Commerce chamber in liquidation

The chamber provided training, advice and support to Cardiff firms

Cardiff Chamber of Commerce - which has represented thousands of companies around south Wales for the past 140 years - has gone into liquidation.

It said it was unable to pay off old debts after it was paid money by the former learning and skills council ELWa to which it was not entitled.

Debt was also due to "irregular claims for payment made by former officers," said the assembly government.

The chamber has been trying to pay back the money since 2004.

When it went into liquidation, the chamber, which provided help, support and training to businesses, had 1,400 members.

The British Chambers of Commerce said it would work to ensure businesses in Cardiff will continue to receive the benefits and services that come from being chamber members.

What does a Chamber of Commerce do? It acts as a voice for its members and can raise issues for them with organisations such as the Welsh Assembly Government It gives businesses the opportunity to network with other firms and to grow It has a specific role with helping businesses concerned in the area of exports

It also said it would try to establish a "chamber presence" in Cardiff as soon as possible.

The Welsh Assembly Government, which took over ELWa, said it "greatly regrets the difficulties" the chamber was facing.

"It is unfortunate that the current management of the chamber have inherited an outstanding debt, incurred in large part following over payments of training services and irregular claims for payment made by former officers of the chamber," it said.

"Whilst we have done all in our power to secure a favourable outcome this has proved impossible owing to the nature and size of the debt and a continued deterioration in their financial position."

It said in recent weeks approaches were made to assembly government funding body Finance Wales for a short-term loan. An offer was made, conditional upon approval and deferment of repayment of the outstanding debt.

"However we have received legal advice that this condition could not be met," the statement added. Deferment of the outstanding debt would be considered in contravention of European state aid law.

'Heavy heart'

In a letter to members, chamber president Paul Gardner said it took the decision to appoint a liquidator with "a very heavy heart".

"The board feels particularly sorry for the chamber staff, none of whom were responsible for these problems, but all of whom have worked tirelessly to deliver an effective solution to the chamber's ills and whose drive over the past two years has ensured the chamber has enjoyed considerable successes with a much improved profile and improved service quality," he said.

A British Chambers of Commerce spokesman said: "We are committed to ensuring that businesses in Cardiff will continue to receive the benefits and services that come from being Chamber members.

"We will be working with the business community of south Wales to ensure that a chamber presence is re-established as soon as possible in Cardiff."

Until then, businesses are being urged to contact chambers of commerce in Newport and Swansea.

David Russ, of the Newport and Gwent Chamber of Commerce, said its staff would help Cardiff's members out with any queries, including helping to process documentation required for exporting goods.

This is required by the Department of Trade and Industry and is carried out by chambers of commerce.