Senedd Committee calls on Welsh Government to review Development Bank of Wales

The Senedd’s Economy, Trade and Rural Affairs Committee is calling on the Welsh Government to carry out a full review of the Development Bank of Wales.

Seven years after the Bank was set up, the Committee carried out an in-depth inquiry into how it is performing and the extent to which it is fulfilling the Welsh Government’s aims – today it’s reporting its findings.

The Committee also looked at business support and is calling on the Welsh Government to carry out a review of Business Wales’ functions and examine the possibility of adding its functions into the remit of the Development Bank of Wales, and to focus on streamlining the offer of support for businesses.

Due diligence

Paul Davies MS, Chair of the Economy, Trade and Rural Affairs Committee said: “The Development Bank of Wales is quite rightly independent of the Welsh Government, but it is funded with public money.

“It’s therefore only right that after seven years the bank’s performance, due diligence as a lender and its complaints procedures should be looked at and reviewed to reflect changes over the years.

“There are some concerns over how aligned the Bank’s priorities are with the Welsh Government’s economic strategy. We’re therefore also recommending there should be regular reviews of the Bank’s remit.

“Our report makes 13 recommendations in total, which also include further building on the Bank’s success in supporting employee buyouts, more understanding of how it supports community energy schemes, and more analysis to understand the full impact of the Bank’s investments on the Welsh economy.

“We’re calling on the Welsh Government to give full and careful consideration to the views and recommendations of all those who responded to our call for evidence.”

Recommendations

The Committee has provided a number of recommendations for the Welsh Government and Development Bank, including:

• reviewing its approach to succession planning and employee buyouts
• better understanding the impact on the Welsh economy of the private funding brought in as a result of direct investments by the Bank
• reviewing whether the Bank should be placed on a statutory footing
• reviewing its due diligence processes to identify whether there is a need to strengthen them