Call to reconsider as Tesco cash allocated

THE OPPOSITION leader at North Devon Council (NDC) has said the current administration is wrong to have already allocated £3 million from a possible land sale to Tesco in South Molton.

Conservative councillor Des Brailey, who was in charge of NDC until May last year, said the new council has already effectively spent money it doesn't have yet by allocating the £3 million it will get from Tesco if it sells part of the council-owned South Molton Central Car Park.

Tesco is expected to submit a planning application for a supermarket in the town this year. This would include buying and building on part of the central car park.

Tesco had already agreed a price of £3 million for the land with the previous administration under Mr Brailey.

The council's current leader, Brian Greenslade, said he is not going to, "look a gift horse in the mouth", and will accept the money to free up cash for NDC's capital programme.

But Mr Brailey said none of the projects earmarked to benefit from the sale of the land are essential and Mr Greenslade should halt the capital programme and try to get more money for the land.

Capital projects are generally paid for using grant funding and capital receipts, which is any money the council receives through selling its land.

Unless in exceptional circumstances, any money generated through capital receipts can only be used on capital projects.

But in difficult economic times, when grant funding has dried up, Mr Greenslade said he would have to take the cash to be able to continue with the projects.

Some of the projects earmarked to benefit from the money include the Ilfracombe Seafront redevelopment and the relocation of the South Molton Cattle Market.

Mr Greenslade said: "I'm not denying we do need the capital receipts.

"The current draft capital programme is £10.7 million and when we took over the council last year they only left us with £1.6 million.

"We do need the money from South Molton otherwise we won't be able to deliver what we have set out to do on the capital programme in the next 12 months."

He said: "Basically we're just waiting for a planning application to come in from Tesco. If someone else comes forward we will naturally look at it, but I'm not going to look a gift horse in the mouth.

"And it's not just about the capital programme it's about the economic future of South Molton. Tesco could create up to 125 new jobs in the town. And with the housing developments being built in South Molton over the next five years, there's going to be a genuine need for a supermarket there."

But Mr Brailey said: "Politicians feel like you must deliver on what you've promised for the capital programme, but if you tell people there isn't the money for them at the moment they will understand.

"And we're not talking about essential jobs here, it's not like the multi-storey car park or the leisure centre, these are things that can wait, but they are banking on that money.

"If they just put it back we could secure more money. You have to be patient."