Selling out, or selling off?
In between searching for the Paris Hilton tape (uhhr, it’s not for me, you understand, it’s for my, uhhr, friend, who actually knows who she is) and doing some work, I was pondering Bradford Council’s plans for their asset stripping exercise.
For those bits of my reader who don’t know, Bradford have decided to sell various of their buildings off to private companies and then lease them back. Well, they sort of have, cos now they’re saying they might not be totally selling them off, just letting various companies help out with management of the land and property. It’s a bit, well, murky.
Which is odd, really, because much the same (and worse) can be said of the three companies that have made it through to the beauty parade at the end of the process. And, as you can tell, Bradford has done spectacularly well in its selection:
First up there’s Carillion (formerly known as Tarmac). Best known for its involvement in the Fazakerly/Altcourse prison debacle, where they managed to renegotiate the terms of their financing agreement in order to make a 100% return on their investment within three years of a supposedly 25 year contract, while passing hardly any of those savings on to the taxpayer (who had, of course, taken all the risk during the building stage). Quite how such actions would benefit the rather financially-challenged citizens of Bradford is anyone’s guess, but any sell-off agreement would, of course, mean they’d no longer have any right to complain. Maybe it’s to do with their recent moves into military contracting?
Then we have the more delightful Land Securities Trillium. LST were most recently in the news over their involvement in the sale of job centres at a fraction of their real value. For reasons that no-one has explained, LST got the job without any proper tender process, earning itself a likley £600m over the next 15 years as a result. If the BBc deal LST recently did is anything to go by, it’s not just the buildings that transfer over but all the staff (hence the recent ‘who cares who does the cleaning?’ comment from Bradford); it’s an excellent opportunity to shed staff and reduce quality provision.
And, infally, there’s Mapeley Accord. Not unconnected to the company that recently took over 700 or so buiildings from the Inland Revenue, only for it then to be discovered that Mapeley isn’t a registered UK company and all profits from the operation of the deal were, uhhr, not being taxed in the UK. And, of course, one of the problems with under-investment in the public sector is that companies insist on dodging tax to such an extent. It could be an interesting situation…
Just make sure you check out the figures guys!
