Campaigner calls for probe into ‘failing’ rail testing centre

Martin Shipton

A transport campaigner has called on the Auditor General to investigate what he says is a doomed proposal to establish an international rail testing centre in Wales that has cost the Welsh Government tens of millions of pounds.

Dr John McTeague has sent every Senedd Member a copy of his appeal against Audit Wales’ decision to put any inquiry on hold pending a decision by the new Welsh Government.

In his appeal, Dr McTeague accuses former Transport Minister Ken Skates of being responsible for wasting £50m of public money on the Global Centre of Rail Excellence (GCRE) project at Onllwyn, on the border of Neath Port Talbot and Powys.

Audit Wales wrote to Dr McTeague stating: “We have no immediate plans to examine the GCRE project in more detail ourselves in advance of any decisions taken by the new administration. The Senedd’s previous Public Accounts and Public Administration Committee took an interest in the GCRE project’s progress and expenditure.

In its legacy report, the Committee noted that, following the Senedd elections, the new administration would need to make decisions about the future of the project and recommended that its successor committee keep under review and monitor issues relating to the Welsh Government’s financial support.”

Review

In his response, Dr McTeague stated: “Could the Auditor General please review your decision. An investigation should be carried out for the following reasons.

“The level of project funding that has been wasted, currently at £48m soon to rise to £50m million, is far in excess of any of the previous projects subjected to investigations by the Auditor General (eg Circuit of Wales £14.9m , TVR £12.35m, Gilestone Farm £4.25m.

“The Minister responsible for Transport, Ken Skates, introduced GCRE in July 2017 as a replacement for the failed Circuit of Wales project.

“GCRE was introduced in haste and was based on the French Railennium Centre opened in July 2017 after funding by the French Government of £475m supplied in 2011.

“It was not introduced in response to an industry led demand and was introduced as a political necessity to avoid the backlash from the Circuit of Wales project failure.

“Ken Skates misled the Welsh Government and Welsh Senedd by claiming GCRE with a rail testing and certification track, Research and Development Centre, Education and Conference facilities and a 100-bed hotel would be built at a cost of £100m.

“The ridiculous £100m cost was still quoted on 21 May 2019 by Ken Skates and escalated to £400m on 31/01/2023 when GCRE invited investors to fund the construction of GCRE. The 31/01/2023 launch failed to attract investors as did a second.

“GCRE are now saying that the £400m will only fund the rail test certification track. The Research and Development Centre, Education and Conference facilities and 100-bed hotel will be a future development progressed by private funding.

Invest

“On 03/12/2025 Finance Minister Rebecca Evans stated: “I understand that the GCRE team intend to reissue a call to invest in 2026.”” . There is no evidence this has happened

“Ken Skates also misled the Welsh Government and the Welsh Senedd regarding the suitability of a circular track with a maximum speed of 110 mph for use as a certification centre for high speed rolling stock.

“Ken Skates also misled the Welsh Government and the Welsh Senedd regarding the demand for a rail test certification centre. There is no demand from Europe and neither is there a demand in the UK.

“I can find no evidence that the Public Accounts and Public Administration Committee took an interest in the GCRE project’s progress and expenditure other than to include it in a list of projects as they did in their Legacy Report where you find the following recommendations: ‘As we pass these responsibilities to our successor committee, we have focused on legacy priorities that we believe require early attention in the Seventh Senedd. This includes: oversight of major financial interventions by the Welsh Government, including funding Cardiff Airport, TVR Automotive and the Global Centre of Rail Excellence. Recommendation 29 The Committee recommends that our successor Committee keeps under review and monitors issues relating to the financial support provided by the Welsh Government to The Global Centre of Rail Excellence; TVR Automotive Ltd; Gilestone Farm.’

“The Global Centre of Rail Excellence, which is a current project, was added on to a list of previous failed projects. The only reason that the Public Accounts and Public Administration Committee would add GCRE to a list of failed projects is because they were not satisfied with the responses of WG ministers regarding GCRE.

“The £50m did not belong to Ken Skates, The £50m belonged to the public and the Auditor General should investigate why it has been squandered. The Welsh Senedd Committees are clearly incapable of doing so because of obstruction by Welsh Government Ministers.

“There is no evidence that any scrutiny whatsoever was applied by the Welsh Government before 07/02/2024 when GCRE expenditure had reached £28m.

“The Auditor General has a duty to investigate complaints made by the public and is not restricted to dealing solely with the new Public Accounts and Public Administration Committee.

“The GCRE case involves 9 years of deceitful activity by Ken Skates and the wastage of £50m, which has gone unchecked due to obstruction of Welsh Senedd members’ questions and Scrutiny Committees by Welsh Government Ministers.

“The Auditor General using his statutory powers can obtain the facts relating to GCRE that have been withheld by Welsh Government Ministers.

“CONCLUSION: “The Auditor General should investigate GCRE now and not wait for the new government to close down the project. This is doubly important to ensure that the new government is aware that the Auditor General will be rigorous in dealing with any future cases of deceitful activity by Welsh Government Ministers and wastage of taxpayers money.”

Mr Skates is now the Interim Leader of the Senedd’s Labour group. We sought comment from him and from Welsh Labour, but neither responded to our message.