Lib-Dem budget ‘doesn’t add up’ claim

Reporter: OLDHAM CABINET reports by Richard Hooton
Date published: 30 September 2008


LABOUR claims Oldham’s budget crisis will affect thousands through job losses and impact on services for vulnerable people and children.

Councillor Dave Hibbert’s warning was made in response to the Lib-Dems’ bombshell that they are considering axing 850 jobs to plug a £17.3 million hole in finances.

Cabinet was told of the work going into clawing back money, including identifying £8.3 million of savings that could save up to 150 jobs.

Councillor Hibbert said Labour would draw up an alternative budget, adding: “We are talking about possibly 4,000 people being affected.

“Saying there are 15 per cent more people here than in other authorities, so we must get rid of them, is a pretty blunt instrument.”

He criticised a deal with consultants KPMG that will see the firm given 10 per cent incentive payments that could earn £3 million for identifying savings regardless of the impact on services.

And he was concerned about the potential damage to vulnerable people, saying the Lib-Dem budget takes £750,000 out of adult social care and £530,000 from children in care. Another £660,000 would be taken from sports development and youth provision.

Cabinet member for finance and resources, Councillor Lynn Thompson, said: “While I feel a great degree of sympathy to the staff who will be displaced, there is no other way of doing it.

“We have 15 per cent more staff than other authorities. There is no way that is sustainable.

Councillor Thompson said 850 jobs was not a target but staff are the largest cost and some positions must be axed.

She added: “Life and limb services will always be protected first but there is no reason why you can’t make efficiencies.

There were reassurances that front-line sports provision is not affected as the savings are in back-office management.

A report to cabinet says cutting back on council buildings, better use of transport and maximum effectiveness from IT could all save money. Raiding cash balances is also being considered and vacant posts are not being filled.

The council has previously committed to a council-tax increase of inflation or lower.

Councillor Hibbert said KPMG would be given offices for two years. £1.3 million would be taken from the regeneration department.


Pennine Way site to be sold for £1

OLDHAM Council has agreed to sell the Pennine Way Hotel site for £1 to bring the creation of a regional science centre another step closer.

The sixth-form college has bought the land, off Manchester Street, to build a multi-storey science centre that will cost up to £20 million.

The sale is a big financial loss to the council as it bought the hotel for £2.7 million, £700,000 of which came from the Greater Manchester Passenger Transport Executive. But council bosses say they are determined to move forward plans for the science centre.
Cabinet member for regeneration, Councillor Mohib Uddin, said: “This announcement clearly signals our intentions to provide a high-quality science centre that will be the envy of the North-West.

“Without this decision there wouldn’t be the financing available to buy and build on the site, which would be a loss that would affect generations to come. We are committed to a building that will give Oldham pupils top-of-the-range facilities and will also let our higher and further education providers expand the number and range of science courses.”

The hotel was bought originally for an extension of University Centre Oldham, but the centre decided to expand nearer its town-centre base.


Lease-back for Beal Valley site

OLDHAM Council has agreed the future use and responsibilities of the Beal Valley landfill site.

It will be leased back to the developer to construct a golf course.

In 2002, a decision was made to change the use of the tip to ensure only non-polluting waste was dumped and renegotiating the deal cost £6.3million.

But is also gave the council the option to lease back the site back for £750,000 when dumping finished.

Cabinet member for regeneration, Councillor Mohib Uddin, said: “Initially the plans involved the council taking back responsibility for the site and constructing an 18-hole golf course or leasing it back to the developers.

“After consideration of the costs that the council would be liable for in constructing a golf course and its ancillary buildings — around £5million — it has been decided that this is not a project the council should be involved in.

“This means the council has £750,000 to offset against the compensation to the developer following the decision not to dump potentially noxious waste.

“The developer is now responsible for the construction of a nine-hole golf course which could be expanded to 18 holes, and a driving range.”


Policy changes will help home-seekers

MEMBERS agreed to policy changes to help people struggling to find somewhere to live or pay their mortgage.

Oldham has the second-highest level of repossessions in Greater Manchester. The waiting list for social housing stands at more than 10,500, while the number renting privately has increased significantly over the last three years.

Changes to help include developing council garage sites and small areas of council-owned land to build new homes for rent.

A mortgage rescue scheme for those in danger of repossession will see the council buy former council homes and rent them back.

It will also broaden the criteria for equity loans to encourage owners of empty properties to renovate them to a habitable standard, give private landlords grants to make improvements to their properties to bring them back into use, and encourage them to rent to people on the waiting list.

People in under-occupied family homes will be encouraged to down-size to free them up.
Councillor Dave Hibbert gave Labour’s support and said every chance to stimulate the housing market should be looked at.


MEMBERS agreed to arrangements for carrying out a referendum on the controversial £3 billion Transport Innovation Fund.

Residents in all 10 Greater Manchester boroughs will be involved in a postal ballot in December on whether the congestion charge scheme should go ahead, but the question that will be put to voters has not yet been decided.

The cabinet heard that a majority result will be deemed to be one with more than 50 per cent of the valid votes cast.

But unless support is given by at least seven out of the 10 authorities, the scheme will not proceed.

Residents have until October 15 to ensure they are on the electoral register.


New rules for parking permits

CRITERIA have been agreed for how to decide whether people qualify for a disabled parking place or residents’ parking scheme.

For a disabled parking spot the applicant must be a blue badge holder, not have a driveway, and have a safe location for the parking place to be located.

Residents’ parking schemes can only be created where areas suffer a problem over a significant period, where no more than half of properties have off-street parking, more than half of returned consultants have to be in favour, and there should be at least one space per household.