Archive | December, 2017

Newham’s Red Door Ventures to buy Collective Old Oak

7 Dec

EGi – News Article – Newham’s Red Door Ventures to buy Collective Old Oak:

“The Collective Old Oak is close to being bought by Newham Council’s PRS developer Red Door Ventures.

“The arms-length development company, which uses council funding to build rental schemes around London, is understood to be paying close to £120m for the co-living scheme.”

And where is this £120 million investment located? NW10. The London Borough of Brent.

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Not meeting expectations

5 Dec

By Iain Aitch

Those attending Newham’s full council last night (4 December) may have been expecting fireworks, given that the loss of £52m of public funds in the London Stadium debacle had just been confirmed. But, in the end, any protest by councillors was limited to a whimper, rather than a bang.

In truth, it was all over bar the shouting by the time the meeting began. Only there was no shouting.

A cowed Labour group had, prior to full council, voted against instituting a judge-led inquiry by a margin of 34 to eight. And, with no elected opposition in the one-party borough, only a few Labour councillors dared to mutter any disquiet in public.

There had been whispers of calls for Mayor Sir Robin Wales’s resignation and even a #RobinWalesMustGo campaign on Twitter, backed by some councillors. Rumours abound that the Mayor was asked to step down at Labour group, but he ignored the question and moved on.

So the Mayor was able to read his prepared statement without so much as a heckle. One councillor even fed him an easy “Sir, sir, please, weren’t Tories to blame, sir?” question to calm his nerves and the room. The Tories were, of course, to blame, said the Mayor, as he waved away the losses with the casual air of someone who had just lost 50p each-way on a Grand National bet.

Judges cast aside, Wales announced a ‘forensic inquiry’. One imagines this is to be led by the Mayor and his close team, with the head of the inquiry appointed by the same. Expect the answer as to where blame lies to begin and end with everyone but the Mayor or Newham’s Labour administration.

The meeting was inexpertly chaired by Councillor Sathianesan, whose handling of the room made Theresa May’s conference speech look like an example of measured competence. Councillors at least felt brave enough to openly laugh at his endless cock-ups, but there was no air of rebellion or anger in the room about the London Stadium. It was palpably absent.

Whether the opposition to the Mayor had blown itself out in Labour group meeting is hard to say, but Councillors John Gray (who appeared visibly upset) and Rokhsana Fiaz did at least pose questions about the £52m loss and the competence of the council in matters financial.

Sadly, these questions were never incisive enough to rouse the spirit of rebellion whispered about earlier in the week. Wales batted away Gray’s questions with put-downs about his drafting abilities, while Fiaz was timed out by the Chair.

Wales consistently spoke about how well council tax-payers had done from the deal to lose £52m, citing housing wins, jobs and legacy. This raised some smiles from Wales loyalists, despite these figures not adding up. £52m could, after all, have built 250 council homes.

But most of the chamber stayed silent on the issue. Councillor Corbett seemed more concerned that a greener London initiative may allow middle class tree-huggers to stop the building of homes for the working classes. And they said irony was dead.

Many Newham council tax-payers will be angry that their elected representatives seemingly did nothing when they had the chance to speak up in public about their concerns over the loss of £52m in yet another failed investment (this one was a ‘sure thing’). They are, it seems, too cowed by the Mayor, too guarded of their salaried positions in the Mayor’s cabinet or too worn down by the dominance of the Wales and his loyalists.

Even MPs Lyn Brown and Stephen Timms have not spoken out about the Mayor’s £52m drop. Don’t expect that to change any time soon.

The Mayor wound up his proclamations on a bright note, promising ‘more to come in the week’ from his signing away the £52m investment. He couldn’t say what it was, but hinted at benefits for Newham residents.

Every Child A West Ham United Season Ticket Holder anyone?

Iain Aitch is an author and journalist who lives in Newham. He has written for the Guardian, Daily Telegraph, Sunday Times and Financial Times.

The Olympic Stadium Debacle

4 Dec

Cllr Conor McAuley

Councillor Conor McAuley has written to all members of the council about the Olympic stadium disaster.

Prior to 2014, Cllr McAuley sat in Sir Robin’s cabinet as Executive Member for Regeneration & Strategic Planning. He was also on the planning committee of the Olympic Delivery Authority and the planning decisions committee of the London Legacy Development Corporation.

Colleagues,

I cannot be the only Council member appalled at the loss of £52.2 million invested by this Council into the Olympic Stadium.

To make matters worse, the statements and press releases from Newham Council on the matter have only sought to mislead both elected members of the Council and the public.

Mayor Wales tells us that he is “angry that the deals and decisions made by the former Mayor of London and his administration have left the stadium finances in such a dreadful mess”. 

This is an outrageous attempt by Robin Wales to wash his hands of responsibility for his role in this mess. The E20 LLP company was established in 2012 as a joint vehicle for the London Legacy Development Corporation (LLDC) and Newham Legacy Investments to “deliver the post-Olympic Games transformation and operation of the Stadium.”

