Ernie Clark. Hilperton Division, Wiltshire Council.

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Thursday September 16, 2010

How to asset-strip - WC style.

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Wiltshire Council cabinet to set out its asset-stripping proposals.

A report to the WC cabinet this week explains the rules the council will follow when selling off property it took from the previous district councils.

The sale of assets is seen by the Conservative administration as a key way of recouping much of the cost of their local government re-organisation. I suppose you could call in 'down-sizing'. However the fall in property values threatens the viability of the process, and has led the council to look for innovative ways of disposal, for example by offering developers fire-sale prices and then asking for a share of the profit.

In some cases an asset could be transferred to an organisation for community use, as happened with part of the Margaret Stancomb site in Trowbridge. However the council puts a number of hurdles in the way. Where an item has little value the area board would be consulted before sale, but for larger 'strategic' sales the council's Cabinet would make the decision. There would be very tight rules on how the organisation concerned was allowed to use the site.

WC also took from the district councils a number of buildings currently leased to town or parish councils, community and charitable organisations. However, it is now threatening to 'restructure' the leases on these!

Showing a surprising lack of business acumen, the council is proposing to sell land without planning consent to make it cheaper for developers. Logic would state that the council should apply for outline planning permission and then sell the land on. Oh no, hang on. That would reduce the profit for developers and result in a windfall capital gain foe local tax payers - and that wouldn't do would it!!

On a smaller scale, householders sometimes apply to buy small parcels of council land, for example as an extension to a garden. Apparently, WC officers find this annoying as it distracts them from their core work. It would therefore seem that the Cabinet will agree to stop allowing such applications until a protocol has been set out to clarify how the process would work and how much the applicant would have to pay.