Register Members List Member Map Media Calendar Garage Forum Home Mark Forums Read

Go Back > News & Media > Motorcycle News & Media > Racing News
Forgot info?

Welcome to! You are currently viewing our forums as a guest which gives you limited access to the community. By joining our free community you will have access to great discounts from our sponsors, the ability to post topics, communicate privately with other members, respond to polls, upload content, free email, classifieds, and access many other special features. Registration is fast, simple and absolutely free, join our community!

Register Today!

If you have any problems with the registration process or your account login, please contact us.

Like us on Facebook! Regular shirt GIVEAWAYS and more


Share This Thread: 
Subscribe to this Thread Thread Tools
Old 04-07-2016, 04:36 AM   #1
Senior Member
Join Date: Nov 2008
Feedback Rating: (0)
Posts: 140,778

Welsh Government says it cannot underwrite Circuit of Wales

But the project will continue with further negotiations

THE Welsh Government has said that it cannot underwrite the £357m of Circuit of Wales but although the future of the project now looks uncertain, CEO Michael Carrick has said that the project will continue with further negotiations.

After taking legal advice, Edwina Hart MP has said that there is an ‘unacceptable risk’ for the Welsh government to underwrite the project.

A decision on whether the investment of taxpayers’ money into the project is classified as state aid was expected earlier this week. Using taxes in this way is illegal under European Union Law, but lawyers for the Circuit of Wales had maintained that the circuit could provide up to 6,000 jobs in the area.

Hart’s reluctance to sign-off the project could result in it collapsing.

In conjunction with the Circuit of Wales, the government has been working to find a workable solution, so far without success, but has said that it will support the project if new investors can step in.

An open letter from Hart to Welsh First Minister Carwyn Jones, Hart said:

‘As you will be aware we have been working to support this project for a significant period of time and have already in effect spent around £9m in support of its development. We also explored sharing the risk with several local authorities, and as you are aware that option also failed unfortunately.

‘In these last few days we have considered that a guarantee of 80% of the total value of the project may have reduced our risk to an acceptable level, but the circuit have not been able to secure any real private risk capital and so this option has not been possible.’

Ministers had agreed to provide a grant of £16m to support the jobs created by the Circuit of Wales but negotiations began to stall once the Welsh Government was asked to provide financial guarantee to the funding from Aviva, which is privately backing the scheme.

Michael Carrick, CEO of Heads of The Valleys Development Company which is behind the project, has confirmed talks with the Welsh government and Aviva will continue with the plan now delayed.

‘We respect and understand the minister's decision on the support for a 100% guarantee for our private funding,” Carrick said. “While this was our clear preference and reflective of the negotiations we have held over the past six months, we accept that the project will need to progress on revised terms.

‘We will continue negotiations with the Welsh Government, the local authorities and Aviva Investors to advance the development on revised terms that will be acceptable to all parties.’

The Circuit of Wales has secured a five-year deal with Dorna which began last year. Dorna had originally hoped to move the British MotoGP to Wales in 2017 but after delays in confirming financial backing MotoGP had been delayed, with the Welsh circuit was expected to take over hosting duties in 2018.

  • Sign up for Visordown's weekly newsletter, Bugsplat, to get the best motorcycle news, road tests and features plus exclusive competitions and offers direct to your inbox. Register as a Visordown member here and tick the box for Bugsplat in your newsletter settings here.
Related Content

Circuit of Wales expected to announce Aviva as financial backer
Circuit of Wales has planning application accepted
Circuit of Wales racetrack project asks for funding
Silverstone MD's thinly veiled attack on Circuit of Wales
Circuit of Wales gets planning permission

NewsBot is offline   Reply With Quote
Similar Topics
Thread Thread Starter Forum Replies Last Post
MotoGP - Circuit of Wales hit as government cannot underwrite project NewsBot Racing News 0 04-06-2016 03:50 PM
Circuit of Wales has planning application accepted NewsBot Racing News 0 11-19-2015 08:40 AM
Circuit of Wales has its planning application accepted NewsBot Racing News 0 11-19-2015 07:30 AM
Final planning to begin for the Circuit of Wales NewsBot Racing News 0 11-19-2015 04:03 AM
Welsh Government accused of secretly funding Circuit of Wales scheme NewsBot Racing News 0 08-04-2014 11:50 PM

Thread Tools


All times are GMT -5. The time now is 11:24 AM. is not responsible for the content posted by users.
Privacy Policy