Green Councillors Leigh Jamieson and Laura Smith led the scrutiny of the latest CIFCO business plan at the Joint Overview and Scrutiny meeting on the 21st August. CIFCO is the investment company that Babergh and Mid Suffolk have set up to purchase commercial properties around the country. The rental return from these properties is an important part of the council's income.
Leigh said that "part of the business plan has put forward an option of selling the assets. With the value of the assets falling by c£1.5m since they were purchased, how will the board decide what to sell". The board representatives could not provide an answer. Leigh also queried how much the EPC upgrades, which are a legal requirement, will cost. Again the answer was vague.
Councillor Laura Smith asked "why are we not measuring the sustainability of our properties against an independent certification such as BREEAM?" The Council officer said that this would be inappropriate as it would be difficult to measure.
While the properties are still producing a healthy return it is difficult to demand a change of direction, particularly as it would result in a big financial loss to the council. However, given the trouble that other council's, like Thurrock, have got into by borrowing to invest it will remain risky. Mid Suffolk's new Green administration who share the investment with Babergh are seeking independent advice on the strategy.
