A local businessman and Montgomeryshire’s AM Russell George, have expressed their frustration at the inflexibility of the Welsh Government-funded Ultrafast Connectivity Voucher Scheme.
George Edwards, Managing Director of Speed Welshpool, a logistics firm which employs more than 50 people from its base in Buttington Quarry, near Welshpool, has sought to benefit from the Welsh Government’s Ultra-fast Connectivity Voucher Scheme after finding out that their business is outside the scope of the Superfast Cymru project which, combined with commercial deployment, will provide superfast broadband to 96% of premises in Wales.
The Ultra-fast Connectivity Voucher Scheme provides 100% funding for the first £3000 and then 50% funding from £3000 to £17,000 for the installation costs to deliver a dedicated line providing businesses with a minimum of 100 megabits per second.
However, in a letter to Russell George, the Assembly Member for Montgomeryshire, the Welsh Government’s Deputy Minister for Skills and Technology, Julie James AM, confirmed that the Welsh Government would not be prepared to offer any degree of flexibility in the eligibility criteria for the scheme to enable Speed Welshpool to receive ultra-fast connectivity in spite of the significant benefits for the business which is a major employer in Mid Wales, providing overnight pallet and parcel delivery for all types of freight.
From a technical perspective, a 100 Mbit/s leased line would allow Speed Welshpool to satisfy the eligibility criteria. However, the on-going running costs are punitively expensive at £822 per calendar month compared to £613 if the business were able to opt for a 20 Mbit/s service.
Furthermore, Mr Edwards finds that the supplier recommended by the Welsh Government previously, Talk Talk, are not an approved supplier. As a result, Mr Edwards is actively considering relocating his business.
Following receipt of the letter from Mrs James, Mr Edwards said:
“I am exceptionally frustrated and despondent with the Welsh Government.
“Reliable and high speed Internet connectivity is, just as for any growing business, paramount to our business. With BT’s poor infrastructure leaving us in the dark, I find that it adds insult to injury to discover that the ‘ultra-fast’ grants available from the Welsh Government have no flexibility in the eligibility criteria or suppliers of the service.
“It raises a number of questions and wider considerations. Is the Welsh Government there to support us at all? Why does the Welsh Government wish to harm competition in the marketplace by only allowing a set number of ‘approved’ suppliers?
“It also makes us reconsider whether the Powys area is the best location for our business.”
Russell George, Assembly Member for Montgomeryshire, who is also Chairman of the National Assembly’s Cross Party Group on Digital Communications added:
“It is a travesty that businesses such as Speed Welshpool are being let down by the Welsh Government’s failure to employ any degree of flexibility in the eligibility criteria for this scheme.
“While I appreciate that eligibility criteria is in place for a reason, surely the Welsh Government should be encouraging businesses to opt for a solution which takes into account the specific circumstances of the business rather than arbitrarily imposing a one-size-fits-all approach which results in these kinds of situations.
“I am very concerned by the fact that Speed, and other businesses like it, are actively considering leaving Montgomeryshire due to the relative lack of digital connectivity compared to locations across the border.
“The Welsh Government must do all it can to retain businesses such as Speed Welshpool in Powys and encourage inward investment from new innovative companies.
“I strongly urge the Welsh Government to review this decision which does nothing to promote Powys as a county which is open for business.”