£1.8m down the drain every year

Scrote said:
What does £50M equating to £100M mean? Isn't that just a reflection of the stupidly high levels of inflation we've been seeing. What is the relevance?
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Actually, it's even worse than that. If anything it's a self defeating argument.

If you borrow £50m then the amount that you owe is £50m. The amount that it goes up by annually is the agreed interest rate and has no direct link with the rate of inflation.

That's why wealthy people, who ultimately provide the funds that are borrowed, hate inflation, because it eats into/destroys the value of their returns on investment. It's the same reason why people who borrow as much as possible to buy the home of their dreams find themselves in disbelief at how little that seems 30 years later.

So if the argument is that the £50m borrowed would have cost £100m to borrow today, he's actually suggesting it was a good piece of business.
 
TheLodger said:
Odd isn't it, mayor Preston was a million miles away when this was happening.

This happened quite a while ago so the details are slightly sketchy.

First of all Ray Mallon got agreement from the then Labour government to provide funds to rebuild Gresham (£50 million)
Ray, and I knew Ray fairly well, was keen to get on with the job and imposed Compulsory purchase order on the properties in Gresham, remember that the properties were on the whole in a very poor state, not all granted but by far the majority were.

Ray and the council managed to buy most of the properties and most of the home owners were over the moon and many moved to estates with gardens, into semis and even bungalows. Again that was most, not all, some totally resisted the move, some were too old, some liked living close to the town, some had paid off the mortgate and couldn't get a home at a price they could afford.

Anyway

Then we had a GE and Tony Blair/Gordon Brown was out of office and in came David Cameron, one of the first things he did was to impost austerity and cancelled the £50m that was promised to the council by the government.
The plan was pulled by the Tories, not Middlesbrough Council; mistakes was made for sure, it was well before my time, but Ray Mallon should have got the cash in the bank before he started to demolish Gresham, that was the fatal error.

I'd also would have liked to have reminded Preston that just like him, Mallon was an independent Mayor, not a Labour mayor.
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good clear post, with some of hte details that Preston will have known but chose to omit in his comments. Dishonesty is the tool of a charlatan
 
Billy Horner said:
Actually, it's even worse than that. If anything it's a self defeating argument.

If you borrow £50m then the amount that you owe is £50m. The amount that it goes up by annually is the agreed interest rate and has no direct link with the rate of inflation.

That's why wealthy people, who ultimately provide the funds that are borrowed, hate inflation, because it eats into/destroys the value of their returns on investment. It's the same reason why people who borrow as much as possible to buy the home of their dreams find themselves in disbelief at how little that seems 30 years later.

So if the argument is that the £50m borrowed would have cost £100m to borrow today, he's actually suggesting it was a good piece of business.
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Yeah. That's what I was thinking.

Future purchasing power is almost always less than any specific 'now'.

It's just a really odd way of throwing gigantic sums onto the page in an attempt to rile people up.
 
Building did not stall before Christmas it stalled a year ago. I suspect it stalled because Thirteen can make bigger profits building in York.
But you obviously havent been there recently because for the past two months the houses are going up fast right across the site. Ie Gresham is being redeveloped.
BlindBoyGrunt said:
Well firstly. he inherited the situation in Gresham. The houses were long since demolished and the land stood empty for a number of years.
Secondly, the answer to your question is in the OP.

The site isn't awash with money and building stalled before Christmas because the builders ran into financial difficulties due to rising costs of materials. But the area badly needed redeveloping and now thankfully it is being.
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I
 
If it’s cost £50 million to clear the sites… surely it’s going to cost a hell of a lot more than £18 million to redevelop?
 
Acklam_Lad said:
But is £18 million about right to redevelop or is it a drop in the ocean?
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It's not £18m it's actually only £8m, that's the point, private cash and lots of it will be required, the point of the £8m is to attract Private business, this then will handed over free to who ever is friendly with the Tories the time

It's history repeating itself, and some pretending a different outcome will be likely.
 
fmttmadmin said:
Building did not stall before Christmas it stalled a year ago. I suspect it stalled because Thirteen can make bigger profits building in York.
But you obviously havent been there recently because for the past two months the houses are going up fast right across the site. Ie Gresham is being redeveloped.
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Sorry, my post was supposed to be a reply to sherlock who said:-
sherlock1969 said:
So if he has a plan, and it is being implemented, why does he need a further £8 million? Does that mean his plan was unfunded?
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but I dropped a clanger and forgot to include the quote. I do go past there every week and am fully aware that the building has thankfully restarted and i was pointing this out to sherlock, along with the fact that a further £8m would fast track the redevolopement, which was included in the OP.
 
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