Hain concern at Hyder bid

Hyder's position has raised concerns of a break-up

Government minister Peter Hain is privately urging moves to block a possible bid for Hyder from US electricity distributors Western Power.

Mr Hain has written to the Trade and Industry Secretary Stephen Byers to warn him of the effects he believes a Western Power takeover would have on jobs in Wales.

"If Hyder is lost to an asset-stripper...then something very significant will be lost to Wales

Peter Hain MP

The letter, which has been obtained by BBC Wales, advises Mr Byers to demand commitments from Western Power on jobs, investment and the location of the company's headquarters.

He said those commitments have already been given by the Japanese investment bank Nomura - the front-runner to take over Hyder.

'Public interest'

Nomura, said Mr Hain, had given assurances about the future of Hyder and agreed to contain job losses in line with union agreements.

Mr Hain warned: "If Hyder is lost to an asset-stripper interested only in the core electricity business, then something very significant will be lost to Wales.

"If the Western Power bid goes ahead, it is in the public interest that it should be referred to the appropriate authorities for due consideration."

He said of Western Power's interest: "Clearly, a company with a HQ in Bristol is unlikely to retain a second one in Cardiff.

"Having a HQ in the Welsh capital, Cardiff, is an important symbol.

"The attendant job losses would be inevitable, estimated to be an additional 1,000."