Sale Of Housing Stock By Rochester Upon Medway City Council (2)
That this House notes that when the Nationwide Anglia Building Society withdrew from the consortium of lenders organised by Warburgs for the purchase of the housing stock of the Rochester upon Medway City Council by the Medway Housing Society the scheme faced collapse; notes that the scheme went ahead only when the council loaned the Medway Housing Society Ãº20 million to help it buy the council's own housing stock; notes that this transaction took place on a wanton and reckless basis which no prudent authority could have entered into and that unpublished documents show the serious reservations about this foolhardy scheme held by the City Finance Officer, Bernard Clark, and Richard Gibson, a senior civil servant at the Department of the Environment; notes that the funding model upon which the scheme is based means that the council will get no interest on its Ãº20 million for seven years and that by that time the debt to it will have risen to Ãº43 million, but that in those seven years the banks who have loaned Ãº61.7 million will have received payments of Ãº54 million; notes that the City Finance Officer, Bernard Clark, reported that all the better trading projections of the Medway Housing Society would favour the banks and has asked what sort of stock might be left and in what numbers at year seven; and believes that this scheme represents financial irresponsibility amounting to gross negligence.
This motion has been signed by a total of 24 MPs.
|Brian Sedgemore||27/03/1991||Hackney South & Shoreditch||Proposed|
|Harry Barnes||28/03/1991||North East Derbyshire||Signed|
|Diane Abbott||28/03/1991||Hackney North & Stoke Newington||Signed|
|Jeremy Corbyn||28/03/1991||Islington North||Signed|
|William McKelvey||28/03/1991||Kilmarnock & Loudoun||Signed|
|John McAllion||28/03/1991||Dundee East||Signed|
|Ernie Ross||28/03/1991||Dundee West||Signed|
|John Battle||16/04/1991||Leeds West||Signed|
|Tony Banks||16/04/1991||Newham North West||Signed|
|Jimmy Dunnachie||16/04/1991||Glasgow, Pollok||Signed|
|Eddie Loyden||16/04/1991||Liverpool, Garston||Signed|
|Eric Illsley||17/04/1991||Barnsley Central||Signed|
|Keith Bradley||17/04/1991||Manchester, Withington||Signed|
|Richard Caborn||23/04/1991||Sheffield Central||Signed|
|Bob Cryer||25/04/1991||Bradford South||Signed|
|Tommy Graham||26/04/1991||Renfrew West and Inverclyde||Signed|
|Ken Livingstone||29/04/1991||Brent East||Signed|
|Martyn Jones||03/05/1991||Clwyd South West||Signed|
|David Lambie||16/05/1991||Cunninghame South||Signed|
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