0:00:04 > 0:00:05Welcome to Wales Today.
0:00:05 > 0:00:08Our top stories: There were hopes it would stage motorsport events
0:00:08 > 0:00:10and bring up to 6000 jobs but tonight, a big question
0:00:10 > 0:00:15mark over the future of the Circuit of Wales.
0:00:15 > 0:00:17And the man who could buy Tata's steel business here admits there's
0:00:17 > 0:00:27a lot of work to be done before any deal can be agreed.
0:00:29 > 0:00:37Good evening.
0:00:37 > 0:00:39It's a project which has promised thousands of jobs
0:00:39 > 0:00:42and a transformation of Ebbw Vale but tonight,
0:00:42 > 0:00:45there are big question marks over the future of the Circuit
0:00:45 > 0:00:46of Wales race track.
0:00:46 > 0:00:48It follows a decision by the Welsh Government
0:00:48 > 0:00:51that they cannot underwrite investment worth more
0:00:51 > 0:00:56than ?350 million by the insurance firm Aviva.
0:00:56 > 0:00:59Independent advice has questioned the viability of the project
0:00:59 > 0:01:01and what's described as an unacceptable risk
0:01:01 > 0:01:03to the government.
0:01:03 > 0:01:11With the latest, here's Iwan Griffiths.
0:01:11 > 0:01:15It was seen as an ambitious project with a potential to change the whole
0:01:15 > 0:01:18of the Heads of the Valleys area. The aim was to bring thousands
0:01:18 > 0:01:20of paying customers to Ebbw Vale, drawn to South Wales to enjoy
0:01:20 > 0:01:22motorsport events like the MotoGP.
0:01:22 > 0:01:26The Circuit of Wales promised up to 6000 jobs.
0:01:26 > 0:01:28The people behind the project have always insisted
0:01:28 > 0:01:30that the money is there.
0:01:30 > 0:01:32So how much money have you got pledged now?
0:01:32 > 0:01:34The full amount.
0:01:34 > 0:01:35The full amount?
0:01:35 > 0:01:36?300 million you've got pledged?
0:01:36 > 0:01:40We've got it pledged but you have to close it down, and then some
0:01:40 > 0:01:42of that includes Welsh government approvals,
0:01:42 > 0:01:44again not yet closed down.
0:01:44 > 0:01:47But tonight, the sticking point has come over the Welsh government
0:01:47 > 0:01:51being asked to provide a financial guarantee to the privately
0:01:51 > 0:01:53funded project.
0:01:53 > 0:01:56Insurance firm Aviva have been expected to back the project
0:01:56 > 0:01:59to the tune of ?357 million.
0:01:59 > 0:02:03Ministers have taken legal and financial advice,
0:02:03 > 0:02:06and it was after final external advice that the economy minister
0:02:06 > 0:02:12reluctantly came to the conclusion not to proceed with a guarantee.
0:02:12 > 0:02:14You have got to look at that we are now being
0:02:14 > 0:02:16asked to undertake.
0:02:16 > 0:02:18One time, when we started to talk about this project,
0:02:18 > 0:02:21we knew we might have partners that would be private sector investment.
0:02:21 > 0:02:25It went then from talking about ?35 million weeks ago now
0:02:25 > 0:02:30to over ?350 million as a guarantee, and was a 100% guarantee.
0:02:30 > 0:02:32People have spoken about whether we could have
0:02:32 > 0:02:33done a lesser guarantee.
0:02:33 > 0:02:35Could we have done 80%?
0:02:35 > 0:02:38But Aviva, who are the other partners in this, were not even
0:02:38 > 0:02:40prepared to guarantee that 20%.
0:02:40 > 0:02:43In a statement, Heads of the Valleys Development Company
0:02:43 > 0:02:46said has said they respect and understand the Minister's
0:02:46 > 0:02:51decision on the support for a 100% guarantee for the private funding
0:02:51 > 0:02:54and will continue negotiations with the Welsh government,
0:02:54 > 0:02:57the local authorities and Aviva investors to advance
0:02:57 > 0:03:00the development on revised terms.
0:03:00 > 0:03:04The town has had many millions spent regenerating it after the steelworks
0:03:04 > 0:03:07employing 10,000 people in its heyday in the 1960s
0:03:07 > 0:03:10closed in 2002.
0:03:10 > 0:03:12Unemployment has remained high.
0:03:12 > 0:03:15The Circuit of Wales project was seen as a way of bringing jobs
0:03:15 > 0:03:20and further investment to this area.
0:03:20 > 0:03:23Tonight, the vision of seeing these kind of scenes in South Wales
0:03:23 > 0:03:27will depend on finding a private sector backer who is willing
0:03:27 > 0:03:30to take more of a risk.
