Can Wales prosper without the WDA?

Helen Thomas, Partner 

Over the years, there were very mixed messages about the role of the Welsh Development Agency in the Welsh Property Sector.

Some may say that they became a competitor to private investment, and indeed there were examples of this where the Agency were openly bidding for land on the open market against the private sector and generally winning the bid. This was obviously outside the general statutory remit of the Agency which was to bring forward land for development by others, and the private sector disgruntlement was loud. Generally however, the private sector recognised and used the Agency’s enabling powers and expertise.  Land acquisition on a massive scale, major regeneration and inward investment, unlocking difficult land issues and despite the highly publicised (almost hysterical) reaction to LG’s demise, the Agency was an incredibly successful organisation in the regeneration of Wales in the post-industrial era.

The demise of the WDA was ill thought out.  The now First Minister, Rhodri Morgan, in the years prior to the National Assembly for Wales coming into being, was a famous opponent of the activities of the various quangos in Wales, most notably voicing opposition to the activities of Cardiff Bay Development Corporation (especially the barrage) and the WDA.  There ensued the ‘bonfire of the quangos’ and, whilst it is accepted that many of the quangos that were made obsolete actually had served their purpose or had activities duplicated elsewhere, the closure of the WDA was done because NAW had the power to do it, rather than with any justification. 

Removing the quasi-autonomous status of the activities of the WDA by simply ‘merging’ it with the Assembly achieved two things.  Firstly an enormous expense for the Welsh taxpayer in devolving the Agency into the Assembly, and secondly the creation of a layer of bureaucracy which is unsurpassed in its ability to block, prevent, delay or otherwise scupper the private sector in development terms in the Principality.

The Assembly is too big. It is not forward thinking enough to generate private investment and development in Wales. We now have the ludicrous proposition that the Assembly is able to promote compulsory purchase orders as an ‘acquiring authority’ and confirm them as the ‘confirming authority’. Who said that the development of St Athan on such a massive scale (bearing in mind what happened to DARA) was necessarily in the economic interests in Wales?  They did.  The Assembly is promoting a compulsory purchase order and undoubtedly the Assembly will confirm that order. To separate the Welsh Ministers from the Welsh Assembly Government is, of course, a nonsense. This smokescreen attempts to show the autonomy of each to the other, when of course the WDA was truly autonomous and accountable.

There is much work to be done in Wales.  Regeneration of the Valleys is still a high priority, but we no longer have a regenerative body.  The Assembly has other priorities, too much to do, and it’s obvious that the economic regeneration of Wales through investment in property & attraction of inward investors has stalled.

It is such a shame that lessons were not learned from the wind up of Cardiff Bay Development Corporation and, before that, the Land Authority for Wales.  Both those bodies, staffed by property entrepreneurs, with quasi-private sector powers, achieved so much for the regeneration of post-industrial era Wales along with the WDA.  It was political will, rather than proper thought out policy that ended those bodies – there were too many quangos, so we must get rid of them.  Not much thought was given into the appropriateness of the quangos selected for the said ‘bonfire’.  It is a crying shame, but sadly typical, that history repeated itself when the WDA was ‘merged’ into the Assembly.

In my view, the WDA was brought to an end because the Assembly had the power to do it.  It thought that it should deliver the strategic goals and duties of the Agency (and undoubtedly take credit for them).  It could do it, so it did.  Look elsewhere in the UK. Development Agencies across the country are forward-thinking, empowered and working hard for the regeneration of their areas. It will be a natural consequence that, as we are no longer represented by a dedicated Development Agency, inward investment will be attracted elsewhere. In my view the Assembly will then scratch its head and wonder what went wrong.

For more information please contact Helen Thomas.  E: h.thomas@capitallaw.co.uk T: 029 2047 4498

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