Investment proposals branded a ‘dead duck’ by an opposition councillor are now ‘up and flying’, according to deputy council leader, Cllr Stuart Hutchinson (pictured).
The Isle of Wight Council has invested £19.5 million in trading units on industrial estates in Manchester and Kent. The investments should net the council an income of half-a-million pounds each year, once borrowing costs are met.
Returns not as great as anticipated
The authority’s plan to borrow £100 million at low interest rates and invest it in low-risk industrial, office and retail properties was originally planned to generate £5 million a year to help protect vital public services.
At a cabinet meeting in February, finance cabinet member Cllr Hutchinson admitted returns had not been as great as originally planned.
More income and fewer cuts
However, at a meeting of the Scrutiny Committee last night (Tuesday), Cllr Hutchinson said the council was just about to complete on two commercial investments — one in Salford, Manchester, and one in Aylestone, Kent.
Cllr Hutchinson said:
“We are working to generate as much income as we can so we have fewer cuts.”
Hutchinson: “Two ducks up and flying”
The council examined seven investments, four of which were dismissed for not being safe enough or providing a sufficient rate of return. The council bid on a further one, which was lost.
Cllr Hutchinson said:
“I do recall Cllr Brodie saying the fund was a dead duck, but actually we now have two ducks up and flying.”
This article is from the BBC’s LDRS (Local Democracy Reporter Service) scheme, which OnTheWight is taking part in. Some additions by OnTheWight.
Image: © With kind permission of Allan Marsh
