One obvious example is the hugely controversial
scheme undertaken by Edinburgh Trams
Limited, a company wholly owned by the City of Edinburgh Council. Originally
costed at £375 million in 2003, the budget was later increased to £545 million;
in May 2011, it was revealed that £440 million had already been spent on the
project.
Dogged
by contractual disputes between contractors and project management company, the
tram system has been scaled down dramatically from its original form. A series
of start-stop-start decisions by the local authority that led to legal
arguments eventually forced the Scottish Government to intervene.
Lib Dem-run Swansea Council has a track
record for underestimating the cost of projects with an eventual doubling of spending that
dates back to its rebuild of the city’s leisure centre. The idea that they
could be allowed to borrow against future business rate income – and plunge the
city further into debt – really does not bear thinking about.
5 Comments:
I had quite forgotten your revelation about Holley's political connections to the firm that did the free work. I am surprised that this backdoor arrangement didn't end up being reported to the Ombudmans as well.
I made no suggestion whatsoever that Swansea should borrow to fund a tram scheme. As it happens it is Labour Ministers who are proposing that Swansea and other Councils borrow more. The point of a TIF scheme is that it is targetted borrowing for regeneration purposes and is repaid from increased business rates on such development.
Quite a few people reported Chris Holley to the Ombudsman about the "freebie feasability report", however the Ombudsman in his 'wisdom' [I am being facetious] decided there was no case to investigate.
Swansea will not prosper until we get rid of the Lib dems locally and Peter Black in Cardiff - the idiots have already brought Swansea to its knees and made us a laughing stock. Roll on 2012 local elections.
Last of the bendy buses in London tonight.
Additional borrowing for councils is not the answer. The treasury will simply reduce the local government allocation by the same amount with no net benefit other than a whopping debt to be financed. A local income tax and a hands-off government at Westminster is long overdue .
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