20/04/2016 BBC Wales Today


20/04/2016

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of Tata's UK plants could be supported by workers

:00:00.:00:08.

and steelmaking communities across Wales, if it goes ahead.

:00:09.:00:14.

I think it could be expanded, not only to the workforce but to the

:00:15.:00:17.

communities, to the families, to the retired steelworkers who spent their

:00:18.:00:20.

lives working in the Port Talbot plant.

:00:21.:00:24.

Ian Thomas is back in work after ten years.

:00:25.:00:27.

Unemployment here is now at its lowest rate

:00:28.:00:28.

kidnapped and beat another man and forced him to work

:00:29.:00:37.

And we're in Machynlleth, the third stop

:00:38.:00:42.

on our tour of Wales, ahead of the election

:00:43.:00:44.

We'll be finding out why living in the countryside

:00:45.:00:47.

Unions say plans for a management buyout of Tata Steel,

:00:48.:01:10.

led by the man who runs its site at Port Talbot, could provide

:01:11.:01:14.

It's understood the deal would mean steel production continues in Wales,

:01:15.:01:18.

Our Business Correspondent Brian Meechan has more.

:01:19.:01:31.

Stuart Wilkie has years of experience in the steel industry.

:01:32.:01:33.

He has had senior roles including at

:01:34.:01:35.

Ebbw Vale before then owners Corus closed it in 2002.

:01:36.:01:37.

When Tata Steel bought that, and the company 's

:01:38.:01:39.

other Welsh steel plants, he went on to run Llanwern,

:01:40.:01:42.

part of which was mothballed last year and Port

:01:43.:01:44.

In January, he told us he hoped the 750 job losses at the site

:01:45.:01:48.

We are very confident as owners and a workforce that we believe

:01:49.:02:03.

we actually can turn this industry around.

:02:04.:02:07.

But a Welsh delegation that headed to Mumbai for a crucial board

:02:08.:02:10.

meeting discovered that was not to be under Tata's leadership.

:02:11.:02:12.

Having invested heavily here, Tata Steel finally lost patience.

:02:13.:02:14.

It decided that the high energy costs and business rates in the UK

:02:15.:02:17.

and the cheap Chinese steel imports were problems that were never

:02:18.:02:20.

It took a look at the survival plan put forward by Stuart Wilkie

:02:21.:02:24.

and his team and decided ultimately that the idea of turning this around

:02:25.:02:27.

in 18 months from loss making to profit was just too risky.

:02:28.:02:37.

The government's involvement as a co-investor is going to be

:02:38.:02:39.

vitally important in this and that will give confidence

:02:40.:02:41.

to whether investors who might need to be brought in to provide

:02:42.:02:44.

the funding that the company is going to need.

:02:45.:02:52.

What is different now is that the UK Government is prepared to co-invest

:02:53.:02:56.

with partners and that could include help with energy costs

:02:57.:02:58.

The Welsh Government is also making more than ?60 million available.

:02:59.:03:03.

We have got to think about what this means in terms of Welsh jobs,

:03:04.:03:06.

the Welsh economy and the fact that it is not just the people

:03:07.:03:10.

employed in Port Talbot and Llanwern and Trostre.

:03:11.:03:11.

It is also what it means to the overall economy.

:03:12.:03:22.

A management buyout would mean bosses and workers investing

:03:23.:03:24.

And some say they would be happy to do that.

:03:25.:03:38.

I think it could be expanded, not only to the workforce

:03:39.:03:41.

but to the communities, the families, the retired

:03:42.:03:43.

steelworkers who spent their lives working in the Port Talbot plant.

:03:44.:03:45.

Welcome to 2016, a New Year, a new beginning for all of us

:03:46.:03:48.

The boss of Liberty Steel in Newport, Sanjeev Gupta

:03:49.:03:57.

is the only other potential buyer to publicly declare an interest.

:03:58.:03:59.

That would bring an end to making steel from scratch at Port Talbot.

:04:00.:04:02.

The management buyout plan would see steel-making remain as it is now,

:04:03.:04:06.

I think it would be very difficult and let's be honest about that

:04:07.:04:16.

but that is what should be at the heart of any future

:04:17.:04:19.

for Tata Steel in the UK, so I am delighted.

:04:20.:04:21.

