Adam Price MS, Cabinet Minister for Enterprise, Connectivity and Energy
I wish to inform Members that, in accordance with the principles set out in Managing Welsh Public Money, Welsh Government must formally write off a debt relating to unpaid rent totalling £684,529.74, accrued by PV France Limited, which has since been dissolved.
PV France Limited (PVFL) previously occupied Unit 9, Bryn Cefni, Llangefni, Anglesey a detached industrial unit of 24,890 sq. ft. under a 15-year lease commencing in 2009.The company specialised in producing authentic French bread and pastries for wholesale distribution across the UK, supplying small supermarkets, coffee chains, and airlines. At its peak, PVFL employed between 25 and 45 staff on a mix of full-time, part-time, and zero-hours contracts.
The business experienced a major setback in September 2017 following the sudden liquidation of Monarch Airlines, its principal supply contract, and was further impacted by the COVID-19 pandemic, which severely restricted global travel and disrupted supply chains.
Despite Welsh Government agreeing to multiple payment plans which aimed to support the business and protect jobs rather than taking action to limit rental debt and regain possession of the property, PVFL was ultimately unable to maintain repayments due to deteriorating trading conditions and the loss of key contracts. It is for those reasons that the debt accumulated over such a period of time.
The company entered administration on 6 June 2023 and vacated the property on 27 June 2023. PVFL was formally dissolved on 1 September 2024, leaving an outstanding rental debt of £684,529.74 owed to Welsh Government. As the company no longer exists, there is no legal entity against which recovery action can be taken.
Systems are already in place to identify, limit, and avoid situations of this kind. Decisions on the action to be taken and timing of such action is the subject of discussion between the Property, Debt Recovery and Business Support teams, with accompanying legal input as necessary. Consideration has been given to whether these systems should now be amended, however, instances of debt at this scale, relative to annual rent, are rare because of existing arrangements. Each case requires assessment on its individual merits, balancing wider economic policy objectives against the management of rental debt.
Introducing a system that focuses primarily on restricting rental arrears by, for example, mandating legal action at a specific threshold would be impractical as it could result in action being taken which could prove undesirable at an organisational level.
This statement is being issued during recess to keep Members informed. Should Members wish me to make a further statement or to answer questions on this when the Senedd returns I would be happy to do so.