Council signals change of approach to commercial investments

Commercial investments have been paused by Monmouthshire council unless they are in county and support wider policy aims.

The decision comes with Newport Leisure Park – bought as a commercial investment by the council – expected to generate around one third of the income originally expected this year.

A council report says the coronavirus pandemic has “highlighted the risks that naturally come with undertaking commercial investments”.

“The council’s budget position remains under significant strain and the commercial investment and property markets remain uncertain,” the report says.

The council’s investment committee has reviewed the situation and is “determined to curtail all investment activity and potential acquisitions at this time, unless they are in county and grant funded or will further a wider policy aim,” it adds.

However the investment committee will continue to review the position.

The report says income from existing investments has fallen against initial forecasts, “particularly the Newport Leisure Park investment”.

Recent figures show the site is expected to raise £135,000 in rental payments against a previous target of £400,000 this year.

At a full council meeting on Thursday, Cllr Dimitri Batrouni asked whether the change would prevent the council developing housing which he said was the original intention of the investment committee.

Peter Davies, of Monmouthshire council, said housing “would still fit within the narrowed constraints of what the council may look to entertain”.

The council’s updated investment policy says the authority must also consider the environmental impact and sustainable development principles as part of the business case for any proposed investment.

Investment committee members will be able to nominate deputies with full voting rights if they are unable to attend a meeting.

All officers and external advisers attending meetings will also be required to sign declarations of interest.

An annual review to determine the effectiveness of the investment committee and any training requirements will also be introduced.

Cllr Armand Watts said he would welcome new training for members, questioning whether some have had “sufficient knowledge” or experience in determining investments in the past.

Cllr Phil Murphy, cabinet member for whole authority resources, said the training would be additional, and that there is already “a considerable amount of expertise” on the investment committee.

“We are very careful when we consider these investments,” he added.