The First Minister of Wales says his government will seek to recoup a £245,000 subsidy it gave to Newsquest if the company is found to have breached the conditions of the grant.
Carwyn Jones, left, told the Welsh Senedd he could take the measure after the regional publisher announced plans to shut its production hub in Maesglas, Newport, earlier this month.
The Welsh government previously provided £245,808 to Newsquest towards the creation of 50 jobs and the safeguarding of at least 15 jobs at the facility, with the award being conditional on the jobs being in place until May 2020.
Speaking at First Minister’s questions this afternoon, Mr Jones said the company had “exceeded” the job creation target. However, Newsquest plans to cease all copy-editing at Newport from 7 April with the loss of 14 jobs.
Mr Jones was quizzed on the grant by Tory Assembly Member Mohammad Asghar, who asked what action the Welsh government would take to safeguard the investment in supporting employment in Newport.
The Labour leader responded: “In 2015 we provided £245,808 to the company towards the creation of 50 jobs and the safeguarding of 15 jobs at the facility in Maesglas.
“That was exceeded, but the award was conditional on the jobs being in place until May 2020.
“If that condition is not met then we will look to recoup the money.”
A Newsquest spokesman has previously said: “We are in constant discussions with the Welsh government.”
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As long as yet more staff aren’t laid off to fund the repayment then they should be made to pay every penny back, it should be funded by the board members personally though we all know this will just be used as another reason to lay even more staff off, expect an announcement to this effect once the decision to force a repayment is annoying need.
While they’re at it maybe the Welsh govt, could investigate the reasons behind the huge number of subs being made redundant in this matter too.
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I too agree with the first comment ,if NQ have failed to meet the criteria and terms in the funding agreement then they must surely expect to repay the full amount and with interest, however my fear is if they do they will use this as another reason to put yet more staff into consultation citing the repayment costs as the reason for this latest round of job cutting.
With regional publishers axing editorial jobs and downsizing their news rooms it seems ridiculous to think they are being subsidised to retain staff, as businessss operating in a free economy surely they need to manage their own costs and mind their own businesses rather than expect the tax payer to bail them out, no other business or industry would be propped up to such an extent or expect others to fund their losses.
Did they share their profits when they were raking it in?
I don’t think so, I’m sure nice bonus payments weee enjoyed based on reducing staff numbers and with it related cost savings.
There ought to be a proviso that the money needs to. be repaid in full without any further job cuts
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As a sub who lost my job in Bradford when the hub moved to Newport (and who wrote to the then business secretary Vince Cable asking if moving jobs from one region to another by dint of regional grants wasn’t robbing Peter to pay Paul), this looks like Newsquest robbed Peter then declined to pay Paul
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Newsquest still in “constant discussions” with Welsh government.
‘You owe us £245k.’
‘No we don’t.’
‘Yes you do.’
‘No we don’t.’
‘Yes you do.’
‘No we don’t’… etc
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