Councillor Olivia Boland of Tostock Parish Council

Co-vid 19 - Emergency funding for disinfecting cleaning in Suffolk Public Buildings

Dear Cllr Hicks

I write to ask for Suffolk County Council to make emergency funding available for regular disinfecting cleaning in all public buildings, ie, schools, libraries, school buses, councils offices etc, especially those surfaces with high ratio of contacts and additional grants to be made available to Village Halls all around the county, as many of them are used for very young toddlers, and elderly on daily basis.

We should not sit and wait for another months or 2, knowing the risk of virus spreading is already with us right now.

There are things we can do right now. We ask for Mr Hicks and his cabinet to show leadership in this emergency situation.

The grants for the Village Halls should be allocated to the Village Halls directly. Most of them have their own management committee. Village Halls are the real hubs of the rural Village life in Suffolk, with various groups using them - Toddler groups are of very young children and the carpet bowling clubs frequently consist of many villagers in their 70’s or even 80s.

Carbon Neutral 2030 re GP services

From: [email protected]
Sent: 23 January 2020 12:13

Dear Mr Gattatt and Mr Watson,

Given the large numbers of new housing granted, ie, double or trebling the local parishes population in some mid-Suffolk villages and the commitment made going Carbon Neutral in Suffolk by 2030, there are some discussions as to how GP services can be delivered in different formats and if local Parishes can form a consortium to submit bid to deliver the GP services, if local GPs are not interested.

Currently, the car usage for going to the GPs, based on 50 patients per doctor/nurse sees a day, if there are 10 of them, that amounts to 500 car a day and that is around 150,000 local car trips a year. If population double or treble, that can lead to a third millions or more car trips just to see the GPs in a 5 mile radius.

The idea currently discussed is for each Parishes to equip a room in their own p***c building, to the standard required as a GP consulting room, from Parishes own fund (or with grant from somewhere else), to share a visiting GP and/or a nurse, for some hours a week for each Parish. So that the users can either walk there if the weather is nice, or by a much shorter car journey as just in their own village.

Current plan of doing it the old way, ie for the existing GPs to be given more funding to buy more land to extend building / car parking spaces, which seem to suggest CCG/NHS in Suffolk is not on-board with the Carbon Neutral policy, also these cars will clog up the narrow village streets.

We heard the Thurston village, which is facing 1200 new houses (that is 4800 population, trebling the current population) has been told by CCG to submit a sealed bid in May.

The surrounding Parishes will very much like to join in on a scheme or something similar as described above. Will be very grateful if we can have some feedbacks from CCG so that this idea can be put through Parish meetings and to p***c for discussion.

I look forward to hearing your initial thoughts on this.

Kind Regards

Cllr Olivia Boland (Independent)
Tostock Parish Council

Councillor Olivia Boland of Tostock Parish Council updated their business hours.

CIFCO: Questioning Cllr Suzie Morley, Mid Suffolk County Council

Dear Suzie,

Thank you very much for taking time speaking to me regarding CIFCO Capital Limited, in your role as the leader of Mid Suffolk District Council and the Cabinet Member in charge of assets and investment.

As discussed, I put in writing now of my views and concerns on this topic, resulted from reading the District Councillors Report from Wendy Turner and Harry Richardson and further reading of the briefing Notes re the above and published online report, Companies House return etc (some of our email communication are further below and please also see attached documents)

I will raise my concerns in several areas as follows:

The Scale

UK HMRC tax revenue for 2018/19 was around £622 billion, the borrowing was around £23 billion, giving the ratio as 3.7% Mid Suffolk has an annual Council Tax revenue of around £.5.9 million, the borrowing to invest in commercial properties (ie, with the money we didn’t have) from Public Works Loan Board (PWLB) ) is at £50 million, the ratio is around 850%. ( a small beer if compared to the £1 billion borrowed by Spelthorne Borough Council, which has less population than Mid Suffolk, with Council Tax Revenue around £8 million, makes the ration at 125,000 %).

I was told that CIFCO scheme works by the Council borrowing at a preferential lower interest rate from the PWLB, then lend it to private limited company/ies, at an agreed higher interest rate to generate income from the difference of the interest rates it borrows and lends.

The Nature and The Role of the local Councils

If you ask people what is an organisation that 85% of its financial dealings are on money lending (or in Spelthorne case 99.2%, while only 0.8 % is on providing local services), I think the answer is “It’s a money lender” or “it is a investment bank specialising in lending to commercial property companies”.