The two governments, workers and unions seem to be

:04:22.:04:24.

welcoming the proposals for a management buyout.

:04:25.:04:26.

It has certainly added to the options on the table.

:04:27.:04:30.

Brian is in Port Talbot for us tonight.

:04:31.:04:37.

How could this management buyout work? Well, we talk about the

:04:38.:04:46.

survival plan that was rejected ultimately by Tata Steel in Mumbai

:04:47.:04:50.

and that was certainly the case. However, it has been implemented

:04:51.:04:53.

here anyway and they say that they are already seeing ultimately some

:04:54.:04:58.

of the benefits of that. They are seeing better production and they

:04:59.:05:02.

think when it comes down to it, that will make them much better in terms

:05:03.:05:06.

of going to the marketplace and trying to get someone to buy into

:05:07.:05:10.

it. In terms of the management eye out, it has to be treated like any

:05:11.:05:15.

other buyer. There cannot be any of the special privileges for the

:05:16.:05:19.

management buyout teams. But we do know the UK governorate is ready and

:05:20.:05:22.

willing to invest here and we know that the Welsh Government is willing

:05:23.:05:25.

to invest that 60 million that it has talked about and if they can

:05:26.:05:32.

find a way to get money from the workers and put that money together

:05:33.:05:37.

with what the governments are offering, especially on energy costs

:05:38.:05:41.

and dealing with energy costs, they think they would have enough money

:05:42.:05:44.

there to get this place back on a solid footing using that am but of

:05:45.:05:48.

course it is incredibly difficult. This is not going to be easy. And it

:05:49.:05:54.

is not as straightforward as they would like. I do get the sense

:05:55.:05:58.

talking to people today, listening to them talk about this management

:05:59.:06:01.

buyout, there is a sense of optimism and a greater sense of optimism and

:06:02.:06:03.

has been here for a while. Unemployment in Wales has fallen

:06:04.:06:07.

to its lowest rate since the global recession and is now lower

:06:08.:06:10.

than the UK average. The number of people

:06:11.:06:12.

who were unemployed in Wales fell by 5,000 between December

:06:13.:06:15.

and February, while Ian Thomas works on the dairy

:06:16.:06:16.

section of his local But for almost a decade,

:06:17.:06:24.

the 53-year-old was unemployed. He suffered from epilepsy and gained

:06:25.:06:27.

five stone in weight. But with his illness now under

:06:28.:06:30.

control, a scheme run by his local authority helped him back

:06:31.:06:33.

into the labour market I was here for a few months

:06:34.:06:35.

and Tesco kept me on. I put on the weight from not working

:06:36.:06:43.

and working on the dairy section with great colleagues,

:06:44.:06:46.

I lost the weight and my health is a lot better and it meant

:06:47.:06:49.

a lot to me and my family The unemployment figure in Wales

:06:50.:06:52.

now stands at 76,000, that is a fall of 5000

:06:53.:06:58.

between December and February. 5% of our workforce is now

:06:59.:07:01.

unemployed, marginally below the UK On the face of it of course,

:07:02.:07:03.

as a headline figure and a headline It is the first time in a few years

:07:04.:07:14.

that this has been At the same time, I think

:07:15.:07:21.

there are some challenges that the quality of the jobs created

:07:22.:07:24.

are ones which perhaps not as high valued as we would like

:07:25.:07:28.

and we all so have a higher than average for the UK level

:07:29.:07:31.

of economic activity. Today's figures also show that Wales

:07:32.:07:42.

saw a bigger fall in unemployment than any other part of the UK

:07:43.:07:45.

in the last three months. But dark clouds hang over

:07:46.:07:48.

the economic horizon with steel With unemployment so low,

:07:49.:07:50.

it is small wonder that both the UK and the Welsh governments

:07:51.:07:57.

are trying to claim the credit and with the latest figures coming

:07:58.:08:00.

in the middle of an assembly election campaign, where the economy

:08:01.:08:02.

is centrestage, all the political parties are trying to convince

:08:03.:08:05.

the voters that their policies will help when the jobless total

:08:06.:08:07.

down even further. And for more on that story

:08:08.:08:17.

and what the political parties have to say on a variety of issues before

:08:18.:08:20.

the Assembly Election, including The body of a man from Wrexham,

:08:21.:08:23.

who'd been missing in Harry Greaves disappeared

:08:24.:08:37.

earlier this month, after setting off on a solo hike,

:08:38.:08:40.

two days before his 29th birthday. A jury has been hearing from a man

:08:41.:08:51.

who claims he was bought, Michael Hughes told

:08:52.:08:54.

