Fears over plans to dispose of assets

Sep 7 2007 by Dave Black, The Journal

FEARS have been voiced over plans to raise up to £139m in a huge disposal of assets under the switch to unitary local government in Northumberland.

Valuable and historical community buildings could be sold in the drive to rationalise public assets and cut running costs when a single, all-purpose super council takes over the county in 2009, it is said.

No details have been given yet about what will be up for grabs, but fears have already been expressed that public buildings such as Morpeth’s Town Hall and Chantry, Alnwick’s Northumberland Hall and council-owned leisure centres across the county could be under threat.

The plan to raise £139m from a review of county and district assets was included in a final submission in support of the county council’s bid for a Northumberland single unitary authority, which was backed by the Government last July. However, it has only just come to light as there was no formal consultation with the public or county councillors on the move, prompting anger from district council leaders.

Last night, county council leader Peter Hillman accused critics of scaremongering and said there were no plans to sell any specific community buildings at this stage.

The county council has launched a major review of county and district assets which is expected to release £139m in five years by reducing numbers and running costs, getting rid of non-operational resources and rationalising space in administration buildings.

Castle Morpeth Borough Council leader Peter Jackson said the plan meant valuable community assets were at risk across the county.

“The county council is going to use this tactic to dig itself out of the black hole of debt it has got itself into over the last few years and try to solve its financial problems. You have got to ask yourself where these assets are, because the figure of £139m is about the total book value of all six district councils put together. Unless they sell off major community buildings and halls, I don’t see how they can realise that amount.

“A single unitary council is supposed to produce savings, but this plan shows that the disruption and cost of change is going to be enormous.

“In Castle Morpeth our major assets are the two leisure centres and the Morpeth Town Hall and Chantry. This has to be a massive worry for all districts in the county.”

Tynedale Council leader Michael Walton said: “There is certainly concern about this, but I believe this figure of £139m has probably been reached from the book assets of all council properties.

“There would be sense in disposing of some duplicate assets under unitary local government, but we would have to look very carefully at any proposals to sell off historic public buildings, such as the Old Grammar School in Hexham, which is used as district council offices.”

Coun Hillman said: “It is unfortunate that there seems to be some element of scaremongering and misinformation being put out about what the transition to one council means. This is not healthy for anyone and can cause unnecessary worry and upset for staff and customers during this important time of change.”

He said the £139m figure had been calculated from the county council’s current plans to reduce its property portfolio by 30% over five years, and then applying the same targets to the six districts’ assets.

“We don’t plan to sell any specific properties at this moment in time. Obviously there will be some duplication of administrative accommodation, such as depots and head offices.

“Once there is a clearer idea of how the new single unitary authority will operate, the surplus properties will then be able to be identified.

“The new authority will, of course, inherit a lot of buildings and accommodation and will decide in time which are accessible and good quality and which ones are not fit for purpose.”