0:03:30 > 0:03:33Liberty Steel could buy Tata's plants in a matter of months
0:03:33 > 0:03:36if a deal can be agreed.
0:03:36 > 0:03:38Its boss, Sanjeev Gupta, told Wales Today that there's
0:03:38 > 0:03:41still a lot of work to be done but so far, no other buyer has
0:03:41 > 0:03:43come forward publicly.
0:03:43 > 0:03:47Here's our business correspondent, Brian Meechan.
0:03:47 > 0:03:50Liberty Steel says it's hard positive talks with the UK and Welsh
0:03:50 > 0:03:53government about its plans to take over Tata's operations.
0:03:53 > 0:03:57Its Newport site sits across the river the power
0:03:57 > 0:04:02station, which is also owned by the Liberty boss' family.
0:04:02 > 0:04:04The steel industry, including Liberty, has
0:04:04 > 0:04:08been calling for the UK Government to take action to reduce energy
0:04:08 > 0:04:11costs for years.
0:04:11 > 0:04:13It's been one of Tata's frustrations that ministers
0:04:13 > 0:04:16haven't been willing to go further.
0:04:16 > 0:04:20The question now is whether this current crisis means that the UK
0:04:20 > 0:04:23Government has been pulled far closer to where the steel industry
0:04:23 > 0:04:27wants it to be, reducing those costs.
0:04:27 > 0:04:28Liberty wants to develop an
0:04:28 > 0:04:31energy park here, including a biomass facility and tidal lagoons
0:04:31 > 0:04:33for Cardiff and Newport.
0:04:33 > 0:04:35It has shares in the company behind the
0:04:35 > 0:04:37Swansea Bay tidal lagoon.
0:04:37 > 0:04:39Making energy cheaper for all is the key to
0:04:39 > 0:04:42reducing costs for the steel industry.
0:04:42 > 0:04:43Tidal lagoon is one of
0:04:43 > 0:04:45those technologies which will transform the way energy is made
0:04:45 > 0:04:47globally.
0:04:47 > 0:04:50In due course, it should be given every attention, and even
0:04:50 > 0:04:55more so now that we want to propose to turn the UK steel
0:04:55 > 0:04:59industry into a recycling industry, which requires a lot of energy.
0:04:59 > 0:05:02There are sticking points to any deal, though, not least Tata's
0:05:02 > 0:05:04pension liabilities.
0:05:04 > 0:05:07The company's scheme covers 135,000 people in the
0:05:07 > 0:05:08UK.
0:05:08 > 0:05:12It has assets of ?14 billion and a deficit
0:05:12 > 0:05:15of almost ?500 million.
0:05:15 > 0:05:17Though that has been falling, it could increase to billions in
0:05:17 > 0:05:18future.
0:05:18 > 0:05:21The Secretary of State has identified that is a clear issue as
0:05:21 > 0:05:22well.
0:05:22 > 0:05:25Everybody is aware it's an issue and everybody is aware that
0:05:25 > 0:05:27the issue has to be addressed.
0:05:27 > 0:05:31European state aid rules may stop the UK Government helping directly.
0:05:31 > 0:05:33One solution, though, could be the government buying
0:05:33 > 0:05:35the sites from Tata and immediately selling them to
0:05:35 > 0:05:40Liberty, as was done in Scotland. Another concern for Liberty will be
0:05:40 > 0:05:43that if it buys Port Talbot, it will be going head-to-head
0:05:43 > 0:05:44with Tata's most
0:05:44 > 0:05:47successful steelworks in Holland, including trying to sell to car
0:05:47 > 0:05:53companies in the UK, not least Tata-owned Jaguar Land Rover.
0:05:53 > 0:05:56While accepting it's a problem, Sanjeev Gupta says
0:05:56 > 0:05:57it's early days.
0:05:57 > 0:05:59He's also not ruling out continuing to make steel
0:05:59 > 0:06:05from scratch at Port Talbot for some time while introducing recycling.
0:06:05 > 0:06:09It would take at least two years so the
0:06:09 > 0:06:13process would be probably that we go to one blast and we will see how
0:06:13 > 0:06:16they are operating and compare the economics.
0:06:16 > 0:06:19If it can't make heavy steel production work at Port
0:06:19 > 0:06:22Talbot, Liberty is still interested in parts of the site as well as
0:06:22 > 0:06:25others.
0:06:25 > 0:06:29The Business Secretary has been meeting Tata bosses in Mumbai.
0:06:29 > 0:06:33The sales process begins in earnest on Monday.
0:06:33 > 0:06:36A man has been charged with causing death by dangerous driving
0:06:36 > 0:06:40after a father and son died last December.
