Yorkshire Forward reveals plans for assets
YORKSHIRE Forward has drawn up plans to dispose of assets worth as much as £220m although it is likely much will remain in public sector control.
In a plan drawn up for Ministers following the Government’s decision to close regional development agencies, Yorkshire Forward puts its assets at the end of the last financial year at £220.11m.
However, the Agency also points to liabilities worth £113.74m that will also have to be passed on before it closes next year and warns “there are likely to be a number of legal disputes and claims from partners as a result of our early termination of contracts.”
A copy of the document, seen by TheBusinessDesk.com, says: “Where the assets and liabilities are still strategically important, it is the desire of Yorkshire Forward and partners to retain public control of these sites.
“There is however recognition that some degree of asset sale is appropriate to contribute towards Yorkshire Forward’s remaining costs and to national Government income more generally and to transfer assets back to the private sector where there is no longer a rationale for keeping them in the public sector.”
The report details a long list of Yorkshire Forward assets, including considerable property interest first highlighted by TheBusinessDesk.com last year, but details of the values the Agency is hoping to realise have been removed for fear of jeopardising its commercial interests.
Yorkshire Forward is not in sole control of some of the property assets and the report warns that development agreements will have to be taken into account in the disposal of interests in sites including the Metropolitan Centre, in Barnsley, the Sheffield Digital Campus and Velocity, in Bradford.
The Agency’s leases over offices in Hull, Bradford, York and Wath will be transfered to Government departments while its Leeds offices, Victoria Place and Victoria House, are expected to be retained by Whitehall for use by other public sector bodies.
Local enterprise partnerships had been considered one body that could take over some of Yorkshire Forward’s activities but the report warns that its assessment is LEPs “are not yet in a position to receive any assets so they have not been considered as potential destinations.”
It rules out transferring assets to local authorities for nothing, saying to do so would breach Treasury rules, but the document suggests other mechanisims such as trusts or deferred payments might be explored.
In addition to physical assets, the report says the region’s local authorities have expressed an interest in the expertise of Yorkshire Forward staff. “Opportunities for transferring such staff could be part of the asset disposal strategy,” it says.
A spokeswoman from Yorkshire Forward said: “All regional development agencies submitted their plans to Government on January 31 for the disposal or transfer of assets and liabilities.
“This is a complex process requiring Government approval and is part of the wider transition plan to ensure an orderly close down of RDAs by March 31 next year.
“Yorkshire Forward has made recommendations to Government detailing how we believe assets and liabilities should be disposed of to continue economic growth in Yorkshire and Humber, as well as recognising the wider need to deliver maximum value on public sector investments for Government, by ensuring that assets are transferred to the appropriate new host where their full benefits will be realised.
“We have consulted extensively with our local authorities and HCA during this process and now await approval from Government before we can implement our plan.”
