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The Deputy First Minister's announcement in full

Llywydd, I have come before Members today to outline changes to the funding arrangements in place between the Welsh Assembly Government and the National Botanic Garden of Wales.

The National Botanic Garden was established in May 2000 and was one of a number of Welsh projects funded by the Millennium Commission.  Having run into difficulties shortly after opening, the Garden first approached the Welsh Assembly Government for support in 2002 and we have been one of the key partners since then.  This Government sees the Garden as a national institution of increasing international repute and a beacon in our aim to bring both economic development and national prestige to all parts of the nation.

Members will recall that in March 2004 the Government entered into a five year funding agreement with the Garden, centred on the delivery of the Recovery Strategy agreed between the Garden and the three funding partners: the Government, Carmarthenshire County Council and the former Millennium Commission. 

I am pleased to inform Members that the Garden has made good progress in delivering on the Strategy.  The new Management Team has injected a clearer sense of purpose and direction and is managing the business more effectively.  The Garden’s achievements have included:
• more than 15,000 educational visits in 2006/07;
• A 20% increase in visitor numbers since 2003; and
• A 40% increase in income from corporate hospitality.

In addition, the on-site BioTechnioum facility has been leased to Morvus, a pharmaceutical research and development company, resulting in 70 high quality bio-science research jobs relocating to Carmarthenshire.

The Garden is on course to meet visitor targets for 2007/08 and the management is looking to maximise income generation opportunities.  The Garden has also demonstrated the scientific, educational, environmental and social benefits Wales derives from its activities. 

However, both we and the Garden are clear that in addition to maintaining current activities, there needs to be further work in attracting new and returning customers.  This must go wider than new exhibitions and displays.  We need to pay greater attention to the science and education remit of the Garden if we are to enable that development, and in doing so we must remember that as our national Botanic Garden, informing, educating and entertaining go hand in hand. 

To this aim, the Garden is currently in negotiation with University of Wales Bangor in order to develop a centre for the provision of educational programmes across north Wales. This will utilise the University owned Treborth Botanic Garden and bring the National Botanic Garden’s role to the doorstep of the public.

In collaboration with the Countryside Council of Wales, 400 acres of estate land within the Garden’s estate is to be designated as a National Nature Reserve.  This would result in the inclusion of a working organic farm amongst the portfolio of National Nature Reserves; a first for the Countryside Council of Wales and an exemplar for combined good organic farm practice and habitat management. 

The Garden’s plans to continue to development strong education and science programmes will enhance its growing reputation as a world class botanic garden. 

However, it is clear that the Garden is not yet in a position to be self sustaining. Indeed, none of our national institutions are.  It has an overdraft approaching £1.9 million.  Current resources are insufficient to properly manage the estate and garden areas and a greater level of financial support is required to meet these costs.  At the Garden’s current stage of development this cannot be generated from visitor income alone.

Notwithstanding the increasing costs of maintaining the current activities, a rolling programme of capital investment is essential if the quality of the visitor attraction is to be maintained and improved.  The Garden has a series of capital developments planned and while they are not expecting the Government to fund these, additional funding from third parties is dependent on demonstrating a stable financial position.  Without the removal of the overdraft that would be impossible. 
 
Over recent months we have been in discussions with the Garden and with Carmarthenshire County Council about future funding arrangements.  I am pleased to be able to say that following on from these discussions I am today in a position to announce a new financial package for the Garden. 

The Welsh Assembly Government will, during this financial year, provide the Garden with a one-off grant of up to £1.9 million to enable the management to pay off the overdraft.  This money, drawn from both the Heritage Portfolio and funds accumulated from Welsh Assembly Government underspends, will place the Garden on a firmer financial footing and enable them to unlock the capital funding they need for future developments. 

I have also agreed to increase the level of revenue support from the current £150,000 to up to £550,000 per annum. This support will enable the Garden to maintain and improve the estate and gardens, thereby further enhancing the visitor attractions.  It will also provide the scope for future developments including strong science and education programmes.  That increased level of support will be provided for the three year period ending in 2010-11, at which time this pattern of funding will need to be reviewed.

Alongside this additional support from the Government, Carmarthenshire County Council has indicated its willingness to convert its £1.35 million loan made to the Garden previously into a grant and so avoiding the need for repayment.  The County Council has also indicated its willingness to provide a further package of financial support and assistance to the Garden, as part of a match funded joint partnership with the Assembly Government.  We will continue to work closely with Carmarthenshire in considering the future of the Garden. 

This funding is not being provided at the expense of other budgets within the Heritage Portfolio.  The use of financial reserves has not been agreed lightly and this package of support will be underpinned by robust terms and conditions of grant and effective monitoring of performance.

The funding package I am announcing today is intended to provide a sound financial base on which the Garden can consolidate and grow and take its rightful place as a prestigious national institution that strengthens Wales’ scientific standing internationally.  The Garden may be one of the younger botanical Gardens on the world stage but the progress it has made over the recent period highlight very clearly that it has the potential to make an even more valuable contribution over the years to come.

National Botanic Garden of Wales – Funding Arrangements 24 January 2008 by Ieuan Wyn Jones, Deputy First Minister and Minister for the Economy and Transport