Councillor Slams ‘Half-Truths’ Of Bluestone Shares Revelations

A former Pembrokeshire council leader has hit back at “half-truths” after it was revealed a £1.9m council investment in Bluestone was converted to shares which lost it £1.8m.

The loss, following behind-closed-doors decisions made more than a decade ago by the council’s previous administration, was made public at the May 11th meeting of Pembrokeshire County Council by Cabinet Member for Corporate Finance, Cllr Alec Cormack.

Members also heard this secretive decision had led to the loss of a guarantee  that  members of the public, rather than just Bluestone guests, would be able to access the Blue Lagoon waterpark.

Cllr Cormack made the shocking revelation in response to a submitted question by Councillor Alan Dennison.

Cllr Dennison had asked: “Given the council’s previous investment in Bluestone of a £1.9 million secured loan, now converted into shares, can the Cabinet member advise what return on investment per annum has been received over the last five years in share dividends or any other form of income?”

The £110m Bluestone eco-resort, near Narberth, opened in August 2008.

Early on, the county council invested two loans, adding to a total approaching £1.9m, the lion’s share in respect of Waterworld – now called the Blue Lagoon – with the key justification being there would be year-round public access for the public.

In November 2009, the council’s Cabinet – under the-then council leader Cllr Jamie Adams – made a behind-closed-doors decision, removing the loans and the guarantees, and taking up the shares.

Details of the discussions and background to the decision made at that meeting are still not available to the public.

At last week’s meeting, Cllr Cormack said the November 2009 Cabinet report was confidential, so he couldn’t say what was in it, but said he could tell members “what was not in it,” saying there was no clear justification for taking up the shares or for giving up the legal charge guaranteeing the loans and no evaluation of the pros and cons, or evaluation of a fair share price.

Members heard the value of the shares amounted to – at best – under £70,000, and had paid out £19,000 in dividends over the last five years, with the highest dividend in a single year amounting to £5,250, in 2019-20.

“The council’s lost £1.8m of the £1.9m – roughly 95 per cent – of the IPPG investment and the public’s lost the guaranteed right to use the Bluestone pool,” said Cllr Cormack.

Speaking after the May 11 meeting, Cllr Jamie Adams hit back, describing it as “half-truths”.

“The desperation of the current failing administration to cling to power is demonstrated by a reliance on half-truths from 14 years ago,” said Cllr Adams.Referring to a challenge to current council leader David Simpson – due to take place this Thursday – he added: “If required, I will be more than happy to reference these matters at the debate on Thursday May 18^, when there is an opportunity to remove Cllr David Simpson from his position and to allow a fresh perspective to be taken which delivers for the people of Pembrokeshire.”