‘Tory Towers’ Press Release from Wyre Forest Labour Party.

“Council Office Plan is Too Great a Risk and Benefits of Proceeding Grossly Overstated” says Labour.

At this Wednesdays Council Meeting, Labour members will move a motion criticising the Tory controlled council for proceeding with planned expenditure of at least £10.5m to build new offices. The motion comes after a detailed report from the Party, issued on Friday, questioning the suggestion of £688k savings made by WFDC which the Council claim would result from building new offices at Finepoint on Stouprport Road.

The Labour Report says that the “estimated and assumed” savings are grossly overstated, misleading and give false impression of the benefit to the community of risking council money at this time. It suggests the actual annual saving are well under £100k and could eventually be much lower if interest rates rise over the next couple of years.

It is also claimed the inherent risks in the project have not been properly assessed and could lead to the Council being left with a long term inability to sell offices vacated and expensive bridging finance needed for many years to come to cover the shortfall in project finance. Council has over £7m currently on deposit, which it will use, but needs to borrow nearly £3m to bridge the time between building the offices and vacating and selling the current office estate. The significant risks of this are highlighted by the fact that Coventry Street and New Street offices remain unsold after 12 months on the market and with little prospect of an early sale.

The Motion will be moved by Cllr Howard Martin who said, “The Tory run Council has a badly flawed plan which doesn’t stand up either financially or operationally at this time. If our worst fears are realised the losers will be the residents of Wyre Forest for many years to come. That is too great a risk to take. Any sensible scrutiny of the proposal and financing risks would say this is a dangerous project and it is not the time to go ahead.”

Local Labour Leader, Cllr Mike Kelly, who will second the motion, said “As a Party we have been against this scheme from day one but it has all been kept tightly under wraps by the Tories and we haven’t been able give our reasons. Now the public will see why. Now the true facts come into the open the project is shown up for what it is – pointless, risky and badly put together. The Tories would rather spend money on plush offices than spend it on capital projects that would help the young, elderly, needy and disadvantaged in our community.”

The Motion asks that the progress of the project be suspended and put on hold to allow a full scrutiny exercise to take place into the funding and financial risks evident and highlighted by the Labour paper.

-ends-
Wyre Forest Labour Party November 2010

Projected savings from ‘Tory Towers’ new Council Offices are flawed say Wyre Forest Labour

Response by Wyre Forest Labour Party to the “Review of Single Site Assumptions” Paper presented to the Transformation Board on 2 November 2010.

Introduction.

One of the main drivers for Council policy for moving to new offices has been the oft stated promise made by the Administration that annual running cost savings of £500k pa (sic) will be achieved for many years to come.

The original figure in the DTZ report of 6 years ago suggested indicative savings of up to £750k pa but, at that time, the proposed project included Green Street in the equation. Now, of course, Green Street is removed and the project is no longer offering the true initial desire of all council services located on a “single site” thus defeating the original intention of what was intended to be the main reason for relocation.

Hence it is our opinion that the inability to provide little more that a new office block without the integrated depot on the same site is a fundamental failure to deliver by the Administration and brings into question the whole purpose, viability and rationale of the projects initial intention.

Revenue Implications.

The report to the Transformation Board sates that “the current estimate for the value of savings to be attributed to the Council’s efforts to rationalise the Office Accommodation is £689K.” However these figures do not hold up under scrutiny and are grossly overstated. The Administration has consistently said that savings to be achieved will be annual and ongoing and generate a positive saving on Council running costs to the benefit of council tax payers. However this is neither true nor is it demonstrated by the breakdown of figures itemised at Annex 1 of the report.

Section 1 – can, in entirety, be removed from the total. “Building Cost savings already achieved” is a reduction in overall current maintenance and is a one off saving this year on work which needs doing now and not again – remove £113k. (It is recognised that each year there may be an element of maintenance savings but the figure shown here can not be presumed to be an annual, ongoing saving.)

Vacation of New Street offices – this was done 12 months ago and staff moved elsewhere after redundancy and downsizing during 2009-10 financial year. It did not take place as a result of single site since, had single site not gone ahead, those offices would already have been vacated and by now, could already have been sold. – remove £70k

Termination of Vicar Street Offices – vacated in 2004 and lease ended this year, as it would have anyway – its happening is totally unrelated to single site and the same comment as above applies – remove £92k

Section 3 – Administrative Review Savings – that is already going ahead now and is unrelated directly to Single Site – it has an indirect relationship as part of reorganisation but would be completed irrespective of whether or not new offices are occupied – remove £200k.

