Coun Peter Steen

Conservative group leader

AT the Audit and Accounts Committee meeting Tuesday 28 July 2020 the financial facts of the

Empty Homes Scandal was made plain and disclosed the full financial incompetence of the Labour administration, a perception enhanced by future decisions which I will explore later.

Firstly, let us return to the Empty Homes shambles. In 2012 RBC entered a consortium agreement with four other East Lancashire Authorities to deliver a lease and repair scheme for empty and derelict properties. For reasons that have never been explained Rossendale, the smallest authority, took the lead role and things went downhill from there.

No assessment was made of the risks and appropriate controls in taking up the funding and operating the programme. No indemnity was obtained from the other authorities and normal controls, expected procedures and statutory requirements were over– ridden.

At no time do the Cabinet appear to have taken any oversight of the project, other than to sign a scheme of delegation allowing officers to ignore the normal tendering process and award the contract, without due diligence to AAAW, who collapsed two years later.

Because no indemnities were secure from the other four authorities they have no financial responsibility, but have generously offered £330k, leaving the council tax payers of Rossendale with a bill to date of £6.099 million. Due to the way the contract was devised Rossendale Borough Council are legally obliged to pay rent and council tax on any empty properties in the scheme, which is due to run until 2025. This means council tax payers in Rossendale could be liable for up to a further £2 million.

The senior Labour politicians are still there collecting their Special Responsibility Allowance each month, but refusing to accept any responsibility.

As mentioned at the start of this article there have been other decisions made to the detriment of the council tax payer.

The previous Conservative administration had resolved to construct a new swimming pool adjacent to Haslingden Sports Centre. To finance the venture a Public

Works Board loan was taken out, based on the premise that income from the new facility would service loan repayments and interest.

However, the new Labour administration decided to cancel the proposed pool and used the loan money to demolish the old Valley Centre. Whilst I accept the new square is a vast improvement it does not generate any income, the only cash raising activity, the Clog / Farmers Market which sold and showcased local produce was banned from the area which means you, the council tax payer are left footing the bill.

Following hot on the heels was the income that would be “generated” by the extended wind farm above Edenfield. We were promised not only a lump sum capital payment, but also a regular income to bolster the Medium Term Financial proposals. Unfortunately, the planning officers at RBC failed to interpret Countryside Planning regulations correctly, so on appeal the Planning Inspector dismissed the planning application. This not only meant the loss of promised income, but also a large bill for the appeal.

I did ask at the subsequent council meeting if because of this the relevant cabinet member would be considering their position - a logical question, I thought, but from the reaction from the Labour councillors you would have thought I had suggested exile to a Siberian Gulag.

Through all this it has become obvious that the Labour group focus was not on the financial bottom line, but on a headline and a photo ppportunity. Next in line was “Spinning Point 2”. Which started life as a commercial development to rival The Rock in Bury. Yet over time failed to produce anything before being cancelled. The final costs have yet to be released, but it is anticipated they will be in the high tens of thousands of pounds. It has become increasingly obvious that the ruling Labour group not only “Build financial castles in the air”, they live in them.