Newham Council were partners in this disaster with the LLDC. In the years since the incorporation of this partnership Newham members or officers have, as board members, jointly signed off the E20 LLP accounts. (Robin Wales in 2014, Kim Bromley-Derry in 2015 and Cllr Lester Hudson in 2016).

So, to try to pin all the blame on Boris Johnson, just doesn’t work.

Astonishingly, at the time of its launch Sir Robin was so proud of this partnership and certain of its future success that he told us “even on the most disastrous figures, even if everything goes wrong we still make a profit on this. The risk is really, really minimal.”

It is claimed that the Newham Vision for the stadium was a determination to avoid a post-Olympic “white elephant”. 

The definition of a “white elephant” is a possession which its owner cannot dispose of and whose cost, particularly that of maintenance, is out of proportion to its usefulness.

This is exactly what we now have, the only difference is that a wealthy Premiership football club is getting a subsidised use of the stadium and we have been picking up the bill.

We can’t even claim a success in creating stadium related employment for local residents.

When Newham made the initial investment, it was claimed that up to 75% of the jobs created at the Stadium would go to Newham residents. A recent Freedom of Information response tells us that the total number of jobs created at the stadium currently is 1,531. The number of Newham residents employed on full time contracts is 15 out of 70 jobs (21.4%) and the number of Newham residents employed on casual contracts is 469 out of 1,461 jobs (32.1%). Nothing like the promised figure of 75%.

Sir Robin tells us that we can retain our “community benefits” as part of his agreement with Mayor Khan.

We don’t need a stadium to organise community events like the Great Newham Run and a few free tickets to Guns ‘n Roses concerts are a poor return for our £52.2 million.

The regeneration of the Stratford Rail Lands was always based on the Westfield and Lend Lease developments. Not the Olympic Games. The permanent new jobs have come from Westfield and more recently from the new Lend Lease developments. New homes continue to be built on the site. 

The Olympic Games accelerated the delivery of new homes in what we now call the East Village. The games also gave us a great park and world class sporting facilities in the Velodome, the Aquatic Centre and the Copper Box. The Games also focussed attention on Newham and East London generally and we benefitted from new and improved transport links and increased visitor numbers.

Some seek to defend the £52.2 million investment by attributing these regeneration benefits to the stadium, which really is nonsense.

If West Ham United had wanted a new stadium with a 60,000 capacity, they should have been asked to pay the appropriate price. Newham and London tax payers should not be picking up any of the bill. 

Over the years Sir Robin has been a regular recipient of hospitality at West Ham matches, perhaps he can convey that message back to Messrs Gold and Sullivan and Baroness Brady when he next attends a West Ham home game.

Sir Robin claims that the stadium deal unlocked the Boleyn site and enabled the Council to buy 211 of the new homes being developed at that location. The Council could have used its money to buy a similar number of new homes on one of the many other sites being developed in the borough. 

If Sir Robin had really been interested in providing affordable homes for Newham residents, he could of course have spent the £52.5million on the Carpenters estate in Stratford bringing the empty homes there back into use for social housing and helping Newham to reduce its growing list of homeless people.

There remains one thing I don’t quite understand. Why was it ever Newham’s responsibility to sort out the future of the Olympic Stadium?

I expect in the months running up to the election in May, more and more of our voters will be asking that question when we knock on their doors asking for their votes. Newham borrowed the money to invest in the stadium, so our Council taxpayers will be paying this particular bill for years to come.

How exactly can we reassure them that the Labour Party can be trusted with their money?

Yours in frustration,

Conor McAuley

Then and now

4 Dec

Then (January 2011):

“Even on the most disastrous figures, even if everything goes wrong, we still make a profit on this.

“The risk is really, really minimal.

“The debt, which costs our residents nothing, will be repaid and then we start to share in the profit.“

Now:

“…as a result of the widely reported difficulties with onerous stadium contracts, stewarding costs and the massively underestimated costs of retractable seating to support non-footballing activity, the council received a business plan from E20 in October 2016 which indicated there was likely to be an ongoing deficit including material risks to the business plan which could make it financially unsustainable in the long term.

“As co-owners of the stadium, the council had exposure to these potential future losses.”

Then (8 September 2017):

“The loan is shown, for accounting purposes, as currently ‘impaired’, or damaged, due to the current financial performance of the Stadium. It is not a write off of the loan.”

Now:

“As part of the deal, the council accepts that its original £40 million investment will not be repaid.”

Gullible

4 Dec

Clown

Newham council on why it decided to invest in the Olympic stadium:

“Our decision to invest was based on the entirely reasonable assumption that [Boris Johnson’s] administration carried out its contract negotiations for E20 with due diligence. 

Allow me to translate: £40 million got pissed up the wall because we trusted that a man who is widely known to be lazy, and who has – at best – a casual relationship with the truth, did his job properly.

In other news, did you know that the word ‘gullible’ has been removed from the dictionary?