On the Right Track? Week In Week Out

Who thinks ?280m is a lot of money? It is a lot of money and that's how

much it's going to take to make this happen. The Circuit of Wales is

making big promises about jobs in one of Wales' poorest communities.

I'm that desperate - I know it sounds like begging, but I am that

desperate to get the opportunity. There's nothing wrong with wanting a

job. But can they make it happen? You don't know if they've got the

money, you don't know if they're going to create the jobs. I've no

means of knowing that - no. We reveal the company that wants

millions from the public purse. But the Welsh Government doesn't want to

talk about that. Has she had an opportunity to reconsider our

request for an interview? And we meet the man behind the vision. Can

you look me in the eye right now and say, yes, you are definitely going

to deliver? Plans to build create a world class

circuit in Ebbw Vale could certainly attract international attention.

Tonight we will be asking whether the Welsh and UK government are

right to spend tens of millions of pounds of public money to support

such a scheme. Will they create all the jobs promised or is this simply

spin? And is everything as it seems? It promises to be the bright new

start Blaenau Gwent so desperately needs. So far nothing has replaced

the 11,000 steel jobs which were lost when the works closed 12 years

ago. Today the site is almost unrecognisable. There's a hospital

there, sports centre, colleges, two new schools, completely transformed

from when I worked there. Ex-steelworker Hedley McCarthy now

leads Blaenau Gwent Council. He says the area needs the circuit of Wales.

That's where we'd be looking to be building the Circuit of Wales where

it intends to be. I suppose my initial reaction was pie in the sky.

Why did you think that? Well, it was such an unusual,

thinking-out-of-the-box proposal. Campaigners say it's in the wrong

place - on an 830 acre greenfield site next to the Brecon Beacons

National Park. But what about the birds and the wildlife? I think the

birds will fly off somewhere else. You think? Yes I do. The company

revealed its ?280m plans three years ago. They've been the talk of the

town. I think it'll bring business. It will bring jobs. Fantastic.

Anything that creates job opportunities - I'm all for it. I

think that's what we need round here - not so much to get the women here,

to get the men here! The developers said diggers would be

on site before Christmas, but it hasn't happened. For the company,

the race has already begun, to develop the circuit, the hotels and

the grandstands on this site in time to host MotoGP in September 2015.

Since 2011, the company's made big, bold promises on the streets and

online. I'm Michael Carrick, chief executive. What we are confident of

is it will make a difference what we are hopeful of, is that it will

change the whole of the valleys region. That we can anchor long-term

sustainable employment. It's promising more than 1,600

apprenticeships, and it's the biggest investment in the region

since steel. They say It will generate ?50m a year for the Welsh

economy. At the local college it's raising hopes. I get motivation to

apply for jobs - go through a phase of applying for a lot, and if I

don't hear anything back it knocks my confidence. And I start thinking,

"what's the point?" half the time. But you got to keep going.

19-year-old Jack enrolled on his college course because of the

circuit's plans. It would be a future something to look for. At the

moment I'm scrabbling around. If this went ahead it's something that

could last for life. And fellow student John hopes the development

could bring his first permanent job. This could be my lifeline, because

there are so many people round here depending on this. And if it didn't

go ahead, well... John is 36, and he dropped out of school and drifted

from one temporary job to another. At one point I couldn't read or

write, so I thought, there's got to be something more than hanging round

doing nothing, so I came back to college started from scratch. Six

years on, he's is a trained electrician and he's about to

qualify as a plumber. With a partner and two children to support, he's

pinning all his hopes on the circuit. I'm keen, if I could start

up there I'd be up there tomorrow. They're preparing their CVs for the

company and an interview for one of the promised jobs. This is the man

who'll be interviewing them: Ebbw Vale Rugby club Chair Jonathan Jones

is the head of recruitment, and the local face of the company. It's a

double-edged sword being local. It's easier to understand people and

explain things, but if it does all go wrong, you are the guy who's

stood there and said this is going to happen. The company is running a

major public relations campaign. It has pledged ?2m to local good

causes. And it brought in Lord Kinnock as an advisor. The reason

was for their approach to me was fundamentally my local commitment,

local knowledge and fact they knew I would kill to get jobs in Wales. You

really needed the support of politicians at every level. People

like Lord Kinnock can help you access that. If they can believe in

you, they can help others believe in you. What have you been able to do

to help the company oil the wheels? It isn't so much oiling wheels,

obviously I've intervened to try to ensure there's real full

comprehension of the character and potential of this project in, for

instance, local council, and contacts within individual ministers

in the Welsh Assembly. Everybody has been very helpful. The Circuit of

Wales is challenging the home of British Motor Racing - Silverstone

in Northamptonshire. Stirling Moss, Jackie Stewart... Silverstone is one

of the oldest and best-known circuits in the world and the UK has

some of best fans in the world. It's been built up, and you can't do it

overnight. It's drawn thousands of motor industry jobs to the region

known as Motor Sport Valley. What was your impression when you were

told of this plan to build this new Circuit it of Wales in South Wales?

