Fifty-three businesses in Carmarthen are calling for a controversial initiative designed to help them to be scrapped after they received demands for payments even though they don't want to be a part of the scheme.
The town’s Business Improvement District (BID) was set up in 2020. It’s a body, funded by its members, which tries to improve a commercial area, in this case Carmarthen town centre - you can keep up to date with the latest Carmarthenshire news by signing up to the local newsletter here.
The idea behind such schemes is that local companies pay a percentage of their rateable value every year which then creates a pot of money that BID management can spend on improving the profile and look of the business area. The idea for the scheme was first mooted in 2017 and more than 130 businesses later took part in a vote, with 65% of those balloted voting in favour of setting up Carmarthen BID.
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However, Covid-19 changed the priorities for a lot of businesses, who were left unable to trade for months on end. One business owner who owns three separate businesses in the town said there was a sense among some traders that “we don’t know what we’re paying for”, while some, she claimed, had paid the fees due for being a part of Carmarthen BID out of panic. You can read more about the scheme and how it is meant to work here.
Dozens of businesses were represented by a solicitor in court in Llanelli on Monday afternoon who served a “formal notice to the Welsh Government to investigate and invoke a void ballot against Carmarthen BID” under section 9 of the Business Improvement District (Wales) Regulations 2005.
The businesses cite several reasons why the BID scheme should be scrapped, including allegedly being denied access to vote, being “prevented from voting” and “hindered from doing so freely”. It is also alleged that publication of the ballot and the day of the ballot itself did not meet relevant timescales, and that each person entitled to vote did not receive explanations of the ballot, while some did not receive the ballot paper itself.
The action was read out in court by solicitor Rhodri Griffiths, of De Rossi Griffiths, on behalf of 53 complainants. The letter, which is 35 pages long, has been sent to the Welsh Government and includes examples of “mismanagement of marketing, promotion of events and vague disclosure of expenditure”. On Monday afternoon, the court agreed to an adjournment of the case meaning summons issued to pay unpaid BID charges were adjourned for three months.
Mr Griffiths is inviting any additional eligible voters to join the class action and suspects there is a high risk that many businesses who were not represented in court but are subject to summons, have unlikely not received correspondence.
Carmarthen BID had at the time not had sight of the complaint sent to the Welsh Government on Monday, but was approached by Wales Online for its response to some of the details included in the letter and the allegations made. A spokesman for the body said: "The Carmarthen Town Business Improvement District is confident that all the appropriate legal processes were followed in its formation. The BID Is happy to respond to any questions regarding its formation put to the Welsh Government and the legality/democratic process used for it to be formed as well as its ongoing management."
Carmarthenshire Council is not involved with the running of Carmarthen BID. The authority acts as the collection agent for the levy paid or owed by businesses. The council acts under instruction from a company called Carmarthen Town Bid Community Interest Company, which was set up in October, 2020. When asked to comment on the latest development, a spokeswoman for the council said: “We are of the view that there is no legal basis to consider any action against the Business Improvement District ballot.”
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