06/04/2016 BBC Wales Today


06/04/2016

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Welcome to Wales Today.

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Our top stories: There were hopes it would stage motorsport events

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and bring up to 6000 jobs but tonight, a big question

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mark over the future of the Circuit of Wales.

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And the man who could buy Tata's steel business here admits there's

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a lot of work to be done before any deal can be agreed.

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Good evening.

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It's a project which has promised thousands of jobs

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and a transformation of Ebbw Vale but tonight,

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there are big question marks over the future of the Circuit

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of Wales race track.

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It follows a decision by the Welsh Government

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that they cannot underwrite investment worth more

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than ?350 million by the insurance firm Aviva.

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Independent advice has questioned the viability of the project

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and what's described as an unacceptable risk

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to the government.

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With the latest, here's Iwan Griffiths.

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It was seen as an ambitious project with a potential to change the whole

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of the Heads of the Valleys area. The aim was to bring thousands

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of paying customers to Ebbw Vale, drawn to South Wales to enjoy

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motorsport events like the MotoGP.

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The Circuit of Wales promised up to 6000 jobs.

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The people behind the project have always insisted

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that the money is there.

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So how much money have you got pledged now?

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The full amount.

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The full amount?

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?300 million you've got pledged?

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We've got it pledged but you have to close it down, and then some

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of that includes Welsh government approvals,

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again not yet closed down.

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But tonight, the sticking point has come over the Welsh government

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being asked to provide a financial guarantee to the privately

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funded project.

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Insurance firm Aviva have been expected to back the project

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to the tune of ?357 million.

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Ministers have taken legal and financial advice,

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and it was after final external advice that the economy minister

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reluctantly came to the conclusion not to proceed with a guarantee.

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You have got to look at that we are now being

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asked to undertake.

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One time, when we started to talk about this project,

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we knew we might have partners that would be private sector investment.

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It went then from talking about ?35 million weeks ago now

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to over ?350 million as a guarantee, and was a 100% guarantee.

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People have spoken about whether we could have

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done a lesser guarantee.

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Could we have done 80%?

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But Aviva, who are the other partners in this, were not even

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prepared to guarantee that 20%.

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In a statement, Heads of the Valleys Development Company

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said has said they respect and understand the Minister's

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decision on the support for a 100% guarantee for the private funding

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and will continue negotiations with the Welsh government,

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the local authorities and Aviva investors to advance

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the development on revised terms.

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The town has had many millions spent regenerating it after the steelworks

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employing 10,000 people in its heyday in the 1960s

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closed in 2002.

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Unemployment has remained high.

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The Circuit of Wales project was seen as a way of bringing jobs

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and further investment to this area.

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Tonight, the vision of seeing these kind of scenes in South Wales

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will depend on finding a private sector backer who is willing

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to take more of a risk.

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Liberty Steel could buy Tata's plants in a matter of months

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if a deal can be agreed.

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Its boss, Sanjeev Gupta, told Wales Today that there's

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still a lot of work to be done but so far, no other buyer has

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come forward publicly.

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Here's our business correspondent, Brian Meechan.

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Liberty Steel says it's hard positive talks with the UK and Welsh

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government about its plans to take over Tata's operations.

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Its Newport site sits across the river the power

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station, which is also owned by the Liberty boss' family.

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The steel industry, including Liberty, has

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been calling for the UK Government to take action to reduce energy

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costs for years.

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It's been one of Tata's frustrations that ministers

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haven't been willing to go further.

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The question now is whether this current crisis means that the UK

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Government has been pulled far closer to where the steel industry

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wants it to be, reducing those costs.

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Liberty wants to develop an

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energy park here, including a biomass facility and tidal lagoons

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for Cardiff and Newport.

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It has shares in the company behind the

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Swansea Bay tidal lagoon.

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Making energy cheaper for all is the key to

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reducing costs for the steel industry.

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Tidal lagoon is one of

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those technologies which will transform the way energy is made

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globally.

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In due course, it should be given every attention, and even

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more so now that we want to propose to turn the UK steel

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industry into a recycling industry, which requires a lot of energy.

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There are sticking points to any deal, though, not least Tata's

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pension liabilities.

