Welsh Government minister “broke ministerial code” resulting in a loss of millions

Welsh Conservative Suzy Davies AM calls for overhaul of ministerial code, which “lacks independence and transparency”

A former Welsh Government Cabinet minister has been accused by Welsh Conservatives of breaking the ministerial code when she approved a £3.4M package of support for a company, which she knew to have a “weak business plan” – and which later went into liquidation.

Following a freedom of information request, the Welsh Government confirmed that there was no record of a meeting between the First Minister and the former Minister for Economy, Edwina Hart, to discuss her decision to offer financial aid to a Swansea-based metal factory, based less than half a mile from her constituency.

Mrs Hart stood down at the last election and was previously AM for Gower.

In August, it was reported that Sir Alistair Graham – who chaired the UK Committee on Standards in Public Life from 2004-7 – said that possible jobs for Mrs Hart’s constituents, as result her financial backing of Kancoat, meant she was “facing a potential conflict of interest” between her role as an assembly member and her role as minister.

Paragraph 4.4 of the ministerial code, which sets out standards for ministers’ conduct, states: “Where ministers have to take decisions on their own portfolios which might have a particular impact on their own constituencies or electoral regions, they must take particular care to avoid any possible conflict of interest.

“Where ministers are uncertain about whether a conflict arises between their ministerial and constituency/regional responsibilities they should consult the first minister, for a decision as to how the business is to be handled.”

Suzy Davies AM, a Welsh Conservative Assembly Member for South Wales West, said:

“It is clear that in this case, whether through self-interest or poor judgment, the ministerial code was broken.

“Given the close proximity of  constituents to the Kancoat site, there was an obvious potential conflict of interest here, and she really ought to have sought the advice of the First Minister on this issue.

“But against the advice of her own government’s review, she rather foolhardily pressed ahead with this package of support which resulted in the loss of millions of pounds to the taxpayer.

“The decision comes off the back of a series of poor financial decisions made by the Welsh Government.

“I feel strongly that there needs to be an overhaul of the Ministerial Code, which in its current state lacks independence and transparency.

“It cannot be right that the First Minister is the sole arbitrator of these rules.”