Plan to buy Northern Rock tower in doubt

May 4 2009 by Amy Hunt, The Journal

A LANDMARK decision by council bosses to buy the empty Northern Rock tower has been thrown into doubt.

Newcastle’s opposition Labour group has called in a decision by ruling Liberal Democrat city councillors to approve the purchase of the Gosforth tower for a reported £22m.

Meanwhile Northern Rock’s board has deferred making a decision on whether to sell the tower to Newcastle City Council.

Two weeks ago The Journal revealed how the council planned to buy the empty tower at Regent Centre and let it to green support services firm eaga.

Office space in the tower has been earmarked to house staff working for a joint company set up by the council and eaga, as part of plans which bosses say will create up to 500 new jobs and secure 2,000 more.

The council’s decision-making executive voted in private to approve plans to buy the tower. But now the Labour group has asked a series of questions about the council’s policy and why it has decided to buy the property. They say preventing a private investor from buying the tower could undermine buyer confidence in the city and are demanding the matter be discussed in public.

Eaga plans to transfer 400 staff from their office at the Watermark in Gateshead to Gosforth.

The council will move 200 people from the Civic Centre and Scottish Life House into the tower.

And the Family Health Service Authority will move 100 staff currently based at Bede House next to the Tyne Bridge on to one-and-a-half floors of the block.