Total removed as irrelevant to single site = £475k out of £688k – leaves direct annual gross savings of £213k pa.

In Section 2 it is not made clear whether these are gross figures without adding back similar costs at the new site or whether that has already been taken into account – that may reduce these particular savings figures even more since, obviously, some of the overhead costs currently incurred will still need to be paid, in reduced form at new offices.

No figures have been included for the loss of interest on over £7m of capital held on deposit which, as income, is added to the revenue account to support the Budget – that will be permanently lost and current compound interest is about £75k pa. However, since the money will not be spent until 2012 the interest lost then is likely to be higher if estimates of expected interest at that time are accurate.

Bridging over 3 years is at 2.21% if taken from the Public Works Loan Board borrowing fund – therefore £2.5m borrowed attracts interest of over £50k pa. However if the offices don’t sell in that time (3 years) the interest rate goes up significantly and will be back dated to the higher interest rate of 4.18% for the entire loan term – so interest charged could be much higher. Hence, at least £125k in total needs to be deducted from the annual savings of £213k, since the direct consequence of spending Capital and borrowing money is totally relevant to the costings involved in building new offices.

That leaves an estimated net save on Single Site of £88k pa.

Additional to this, of course, is the fact that the new cemetery funding is inextricably linked and funds set aside for single site are, apparently, being used short term to finance the cemetery development. However, if borrowing takes place against the cemetery to release back into single site those transferred funds, then the interest charged on that cemetery borrowing also becomes a direct cost against single site and must be deducted from the savings. The rationale for that is that if single site was not going ahead, Capital Reserves earmarked for single site would be used to finance the cemetery without the need for borrowing.

Risks

It is disappointing that the report to which this response refers lacks balance and only promotes the positives. It lists Non Financial Benefits but fails to address the Risks, both financial and operational, still highly evident in the project. Many of these operational project risks and weaknesses were outlined in a report prepared by CABE (Government Commission for Architecture and the Built Environment) which have not been publically commented on by the Administration. However since this response relates solely to financing, a substantive response to this issue will be subject of a second report. A balanced report would, as a matter of course, have highlighted the many risks and negative aspects present in this project.

Serious financial risks are still very evident in the project, which have been totally overlooked in the report. One of the most serious of these is the potential inability to sell the offices whose sale is needed to fund about 30% of the project cost. Neither Coventry Street or New Street have been sold after a year on the market and, in the current economic climate, it is a reasonable assumption (risk) that other premises being offered will also be slow to sell. This could lead to bridging loans being needed for well over 3 year leading to a higher rate of interest at a cost to the council tax payer and a drain on Council finances in a time of restraint and cuts. The level of vacant office space in Wyre Forest and the limited options for the use of current civic offices should be viewed by the Administration as a potentially serious and worrying risk.

Also, the report offers no cash flow or project expenditure timeline – a serious omission. It just presents a flat list of expenditure with no schedule of spend – this is essential to estimate the effect on Council funding and would also include the estimated level of interest received on deposits or interest charged at the point in time of actual expenditure. The interest assumptions are based on “now,” not what might happen over the next two or three years and seriously underestimates the inherent risks in a rising interest rate.

Conclusion

Financially therefore, in our opinion, no justifiable case for proceeding with single site has been made financially. The savings suggested are grossly over estimated and the drain on Council’s financial resources is fraught with risks and unsustainable and unachievable assumptions.

Even now at this late stage of project planning, no firm information is set in stone. Reports still refer to “estimates” and “assumptions” which, when it relates to the expenditure of over £10.5m of public money seems to border on unacceptable risk taking and a leap of faith that is neither rational nor justified by the facts available.

It seems that everything is being weighted in favour of justifying the desire of the Administration to proceed with this project and the immense and persuasive negatives are being intentionally ignored. As more and more information becomes available we are increasingly of that collective opinion.

We ask other Groups and Members individually to support and endorse this paper in the interests of the residents of Wyre Forest.

Labour Party, WFDC
November 2010

Stourport War Memorial refurbishment

Two years ago, I withdrew a motion to Stourport Town Council proposing refurbishment of the town’s War Memorial. I did so because one councillor had taken it upon himself to raise funds from local businesses to carry out the desired work.

