Board delays BAe funding decision

BAe has added pressure by re-submitting for grant aid

BBC Wales has learned that an advisory committee has failed to reach a decision on whether to grant £25m of grant aid to BAe's Airbus wing project in north Wales.

The Welsh Industrial Development Advisory Board has considered a re-submitted application from BAe Systems.

WIDAB's members were unable to reach a decision and have written to the company seeking further information on the application.

Former Welsh Secretary Ron Davies said the whole grant application process "left a lot to be desired".

I would like to see Mr Morgan come to the Assembly and make a full statement on this matter of great importance

Dafydd Wigley, president Plaid Cymru

BAe said the grant aid was essential to build a factory extension at its Broughton plant in Flintshire and to secure 1,400 new jobs for the A3XX wing contract.

Assembly First Secretary Rhodri Morgan - who returned from a trade mission to Australia on Friday - turned down BAe's first application earlier this year on the advice of WIDAB.

The decision prompted concern among union leaders at the Flintshire plant and north Wales MP Barry Jones lobbied Welsh Secretary Paul Murphy on the issue.

Dafydd Wigley: 'Matter of great importance'

Plaid Cymru President Dafydd Wigley has tabled a written assembly question to Mr Morgan asking for a statement on his assessment of BAe's bid.

"As soon as Rhodri returns from his jaunt to Australia I would like to see him come to the Assembly and make a full statement on this matter of great importance and urgency to north Wales.

"It is shameful that the First Secretary of Wales should be willing to risk 1,400 jobs in north Wales.

"The Labour government must work for all areas in Wales."

Mr Morgan has emphasised his support for the A3XX project and said all "other options" would be discussed with the plant's staff and management.

But BAe, which has begun taking orders for the new aeroplane,wants to clear up the issue of the £25m of Regional Selective Assistance (RSA).

'Decision to invest'

BAe's re-submission for grant aid has added to the pressure on Mr Morgan, who must ratify - or overrule - any decision by WIDAB.

Last month, Opposition party members forced a vote to debate a re-think on the issue of grant aid for the plant.

Tom Middlehurst: Morgan behind plant

Assembly Cabinet secretary Tom Middlehurst said Mr Morgan did support the A3XX project, the workforce and the management.

"Both he and I want to ensure that BAe Systems are able to make the decision to invest at Broughton," Mr Middlehurst explained.

"Rhodri Morgan has promised to explore fully with the company every option including a revised RSA (Regional Selective Assistance) bid in order to secure the company's commitment to the Broughton workforce."

Mr Middlehurst, AM for Alyn and Deeside, said that he had arranged a meeting of north Wales Labour AMs and the First Secretary to push the case for the project.

"The Broughton plant employs workers from throughout north Wales.

"I want to see those opportunities of good employment continue and grow here in north Wales."