THE Business Secretary has been urged to stand up to the Treasury and prevent a fire sale of key regeneration assets.
Pressure is mounting on Vince Cable to take control of his department as Labour council leaders from across the North East and the rest of the UK sign a joint letter urging the Minister to reverse a ban on transferring control of vital projects to councils.
When Dr Cable agreed last year to close down regional development agencies such as One North East he ordered a review of all assets held by the agency, including sites such as a share of Newcastle’s Science Central development.
Claiming the Government’s priority was to reduce the national debt, he insisted there was no alternative but to sell off these sites as quickly as possible.
And that rush means cash-strapped councils will effectively be banned from taking advantage of a suggestion by One North East and others that they takeover the site and only pay when they finally have the money.
A letter sent to Dr Cable today by council leaders says they are “dismayed at the Government’s decision to effectively shut out local authorities from the bidding process for the strategic assets”.
The letter adds: “Many assets were purchased as part of strategic, long-term plans for economic development and growth, including redevelopment land for housing, business parks, and hi-tech industry research and science centres. Now these assets will go to the highest bidder in a £500m fire sale.
“This Conservative-led Government has decided to try and fill Treasury coffers for perceived short-term gain, rather than wait for the proceeds of many more years of investment in local communities and enterprises, enabling assets to be used for growth and jobs.”
City leaders in the North East had been hoping they could take over ownership of 12 sites – such as possible expansion land for Blyth’s world-leading renewable energy centre – with a final purchase much later as they struggle to cope with funding cuts and growing redundancy bills.
And more sites, such as Westgate House in Newcastle and a possible hotel development next to Durham County Cricket Club’s ground, had deferred payments as a back up plan if a sale cannot go ahead.
Nick Forbes, leader of the Labour group at Newcastle council, which is hoping to take over several buildings and sites, some on a deferred payment basis, said he was happy to add his name to the list of signatories.
He added: “These sites are of huge importance to regeneration plans, that’s why they were bought by One North East in the first place. For the Government to flog them off to the highest bidder and pocket the proceeds, without regard for the careful planning that has gone into their use in stimulating the local economy, is potentially very damaging.”
