§ Mr. RowlandsTo ask the Secretary of State for Wales if he will make a statement about current proposals for regeneration and development in Merthyr Tydfil. [30677]
§ Mr. Ron DaviesI have been considering very carefully a number of issues which have been raised in connection with, and related to, the disposal by the WDA of the Waterglade and Thorn sites to Merthyr Tydfil Borough Council. My Department has also examined 673W these issues at a meeting on 13 February 1998 with the District Auditor and Merthyr under section 30 of the Local Government Finance Act 1982.
These matters, which relate to the actions of Merthyr in relation to contracts for the disposal and development of the Waterglade and Thorn sites, are of serious concern to me. I have not formed a concluded view as to whether Merthyr's behaviour over this period amounts to unlawful conduct or not. The concerns, which continue to be subject to inquiry by the District Auditor, nevertheless dictate that it is not in the public interest to complete the contract until the matter has been fully considered and resolved.
Accordingly, I have today used my power under section 1(9) of the Welsh Development Agency Act 1975 to issue a Direction to the Agency to the effect that the Agency shall not presently complete the contract of 9 February 1996 between the Agency and Methyr Tydfil Borough Council for the sale of these sites unless compelled to do so by an Order of the Court. I shall lay a copy of the Direction before Parliament as soon as possible. The interim Direction is, of course, subject to any view the Court may have.
My Department will offer whatever assistance it can to the District Auditor in pursuing her inquiry. I have also drawn my decision to the attention of the Police and my Department will give full co-operation to any Police investigation.