The £58m cost to the taxpayer of the new Conwy County Borough Council offices in Colwyn Bay has led to calls by Janet Finch-Saunders AM for greater scrutiny of public spend by the local authority.
Janet said:
“With council services cut across Conwy, and the tightening of belts over a number of years, it is outrageous that the Council should be committing to financial agreements of this magnitude.
“The total cost to the Council is £23m higher than the construction cost, even before other occupation rates are factored in.
“Although not a formal PFI agreement, the details put forward by the Council are hazy and there are certainly striking similarities between this financial agreement and other PFI schemes.
“The importance of openness, transparency and financial probity in all areas of public spending is crucial to enabling proper scrutiny and accountability, and this spend raises many important questions.”
ENDS
Notes:
The figures have been revealed in an FOI response from the Conwy County Borough Council, available here: https://www.whatdotheyknow.com/request/new_offices_colwyn_bay#incoming-982006
Further information is available here: https://www.whatdotheyknow.com/request/colwyn_bay_offices#incoming-955135
Key points (from FOI responses):
- The total cost to the Council as a consequence of its financial agreement with M&G is in the order of £58million
- The construction cost is circa £35m
- Not funded by PFI
- M&G will be the landlords upon completion on practical completion for a 40 year term with a put and call option at the end, whereby CCBC can acquire for £1.
- The total cost to the Council as a consequence of its financial agreement with M&G is in the order of £58million
- Other occupation costs (rates, utilities etc) are in addition.
Photo:
- Janet Finch-Saunders AM