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Councillor Routley asked: Leader following the Cabinet decision on 15 September 2026 approving the sale and leaseback of Newport Transport Limited’s Corporation Road depot to Transport for Wales for £3.25 million: 1. Bus franchising across South-East Wales is not scheduled to commence until 2029 at the earliest, with the final timetable explicitly stated as unconfirmed. Why did the Leader and his Cabinet rush to surrender our city's principal, strategic municipal transport asset years ahead of time on an aggressive completion deadline of 18 September 2026, effectively selling off Newport’s municipal family silver to facilitate Cardiff-led centralisation when there was no operational need to do so in 2026? 2.From year two, Newport Transport is committed to paying £303,204 every year in rent, increasing annually by 1% to 3%. How can the Leader justify placing this permanent, compounding revenue drain on an operator already under acute balance sheet stress, and will he admit that relying on the pre-emption buyback clause is a complete illusion, given that a struggling company saddled with commercial rent will never have the capital reserves to buy back its own depot? 3.The Chief Financial Officer’s comments explicitly warn that shareholder financial implications will emerge as franchise arrangements develop. Was this transaction an emergency bailout to plug cash flow holes and keep the company afloat, rather than a planned strategic initiative? 4.Why was an irreversible, multi-million-pound disposal of a key municipal asset signed off under executive shareholder powers without any prior examination by the Overview and Scrutiny Management Committee, and without a Fairness and Equality Impact Assessment on our local workforce and bus passengers? Furthermore, does the sudden removal of five board directors to install senior Council officers signal serious governance failures and behind-the-scenes crisis management? 5.Will the Leader now commit to bringing a full, unredacted report on Newport Transport’s true liabilities, debt position, and forward commercial viability to the Scrutiny Committee so members and the public can see the reality behind this deal? Councillor Batrouni responded: The rationale for agreeing to the depot sale is set out in the report to the Cabinet meeting dated 15th September 2026: “The Company and Transport for Wales have agreed terms for the sale of the depot at 160 Corporation Road for £3.25 million exclusive of VAT. The Company would lease the depot back so that it can continue operating from the site pending the introduction of franchising. The proposed acquisition will enable Transport for Wales to secure a strategically important depot for the future franchised network while preserving its continuing operational use. The Council is not itself selling the depot. The Cabinet is being asked, in accordance with the Company’s Articles of Association, to approve the transaction in the Council's capacity as sole shareholder because the depot is a significant Company asset.” The report also addresses the reasons for the changes to the board membership: “The proposed Board changes are a separate governance matter and are not a condition of the depot transaction. The Company is entering a period of significant regulatory and strategic change, as the transition towards franchising begins to gather pace. In view of that, it is recommended that the composition of the Board be altered, to provide a broader balance of governance, financial, commercial and strategic expertise to ensure effective oversight and challenge. It is therefore proposed that Cllrs Mark Spencer, Kate Thomas, James Clarke, Malcolm Linton and Beverley Davies be removed as directors and that Cllr Laura Lacey, Don Reed, Angharad Blayney, Silvia Gonzalez-Lopez and Tracy Mckim be appointed in their place, subject to the necessary company law formalities. The proposal is not intended to reflect adversely on the contribution of existing directors. Rather, it reflects the Council's assessment of the skills and capacity required for the next stage of the Company's development. The inclusion of the proposed appointees on the board would strengthen shareholder oversight, provide closer alignment with the Council's financial, legal and strategic responsibilities, and support effective challenge during the transition to franchising.” Cllr Routley will therefore note that his questions can be addressed by a review of the above-mentioned report to Cabinet.
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