In February 2014 Allerdale Borough Council agreed to form a joint venture with a Luxembourg based company which was to be known as the Allerdale Investment Partnership LLP (AIP).
Allerdale would transfer council land into the partnership, while the partner provided money and expertise to an equivalent amount. Any profits were then split 50/50, with the partner having NO TAX LIABILITY in the UK.
The council set the AIP a number of targets for the first four years:
- Approximately 265 permanent full time equivalent jobs and 56 temporary construction jobs from the first three sites, with up to 1500 permanent and temporary jobs created (as well as local training opportunities) over the next 4 years
- Potential for significant capital receipts within 4 years
- Potentially £250,000 in additional planning fees
- Potential total income from NNDR of £596,000, of which Allerdale would potentially receive 50% -£298,000.
- Council Tax income of £111,844.90
- New Homes Bonus of £5,543,701
Of the four sites transferred, which had a combined value of over £8m based on book values and valuations between 2011 and 2014, the council have seen a return of only £250,000 and 25 jobs. This is despite the Miltoft, Maryport site being transferred to the AIP for £45,000 and being subsequently sold to Lidl for £1,200,000.
While land was transferred to the AIP at arguably minimal values, there was a least the assurance that the council would receive 12% interest on loan notes. However, both parties have agreed in 2018 that no interest is currently payable, therefore the council is not even making the returns that it forecast on the land.
The AIP has failed every target set by the Executive, and has not delivered best value for the taxpayer. Allerdale Conservatives will cease any further land transfers to the partnership, and seek instead to develop our land using our own existing in-house resources, ensuring the best returns for Allerdale residents.