REVISED investment plans for the proposed Circuit of Wales have been rejected by the Welsh Government.
Ken Skates, Welsh Cabinet Secretary for Economy and Infrastructure, said in a statement that there was still too much risk put on the public purse by the £370 million scheme, particularly in the light of an expected Brexit budget bashing.
He said that private funding must be half of the cost for the proposed development outside Ebbw Vale, not the 17 per cent set out in the new proposal.
Originally the Circuit of Wales developers wanted the Welsh Government to underwrite the whole cost if it failed and the private backers would get their investment covered.
But after this proposal was turned down a new plan was announced with 75 per cent risk taken by the Government and eight per cent shared by two local authorities.
Effectively, the Welsh Government has now said the private backers must invest three times what they have suggested and the remainder is likely to be split between Welsh and local government budgets, possibly in repayable loans forsome part of the deal.
In a statement after the meeting with the Welsh Government, Martin Whitaker, chief executive of the Circuit of Wales, said they were confident of reaching a mutually agreeable settlement on the finance.
"The discussions were positive and we welcome the Cabinet Secretary's support for the development and confidence that a financial proposal that will allow the project to moveforwardcan be agreed."