Owl says: The safeguards proposed in the amendment below, which was rejected by the Conservative majority, appear to Owl to be entirely sensible, and a necessary check on an inherently risky strategy. Owl considers that the East Devon Tories is showing a reckless disregard for financial prudence, and for their stewardship of public money – OUR money.
Independent councillors at East Devon District Council tabled a Notice of Motion, to allow a full debate and vote, on EDDC`s highly controversial Commercial Investment Framework (CIF) at the council meeting on 27 February.
The CIF would allow EDDC to borrow £20 million to speculate in the property market. But the EDDC Chief Executive refused to allow the Notice of Motion to appear on the agenda paper for the full council meeting.
The Independents therefore had to resort to Plan B – and move an amendment to the Cabinet minutes.
At the council meeting on 27 February, Cllr Roger Giles (Ottery Town) moved an amendment to EDDC Cabinet minute 160 of 6 February. The amendment (BELOW) was to introduce safeguards to what he described as a high risk strategy; it was seconded by Ben Ingham (Woodbury).
The amendment was to add the following words:
“The Council recognises that property investment is a potentially high risk strategy, and therefore agrees that any such property acquisitions should only be undertaken after stringent financial assessment taking into account the following guidelines:
1. Any property purchases should be made within East Devon, to maximise local expertise in the property market, and to benefit the local economy;
2. A firm of Commercial Chartered Surveyors should be appointed to provide a full Valuation report and Schedule of Condition in respect of each property; a financial assessment should be provided by an appropriate Qualified Firm in respect of existing tenants; the said reports of any property purchase should be submitted to the full council for approval prior to purchase;
3. An annual report detailing purchase costs and all disbursements relating thereto shall be made to the full council”.
At the meeting, Independent Councillor Roger Giles said that the strategy:
* was not in accord with the council`s economic development strategy, because property could be purchased outside of East Devon;
* was high risk, and would massively increase the council`s indebtedness;
* would result in just 4 of the council`s 59 councillors being involved in major decisions;
* did not have public support – there was considerable public unease about the council strategy.
Other Independent councillors expressed concerns about the strategy, and spoke in support of the amendment.
At the conclusion of the debate, the Conservative majority on the council voted down the amendment, and decided to press on without the safeguards proposed.
East Devon Watch 