Although the idea of business donations is not dead, it is clear that the councillor’s initiative has not borne as much fruit as hoped. Therefore, at the Parks Committee on 18th November, I proposed that council funds be committed to the project. It will now go forward on the basis of matched-funding, with total expenditure for refurbishment or replacement of the panels commemorating the Fallen of World War One estimated at up to £20,000.

I believe it is reasonable to expect the project to be completed by Remembrance Sunday 2011. Certainly, I will exert all the influence I have within the town council to achieve this goal.

Education should be the priority not ‘Tory Towers’ new Council Offices says Tom King

“DO I think we’re going to get shiny steel and glass for Wyre Forest, I don’t think we are.”

That’s what MP Mark Garnier said about rebuilding Wyre Forest’s schools in response to Stourport Sixth Form Centre students.

However, this week we learn that just a few hundred yards from Stourport High School the Conservative-controlled council has plans to build just that, “shiny steel and glass” offices.

It seems as though the Conservatives are quite happy to spend £10.5 million on state-of-the-art buildings for themselves, but not for the children and young people of Wyre Forest.

Council Leader John Campion is “delighted” with the idea of a single site, but I know plenty of students who would rather not have to walk through the rain and cold to go from lesson to lesson.

I’m also confident that Wyre Forest’s schools would benefit from “modern working environment and facilities which…allow greater freedom for flexible working”.

Nice to know that priorities are in order – bureaucrats over our education.

Tom King Wyre Forest Young Labour

Education should be the priority Kidderminster Shuttle

Remembrance Sunday – 14th November 2010

Lest we forget

Mayor of Bewdley, Paul Gittins pictured laying a wreath at Bewdley town centre war memorial. It was the largest parade I had seen for many years with 220 people representing most of the towns organisations. St Anne’s church was full. Following the march past at which the Mayor took the salute all the parade were invited to the town hall for refreshments hosted by the Mayor and Mayoress.

in the afternoon a wreath laying ceremony and church service was held at All Saints Church, Wribbenhall which was conducted by Canon Hazel Hughes. photo shows RBL Standard bearers and Mace bearers with the Mayor prior to the service.

Paul Gittins

Wyre Forest District Council Legally Sound, Morally……?

Jamie Shaw working hard for Stourport and Areley Kings

Imagine the scenario.

A politician promotes legislation to prevent tax-dodging. Less than a month before it becomes law, he states to a public meeting that he will use the existing law to avoid paying tax. He says he’s doing nothing wrong. Legally, he’s right, but morally…?

Consider Wyre Forest councillors.

The district council’s Core Strategy Development Plan will be adopted by councillors on 1st December. The Plan provides the policies upon which planning applications will be decided until 2026. A key focus for the Plan is Kidderminster town centre and the policy for the location of new “larger office development” expressly identifies the town centre, or the edge of the town centre.

Less than a month before the final approval of the Plan, the council’s Planning Committee grants permission for the council itself to build its own “larger office development”. The location is Finepoint, Walter Nash Road, so far from Kidderminster town centre that it’s actually in Stourport!

The permission is in blatant disregard of the council’s new policies. Nevertheless, just like the fictional politician, the Conservatives and Liberals who granted approval can say they’ve done nothing wrong. Proper procedures have been followed and extant permissions used. Legally, they’re right, but morally…?

However, the issue is more than one of dubious morality. In future, the Planning Committee’s decision can be quoted by other applicants seeking to breach the Core Strategy’s policies. The Commission for Architecture and the Built Environment makes a damning judgement, commenting that it “sets a precedent for out of town development”, to the detriment of Kidderminster town centre.

“The Conservative and Liberal message is “Don’t do what we do, do what we say”. It could cost Kidderminster dear.”

Jamie Shaw

Tories will always be Tories but they can’t cut without the support of the Lib Dems.

Hold Condems to Account for broken Promises on Tuition Fees

Broken Promises – The Lib Dems sacrifice principles to share Goverment and prop up the Tories. Watch the Lib Dem PPB to see Nick Clegg is all hot air and a load of Rubbish.

At the general election, Liberal Democrat leader Nick Clegg made a great deal of politicians needing to ‘be more honest’, and ‘for promises to be kept’. The Liberal Democrats also suggested that a new ‘right to recall’ procedure should be introduced whereby MPs who break promises or are found guilty of impropriety should be vulnerable to a constituency petition of (10%) that MP would face an immediate by-election.

Politicians made pledges to stop increases in university fees and to protect student support for college students. Now is your chance to hold them to account if fees go up. Education Maintenance Allowance will close to new applicants from January 2011

If you are worried about increasing student debt or the withdrawl of student support, please sign the Right to Recall pledge at
NUS Right to Recall website

Tories will always be Tories but they can’t cut without the support of the Lib Dems.

