This paragraph is from a 2014 NHS Greater Glasgow & Clyde [NHSGGC] report, ‘Paper 14/71 – Sale of Lands at the Former Lennox Castle Hospital’.
What is the agreement breach or as they say euphemistically ‘have not met the terms and conditions’? Another earlier paragraph says:
So since 2007/8 McTaggart & Mickel [M&M] have funded NHSGGC, the biggest NHS Trust, to a tune of £3.8 million. Presumably interest has also been accumulating on that debt.
How does this affect The Lennoxtown Initiative charity and the Celtic SLA?
Charity and Celtic SLA debts and their Repayment
The debts are listed in the latest Lennoxtown Initiative accounts for Year Ending 31 March 2014. Latest? Unfortunately their accounts for 31 March 2015 are very very late. As you can see below EDC council have been operating the charity since 2011 and have let the side down by not doing the accounts. Always a bad sign when accounts are late. You wonder what they are hiding:
Meanwhile back to the debts. From the 2014 accounts firstly the overall Lennoxtown Initiative debt owed to EDC ratepayers stood at £327,825:
And the Celtic SLA ‘deficit’ in 2014 was £166,834. They call it a ‘deficit’ but it’s really debt because this is what the charity paid Celtic over and above the NHSGGC August 2006 ‘donation’ of £463,333 when they didn’t have the funds:
And the reason used to justify both those debts. Again from the same annual report:
They are waiting, as the old joke used to go on the proverbial excuse used by debtors to the moneylender, on a ’10/- postal order coming from my brother in Canada’.
All that debt within the charity rests on the very doubtful revenue streams eventuating from the Lower Site joint venture agreement between NHSGGC and M&M.
Charity and Celtic SLA funding model is stuffed
The NHSGGC paper at the top of this post blows the funding model out of the water. The whole paper can be read but it’s summarised in:
Their expectations are laid out bare. Only one phase, 1A, has been developed to date.
What do Savills, M&M’s consultants appointed to look at the ‘possible’ marketing plan think:
But what was M&M planning in 2014 saying:
All those phases move another 3 years with last starting in 2023.
And how is the £3.8 million debt that NHSGGC owed to M&M from 2007/8 get paid back:
There ain’t no revenue stream winding it’s way back from the hills of Lennoxtown to repay the charity and Celtic SLA debts for a long time. It’s bone dry. The £3.8+ million debt has to be paid first.
That is not the only debt. Remember that £1.9 million was paid by NHSGGC to demolish the building on both sites. Celtic’s payment went back to them via the Celtic SLA.
Economically it would have been cheaper for NHSGGC just have given Celtic the Upper Site with the building on it for free.
Two for One Packaged Deal
Both the Upper Site and Lower Site of the former Lennox Castle Hospital were a packaged deal. Their planning approval went through EDC Planning together. From EDC Planning Board 18 April 2006:
Upper Site – Greenbelt. Lower Site – Residential.
Take a financial hit on the Upper Site but get money from the Lower Site. That’s how it was sold to NHSGGC Board in the 2002 Board paper. And the Tripartite Agreement between NHSGGC, EDC and the charity.
The Lennoxtown Initiative charity was set-up to get funding from both sites.
The money from the Upper Site, Celtic’s, would be passed back to the charity for funding of projects. Of course it went to only one project, the Celtic SLA. The Lower Site was retained by the NHSGGC but was tied up in a JV Agreement with builder M&M. It was supposed to be a revenue stream to fund the charity also and cover-up the subsidy to Celtic. Both deals have been financial disasters for NHSGGC and us the taxpayers.
The funding model allowed the Lennoxtown Initiative board to had out money when it wasn’t there, especially to the Celtic SLA after 2011 when the 3 permanent staff at the charity were made redundant.
Except the funding ain’t coming. EDC should stop the excuses for paying the Lennoxtown Initiative and Celtic debt on the never never and declare the charity insolvent. They cannot even keep the accounts up to date.
That ’10/- postal order’ ain’t coming.