Land sale amid background of 'dire financial situation'

A senior civil servant has said the sale of publicly-owned land criticised by spending watchdogs was approved at a time of great economic uncertainty.

Assembly members are investigating a £21m deal agreed for 15 parcels of land which the Wales Audit Office says could have raised £36m if sold separately.

The money was to be spent by the Welsh government's Regeneration Investment Fund for Wales on projects to boost the economy.

Deputy permanent secretary James Price said the recession prompted civil servants in the Economy and Transport Department to consider a "fire sale" of government assets to raise funds.