A COUNCILLOR says a joint venture proposal which would offer a cut-price rent to a restaurant company so it can open a new nursery in Lichfield could destabilise other local providers.
Members of Lichfield District Council’s overview and scrutiny committee had previously refused to back plans for the Beacon Nursery project.
Under the scheme, a “peppercorn rent” would be paid by commercial partner Hospitality Lichfield Ltd – which is listed on Companies House as a licensed restaurant operator.
The initial plans for the project said the new nursery would charge “below local market value” for children to attend and would offer “above market rate salaries” to recruit and retain staff.
But Cllr Russ Bragger, representative for Stowe ward, said that while he recognised the benefits of using under-utilised council assets, he had concerns about the impact of the new venture on the local childcare market.
Due to a declaration by Conservative cabinet member for high street and economic development Cllr Richard Holland that his sister-in-law was a director of Hospitality Lichfield Ltd, the Labour representative posed his questions to council leader Cllr Doug Pullen:
“Has the council consulted with existing childcare providers to determine what the effect of a new nursery with lower fees and higher staff wages will be on the rest of the Lichfield Childcare economy?
“Has the council consulted with childcare experts about the feasibility of a nursery without a secure outdoor play area or parking for collection and drop off nearby
“Although this proposal is structured so that does not come under the Procurement Act 2023, would it be prudent to talk to a range of established childcare companies who have proven expertise in childcare about establishing a nursery here with the council charging no rent?”
Cllr Pullen replied:
“This business proposal looked at turning an under-used council asset into something that could benefit young families in Lichfield.
“An experienced nursery school manager was consulted and assisted in developing the business case – clearly they did not consult with likely competitors.”
Cllr Bragger said
“Although I strongly support more quality childcare provision using under-used council assets throughout the district, would the leader take the advice of this council’s overview and scrutiny committee by abandoning this proposal and carefully consider its reservations before any new proposals are brought forward?”
Cllr Pullen responded:
“The advice from overview and scrutiny will always be taken forward but it shouldn’t determine what the council does.”
Speaking after the meeting, Cllr Bragger said the impact on other local businesses must not be dismissed.
“I am keen to use the council’s assets to facilitate more nursery provision in Lichfield district, but this is an ill thought out scheme that may destabilise the existing childcare providers in Lichfield.”
So Doug, what you are saying is that you really do not care what Scrutiny and Overview say? Aren’t they there to provide a conscience for the council? Rather worrying wouldn’t you say?
By subsidising a private limited, i assume the council will be offering similar types of savings to other providers within the district to give all concerned a level playing field.
In the words of a local restaurant chef ‘I smell something fishy!’
In the words of a local baker ‘Is dough passing hands!’
In the words of a local cheese shop owner ‘You can’t Brie-eve a word they say anymore!’
I am stunned that Cllr Pullen is investing political capital in defending a scheme that stinks to high heaven. I thought he was one of the good guys but I’m rapidly changing my mind.
The complaint seems to be that private profits may be hit. I would have thought that a councillor would welcome residents with higher pay, likely to be of benefit to other private profits.
Is this really the role of local government?
Childcare currently ranges quite a bit in quality, yet all costs pretty much the same. It’s a bit of a lottery, and it’s not just about the facilities. If a provider can find a local market that needs quality care more than parking or outdoor spaces, then why not?