STEELMAKER Corus has asked Welsh MPs to demand a review of the way public funds are spent after a European competitor secured the contract for the Welsh National Velodrome near its Llanwern site in Newport.
In evidence presented to the Welsh Select Comm-ittee Dr Mark Carr, managing director, Corus Strip Products UK, which inclu-des Llanwern, questioned whether the taxpayer and the public was getting value for money.
"Corus would welcome a review of public procurement policy with respect to publicly-funded construction projects," the firm told the committee which, includes Monmouth MP Huw Edwards. "There is concern that current policy does not reflect the whole-life benefit of these projects with respect to impact on suppliers, and to sustainable development considerations.
"To highlight this, the rec-ently constructed Welsh Nat-ional Velodrome track, which is next to the Corus Llanwern site in Newport, was funded by public and lottery finance.
"While Corus' 'colour coat' material, which carries a 25-year guarantee, was originally specified for this project, the contract was awarded to a European competitor, which doesn't offer the same guarantee of product longevity."
The MPs called in Corus during its investigation into manufacturing and trade in Wales. It will present its recommendations to Welsh Secr-etary Peter Hain.
Dr Carr and Stuart Pettifor, chief operations officer for Corus, told the MPs that relations between the firm and the Department of Industry had improved since the massive lay-offs which resulted in the closure of the Ebbw Vale plant.
"Our relationship with the DTI is much improved," Mr Pettifor said. He acknowledged there had been an "adversarial relationship" but said Corus now had a more open style and a greater willingness to enter into discussions.
The MPs were told that steel demand in the UK had fallen by 35% in the last 30 years and in 2002 was 12% below the 1998 level, reflecting the drop in UK manufacturing activity.
"The manufacturing sector in Wales is in a poor state," the company admitted.
The firm complained it was being burdened by red tape. "Too many regulations are being imposed," it said.
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