I’M not an accountant, so maybe the question I’m about to ask here is an obvious one for anyone who is an accountant.
Rossendale council keep saying the deal to sell Rossendale Transport to rival operator Transdev has ‘realised’ over £3m.
What does ‘realised’ mean?
The council has kept much of the detail of the deal a secret, which has resulted in speculation and confusion.
The only financial reference in council papers regarding the deal is that the council expects to earn £150k a year in the future from the rental of the company’s bus depot in Haslingden.
That was written before Transdev announced it was shipping the company’s buses to other depots the company has in East Lancashire.
So was that £150k a year assuming Transdev were staying, or based on the fact they need to find a new tenant.
How realistic is that?
Then there’s the fact that Transdev has effectively moved Rossendale Transport out of Rossendale in the first place.
Did the council know that was going to happen, and what’s the cost to Rossendale?
Almost every company knows its supply chain value or the value it brings to the local economy.
How much worse off is the Rossendale economy now Transdev has moved Rosso out of Rossendale?
The deal to sell Rossendale Transport is a huge one, and one I suspect wasn’t taken lightly.
Labour say independent advisors told them it was right to sell – but isn’t it time for the council to be far more open about what ‘realising’ over £3m really means for Rossendale?