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| Version 0 | Version 1 |
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| Legal action over £663,000 grant | Legal action over £663,000 grant |
| (about 2 hours later) | |
| The Welsh Assembly Government is to take legal action to recover hundreds of thousands of pounds from a firm that made 115 people redundant last year. | The Welsh Assembly Government is to take legal action to recover hundreds of thousands of pounds from a firm that made 115 people redundant last year. |
| Dairygold Food Products has faced calls to repay the £663,528 grant after it closed its cheese packing plant at Felinfach, Ceredigion, in April 2006. | Dairygold Food Products has faced calls to repay the £663,528 grant after it closed its cheese packing plant at Felinfach, Ceredigion, in April 2006. |
| The Irish firm was awarded the money in 2002 to expand its packing lines. | The Irish firm was awarded the money in 2002 to expand its packing lines. |
| Dairygold said it would defend itself "vigorously" through the legal system, but had tried to resolve the issue. | |
| Rural Affairs Minister Carwyn Jones has been threatening court action for months. | |
| The dispute centres on funding for work to expand the plant near Lampeter, which was completed in March 2004. | The dispute centres on funding for work to expand the plant near Lampeter, which was completed in March 2004. |
| They were given one final opportunity Carwyn Jones | They were given one final opportunity Carwyn Jones |
| But 18 months later the firm announced plans to close its factory. | |
| An investigation by the BBC Radio Cymru programme, Manylu, 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. | An investigation by the BBC Radio Cymru programme, Manylu, 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. |
| Mr Jones said there had been long-running discussions with Dairygold and the assembly government had written to the company's lawyers to notify them formally "that we were minded to start legal proceedings very soon". | |
| Mr Jones added: "They were given one final opportunity to provide further information. | Mr Jones added: "They were given one final opportunity to provide further information. |
| "A letter has since been received from Dairygold's lawyers, which basically states there is no change in their position. | "A letter has since been received from Dairygold's lawyers, which basically states there is no change in their position. |
| "The Welsh Assembly Government has, therefore, written to the company today making a formal demand for repayment of the grant, amounting to £663,528.10 together with interest." | "The Welsh Assembly Government has, therefore, written to the company today making a formal demand for repayment of the grant, amounting to £663,528.10 together with interest." |
| A spokesman for Dairygold said: "We have not received notification of legal action yet, but we will defend ourselves vigorously through the legal system. | |
| "Dairygold entered into the Welsh project in good faith to develop the business, but because of circumstances beyond our control it didn't work. | |
| "We have since sought meetings to try and find a resolution to the grant aid issue, but without success." |