Andrew Gwynne MP - | Andrew raises concerns over finances of the Reddish Incubator

Andrew raises concerns over finances of the Reddish Incubator

In a parliamentary debate Andrew has raised a number of concerns about the financial dealings of the Reddish Business Incubator. Some of the ongoing problems with the scheme include business rents on the incubator units not been collected, serious structural financial problems with the project; and a complete lack of transparency in how it operates financially.

These series of failures have ultimately led to Stockport Metropolitan Borough Council having to offer additional financial assistance and take over the project just to keep it afloat.

The project started in 2008 as a social enterprise owned 50% by Stockport Council and 50% by Broadstone Mill Ltd, with almost half a million pounds of public money invested in establishing the project. It was only through Freedom of Information requests by Stockport Labour group that the dire financial state of the scheme was revealed. Minutes show that in March 2010 the project was expected to break even, but by September 2010 an emergency payment of £38,500 had to be made to keep the project afloat, and it will need a further payment from the Council of £160,000 just to clear its current debts.

Leaked reports also recommended that the Council directly oversees the future management of the incubator facility with a business plan that makes the facility viable by 2012, and that it takes a new lease with the Landlord over a 25-year period.

Andrew Gwynne MP said:

“I decided to raise this issue in Parliament because the scheme has been so badly run from its inception. Stockport Council should frankly be ashamed that they have squandered so much public money on this financially inept Community Interest Company, with Council Leader, Dave Goddard, a board member.”

“They have failed to collect rents and failed miserably to cover the costs of the project. Instead they have had to write ever more blank cheques of tax payer’s money just to keep the project running. It completely stinks! I want to know what measures they will put in place to make sure that this project is now run in a financially transparent manner.”

The link to the debate is here:

http://www.theyworkforyou.com/whall/?gid=2011-04-26a.54.1