Circuit ofWales backers hit back at MP’s attacks
THE team behind the Circuit of Wales project which aims to build a centre for motorsports near Ebbw Vale has said that efforts by Monmouth MP David Davies to derail the plans will not succeed.
Mr Davies said in the House of Commons on Thursday that it was time to “pull the plug” on a “pipedream”, stating: “If the Welsh Government wants to put £200m of our money at risk there are better ways of doing it, better people to be doing it with.”
The backers of the project are making a formal complaint to the Parliamentary Commissioner for Standards. They have also issued a point-by-point rebuttal of the claims made in Mr Davies’ speech.
The Heads of the Valleys Development Company, which is working to make The Circuit of Wales a reality, attacked Mr Davies in a statement.
It reads: “In the House of Commons yesterday, David Davies MP hid behind the cloak of parliamentary privilege to make wilfully misleading statements about The Circuit of Wales, for what can only be read as party political and/or personal motivations.
“Mr Davies has been provided with ample information that would enable him to gain a full and properly representative view of The Circuit of Wales scheme, which seeks to deliver £425m of desperately-needed investment to Blaenau Gwent and the surrounding valleys.
“He should be fully conversant with the highly robust development plans behind the project, which have been subject to public inquiry and various and detailed stages of rigorous and independent due diligence already. “Clearly he is not. “Mr Davies has either chosen to systematically ignore the facts that have been set out to him for political gain – or he seriously struggles with financial literacy.
“Mr Davies has consistently disseminated misinformation and falsehoods that stand in stark contrast to the positive, constructive support for The Circuit of Wales’ from numerous renowned private and public sector organisations that have put their faith in the project, and – importantly – the local communities across Blaenau Gwent and Ebbw Vale.
“There is an extraordinary inconsistency between Mr Davies’ views and those of his constituents - and, indeed, fellow members of the Conservative Party, who have come out in support of the project.
“Mr Davies’ attempts to undermine the efforts and energies of a highly-motivated, professional and qualified team will not succeed. We continue to engage closely and constructively with the Welsh Government and our first-rate partners through the confirmatory due diligence and final documentation stage.
“We remain determined to bring our exciting vision to life and to bring vital jobs to Blaenau Gwent – in addition to Monmouthshire and many other south Wales communities – once construction commences in the spring.”
The detailed rebuttal defends Michael Carrick, a central figure in the Heads of the Valleys Development Company (HOTVDC) and regeneration investors Aventa.
In the Commons, Mr Davies said: “[Mr Carrick] decided to appoint a financial consultant to give advice to this scheme, and the company he appointed was Aventa, a company which he 100% owns and controls. In effect, he paid himself nearly £1m of public money to give himself advice.”
The rebuttal states: “As David Davies well knows, Aventa is an authorised and regulated asset manager and has a contract with HOTVDC to provide regulated advice. This has been fully disclosed to the board, remuneration has been set and benchmarked against other professional firms and a significant proportion of its fees are contingent and on success.
“It is entirely misleading to infer that Michael Carrick has received £1m and he has not. Michael Carrick has received no salary from Aventa since inception and all its income is used to pay its costs.
“Mr Carrick has also made a substantial personal investment in the project.”
It also rejects the claim in the Commons that Aventa “spent £35,000 on landscape gardening”, stating: “Aventa did not spent £35,000 on landscape gardening. Aventa has an office in a separate building adjacent to Mr Carrick’s home in Cambridge and these costs were incurred in maintenance of this space as per its agreement.”
The rebuttal adds that “Michael Carrick has invested a significant amount of his own personal capital, well over £2.5m, has provided personal guarantees to banks and professional firms and has through his own reputation managed to attract and retain the leading institutions, firms and professional services firms to support this project and share risk in doing so.”