Here are the words that Mr Mustard will utter this evening shortly after 7pm
Reckless, Richard, is what
this loan would be.
For 31 years I have collected
debts and provided credit consultancy. I regularly deal in millions. I didn't
know when I started in 1987 that I would still be in business today.
Saracens Copthall LLP has
accumulated massive losses.
Saracens Ltd has accumulated
massive losses.
Ironically, the latest
Saracens Sports Foundation accounts show reserves of a quarter million pounds.
I admire their good works which take place in Chorleywood, Harrow, Harpenden,
Feltham Young Offenders Institute, Hertford, Welwyn and loads of other
locations. Those works will continue whether Barnet Council makes this reckless
loan or not.
It is reckless Richard to
lower the prudency requirements in the Treasury management strategy.
It is reckless Richard to
lend for 30 years, a distance into the future that you cannot foretell.
It is reckless Richard to
borrow in order to lend.
It is reckless Richard to fail
to consult the public about this radical plan.
It is reckless Richard to borrow
such a vast sum other than for the provision of local services.
It is reckless Richard to
think that Barnet Council know better than commercial banks. The council's
history with banks isn't a good one. The Icelandic bank investments didn't turn
the expected profit.
It is reckless Richard not to
have due regard for the sage advice of CIPFA to 'avoid exposing public funds to
unnecessary risk'.
It is reckless Richard not to
think of good value viable alternatives, why not just pay Saracens to provide the
community benefits you desire rather than this huge risky loan?
There is little doubt in my
mind but that my words will be futile and the loan may well get repaid at the
start but I seriously doubt that it will endure for 30 years. I will be
berating you later if it doesn't.
As I think you should be
asking yourself the questions and not me, I will return to my seat.
Please don't be reckless
Richard.
Doesn't this come under the heading of "Standards of Conduct in Local Government"? I would be talking to the local monitoring officer. I doubt that the auditors would look too kindly on something like this.
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