0:06:40 > 0:06:43Stuart Bates and his seven-year-old son, Fraser, were killed
0:06:43 > 0:06:46as they crossed this carriageway near Talbot Green
0:06:46 > 0:06:48in Rhondda Cynon Taf.
0:06:48 > 0:06:5022-year-old Joshua Staples from Tonyrefail has
0:06:50 > 0:06:54been bailed until May.
0:06:54 > 0:06:57Welsh Anglican bishops have ruled out an attempt to change the law
0:06:57 > 0:07:01to allow same-sex couples to marry in church.
0:07:01 > 0:07:03The Archbishop of Wales says there's concern the issue
0:07:03 > 0:07:04could tear the church apart.
0:07:04 > 0:07:06Welsh bishops have though unreservedly apologised to gay
0:07:06 > 0:07:16and lesbian churchgoers for the way they've been treated.
0:07:16 > 0:07:16and lesbian churchgoers for the way they've been treated.
0:07:18 > 0:07:23There is no point in doing something for it to fail.
0:07:23 > 0:07:26You need a body of people behind you and we need them
0:07:26 > 0:07:29to do it happily and graciously and joyously rather
0:07:29 > 0:07:31than half-heartedly.
0:07:31 > 0:07:34And I hope that that will eventually happen.
0:07:34 > 0:07:37Newport Gwent Dragons chief executive Stuart Davies says
0:07:37 > 0:07:41the announcement of sale plans is the start of the process
0:07:41 > 0:07:43in attracting new investors.
0:07:43 > 0:07:48The region is seeking new investment to take over shares currently
0:07:48 > 0:07:52held 50-50 by the WRU and Newport Rugby Club.
0:07:52 > 0:07:55They don't have any parties lined up but Davies has described it
0:07:55 > 0:08:00as an exciting opportunity.
0:08:00 > 0:08:04Let's get the weather forecast now with Derek Brockway.
0:08:04 > 0:08:06Hello.
0:08:06 > 0:08:08Just when you thought spring had arrived, it feels
0:08:08 > 0:08:11more like winter again, and that's the story for tomorrow.
0:08:11 > 0:08:14Winds from the Arctic bring in more showers.
0:08:14 > 0:08:17Tonight, windy with showers, heavy in places, hail
0:08:17 > 0:08:21and thunder possible and snow on the hills and mountains.
0:08:21 > 0:08:24Gale force winds in the north-west with temperatures
0:08:24 > 0:08:26staying above freezing.
0:08:26 > 0:08:29Tomorrow, rain across North and mid Wales will spread its way
0:08:29 > 0:08:32southwards, sleet and snow on some of the hills and mountains
0:08:32 > 0:08:36with fresh to strong winds, making it feel cold.
0:08:36 > 0:08:40Across the rest of the UK, a band of rain will spread southwards,
0:08:40 > 0:08:42breaking up into showers.
0:08:42 > 0:08:45Elsewhere, sunny spells and showers, heavy showers
0:08:45 > 0:08:47for the north-east of England.
0:08:47 > 0:08:50South-east Scotland, hail and thunder possible.
0:08:50 > 0:08:52Fewer showers in Northern Ireland in the afternoon.
0:08:52 > 0:08:55Feeling cold and windy.
0:08:55 > 0:08:59Top temperatures 10 Celsius in Liverpool, 12 in London.
0:08:59 > 0:09:03Close to home, still a few showers tomorrow afternoon but some drier,
0:09:03 > 0:09:06brighter spells as well, a little sunshine.
0:09:06 > 0:09:08Temperatures not great.
0:09:08 > 0:09:09The winds slowly easing.
0:09:09 > 0:09:12Highs 8-11dC.
0:09:12 > 0:09:15Tomorrow night, still a few showers about but generally looking
0:09:15 > 0:09:17drier, some clear spells.
0:09:17 > 0:09:20The wind falling light and chilly.
0:09:20 > 0:09:26Friday promises to be a better day but it won't last.
0:09:26 > 0:09:29This frontal system over Ireland is heading our way.
0:09:29 > 0:09:32So dry and bright for a while on Friday, some sunshine,
0:09:32 > 0:09:35light winds, but rain will spread across the country
0:09:35 > 0:09:37during the afternoon and evening.
0:09:37 > 0:09:40And it's looking very mixed for the weekends.
0:09:40 > 0:09:44Some sunshine on Saturday together with a few heavy showers.
0:09:44 > 0:09:49Most of Sunday dry with a freshening south-easterly wind but rain may
0:09:49 > 0:09:54reach the South on Sunday evening.
0:09:54 > 0:09:58That's Wales Today.
0:09:58 > 0:10:02From all of us on the programme, goodnight.