I've got no problem with competition, and a new circuit being

built, my problem is, is it viable? Because we know how much we struggle

to make money here. People who are supporting the circuit of Wales say,

he would say that. Yeah, I would say that, wouldn't I? That's true, but I

know events they want to take from us, but obviously we'd love to keep

them here, but they won't make a lot of money out of them. The Circuit of

Wales with its four tracks promises to be bigger and better than the

UK's other circuits. And it's in a bidding war with Silverstone to host

the prestigious Moto GP rally in September 2015. Last month I met

Jonathan Jones on the site. It's fair to say the weather was against

us. The vision is to create a spectacular race circuit utilising

the natural topography of the land There are people who will look and

say are you serious - why on earth are you building a racetrack here?

You have to have a little vision and imagination. Ultimately we have got

enough weather evidence to say during the race season it's no worse

than current tracks in the UK. Wouldn't it be just a easier if we

were three to 400 feet lower we are on the same altitude as the Brecon

beacons here. Maybe it would be easier, but

sometimes easier isn't always the best solution. The circuit is

crucial to the plan - without it there'll be no development on the

site and therefore no jobs. In 2012, Welsh Government gave the company

?2m to help develop its plans and secure the right to host the

prestigious Moto GP motor bike race by 2015. Last summer, having won

outline planning permission, Michael Carrick told BBC Wales he'd have no

problem finding the money to start building. Are you sure to get it?

Yes. Absolutely? Yes. Have you got it? We've been talking to our

investors for years this is an important step in moving us forward

with the documentation and the decisions about committing the

investment. But the company has never named those investors. How

usual is this, especially when it has already had public money and is

seeking more? It is actually very unusual. Justin Urquart Stewart is a

leading city investment expert. The one thing you need to do to

encourage people is confidence moving ahead in terms of the time

scale and the money and actual investors - who is participating?

The reason that's important is you need to have some lead people in

there to encourage the second group. The company has encouraged Blaenau

Gwent MP Nick Smith to support them. He's been championing their case.

But he admits, he doesn't know where they're getting the money from

either. Whenever I speak to Michael Carrick I say, $64,000 question,

every pun intended, have you got the money yet? And he tells me, Nick,

we're speaking to investors, I say who are they, he says can't tell you

cos it's commercially confidential but we hope to get that money. I

have to take that on his word and trust he gets stuck into it and gets

it. What's the most recent conversation you had? I spoke to him

two days ago. A week later I met Michael Carrick.

Why can't you tell us who the investors are?

Until the gone to their internal processes they are not going to

disclose and we are going to disclose.

Need ?200 million from investors. And you have a money in place?

No, we have people who are going through that aggregate process. You

don't actually have agreements in writing?

We have agreements, they are taking their agreements through their

processes. You're not ready give encouragement

if you just say, I can't tell you at the moment. What sort of

encouragement is that for anyone else?

In Ebbw Vale, the company's PR machine has been in overdrive,

touring schools, telling pupils what all this could mean for them.

Good morning, I'm from the Circuit of Wales project. Who thinks ?218

million is a lot of money? It is a lot of money. That is the amount it

will take to make this happen. That is the cost involved in bringing the

Circuit of Wales to life. It will be 3,000 jobs on the construction site.

There'll be 4-6,000 jobs created in this area. No longer will you have

to leave Blaenau Gwent to find a job and an opportunity, they'll exist on

your doorstep. The company likes to think big. The figure of 6,000 jobs

is theirs. They asked economists at Cardiff Business School to compile a

report that would examine how many jobs would come to the development

and in spinoffs across the region if the company gets all the investment

it's looking for and if it got major events like MotoGP. But what the

authors of the report were not asked to do was to test the likelihood of

those things happening. So, the question remains - how

accurate a picture was it? To open the door to Welsh Government and

public finance, the company asked the influential Welsh automotive

forum for help. Professor Garel Rees is its chair.

We do have lines of contact into the departments and so on. So we said

we'd try and do what we could. They then did get access to the highest

level, the top civil servants to the minister, if you like. So what we

were were, if you like, the conduit and the initiators of the scheme

itself to try to get people to look at it but make sure that you are not

being sold something that's not worth it. What about the forecast

that it will create 6,000 jobs? It increases expectations to an

incredible height and where are those going to come from? You need

incredible multipliers to get to 6,000. So I've thought when that was

said, this is silly. If you could have 1,000 plus on the heads of the

valley, fantastic. But really, a figure of 6,000 does no good to

anybody. Between 3,000 and 18,000 is the forecast. I mean, you can pick a

number. Professor Garel Rhys has told us that that's a silly figure.

