Apology demand over blunder that never was
Reporter: Janice Barker
Date published: 19 January 2010
We did budget £800,000 for centre, so where has the money gone? — Labour
Opposition councillors are demanding an apology from Liberal Democrats after investigating the alleged budget blunder at the Chadderton Wellbeing Centre.
Labour councillors were accused of financial irresponsibility in November — days before the centre opened — because it would cost £800,000 a year to run, but Liberals Democrats said Labour had only budgeted for £100,000.
Now Labour finance spokesman Councillor Peter Dean says a trawl through official papers from January, 2008 prove they did budget for £800,000.
He said the Lib Dems based their accusations on a paper from April, 2008, — a month before Labour lost overall control of the council — which was only an update on January figures.
Opposition leader Councillor Jim McMahon added: “The January paper gives the running costs as £842,000.
“In the Treasurer’s comments it says that in the revenue consequences of the scheme it is likely to mean an increase in annual subsidy of £100,000.
“Three times we have requested details of the annual subsidy for the council’s share of the costs which should have been in place. What has happened to the money? Has it been taken for something else? To date none have been forthcoming, which reinforces our suspicions that the Liberal Democrat cabinet members have diverted hundreds of thousands of pounds out of this budget for their own purposes.
“They should do the honourable thing: apologise and correct their false statements.”
The January papers are not open to the public because they were considered in the private part of the meeting.
Councillor Dave Hibbert, Labour’s only Cabinet member, said: “We now know their accusations are completely groundless.
“They have obviously taken their eye off the ball and it would seem have spent the money elsewhere, then tried to cover their tracks by blaming Labour.”
Councillor Lynne Thompson, Lib-Dem cabinet member for finance and resources, said an internal audit review is examining the issue, including funding, governance and project management, and the initial business case.
She said: “It was agreed that we will not make any comments that could prejudice this investigation and I am honouring this agreement.”
