Friday, 11 February 2011

Newcastle City Council gamble £5 million on property speculation

Newcastle City Council, after just announcing nearly 700 jobs cuts, has obviously decided that the solution to their financial difficulties is… property speculation!

The Council has just bought a six-storey building in the city centre for £5 million, claiming it will make a profit by renting out office space.

The last time I looked, commercial property agents in Newcastle (ie people who are actually experts on commercial property) had acres of empty office space on their books which they’re struggling to give away.

More than 650 jobs have been axed at the authority as Council bosses get to grips with £45 million of cuts,  and council staff have been hit with a two-year Government-imposed pay freeze. However, this hasn’t stopped the caring and sensitive Newcastle City Council awarding their Chief Executive Barry Rowland a “performance-related” pay rise of almost £5,000 extra, on top of his existing £160,500 a year salary.

My comment: Speculating with taxpayer's money should be against the law. Remember the Icelandic Bank Scandal!

Read the full story from the source Taxpayer's Alliance

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