Jobs demand over recovered money

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Campaigners who fought the closure of a Ceredigion dairy plant say a £600,000 grant recovered from a company should be used to create jobs in the area.

The funding was retrieved by the Welsh Assembly Government after Dairygold closed its doors in Felinfach.

Local people who fought to keep the factory open have appealed for the cash to be used to help generate new jobs.

The assembly government said it remained committed to helping those affected by the plant closure.

Dairygold shut with the loss of 115 jobs in April 2006.

It was awarded a processing and marketing grant in 2002 to expand its cheese packing lines, but 18 months later the firm announced the factory's closure.

I would ask that this money is used to support the development of jobs in the area Councillor Owen Llywelyn

The assembly government said the company had not fulfilled its conditions on grants, and in September 2006 it threatened legal action against the company to reclaim £663,528.

Local Plaid Cymru councillor Owen Llywelyn said most of the people affected by the factory closure had found new jobs.

But he said there was now "moral pressure" on the assembly government to use some of the recovered money to generate new job opportunities in the Aeron Valley.

He added: "The announcement will not bring direct benefit to Felinfach and the Aeron Valley as the money is not ring fenced to be spent on developing the economy of mid Ceredigion.

Suitable buyer

"I would ask that this money is used to support the development of jobs in the area."

The Welsh Assembly Government has supported Gweithgor Dyffryn Aeron, a community-led not-for-profit initiative to carry out a feasibility study into boosting employment in the Aeron Valley.

Euros Lewis, a member of the group, agreed with Mr Llywelyn, and said the £600,000 had to be used to support the Aeron Valley.

"All of that money and more will be needed for the area," he added.

The assembly government was not specific about how the recovered money would be spent.

However, a spokeswoman said: "The recovery of the £600,000 results in an underspend which is available for use by the Welsh Assembly Government in the future.

"The Welsh Assembly Government remains committed to helping secure employment for those affected by the closure of the Dairygold plant."

She said officials were also looking for a suitable buyer for the factory, which is still owned by Dairygold.