Cardiff Crown Court that prison was like a holiday camp compared

:08:55.:08:58.

with the life he had Mr Connors and three other men

:08:59.:09:00.

are accused of forced labour. Patrick Joseph Connor arriving for

:09:01.:09:17.

the start of the trial. Today he was accused of buying a man and forcing

:09:18.:09:19.

him to work against his will. The court heard from Michael Hughes,

:09:20.:09:24.

originally from Scotland, who came to Wales looking for work. It told

:09:25.:09:29.

the court how often accept and work tarmac in, he believes he was sold

:09:30.:09:33.

by one man to Patrick Joseph Connors. But at that time, he said

:09:34.:09:38.

he believed his luck was about to change, that he would get regular

:09:39.:09:43.

work and a place to live. In fact what followed he said was hard

:09:44.:09:46.

labour with little or no pay. He said he spent two years living in a

:09:47.:09:52.

wooden shed just big enough to lie down in. Until it rotted. He worked

:09:53.:09:56.

seven days a week and was beaten if his work was not up to standard. At

:09:57.:10:01.

one point, he said he ran away to Scotland but within days, but it

:10:02.:10:05.

Joseph Connors had tracked him down. As he went to the dole office in

:10:06.:10:10.

Aberdeen, you was kidnapped and bundled into the boot of a car and

:10:11.:10:14.

driven back to Cardiff. Once back, he was beaten. When police phoned Mr

:10:15.:10:20.

Connah's Quay said he was ordered to say it was all a joke. When

:10:21.:10:23.

interviewed by police, Patrick Joseph Connors denied any

:10:24.:10:27.

wrongdoing. He has pleaded not guilty to eight counts of assault,

:10:28.:10:32.

four of kidnap, one of conspiracy to kidnap. All four defendants are

:10:33.:10:36.

charged with forced labour and all four deny all the charges against

:10:37.:10:37.

them. The case continues. Our tour around Wales,

:10:38.:10:42.

ahead of the Assembly election, No better place to talk

:10:43.:10:44.

power and politics, though don't mention Cardiff Bay

:10:45.:10:50.

in these parts because in this town theyll tell you the first welsh

:10:51.:10:53.

parliament met right here. This is a market town

:10:54.:10:55.

serving a huge area. On a day like today,

:10:56.:10:57.

tourists come from far and wide But two weeks off from the election,

:10:58.:11:00.

what about the political landscape? One of the most historic

:11:01.:11:04.

towns in Wales. Machynlleth, the most Westerly town

:11:05.:11:20.

in the constituency of Montgomeryshire,

:11:21.:11:21.

in the heart of the Mid These are all hand decorated in

:11:22.:11:23.

Wales. It currently has a Conservative

:11:24.:11:38.

Assembly Member and MP, but the past has been

:11:39.:11:40.

rooted in Liberalism. The Lib Dems will be fighting hard

:11:41.:11:42.

to sell their wares and overturn In the last Assembly election,

:11:43.:11:45.

turnout across Mid and West Wales Here in Montgomeryshire nearly

:11:46.:11:55.

half voted. In neighbouring Ceredigion,

:11:56.:12:03.

the Liberals are also hoping There, Plaid's majority is one

:12:04.:12:05.

of the smallest in Wales, are pounding the pavements

:12:06.:12:08.

across this region. Labour, Conservative,

:12:09.:12:20.

Plaid Cymru, Lib Dems, Ukip and the Green Party see this

:12:21.:12:21.

part of Wales as their chance This is the Owain Glyndwr Centre,

:12:22.:12:24.

considered to be the site where the first Welsh parliament met

:12:25.:12:35.

to discuss the future of Wales. It's the recent past that's grabbed

:12:36.:12:38.

the headlines today, As you heard earlier,

:12:39.:12:40.

unemployment in Wales has fallen to below the UK rate for the first

:12:41.:12:44.

time in years. But in this area

:12:45.:12:46.

wages are still low. Our economics correspondent

:12:47.:12:48.

