Call for Coventry council investment to be made public as councillor admits 'there's a risk'

[dutchman]

Cllr Gary Ridley said he was "disappointed" the figure hasn't been revealed



Coventry City Council's leader of the opposition is calling for secret details of a major investment by the authority to be made public. Coventry council is set to borrow money to loan to its waste company Tom White for a better recycling plant as its current one keeps breaking down.

The exact amount to be invested is unknown but the decision will have financial implications above £1 million per year, a council report said. Cllr Gary Ridley, leader of the opposition Conservatives group, said he is "disappointed" that the numbers are being kept secret.

"There is a significant investment going into this, I am disappointed that people won't get to understand its extent," he told a council Cabinet meeting on Tuesday, October 11. Cllr Ridley told the Local Democracy Reporting Service (LDRS): "This deal exposes the taxpayer to a multi-million-pound liability.

"Yet we can’t even talk about it because they’ve hidden the exact figure behind a legal firewall. In a democracy, residents should be involved in decision making based on freedom of information.

"And the opposition should be able to publicly scrutinise decisions so people can make up their own minds. Where is the transparency and accountability in this decision?"

Cllr Ridley also criticised the council's commercial strategy. He believes they are buying businesses "like it's a game of monopoly."

"When they bought Tom White Waste for £15m they told us it would generate huge returns but a few years later, just like Coombe Abbey, it needs a multi-million-pound bail out."

But Cllr Richard Brown, Cabinet Member for Strategic Finance and Resources said the move will financially benefit taxpayers. This is because the authority can borrow money at advantageous rates but will loan it at a commercial rate, bringing a return.

He believes the move is "a good solid investment" and needed so the council can raise funds for its services. "Would I do this if this was my money? That's how I look at it," he said.

"This is a longer term investment that will deliver a return to us to try and address that [£9.5m] overspend. We in Coventry are one of the lowest in terms of core funding, money spent per head is one of the lowest.

"We have tried to lobby the government every year, saying if you're serious about levelling up you can give us an extra £20 million, £50 per head. Our yearly 'salary' is one of the lowest in the country. That's money we have to get by on and pay bills with on a day to day basis."

Cllr Brown declined to reveal any numbers and wouldn't be drawn on the worst-case scenario, but admitted there's some risk. "There's a risk with it, there always is," he said. "We have mitigated this as best we can."

He also stressed the importance of the new plant for sustainability as it will increase the amount that can be recycled by tenfold and eventually make 'landfill zero' possible - a goal he says is realistic.

"This to me is all about a significant contribution to tackle climate change and reduce commercial waste sent to landfill to zero. This is a win-win."

A decision on the loan will be made at Coventry City Council's Full Council meeting on Tuesday, October 18.

[rebbonk]

This really is not on. The local taxpayer has a right to know why and where his money is being spent. Whenever detail is hidden I get a very uncomfortable feeling.

CCC hasn't exactly got the best record of 'investing', and I would prefer them to carry out the services they are supposed to deliver rather than dabble in commercial deals.

[dutchman]

Waste firm owned by Coventry City Council to get £20m loan from the authority



Coventry City Council is set to lend its own waste management firm over £20m, it is understood.

Tom White Waste was purchased by the local authority in March 2020, and it was used to collect refuse when Unite workers went on strike.

Despite facing a big budget shortfall itself, the council has agreed to take out loans to lend the firm £22.7m to upgrade facilities.

The local authority said it would ultimately help to cut down on costs.

The money will fund a new plant that the council said would allow 70% of waste to be sent to recycling, and therefore reduce the costs associated with landfill.

However the loans are expected to total £33m with financing costs, and will see the company repay it at a commercial rate, the Local Democracy Reporting Service (LDRS) said.

Its value had been kept secret in private meetings and reports by the council, and although the Labour-run authority has not confirmed it, the amount has been confirmed to the LDRS by multiple sources.

Officers recommended that it be approved in a public report for Wednesday's full council meeting.

But councillor Gary Ridley, leader of the Conservative opposition group, said the party was not supporting the plan and it "exposes the taxpayer to millions and millions in liabilities" if the deal goes wrong.

At a public vote to approve the loan, Labour members voted for it and Conservative councillors against.

The LDRS understands there was the same divide at a later private meeting about the loan, meaning the decision will go through.

[dutchman]

If it was commercially viable wouldn't they have been able to raise the money privately?