Well, that's disappointing. I think we are going to deliver many, many

more jobs than that. Can you name any other business in the motor

industry that wants to buy into this project? There are a number of

businesses that are in discussion with us and the Welsh Government

that are coming to Wales because we are talking about doing this. Such

as? I'm not going to say them. If they want to disclose them, we can.

We are under dialogue and discussion with them. With the construction

course coming to an North End a few months, students Jack and John need

to find work fast. It's hard going but you can do things but no-one's

giving you the opportunity to do anything about it. Today, they are

preparing to meet the company's Head of Recruitment, Jonathan Jones, to

see if he'll give them an opportunity to use their

qualifications. I'll be telling the gentleman when I

see him, I'll willing to start at the bottom and work my way out up,

you know what I mean. I'm I'm not afraid to get my hands dirty,

whatever they put towards me, I'll do. First impressions. Thought I'd

better make myself look all right, otherwise if I turned up in a

tracksuit or something... I'm trying my hardest really to impress him.

Just prepared my CV for the interview rsmt I'm genuine,

trustworthy, focussed and hard-working when it comes to work.

Work experience is empty. It's an informal meeting at the rugby club,

but they are still nervous. A firm hand shake, say thank you for taking

the time to meet us. I'll get my point across at how bad I want some

work. Hi, Jack, nice to meet you... Thank you for taking the time to

meet with us. You are doing a plumbing course. Did you do any of

that in school? Just at college. I heard about this so went straight up

to the college then. Hopefully it will be local firms doing a lot of

the work at the circuit which should give you as a local person recently

qualifying a really good opportunity to get an apprenticeship. It's one

of the key reasons we use to give people a chance. OK, thank you very

much. Nice to meet you. Cheers. So, how optimistic is Jack?

Hm... Jack has made big decisions about his future because of the

promise of what the circuit might deliver. So what has the council

done to test these promises? Its officials looked at the company's

business plans and, because the Welsh Government supports the

scheme, the council has decided to support it too.

You give outlying planning permission, they are making big

claims. Yes. So you really want to know whether they can deliver, don't

you? I'm optimistic that they'll deliver. But what do you actually

know? I get the point about being optimistic. Yes. But what do you

actually know? A lot of those questions I think should be put to

the developers because they are the only ones who can answer them.

Because you can't, you just don't know? That's right. As things stand,

you don't know if they have got the money and are going to create the

jobs and you don't know how real those claims will eventually prove

to be? I've no means of knowing that, no. Unless people are checking

the figures right the way through, they are just merely signed up

because they are signing up and they've signed up and they are

working down the line until people say, has he actually got any clothes

on. That's where you really need to understand, where is the money and

the real strength to it. Back at the rugby club, it's John's

turn to ask for a chance. Hi, John, nice to meet you. I'm a

hard worker, reliable, I get on with people and that... Sounds like

begging but I'm that desperate to get the opportunity. There's nothing

wrong with wanting a job so never apologise for being keen to work. We

understand the local people are keen to work, just haven't had the

opportunity and, you know, there's no reason why, looking at your

qualifications, there wouldn't be a chance with one of the

subcontractors. Oh, I hope so. Kint wait. OK. Thanks for coming along.

Thank you very much for your time. Thank you. Look forward to seeing

you on the track. Thank you. Thank you.

But is the development on track? It's meant to be built in 18 months

for motor GP. The race is owned by multinational company Dorna and last

year its boss visited Ebbw Vale and was impressed. If it's ready the

beginning of the summer, it will be time to be in 2015. If not, we need

to think about 2016: But our focus is 2016. Notice he says "if" the

circuit is ready. Lord Kinnock has been busy making ssh you are the

First Minister is on board. Carwyn Jones is... You have spoken to him

personally? Yes, he's up to speed and he's committed. He had a long

meeting just weeks ago with Michael Carrick to go into detail about what

was potentially possible as a consequence of an enterprise of this

kind. Lord Kinnock says he's not being paid by the company but in

future he might receive shares if the project succeeds. Pf

For other racetracks, the Circuit of Wales is competition. Some say

there's too much spin surrounding the development and even if it

attracts big event, it could lose millions. Jonathan Palmer represents

Britain's circuit owners, he's an ex-Formula One driver. Events like

MotoGP, you would have to pay on the international market to the

promoters maybe between ?4 million and ?5 million. A good ballpark

figure. The events don't stack up financially as a commerce operation.

It's going to be a big white elephant -- comeshl operation. --

commercial operation. He told Blaenau Gwent about the concerns

after hearing about the grant. When we heard about the public funds, it

rang alarm bells so we thought we were duty bound to inform various

people about the considerations which we felt they probably weren't

aware of. Before giving the Circuit of Wales ?2 million, the Welsh

Government commissioned a due diligence report to look into the

background and assess if it was worth the risk.