Wyre Forest District Council in Blatant Disregard of its own Policies says Jamie Shaw

Jamie Shaw working hard for Stourport and Areley Kings

On 9th December 2010, Wyre Forest District Council will be adopting new Town Planning policies in its Core Strategy Development Plan Document. The inspector appointed by HM Government to examine the Plan’s policies found them “sound”.

In the Planning realm, even before new policies are formally adopted, they are designated as “emerging policies”, able to influence decisions. Thus, the Core Strategy was quoted in support of the “Local Connection” Housing item on the agenda of the Community and Regeneration Scrutiny Committee on 4th November.

The Core Strategy’s policy on major office development is clear;
“The District’s larger scale office development requirements…..will be accommodated within…..or on the edge of Kidderminster town centre.”
Yet a planning application for a major office development, located so far from Kidderminster town centre that it is actually within Stourport’s boundaries, is recommended for approval at the meeting of the Planning committee on Tuesday 9th November.

The applicant is Wyre Forest District Council, seeking permission for its new administrative headquarters (Tory Towers) on the Finepoint industrial estate. To be clear; a Wyre Forest Planning officer is recommending to Wyre Forest Planning committee that Wyre Forest District Council should be allowed to build its new offices at a location that is contrary to Wyre Forest’s own Planning policies.

Jamie Shaw says:
“What credibility will Wyre Forest District Council have as a Planning Authority when it is seen to be in blatant disregard, not only of this specific policy, but also of a central thrust of the Core Strategy, to boost Kidderminster town centre?”

Ends
Background Points
A) Planning permissions in 2000, 2005 & 2008, allowing industrial, office and warehouse uses at this location are being used, (quite legally), to avoid debate on the principle of locating the council’s “large scale office development” here.

B) Every planning application within Stourport is considered by Stourport Town Council. By using the procedure identified in “A”, Wyre Forest has prevented the town council from discussing the appropriateness of such a development within its boundaries.

Jamie Shaw

Tories will always be Tories but they can’t cut without the support of the Lib Dems.

There’s should be a wider Stourport agenda says Vi Higgs

Usually, Labour avoids reference to the publication of other political parties’ publications. However, the campaign for a “free hour” at the Vale Road car park must be highlighted for the cynical exercise it is.

The Conservative councillors in whose name the publication goes out are members of the ruling group on Wyre Forest District Council, the very people who introduced the new punitive charging regime!

Let it be clear : Labour is not against charging for car parks, but Labour district councillors did vote against the entire set of tariff proposals tabled by the Conservatives.

One reason for opposition was our belief that issues confronting Stourport town centre should be addressed as a whole. Apart from parking, these issues include traffic congestion, air pollution, the Conservation Area, including the delayed Bridge Street/Basins link, and the retail future in the context of the new Tesco store. Clearly Conservative councillors don’t agree. In fact, recently, Labour’s proposed “Stourport Town Centre” agenda item was turned down, because it “did not comply with the priorities of the (Conservative-controlled) council.”

VI HIGGS Areley Kings Labour Party.

Kidderminster Shuttle: Letters

Tories will always be Tories but they cannot cut without the support of the Lib Dems

Condem sell off plans threaten Wyre Forest and Other Woodland

Woodland under Threat Photographs by kind permission of George Rywacki

The ConDem Government have plans to sell off vast amounts of forest and other land owned by the state within the next three years.

The forests / land will probably be sold to private landowners, property developers or even international power companies.

This could well represent the largest change of land ownership since the second world war together with abolition of the Forestry Commission.

The Commission is subsidised by £30 million a year, but generates an additional income of £63 million a year.

The selling of the Wyre Forest would be a gross act of environmental vandalism by the ConDem Government.

At present our forest gives us free access to roam, ride, cycle and enjoy its wildlife and natural beauty. It is a haven for biodiversity and hosts sites of special scientific interest, eg rare orchids

The Wyre Forest plays an important part in environmental protection, eg carbon sequestration, pollution absorption, flood control and erosion protection.

If you oppose these plans Write to Caroline Spellman MP, Environment Secretary, House of Commons, London, SW1A 0AA

Sign the Save our Forests Petition

Guardian: Forests sell-off plan by government is ‘asset-stripping our natural heritage’

Tories will always be Tories but they cannot cut without the support of the Lib Dems