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Sale Of Housing Stock By Rochester Upon Medway City Council (2)

EDM number 672 in 1990-91, proposed by Brian Sedgemore on 27/03/1991.

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 ú20 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this transaction took place on a wanton and reckless basis which no prudent authority could have entered into and that unpublished documents show the serious reservations about this foolhardy scheme held by the City Finance Officer, Bernard Clark, and Richard Gibson, a senior civil servant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 ú20 million for seven years and that by that time the debt to it will have risen to ú43 million, but that in those seven years the banks who have loaned ú61.7 million will have received payments of ú54 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 Sedgemore27/03/1991Hackney South & ShoreditchProposed
Harry Barnes28/03/1991North East DerbyshireSigned
Diane Abbott28/03/1991Hackney North & Stoke NewingtonSigned
Jeremy Corbyn28/03/1991Islington NorthSigned
Alan Meale28/03/1991MansfieldSigned
William McKelvey28/03/1991Kilmarnock & LoudounSigned
John McAllion28/03/1991Dundee EastSigned
Dennis Skinner28/03/1991BolsoverSigned
Ernie Ross28/03/1991Dundee WestSigned
John Battle16/04/1991Leeds WestSigned
Tony Banks16/04/1991Newham North WestSigned
Jimmy Dunnachie16/04/1991Glasgow, PollokSigned
Alice Mahon16/04/1991HalifaxSigned
Eddie Loyden16/04/1991Liverpool, GarstonSigned
Peter Hardy16/04/1991WentworthSigned
Eric Illsley17/04/1991Barnsley CentralSigned
Keith Bradley17/04/1991Manchester, WithingtonSigned
Richard Caborn23/04/1991Sheffield CentralSigned
Bob Cryer25/04/1991Bradford SouthSigned
Tommy Graham26/04/1991Renfrew West and InverclydeSigned
Ken Livingstone29/04/1991Brent EastSigned
Martyn Jones03/05/1991Clwyd South WestSigned
Jimmy Hood09/05/1991ClydesdaleSigned
David Lambie16/05/1991Cunninghame SouthSigned

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