Sarah Dickins now on the challenges of finding well paid

:12:49.:12:50.

work in rural wales. Amid the beautiful rolling hills,

:12:51.:13:00.

manufacturing has long been an important part of mid Wales

:13:01.:13:02.

but the types of Here in Newtown, the big employer

:13:03.:13:04.

has left and this old factory site In Powys, 90% of firms have fewer

:13:05.:13:08.

than nine workers. Laundry for hotels,

:13:09.:13:20.

holiday lets and families, after eight years there are now

:13:21.:13:22.

five women working here This type of business

:13:23.:13:24.

is typical of rural Wales. Behind all the doors,

:13:25.:13:28.

you will find a different And some are small and some

:13:29.:13:31.

are large, it is hard to tell until you open the door

:13:32.:13:37.

and have a look inside. It sounds like a lot

:13:38.:13:40.

of the work in this area then Yes, there is and really much scope

:13:41.:13:42.

for anything more. Before Bea Jones moved into town,

:13:43.:13:49.

she struggled to get to work in Newtown by bus from her home

:13:50.:13:57.

five miles away. Sometimes, they don't turn up

:13:58.:14:01.

at all, so it can be difficult. It is quite a walk to take

:14:02.:14:04.

along the main roads, so you have to walk along the canal

:14:05.:14:06.

and that is about an There are a lot of people working

:14:07.:14:09.

in Powys, in fact unemployment here is half the rate

:14:10.:14:17.

that it is for Wales as a whole. Those people working are likely

:14:18.:14:20.

to be taking home less pay. On average, wages here are ?60

:14:21.:14:22.

a week less than the And they are twice as likely to be

:14:23.:14:25.

self-employed and what that means is that they won't have the benefits

:14:26.:14:32.

of holiday pay and sick pay. Just outside Welshpool,

:14:33.:14:35.

a Welsh owned company In 18 years, this firm has gone

:14:36.:14:37.

from three local men in a shared to a firm employing 170 people

:14:38.:14:42.

and a turnover of ?24 million. Their electronic drives make motors

:14:43.:14:45.

that are energy-efficient and can be found in a host of

:14:46.:14:48.

different industries. So how do we help more Welsh

:14:49.:14:50.

firms develop into big I am the son of a Welsh farmer

:14:51.:14:52.

and now we run a electronics, It is confidence to look out

:14:53.:15:03.

and using the skills of our local people, then mixed with confidence,

:15:04.:15:08.

how good-looking, there is no reason why others cannot follow

:15:09.:15:11.

what we have done. And the advantage to the Welsh

:15:12.:15:22.

economy of firms like this is they tend to pay higher wages

:15:23.:15:25.

that get spent locally. So if most people who can

:15:26.:15:28.

are working, what is needed? That would keep younger people

:15:29.:15:36.

in the area. That is what we need

:15:37.:15:38.

is to have the younger folk It is a shame because rural

:15:39.:15:41.

areas are just getting lost, all the old people

:15:42.:15:44.

are buying the houses. And that is the challenge,

:15:45.:15:49.

the more better paid workers there are in a community,

:15:50.:15:51.

the more high spenders, the better it is for a range

:15:52.:15:53.

of local businesses and the economy So what are the parties offering

:15:54.:15:56.

when it comes to supporting economy Nine out of ten businesses in this

:15:57.:16:17.

area into a fewer than ten people and so there are some economic

:16:18.:16:20.

policies that really do make a difference for those smaller kinds

:16:21.:16:24.

of businesses. One of them is business rates and all of the

:16:25.:16:27.

parties really agree that business rates for small businesses should be

:16:28.:16:30.

cut. They just vary on the amounts that they would. And then there is

:16:31.:16:34.

other incentives that can help, for instance on activity. Superfast Lord

:16:35.:16:39.

Barnett and good mobile coverage. The Conservatives are offering more

:16:40.:16:45.

promising if you like to have universal everyone having good

:16:46.:16:49.

broadband and good mobile signal by 2019. Labour is saying 96% of

:16:50.:16:55.

properties by 2017. And bubble that as well, there are things like what

:16:56.:16:58.

Plaid Cymru are calling re-localisation. Spending more money

:16:59.:17:04.

on the local committee. The Lib Dems want specific rule apprenticeships.

:17:05.:17:08.