This means there is a dramatic and substantial change of the character of Mid Suffolk District Council due to its engagement in these activities.

We need to ask are councillors empowered to change the role and the nature of the Councils they are elected to serve to this extend without public consultation?

District Council is not just a service provider, it has also statutory powers of prosecution, enforcement, power in planning, environment, economic/ infrastructure development housing, and many more. All of these have huge impacts dictating as how we live. There is no public consent for any of these powers to be given to a money lender, or an investment bank in commercial properties sector.

Operational Level

The rate payers have right to know the terms and conditions of these borrowings. Is it correct that the PWLB secures the loans not on the properties but on the revenue of the Council? Ie, if the investments cannot meet its loan repayment obligations, the payments will either be paid from fresh Council Tax, or deduct from source ie, Grants coming from the Central Government (like some credit unions lend money to borrowers with agreement with Universal Credit Department that in the situation of default, the benefits will be deducted and go directly to the credit union). This suggests the Council may not be able get out of it even by declaring bankruptcy.

What is the terms on interest rate? We were told there were such unbelievable fantastic terms, such as repayments can be rescheduled if in difficulties etc? is it indefinitely or will PWLB simply write them off?

What is the length of the loans? Are we saddling our children and grandchildren with this debt? Is there an early repayment penalty?

Consideration as State Aids and License for money lending

Money lending is a regulated sector, one needs license to operate by the FSA. Is Mid Suffolk licensed and regulated? Or is it exempt? If so, may we be informed as to under which legislation?

It can be argued that Mid Suffolk & PWLB and CIFCO are operating in a Commercial sector with “State Aids” of a lower interest rate not available to normal companies, also it distorted the commercial property market by pumping in State Aids via local authorities. If deemed so, and if we are not out of the EU, can we be prosecuted, ordered to divest and with monetary fine being imposed on us? Do we have an insurance to cover this risk? Has the Council taken legal advice on this matter? What is the plan as to how to meet such a fine? Perhaps the rate payers should be informed and consulted now if they are going to be the one to folk out eventually, to give their consent?

Benefits

No one can dismiss the benefit that the forecast of contribution to the Council from CIFCO, as it will be risen to around £2.75 million within 3 to 4 years (based on ££5.5 million for both Councils). That is nearly half of the annual Council Tax receipt. It means, I presume, the Council can cut Council tax by half , which will be a great vote winner.

If the profit forecast is foolproof, then I am sure rate payers probably want to increase the borrowing 10 folds or 100 folds, actually sky will be the limit – as these can generate £27.5 million or £275 million profit for the Council, and if distributed to the rate payers as shareholder dividends, that can easily net each household £10,000 to £100,000 a year (that will turn Mid Suffolk into Paradise on Earth).

Risks

The recent 3% devaluation of the properties only just purchased about a year ago, when possible Brexit risks impacts and High Street down turn were widely talked about by the media, politicians and public. Was there any forecast/predication in the last CIFCO Business plan of a possible 3% devaluation within a year? If not? Why not?

With more political / economic uncertainties in the UK this coming year, plus the starting of German recession, Bank of England forecast of a 30% chance of recession in the UK, the America/China trade war porker getting worse, not better, the stock markets around the world jittery, has CIFCO made a forecast of the % of next devaluation in its business plan presented for the Councillors approval to borrow the second batch of £25 million? If not, why not?

I am old enough to remember in 1992, the then king of commercial property companies, which owns the most prestige building in the UK, Canary Wharf, went bankrupt, and also clearly the Black Wednesday later on the same year on 16th September, Chancellor Lamont raised the interest rate to 10% at 8:30 am, then to 12% at 10:30 am, eventually to 15% in the afternoon and announced the departure of the ERM at 7 pm.

Strategy for worse scenario

Have the Councillors been informed as to what is the worst scenario if the investment goes wrong and have formulated a strategy to extricate itself?

Chinese saying, “ He who rides a tiger is afraid to dismount” probably describes well of Council’s predicament at the moment.

Perhaps the Councillors should consider that one of the options is to bite the bullet, most voters understand the need to live within our means, instead continuing involving in risking commercial activities.

Have we thought about selling the portfolio to Spelthorne Council and get back to do what Mid Suffolk Council elected to do, just with less money?

Kind Regards

Olivia Boland
Parish Councillor of Tostock Parish (Independent)