We asked for a copy of the due diligence report, but we were

refused on the grounds of commercial confidentiality. Officials here

wouldn't tell us how much more public money the Circuit of Wales is

asking for, although we can reveal it's ?30 million.

The auditor general for Wales was asked to investigate why the money

was given. I don't know what has happened to that money. I don't know

what the Welsh Government has seen in return for that money. They are

simply failing to disclose the information. The auditor revealed

the Welsh Government is considering investing another ?30 million. She

also said the due diligence report didn't consider circuits can lose

millions a year, or that MotoGP might not come next year. It doesn't

look in sufficient depth or detail at whether or not the claims by the

company are accurate, whether they are deliverable and actually the

Welsh Government and the auditor have identified that it is high risk

and if it is high risk, you need to assess how great is that risk

because otherwise we are going to lose that money. That's money that

could be spent in other ways in Wales.

Why does the Circuit of Wales need ?30 million.

Less than 10% of public comun. In this economic in Wales it isn't a

large amount of public money. Reference to an infrastructure

project of ?300 million to ask for a 10% contribution from a public

sector. I think it's a modest contribution. ?30 million isn't

thele only public money they are asking for.

We discovered they are also now chasing after tens of millions of

pounds and this time it's from Westminster.

They've asked MP Nick Smith to help them apply to the Treasury for a

commitment to underwrite ?20 million. What they are trying to do

is to say, we are trying to get investors to spend ?280 million, we

are trying to get also support from the Government to give confidence to

investors. ?30 million from the Welsh Government. I'm not sure I

know what they've asked the Treasury for in Westminster and they'll have

to persuade the Government to support them. Back in Ebbw Vale,

there's no sign of progress on the site. There is a new problem that

could delay matters for months. Because the company wants to use

this site, hundreds of acres of common land to develop the project,

it will only be able to do that by law if it can find and register an

equivalent amount of common land elsewhere. That's taking valuable

time. The council are providing a portion of the land for us. 470

acres. So a major portion of it then, the local authority will find?

Have found. Have found? Correct. Blaenau Gwent council later told us

it hasn't finalised the deal. It's considering it.

These planning issues could take up to 12 months to resolve, so diggers

may not move in until next March at the earliest.

But that's not what the public relations man was telling local

children last month. Construction is starting this year, we are starting

to build it this year. That's how close it is. And by September next

year, we could have the first races taking place just up the road from

here. And he had more good news. There's going to be a leading motor

sports race academy, so the aim of the project is to feigned a future

world champion from Blaenau Gwent. It could be one of you or one of

your children in years to come -- find. Signing a dial with Dorna to

bring mow tore GP to Ebbw Vale is crucial to the deal. Have you done a

deal -- MotoGP. We are confident. Have you done a deal? Can't answer

that question, you know I can't. The answer is no? There are a lot of

things that are confidential that I can't put on a television programme.

Let me put it to you that the council have said that you don't

have an agreement? I would very much doubt that. We were told that this

morning, they don't have an agreement with you. ? They are

probably saying the same as what I've just told you, which is we

can't tell you about the discussions we are having. They are quite

emphatic about it. They don't have an agreement with you. I'm not going

to go into the detail. Well, it's a fact isn't it? Well, we'll agree to

disagree. Dorna has confirmed it has not signed an agreement for next

year and it's still analysing the possibility of hosting the event in

Ebbw Vale in future. We have been trying to interview the Welsh

Business Minister about why so much public money is being earmarked for

the circuit. You're the press officer aren't you?

I wondered whether she's had an opportunity to reconsider our

request for an interview? We'd already been told that the minister

doesn't have to give a reason for turning us down. OK, well, look

forward to hearing from you. It was still a no from the minister.

But today, new questions were raised about further grants to the circuit

and more transparency was called for. It's the requirement of me and

others and I would say in particular Welsh Government to scrutinise that,

to dig below the surface and to not fall for the spin.

The auditor general for Wales will also be keeping a watching brief. So

will the company build more than hopes in Ebbw Vale?

I am not optimistic or pessimistic, I'm simply realistic. I'll believe

it when I see it. For now, all that students Jack and John really have

are promises. It's good earning the qualmifications, but unless you can

use them, what's the point in gaining them? -- qualifications. It

will be devil stating. It would. -- devastating. If I was in Ebbw

Vale unemployed thinking about my career choice, I might be thinking

about doing something else. Tell me what else they are going to do? Just

boost everything. Happiness, jobs, money. You know, you can't be

certain about it, so... Just got to hope.

Can you look me in the eye right now and say, yes, we are definitely

going to deliver? We have to deliver. If we fail to do that, that

is an absolute disaster.