OPPOSITION Tories “had no influence” in a Labour decision to make a U-turn on controversial £145m loan proposals, says deputy leader of Labour controlled Warrington Borough Council, Cllr. Cathy Mitchell.
In response to Tory claims they had influenced the decision, Labour’s cabinet member for corporate resources said in a short response: “The opposition group had no influence regarding this decision.”
Local Tories has claimed that at a July meeting, and without any proper scrutiny, the Labour Cabinet of Warrington Borough Council “nodded through” a plan to conclude two new loan agreements for up to £145M in relation to hotels in central Manchester and warehouses at Manchester Airport/Trafford.
The decision caused Tory Cllr. Mark Jervis (ConAppleton) to raise serious concerns and he has now welcomed the “U-turn.”
Cllr Jervis said: “The Cabinet papers were flawed in describing the new loan arrangements as a “novation” and a “regeneration loan update”. The proposed new loans, including with a new Jersey based company, were neither straightforward assignments (“novation”) nor were there any elements of regeneration benefit for Warrington”.
He added:“Labour’s Cabinet failed to properly scrutinise the flawed and erroneous arrangements set out in the paper. They showed that they should not be trusted to play fast and loose with £145M of borrowed money. Residents can have no confidence in Labour’s ability to manage the £1.8 Billion of Council debt when the Cabinet simply nods through proposals without understanding the issues and risks.
“Whilst I welcome Labour’s subsequent U-turn after the Conservative challenge, Labour are likely to have wasted thousands of pounds of Council Taxpayers’ money in the abortive internal and external costs of preparing the flawed new loan proposals presented to the Labour Cabinet. This will include abortive expenditure on external Consultants and external Legal Advisors”.
“It is time for Labour to reduce its enormous debt mountain. The Labour Cabinet is totally ill-equipped to make decisions on this debt”.
Warrington South MP Andy Carter had also raised serious concerns about the proposed £145m loan.
MP hits out at Labour Councillors who ‘nod through £145m loan’ without asking any questions!
1 Comment
Shows how incompetent and financially unaware this labour council are ?
They love wasting the council tax payers money.
Can’t wait for the election next year