever make the money back.”

Referring to the likely number of jobs that could be created by the Circuit of Wales project, Mr Hieatt said: “The British Automobile Racing Club that runs Thruxton, Pembrey, Croft, and Caldwell Park circuits employs on a full-time basis under 75 people. Motor Sport Vision, which runs Brands Hatch, Oulton Park, Snetterton and Bedford Aerodrome employs under 250 people.

“For sure there are other jobs relying on these circuits but 6,000 across the whole UK would be pushing it somewhat.”

Mr Hieatt has offered to brief Mr Skates further, and concluded his letter: “Please be aware that motor racing is having a hard time and I believe that you are in danger of investing in a huge white elephant.”

Trevor Carlin, whose racing team, Carlin, has hosted more than 200 drivers including the likes of Nico Rosberg and Sebastian Vettel, said: “Teams will not pay the daily hire fee, the Circuit of Wales would have to charge to service its start-up debts.

“If the Welsh Government has £200m to spare it should spend it on helping to secure the future of Port Talbot steelworks, which is a superb piece in infrastructure.”

In the transcript of a meeting between Circuit of Wales frontman Michael Carrick and Monmouth MP David Davies released by Mr Carrick’s solicitor, Jonathan Coad, the businessman insists that the business model would succeed. He states: [If] people want to show off their new development cars – mainly race teams, there may be major automotive and manufacturers who will come and rent the facility for a day, two days, three days, five days a month and we are seeing that at Corby, at Silverstone, at Donington. The capacity for that market is very, very thin.

“So there are a whole bunch of industrial users who want to use that facility during shoulder periods.”