Returning to a Familiar Subject
We make no apologies for returning to this subject. The fate of Canning Town Library is symptomatic of the malaise at the heart of the current administration.
Acting in a fiscally responsible manner regarding the old library would not, of itself, solve the council’s financial woes. The failure of the Fiaz administration to do so, however, is illustrative of their failure to manage the finances of the council which turned £50m in reserves into £175m of cuts.
In 2018, having built a new library and resource centre less than 100 yards from the old library, Newham Council were proposing to let the old library building to Nando’s. Nando’s would in turn refurbish the building, open a restaurant and open a training centre on the site for new staff.
It appeared to be a win-win. The building would be refurbished at no cost to the council; the council would get a healthy annual commercial rent and the proceeds of business rates; Nando’s would get a town centre site in an area crying out for employment opportunities; local young people would get a supply of starter jobs with the prospect of promotion or from which they could seek new opportunities.
It didn’t happen.
Weak Political Leadership
We understand that initially, Fiaz was not keen on abandoning the deal. However, when a small group of Labour activists started a campaign, Fiaz buckled. The political cost of confronting her activist base, who wanted “no more chicken shops”, was greater than the benefit to Newham of new jobs and inward investment.
When Facts Don’t Work, Make it Up.
On top of this came the assertion that Will Thorne, a major figure in trade union and Labour history, had spoken at the library, it became sacrilegious to suggest that the boards he had trod should be demeaned by having the building converted into a restaurant.
However, Thorne did not make his major speech at the library.
Next door to the library is a building leased to the charity, Community Links. This building, which is close but not attached to the library was originally Canning Town, Town Hall. The Town Hall has, or rather had, (it’s now been converted), a large meeting hall with a stage, which is still there.
It was from this stage that Thorne launched the gas workers union that grew to become the GMB. But as James Stewart learned in the final scene of the Man Who Shot Liberty Vallance, when the facts don’t fit the narrative, you go with the narrative.
Smoke and Mirrors
Following the exposure of the mismanagement of the library site by this website, the mayor announced that the old library would be converted into a Resource Centre. Nando’s, understandably, pulled out. The Resource Centre, we were told would, “house a new archive, reading rooms, a digital media suite, teaching and learning space, a café and new workspace”.
We noted at the time that this offer sounded remarkably similar to what Newham were promising in the new Library and Resource Centre, only 100 yards away. Only now it was badged as a Neighbourhood Centre.
“The redevelopment of Rathbone Market has provided space for a brand new £2 million Community Neighbourhood Centre, which opened in September 2017. The state of the art centre includes a range of community spaces that can be used by groups and organisations, offering a wide range of initiatives and activities local residents can get involved in. The Canning Town Library, formerly located opposite the market, has moved into the new building. Residents can borrow books, films and CDs and the centre has studying and reading areas, computers, free wifi, public toilets with baby changing facilities and lots of classes and events.” It also has a small café.
The only significant difference was that the old library would hold Newham’s archives.
Newham received money from the levelling up fund and this appears to have gone on drawing up plans
And since then, nothing.
We have estimated the costs to the borough of this incompetence or possibly a simple lack of interest. It might simply be that no politician can be bothered with mundane matters like keeping the council solvent.
The costs are both in terms of cash paid out and loss of the income that would have been received.
The direct result of the cancellation of the Nando contract has been that
£1m of inward capital investment has been lost to Newham
£1.8m in rent and rates has been lost to Newham
Non-Financial Losses
20 jobs, most of which would have gone to local people have been lost to Newham.
A restaurant which would have helped to rejuvenate the town centre has been lost to Newham.
Instead, the old library has been left unoccupied.
It still needs refurbishment, though after being empty for so long, the costs are likely to have increased. These will have to be met by the public purse.
It has needed security for four years. The last figures we had under an FOI stated that the costs of this were £144,000 per year. Assuming that the costs have not increased this means that Newham has spent £864,000 on security costs from 2018.
The direct costs and lost opportunity costs amount to £3,664,000. By the end of Mayor Fiaz’s second term this will be almost £4m.
This is the cost of mismanagement of one building. We are bound to ask what is happening elsewhere. We remain unconvinced that all of Newham’s financial woes are the fault of the Tories.
A thought from the American economist, Thomas Sowell.
“No-one will understand that politicians are not trying to solve our problems. They are trying to solve their own problems-of which getting elected and re-elected are number one and number two. Whatever is number three is far behind.”
And from the same author,
“It's easy to be wrong, and persist in being wrong, when the costs of being wrong are paid by others”.