“There is More to the Doing than Merely Willing It Be Done”
It seems that there are some councillors who share our concerns about the escalating costs for the Carpenter’s Estate redevelopment. Readers will recall that we noted the decision from Newham Cabinet to nod through an increase in the costs of the refurbishment of James Riley Point of some 43%.
It appears that the scrutiny chairs have decided to call in the decision. This will be discussed at a meeting on 29th March.
In the papers for the meeting the OSC are offered the opportunity to do nothing or refer back the decision to cabinet setting out their concerns.
Let us raise some potential concerns that they might have:
The viability of the redevelopment of James Riley Point is in question. Before they have even broken ground the costs have escalated. Experience suggests that costs rise, they don’t fall. We are in a period of price inflation that shows no signs of abating. What contingencies are being proposed?
We cannot see the ‘green-papers’ containing the cost/revenue calculations. There is nothing sinister in this, the figures are commercially sensitive, but will the OSC be able to test these figures or will they be the recipients of vague assurances? The costs of James Riley Point are going up by 43% (or more); we know that the projected income from letting properties will not be showing such a massive rise, particularly as the mayor has publicly committed to high levels of subsidised rents.
Costs rise 40%-50%. Revenue remains at the same level. Can anyone see a problem with this economic model?
The question must be asked as to whether the proposal as it is currently outlined is viable.
The same question needs now to be asked of the whole of the redevelopment programme. Can the redevelopment of the whole of the estate be done if costs rise by some 40%-50% and the revenue income projections remain the same? The mayor wrote to residents on the Carpenters Estate in 2019 when everything seemed so easy, (“genuinely affordable homes”, with “50% at social rent level”). She may now be beginning to rue the easy promises made before the cold reality of the financial climate actually struck her. Councillors however have to ask the difficult questions and test the assumptions behind the figures. A failure to do so risks leaving a millstone around the necks of any future council.
Some correspondents have suggested that Cllr McAlmont’s unusual speed of action has been prompted by suggestions that he has been supine in the face of Mayor Fiaz’s attempts to side-line scrutiny and with the AGM coming up in May, he needs to show that he is not merely her lap dog.
We couldn’t possibly pass a comment on this, though he does seem to have been keeping the seat warm for rather a long time and we wonder whether there might be someone set to challenge him in the near future.