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6 Jan 2016

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Asset sweating, Austerity cuts

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Selling assets?

Overheard:

“The council is selling its assets” …

Response: “No, it isn’t, it’s offloading costs to very reluctant buyers who get no discount for taking them on!”

2 thoughts on “Selling assets?”

  1. Was this overheard at this evening’s Cabinet meeting? Do we know who said it?

    Whilst it may be true that assets have a cost to maintain, it is also true that they typically used to provide a service and benefit to local residents. And they will only be worth significant amounts if they are being sold to private sector buyers who can change their use from public to commercial benefit.

    I doubt very much that private sector buyers are that reluctant or feel that they are getting a bad deal because of the maintenance costs – if they were reluctant or thought it was a bad deal then they just wouldn’t buy. That is the basis of capitalism. More likely the council prices assets being sold to private buyers at a price which will make them attractive – after all any capital receipt is useful when you have a budget shortfall to fill.

    The situation is quite different when transferring assets to town or parish councils who will continue to make the same use of them as present – in these situations this is more of a community transfer (saving on EDDC maintenance costs) than an asset liquidation.

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