This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/wales/mid/7482362.stm

The article has changed 3 times. There is an RSS feed of changes available.

Version 0 Version 1
Factory's £600,000 grant repaid Dairy firm repays £600,000 grant
(about 6 hours later)
A funding grant of £600,000 has been recovered after a dairy firm closed its doors with the loss of 115 jobs. Funding worth £600,000 has been recovered after a dairy firm closed its doors with the loss of 115 jobs.
Dairygold Food Products shut its cheese packing plant at Felinfach, Ceredigion, in April 2006.Dairygold Food Products shut its cheese packing plant at Felinfach, Ceredigion, in April 2006.
It was awarded the processing and marketing grant in 2002 to expand its packing lines but 18 months later the firm announced the factory's closure. It was awarded a processing and marketing grant in 2002 to expand its packing lines but 18 months later the firm announced the factory's closure.
The Welsh Assembly Government said the company had not fulfilled its conditions on grants.The Welsh Assembly Government said the company had not fulfilled its conditions on grants.
In September 2006 the assembly government threatened legal action against the company to reclaim £663,528.In September 2006 the assembly government threatened legal action against the company to reclaim £663,528.
Following the initiation of legal action, Deputy First Minister Ieuan Wyn Jones announced £600,000 had been recovered.Following the initiation of legal action, Deputy First Minister Ieuan Wyn Jones announced £600,000 had been recovered.
'More value''More value'
Mr Jones said: "I am very pleased with the outcome of these long-running negotiations. We were determined that this public money should be repaid, as the company had not fulfilled its grant conditions.Mr Jones said: "I am very pleased with the outcome of these long-running negotiations. We were determined that this public money should be repaid, as the company had not fulfilled its grant conditions.
"The Welsh Assembly Government remains committed to helping secure employment for those affected by the closure of the Dairygold plant.""The Welsh Assembly Government remains committed to helping secure employment for those affected by the closure of the Dairygold plant."
Machinery bought with the grant was sold on
He added support has been provided to Gweithgor Dyffryn Aeron, a community-led not-for-profit initiative to carry out a feasibility study into the potential for added value food production in the Aeron Valley.He added support has been provided to Gweithgor Dyffryn Aeron, a community-led not-for-profit initiative to carry out a feasibility study into the potential for added value food production in the Aeron Valley.
Plaid AM for Ceredigon, Rural Affairs Minister Elin Jones, added: "Deciding to take legal action to recover the money was a last resort and followed many months of communication with the company to try to resolve the matter.Plaid AM for Ceredigon, Rural Affairs Minister Elin Jones, added: "Deciding to take legal action to recover the money was a last resort and followed many months of communication with the company to try to resolve the matter.
"I am eager to continue to see processors and farmers in Wales become more competitive, respond to consumer demand and add more value to their produce.""I am eager to continue to see processors and farmers in Wales become more competitive, respond to consumer demand and add more value to their produce."
A BBC Radio Cymru programme found the machinery bought with the grant was sold on to the Kerrygold company, which is part-owned by Dairygold, and was being moved on to its packing plant in Leek, Staffordshire.A BBC Radio Cymru programme found the machinery bought with the grant was sold on to the Kerrygold company, which is part-owned by Dairygold, and was being moved on to its packing plant in Leek, Staffordshire.