The Welsh Government’s controversial £4.25 million purchase of Gilestone Farm was made with “avoidable haste” and without the level of scrutiny and planning expected for such a major public investment, a Senedd committee has concluded.

In a highly critical report published today (Monday), the Senedd’s Public Accounts and Public Administration Committee identified a series of failings in the way the deal was handled - from poor record-keeping and unclear decision-making to inadequate community engagement and a lack of robust business planning.

The Welsh Government bought the 240-acre farm in Talybont-on-Usk in March 2022 with the intention of leasing it to the organisers of the Green Man Festival to support the growth of the creative sector in Mid Wales. The acquisition took place before a full business plan had been submitted by Green Man Festival organisers.

Controversial proposals to develop the site were scrapped after a pair of nesting ospreys, discovered in 2023, triggered a legally enforced exclusion zone that significantly restricted activity across much of the area.

In the latest 46-report into the purchase, Committee Chair Mark Isherwood MS said the deal was driven more by end-of-year spending pressure than by strategic planning.

“The Committee is deeply concerned by the Welsh Government’s handling of the purchase of Gilestone Farm,” he said.

“While we recognise the importance of acting swiftly to support the creative sector, this decision was taken with avoidable haste and without the thorough due diligence that the public rightly expects. It raises serious questions about internal processes and the robustness of governance structures.”

The commitee noted the Welsh Government must reflect on how it engages with the public. It said, in this instance, the local community felt “disengaged and uninformed” about the government’s intentions.

“The Welsh Government must do more to ensure that communities are not only consulted but genuinely listened to,” Mr Isherwood said.

“Engagement must be meaningful, inclusive, and consistent.”

Earlier this month, it emerged that the value of the farm had fallen to £3.75 million - a loss of £500,000, or nearly 12 per cent.

Mr Isherwood said: “The significant loss in the value of the property is particularly notable in the current financial climate, and we expect the Welsh Government to clarify its future intentions for the site and to set out how it will mitigate the financial loss to the public purse.

“To ensure lessons are learned, the Committee will want to carry out further work looking at the Welsh Government’s approach to property investments, to assess whether current processes are sufficiently rigorous and fit for purpose.”

An extract from the Mr Isherwood's foreword in the report reads: "It's undeniable that the Welsh Government acted with avoidable haste in this instance, because of the pressure to utilise the budget at the end of the financial year. It’s regrettable that there were failures in the process and the Welsh Government should reflect on its approach pre-purchase, to determine whether the processes in place are robust enough to avoid issues arising in the future."

The Committee issued eight recommendations, urging the Welsh Government to improve how it shares ministerial advice, strengthen public consultation and engagement, and conduct more rigorous due diligence in its property purchase processes, including a full review of the purchase.

The Committee said it will commission an inquiry into the Welsh Government’s approach to property investments, to better understand the processes applied and to evaluate whether they are sufficiently rigorous.

The report will now be submitted to the Welsh Government for its response. 

The Brecon & Radnor Express also approached the Welsh Government for its reaction to the report.

The Welsh Government told us said it would read the Committee’s report “with interest” and respond in due course.

The Welsh Government said: “Gilestone Farm was acquired in 2022, following proper processes and in keeping with market values at the time, in order to support the growth of the Creative Sector in Wales and a stronger Mid Wales economy.

“We were delighted to learn in August 2023 of the arrival of the pair of mating ospreys, which returned in 2024, and again this year. Their first egg hatched in early June 2025. This is believed to be a first for the Usk Valley in at least 250 years and marks an important milestone in the protection of this important species.”

As for the farm’s future, the Welsh Government said it is continuing to explore different options for how the site could be used.

“The arrival of the ospreys necessarily impacted on the planned use of the farm, and the original project had to be stopped,” said the government.

“Gilestone remains one of the Welsh Government’s property assets, and is being managed on our behalf as a working farm. We continue to explore potential opportunities for its future use, in keeping with our commitment to seek a sustainable outcome that helps local communities thrive.”

This latest report adds to earlier criticism from an Audit Wales report released back in 2023, which also found that the decision was made in haste and without a completed business plan.

Adrian Compton, who carried out that investigation, raised several concerns about the £4.25m purchase. He said using up unspent money by the end of the financial year was the "most significant" factor in the pace of the Welsh Government's decision making process.

In a letter sent to the Welsh Parliament’s Public Accounts and Public Administration Committee, Mr Crompton said, in acquiring the property "speculatively": "... the Welsh Government has accepted financial risks that would not have arisen if it had delayed a final purchase decision until after its full consideration of Green Man’s plans, and the suitability of Gilestone Farm for intended future uses, had been concluded."

The Audit Wales report was carried out and released prior to the discovery of nesting ospreys at the site.

The Green Man Festival has been held annually since 2006 at the Glanusk Estate in Crickhowell. The site is approximately six miles from Gilestone Farm at Talybont-on-Usk.