And Ukip is wanting to give more power to local people to decide

:17:09.:17:12.

things like new supermarkets or solar farms. And good jobs news

:17:13.:17:19.

today but there is a bug. Yes, it is good news because this is the first

:17:20.:17:22.

time for two years that we have lower unemployment in Wales than the

:17:23.:17:26.

UK average and it is the lowest and implement figures that we have had

:17:27.:17:29.

in Wales since the recession in 2008. We do need to remember here in

:17:30.:17:35.

Powys, wage rates are about ?6 per week less than the UK average and

:17:36.:17:43.

the UK is about ?6 per week lower than... Wales is lower than the UK.

:17:44.:17:46.

We have lots of jobs but they are not high value and they're not

:17:47.:17:51.

bringing good wages home. We are fairly low in terms of productivity.

:17:52.:17:54.

That is the challenge really. We have the jobs but it is about making

:17:55.:17:57.

them more valuable to individuals and to the economy.

:17:58.:18:01.

Well, in the days until we all go to the polls, the leaders

:18:02.:18:04.

of the five larger political parties, along with the Greens,

:18:05.:18:06.

will be doing all they can to win your vote.

:18:07.:18:09.

Tonight, for the first time in this campaign,

:18:10.:18:11.

they will all be in the same room for a TV debate.

:18:12.:18:14.

Our political editor Nick Servini is there.

:18:15.:18:15.

That is right. It is the first of two televised debates. Carwyn Jones

:18:16.:18:42.

from Labour has just arrived. He will be up against Andrew RT Davies

:18:43.:18:45.

for the Conservatives, Leanne Wood of the Liberal Democrats, Kirsty

:18:46.:18:50.

Williams, Nathan Geller and Alice August out for the Greens. I am

:18:51.:18:55.

expert in quite a lively affair. Most of those politicians took part

:18:56.:19:02.

in the debates last week and be busy Wells in which they were on their

:19:03.:19:05.

own in front of a studio audience. In that respect, they should be

:19:06.:19:08.

battle hardened, sharp and ready to go. We have already had all the

:19:09.:19:15.

manifestos. Oldman expect anything new on the policy front. This will

:19:16.:19:20.

be about the interaction between the leaders. Order by Sue Green Ritalin

:19:21.:19:27.

a fine. Look of the personal chemistry between them. One final

:19:28.:19:32.

point, as has been a slightly strange; they in the sense that so

:19:33.:19:37.

much of it is been about responding to external events. European

:19:38.:19:40.

referendum, the steel crisis, of course, and tonight, a real

:19:41.:19:46.

opportunity for all the leaders to stick their claim on prime-time

:19:47.:19:49.

television on ITV for two hours and somehow get the assembly campaign

:19:50.:19:52.

etched into the public concerts this. Something I think it has

:19:53.:19:56.

struggled to do a bit so far. We've been asking throughout this

:19:57.:20:01.

campaign - what you want from the next Welsh government

:20:02.:20:03.

as part of My Manifesto 2016. Ian Fowler from Cardiff runs

:20:04.:20:06.

a cocktail lounge and got in touch about issues

:20:07.:20:09.

surrounding independent traders. What you would change

:20:10.:20:17.

is you found yourself in power? Here's what's top of

:20:18.:20:19.

Ian Fowler's wishlist. If I were First Minister,

:20:20.:20:30.

I would make planning decisions fairer for

:20:31.:20:32.

small independent businesses. Up and down the country,

:20:33.:20:36.

independent traders have been feeling the pressure from the big

:20:37.:20:38.

chains, and on Whitchurch High Street, we're

:20:39.:20:40.

hearing the same story. Ian says the food and drinks sector

:20:41.:20:42.

here is a crowded market. Whitchurch High Street was built

:20:43.:20:45.

on the principle of having independent traders bringing jobs

:20:46.:20:47.

and different types of businesses What we have found over

:20:48.:20:50.

the last five to ten years, those independent businesses are

:20:51.:20:53.

being crowded out by the corporates. It started life as a simple coffee

:20:54.:20:56.

shop back in 2005 but to keep afloat It's now a restaurant

:20:57.:21:09.

and cocktail lounge. The increase in competition

:21:10.:21:12.

in the cafe sector Two years ago, a chain opened up

:21:13.:21:14.

down the road, another It makes it extremely difficult

:21:15.:21:25.

because their buying Naomi Gropetis is co-owner

:21:26.:21:27.

of the business and knows the pitfalls of life

:21:28.:21:33.

as an independent. I agree with the minimum wage,

:21:34.:21:34.

