The Welsh Government says it's answered every concern raised by the UK Government about loans to Cardiff Airport.
A leaded letter suggested that officials at the Department for Transport were worried about the status of the loans and the likelihood that they'd be repaid.
It was also claimed that £12m to be spent marketing new Flybe routes could fall foul of EU rules.
A Welsh Government source said the leak was 'politically-motivated mischief making' and said all the questions were dealt with in a letter responding to the DfT.
Cardiff Airport was bought by the Welsh Government for £52m in 2013.
I've been shown that response which I understand was sent last week. The key points are:
- Many of the DfT's 'assumptions and concerns' in its original letter were 'based on an incorrect and out of date version' of a report into likely passenger numbers and future business at the airport
- Welsh Government rejects suggestions that it 'exercised undue influence over the Cardiff Airport company' which it says operates on a commercial and arms length basis
- Terms and conditions of the loan haven't yet been finalised and no money has changed hands
- Commerical repayable loans are 'a standard economic development tool' of the Welsh Government and Cardiff Airport is treated no differently
A Welsh Government source says
The main extracts of the Welsh Government's letter are below. It was sent by a senior official in Cardiff to the DfT's Deputy Director of Aviation Policy.