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The company's scheme covers 135,000 people in the

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UK.

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It has assets of ?14 billion and a deficit

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of almost ?500 million.

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Though that has been falling, it could increase to billions in

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future.

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The Secretary of State has identified that is a clear issue as

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well.

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Everybody is aware it's an issue and everybody is aware that

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the issue has to be addressed.

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European state aid rules may stop the UK Government helping directly.

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One solution, though, could be the government buying

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the sites from Tata and immediately selling them to

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Liberty, as was done in Scotland. Another concern for Liberty will be

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that if it buys Port Talbot, it will be going head-to-head

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with Tata's most

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successful steelworks in Holland, including trying to sell to car

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companies in the UK, not least Tata-owned Jaguar Land Rover.

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While accepting it's a problem, Sanjeev Gupta says

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it's early days.

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He's also not ruling out continuing to make steel

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from scratch at Port Talbot for some time while introducing recycling.

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It would take at least two years so the

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process would be probably that we go to one blast and we will see how

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they are operating and compare the economics.

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If it can't make heavy steel production work at Port

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Talbot, Liberty is still interested in parts of the site as well as

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others.

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The Business Secretary has been meeting Tata bosses in Mumbai.

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The sales process begins in earnest on Monday.

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A man has been charged with causing death by dangerous driving

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after a father and son died last December.

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Stuart Bates and his seven-year-old son, Fraser, were killed

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as they crossed this carriageway near Talbot Green

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in Rhondda Cynon Taf.

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22-year-old Joshua Staples from Tonyrefail has

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been bailed until May.

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Welsh Anglican bishops have ruled out an attempt to change the law

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to allow same-sex couples to marry in church.

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The Archbishop of Wales says there's concern the issue

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could tear the church apart.

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Welsh bishops have though unreservedly apologised to gay

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and lesbian churchgoers for the way they've been treated.

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and lesbian churchgoers for the way they've been treated.

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There is no point in doing something for it to fail.

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You need a body of people behind you and we need them

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to do it happily and graciously and joyously rather

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than half-heartedly.

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And I hope that that will eventually happen.

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Newport Gwent Dragons chief executive Stuart Davies says

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the announcement of sale plans is the start of the process

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in attracting new investors.

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The region is seeking new investment to take over shares currently

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held 50-50 by the WRU and Newport Rugby Club.

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They don't have any parties lined up but Davies has described it

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as an exciting opportunity.

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Let's get the weather forecast now with Derek Brockway.

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Hello.

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Just when you thought spring had arrived, it feels

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more like winter again, and that's the story for tomorrow.

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Winds from the Arctic bring in more showers.

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Tonight, windy with showers, heavy in places, hail

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and thunder possible and snow on the hills and mountains.

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Gale force winds in the north-west with temperatures

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staying above freezing.

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Tomorrow, rain across North and mid Wales will spread its way

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southwards, sleet and snow on some of the hills and mountains

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with fresh to strong winds, making it feel cold.

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Across the rest of the UK, a band of rain will spread southwards,

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breaking up into showers.

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Elsewhere, sunny spells and showers, heavy showers

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for the north-east of England.

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South-east Scotland, hail and thunder possible.

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Fewer showers in Northern Ireland in the afternoon.

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Feeling cold and windy.

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Top temperatures 10 Celsius in Liverpool, 12 in London.

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Close to home, still a few showers tomorrow afternoon but some drier,

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brighter spells as well, a little sunshine.

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Temperatures not great.

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The winds slowly easing.

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Highs 8-11dC.

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Tomorrow night, still a few showers about but generally looking

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drier, some clear spells.

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The wind falling light and chilly.

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Friday promises to be a better day but it won't last.

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This frontal system over Ireland is heading our way.

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So dry and bright for a while on Friday, some sunshine,

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light winds, but rain will spread across the country

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during the afternoon and evening.

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And it's looking very mixed for the weekends.

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Some sunshine on Saturday together with a few heavy showers.

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Most of Sunday dry with a freshening south-easterly wind but rain may

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reach the South on Sunday evening.

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That's Wales Today.

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From all of us on the programme, goodnight.

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