I agree with the pensions We are getting absolutely battered

:21:35.:21:37.

from every single angle. So when it comes to planning

:21:38.:21:44.

what are the rules? Well, your local council can't

:21:45.:21:47.

favour an application from an independent

:21:48.:21:48.

business over a chain. The can offer grants to help small

:21:49.:21:50.

businesses compete, for example, What would you change to make

:21:51.:21:53.

life easier for smaller I would insist that planning

:21:54.:21:58.

when they receive an application for a new premises, they actually

:21:59.:22:05.

look at the individual company and make it a 50-50 split

:22:06.:22:08.

between independent retail and corporate and make it fairer

:22:09.:22:10.

for the smaller man. Tough times on the High Street,

:22:11.:22:18.

but Ian hopes he's provided food And you can find out more

:22:19.:22:21.

about what the parties are offering small businesses on the BBC Wales

:22:22.:22:34.

news website. We still want your ideas

:22:35.:22:40.

for My Manifesto. Lucy has been in Beaumaris

:22:41.:22:42.

for a story we'll be bringing The Menai Strait looking beautiful

:22:43.:22:45.

in the sunshine and this area relies heavily on attracting tourists,

:22:46.:22:53.

especially since the closure of Anglesey Aluminium and the wind

:22:54.:22:55.

down of Wylfa Nuclear Power Station. If I were First Minister,

:22:56.:22:58.

I would be wanting to insure that all our young graduates have

:22:59.:23:11.

jobs after university. If I were First Minister,

:23:12.:23:14.

I would educate people to understand that raising taxes is necessary

:23:15.:23:17.

to bring back key services. Tell us what you would do

:23:18.:23:20.

if you were in charge of Wales. And after the votes are counted,

:23:21.:23:25.

I will be passing on your ideas If you live there,

:23:26.:23:28.

we'd love to see you. Rugby and it's been

:23:29.:23:47.

announced tonight that Newport Gwent Dragons Director

:23:48.:24:00.

of Rugby Lyn Jones has left his job. The region say it follows a period

:24:01.:24:03.

away due to illness. Head coach Kingsley Jones

:24:04.:24:06.

will take charge for The Dragons face a European

:24:07.:24:08.

Challenge Cup semifinal In cricket, Glamorgan have

:24:09.:24:11.

lost their opening Championship On the final day at the Swalec

:24:12.:24:23.

Stadium, visitors Leicestershire wrapped up a comfortable 10 wicket

:24:24.:24:28.

win. Time for a look at the

:24:29.:24:34.

weather - Sue's here. It has been the warmest day of the

:24:35.:24:54.

year so far across Wales. 19 Celsius. And we have more of the

:24:55.:25:02.

same tomorrow. But after a very mild day, it will be a chilly night

:25:03.:25:05.

across Wales. Temperatures dropping away under the clear skies. We could

:25:06.:25:15.

see a few frost patches tomorrow morning. Some missed as well and

:25:16.:25:21.

turning into another fine day across Wales. Some low-level cloud

:25:22.:25:25.

developing from the south-west. The sunshine a little hazy at times. It

:25:26.:25:31.

should remain dry. Slightly colder than today but as temperatures

:25:32.:25:38.

remain quite high again. It is tomorrow night that we start to see

:25:39.:25:42.

the change. We have a front that is pushing up from the south which

:25:43.:25:45.

could bring some rain into South Wales. The cloud will hold up the

:25:46.:25:52.

temperatures overnight between five and eight Celsius. On Friday, rain

:25:53.:25:58.

moving up from the south. Drier in the North and it will turn colder

:25:59.:26:03.

for the weekend. We will have the graphics again later.

:26:04.:26:05.

And a reminder of our top story this evening, a union tells us

:26:06.:26:08.

steelworkers in Port Talbot would be prepared to invest their own money

:26:09.:26:11.

I'll have a quick update at 8pm and a full round up

:26:12.:26:16.

From everyone on the programme, thanks for watching.

:26:17.:26:21.

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