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Circuit of Wales racetrack at Ebbw Vale set for go ahead Circuit of Wales race track: Motorsport body's 'white elephant' claim
(about 7 hours later)
Plans for a major motor racing track near Ebbw Vale could get the go-ahead later from Blaenau Gwent councillors. A motor racing track planned for south Wales is being called a "white elephant" by a UK body representing the industry.
It has been estimated that the Circuit of Wales will create around 1,500 direct and indirect jobs, and 500 construction jobs. The £280m Circuit of Wales track near Ebbw Vale could be approved by Blaenau Gwent councillors later.
Developers want to invest £280m in the track situated on 335 hectares (830 acres) near Rassau Industrial Estate. But the Association of Motor Racing Circuit Owners (AMRCO) said the circuit would harm motorsport.
Despite some environmental concerns it is recommended for approval at a council meeting on Wednesday. The Circuit of Wales said it was no surprise the project was seen as a threat.
The track is planned for 335 hectares (830 acres) near Rassau Industrial estate. It is estimated that about 1,500 direct and indirect jobs, and 500 construction jobs would be created by the project.
The developers want to make the track capable of hosting motor racing championships - except Formula One - with the most high-profile event a Moto GP race involving the world's top motorbike teams.The developers want to make the track capable of hosting motor racing championships - except Formula One - with the most high-profile event a Moto GP race involving the world's top motorbike teams.
As well as the main three-mile (4.8km) track, there are plans for motocross, karting and four wheel-drive circuits. Despite some environmental concerns, the scheme is recommended for approval at Wednesday's council meeting.
'High risk' A £2m loan from the Welsh government has been made and the developers are trying to secure more public money.
Hotels and light industrial units that could be used by automotive companies for research and development are also included in the proposals. The rest of the money is being borrowed from banks with the intention to raise £150m from institutional investors such as pension funds which would become part owners of the track.
The environmental organisation Natural Resources Wales has objected because of what it says is an unacceptably high risk to the environment. But Jonathan Palmer, chairman of AMRCO which represents 17 UK race tracks, said: "The UK circuit industry welcomes innovation and investment, however history and experience suggest that an investment of this magnitude in a motor racing circuit will never produce a return for investors.
However, local authority officials at Blaenau Gwent have recommended councillors approve the plan. "It is a real concern that this will turn into a white elephant at the expense of much needed public funds, and we hope this project will now be subject to careful scrutiny by Welsh government inspectors and the Wales Audit Office."
The report to councillors says: "If one were predisposed to favour protection of the environment then a case can be made that the scheme is contrary to both local and national policy. Industrial development
"On the other hand, the economic development potential is such that this can legitimately be regarded as a one off - a case so exceptional that provided the appropriate environmental mitigation is in place, it can be justified in policy terms." Gwent Wildlife Trust, Brecon Beacons National Park, and Natural Resources Wales have all objected to the plan.
A spokesman for the Circuit of Wales said: "We agree with Mr Palmer that new investment is welcome.
"Our investment programme is geared around a range of motorsport activity and large scale industrial development including the commercial exploitation of significant development land.
"It's no surprise that we are seen as a competitive threat to many of the existing sites that we have in the UK.
"Over the course of the last three years we have met with senior management of 11 of the 17 circuit owners, many of whom have input into our business plan and several operators who have expressed interest in providing services to the circuit.
"We have former CEOs of existing facilities on our advisory board and validating all of our assumptions. This has made our plans more robust.
"We have been engaging regularly and have the support of the industry governing bodies and a wide range of commercial rights holders."
Welsh government inspectors are still considering whether to review the project if it is given approval by the council.Welsh government inspectors are still considering whether to review the project if it is given approval by the council.
The Heads of the Valleys Development Company, which is behind the scheme, wants to start building within six months but says if it is called in for a review by inspectors then that would delay it for about a year.
The developers have already received a £2m loan from the Welsh government and is in further talks to try to secure more public money.
The rest of the money is being borrowed from banks with the intention to raise £150m from institutional investors like pension funds which would become part owners of the track.