A commissioner warned current Senedd offices are "crumbling" and becoming "no longer fit for purpose" amid a multi-million-pound search for new office space.
Hefin David, representing the Senedd commission, which is responsible for the estate, appeared before the finance committee for scrutiny of the "Cardiff Bay 2032" project.
The project seeks to secure office space for the future, with the clock ticking on the £2m-a-year lease on Tŷ Hywel which expires in 2032.
Three options are on the table: staying in the red-brick office building behind the Senedd, and refurbishing it; a new building; or a combination of a newbuild and an existing office.
Giving evidence on Thursday, Dr David, the commissioner for budget, said: "Our lease is up in 2032 and when your lease is up, you've got to consider what options you take next."
'Value for money'
"And even not doing anything then in those circumstances is, obviously, a decision because you'd essentially be rolling over your lease but you'd be at the whim then of the landlord about how that lease would be costed and you've limited your own choices...."
"So, what we're trying to do is achieve value for money by looking at other options."
Dr David emphasised that the key issue is value for money: "You can't start doing that a year before the lease is up – you've got to start doing that now."
The Caerphilly MS told the committee that advice suggests it takes up to seven years, so the commission has reached out to the market to assess options.
A contract notice for future accommodation needs was published at the end of January after a year of planning involving commercial property advisers Avison Young and CBRE.
'Ring-fenced'
Ed Williams, director of Senedd resources, explained that the contract notice is broadly a statement of the requirements for interested parties to provide a solution.
He said: "It became clear early on...there was more than one interested party, we were, therefore, into a procurement situation – not just dealing with our own existing landlord."
Conservative Sam Rowlands asked about the extent to which the Senedd expanding from 60 to 96 members at the May 2026 election is driving the need for new offices.
"It isn't," Dr David replied. "This isn't about 36 members, this is about the lease on Ty Hywel."
He said the Senedd commission's budget included two ring-fenced elements: Senedd reform and "ways of working": with the Bay 2032 project falling into the second category.
'Crumbling'
Dr David added: "I would be very concerned if, in public, this was in any way linked to Senedd reform. This is not a Senedd reform project, this is a Tŷ Hywel lease project."
He stressed that the Tŷ Hywel project would be required even without wider reforms, reiterating that a 16% budget increase is for a 60% increase in the size of the Senedd.
Dr David told the committee that Tŷ Hywel is starting to become "no longer fit for purpose because it is a crumbling building".
Mr Rowlands argued: "But you can't separate the two, can you?"
Dr David replied: "I'm not coming in with any party political angle here. I'm a Senedd commissioner, my role ...is to get value for money."
'It's a fact'
But the Tory was dissatisfied by the response: "The requirements would be different if it was 60 members or 96 members – that's the point I'm getting to and it can't be denied."
Dr David said the cost of a new build, for example, would be roughly the same, with the number of members having a "marginal" impact on the size and scope of the building.
He told the committee: "I just think it's a fact, [you can't] disagree with facts – it's the facts."
On the next steps, the commissioner indicated invitations to submit final tenders will be in October with the preferred solution identified by December.
He stressed: "The commission has not made any decision. The timeline starts to become a little more elastic towards the end ... we haven't made any decisions at this stage."
'Final say'
Dr David pointed out that any decision that is made will be subject to next year's budget, with Senedd members able to scrutinise the plans and have the final say.
Asked about the potential costs for the taxpayer, he said: "Given we haven't made a decision, we can't then project how much it's going to cost in the future."
"We'll be coming back to you to talk about that depending on what decision both the commission and the Senedd decide to take with the budget next year."
Pressed by Labour's Mike Hedges, Dr David emphasised the importance of going to market: "If you just didn't do that ...then the landlord can say we're charging you double next time."
The committee agreed to meet behind closed doors for the rest of the meeting, citing commercial sensitivity.
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