Middleton—The National Botanic Garden of Wales

There continues to be widespread public interest in the future of Middleton—The National Botanic Garden of Wales, and much informed speculation and comment has appeared in the media since my last statement to Plenary. I will therefore use this afternoon’s statement to explain to Members our proposals for securing a long-term future for the garden.

In my last statement, on 27 February, I reaffirmed the Welsh Assembly Government’s support for the garden. Since then, we have made concerted efforts to help the trustees find a solution that will secure a long-term sustainable future for their garden. Once again, I firmly rebut any suggestion that the Welsh Assembly Government has washed its hands of the garden. I will also take this opportunity to rebut the ridiculous statement carried on the front page of The Western Mail that I somehow have a personal antipathy towards gardeners and botanists. I do not have a problem with botanists, but I have a problem with open-ended commitments of public funding. That is why I have consistently refused to nationalise the garden, as favoured by Plaid Cymru Members. That is also why I have refused to pick up an unlimited tab in terms of the gap between the garden’s revenue and its operating costs, as advocated by the Conservatives. We have not made an open-ended commitment and we will not do so, but we have done all we that can to help the trustees. We have already provided £1.6 million of taxpayers’ money to support the garden during what has been a long-lived financial crisis. We have also played a leading role in facilitating discussions between the trustees and potential partners or investors.

Over the past few weeks, we have been analysing in detail the commercially confidential report from PricewaterhouseCoopers on the trustees’ latest recovery strategy, to gain a better understanding of the key factors. We have done this in consultation with PricewaterhouseCoopers. At the same time, we have had regular discussions with our key public-sector funding partners for the project—the Millennium Commission and Carmarthenshire County Council. We have also held discussions with the financial institutions that are major creditors.

I am pleased to say that a distinctly more realistic approach has been taken by all those involved in the recent talks about the future of the garden. We have always said that the Welsh Assembly Government cannot provide an open-ended revenue subsidy to the garden. I believe that this firm stance has helped to concentrate minds and focus attention on the real problems faced by the garden. I am also pleased to say that we have reached a point where a consensus is gradually emerging over the garden’s future. In the light of that, the Welsh Assembly Government, the Millennium Commission and Carmarthenshire County Council have agreed the terms of a joint funding package that, we believe, could form a sound basis on which the financial position of the garden can be stabilised. It could provide an opportunity for a fresh start and secure a long-term sustainable future for a botanic garden for Wales.

I am today able to share with Members the main features of this funding package. In the coming financial year, 2004-05, Carmarthenshire County Council will provide £300,000, the Millennium Commission will provide £300,000, and the Welsh Assembly Government will provide £300,000—three funding partners making equal funding contributions and working together for the future of the garden. The Millennium Commission has agreed to provide an additional £1.3 million of capital funding to increase the quality of the visitor experience. This is in addition to the £300,000 that I mentioned earlier. In addition, and subject to an agreed formula, the Welsh Assembly Government is willing to provide up to £150,000 as a stabilisation payment in each of the four subsequent years. At that point, the garden should have achieved financial security, and there will be no further stabilisation payments. The plan also involves developing joint ventures with the private sector, and the receipts generated will be reinvested in developing the garden.

In putting together this funding package we have made a number of assumptions, which we have tested with the garden’s professional advisers. While we acknowledge that there are still a number of risks involved, we believe that, with the shared commitment of all stakeholders, our proposal represents a realistic and achievable way forward. However, I cannot offer Members a guarantee of its success, because many factors are quite outside the control of the three public-sector partners. First, the garden is an independent organisation outside the control of government, and it will remain so. Secondly, in addition to investment from the public-sector partners and a programme of joint ventures, there are other factors involved. There is a requirement to increase revenue from visitors and sponsors. Furthermore, agreement with creditors must be forthcoming. Having an overdraft of £2 million renegotiated every week is not a sustainable way to run any business. If the garden is to take advantage of this fresh start, it will need to improve its success as a visitor attraction. As I have maintained throughout, it needs to offer an interesting family day out—informative, yes, educational, yes; you would expect that from a botanic garden—but it must also be fun and a place to which people of all ages will want to return again and again.
All in all, that is a formidable challenge for any management team. The funding package that I have described, therefore, is conditional on the strengthening of the corporate governance and management of the garden to our satisfaction and that of the parties in the proposal. This is entirely consistent with our duty to protect public money. All the funding partners involved share the view that this is essential if the garden is to succeed in the long term. I must make it clear, however, that should the key assumptions of the recovery strategy fail to materialise, the Welsh Assembly Government will not make up the difference. There are no blank cheques. Our proposals have been put to the trustees, who will meet formally to consider them later today. I much hope that they will feel able to formally confirm their acceptance following their meeting.

I believe that the botanic garden can succeed. It is time for a fresh start with the support of the Assembly Government, Carmarthenshire County Council, the local authority, the Millennium Commission and, of course, with stronger management. I believe that there is a way forward, and I very much hope that the trustees will agree to this plan when they meet this afternoon.

As I have said, much work still needs to be done, including further sensitive discussions with key financial institutions. However, I believe that the substantial progress made in recent weeks is a direct result of our firm stance: we will not commit the taxpayer to an open-ended subsidy. There is a future for the garden, but not at any price.