Welcome to my blog. I am a former local journalist who now works in PR and a Conservative and community activist in Woking and Horsell. This blog will keep updated on local issues as well as my interests and quirky news stories.
The purchase of Wolsey Place has attracted a lot of debate in various places, including local Lib Dem blogs and a dismal Facebook group set up by UKIPpers, who have taken a break from blaming everything on Europe.
I’m disappointed that having agreed to it in council, some Lib Dems in Horsell are trying the old “we don’t have to follow the party line” gag just as they did over county hall. No – you don’t have to follow the party line on a Horsell issue such as development in the village or bus service cuts. But this is nothing to do with Horsell specifically and it’s a major financial commitment that the council has signed up to on a cross-party basis. For local activists to now try and wriggle out of their party’s official position on Wolsey Place is opportunistic and disingenuous. If they were so concerned, did they lobby their leadership against cross-party agreement?
For what it’s worth, Horsell West councillor Tony Branagan voted against the purchase but now the matter has been resolved he is committed to defending the council’s position, even though it wasn’t his own. How very easy to abdicate responsibility in the face of hard questions – to me, elected representatives need more fibre than that and Tony has it in spades.
I’d prefer a world where Woking Borough Council was debt-free, as it was six years ago under Jim Armitage. But that isn’t the council we’ve got and only a firesale would restore that position. In the circumstances, the best place to spend the borrowed money is on appreciating assets and generating revenue. So let’s look at Wasteful Woking and see just how inaccurate the UKIP information is.
“Not only do they splash out 68M for Wolsey, they also just announced a 2.5% council tax increase. It’s time to take some control back!”
And just think how much more your council tax would be without £1.5m in revenues next year from Wolsey Place. This is a totally misplaced statement based on the notion that Woking Borough Council itself has written a cheque for £68m.
“It will take the council 50 years to pay back the loan for Wolsey Place, a development that will probably be beyond it’s usab…le life within 20 years. That means a major capital expenditure to either rebuild or upgrade the current site. “Invest to save” is a phrase usually best applied to upgrade work or repairs that will lower future bill and fixed cost base. Not buying a leaky old shopping centre and half occupied office.”
What is wrong with taking 50 years to pay back the loan? People with mortgages usually pay them back over half that and they usually borrow a good deal less than half the money. As time goes on, the value of the repayments will decrease while the rental income keeps pace with inflation ie the value of income over repayments will increase hugely over 50 years. If the centre is sold on, the loan could be paid back or if the site is sold in say 15 years, it will be most likely be worth a great deal more than was paid for it and will cover substantially the amount of the loan outstanding.
Whatever the author’s view of the shopping centre, actually looking at the books (rather than guessing wildly) revealed a sound basis for buying. In addition, there is potential for development in the future, although that’s not something I think would be considered for some time. For the record, floors one to five of Export House are empty, with six to 15 occupied. The internal decor and facilities are very good and I know that because I work on the 14th floor.
Elsewhere, we’ve had concerns about maintenance, unforeseen legislation and all sorts of other things that really scrape the barrel. There are always risks associated with everything – given all the information available, councillors on all sides took the view that this was worth doing.
Finally, there are Lib Dem concerns about the process, about the fact that the deal was done with press and public excluded (Part II). I’m no fan of Part II and as a journalist I fought tooth and nail to find out what was going on “behind closed doors”. But consider this – councillors are elected by the people to take decisions. As residents, we’d no doubt prefer everything to be decided in public but just because the press and public are excluded doesn’t make the process less democratic. These are still the same councillors making the same decisions under the same constitution in the same way that magistrates confer in private rather than open court. And the Lib Dems, who have to a person all been involved in Part II items in the past, know that perfectly well.
In his blog Denzil Coulson claims that the Lib Dems have helped rescue us from a financial disaster this year by backing Wolsey Place. If that makes him happy, so be it - but he is right that the financial outlook for 2010/11 is a lot better because of this purchase. Remember that net of repayments, net of tax, net of maintenance the council will get £1.5m a year from the Wolsey Place purchase – it pays for itself and a lot more besides.
So t’s time that UKIPpers stopped spreading rubbish about the deal that was done for pure electoral gain and that Lib Dems locally had the bottle to agree – as Denzil seems to want to say – that this deal was the very best of the bad job that Woking’s borrowing is.
