William Eichler 20 June 2019

‘Unlawful’ council-owned cafe racks up £234,000 of debt

Auditors have criticised Connah’s Quay Town Council for failures in decision making and internal control in relation to its opening of a local cafe.

The Welsh town council has incurred a cumulative deficit of over £234,000 in the operation of the Quay Café since 2011, according to a report issued yesterday by the Auditor General for Wales.

The report states that the council did not give due consideration as to what powers it had to open Quay Café. It said the decision was based on a poorly prepared business plan and was therefore ‘unlawful’.

‘Given the scale of the deficit incurred at Connah’s Quay Town Council, I believe it is important that the public has a full and proper awareness of the events concerning the Council,’ said the Auditor General for Wales, Adrian Crompton.

‘When it opened the café, the Council did not have the statutory authority to do so and its decision was not supported by a clear and coherent business plan. As a result the decision was, in my view, unlawful.’

Mr Crompton said there were lessons to be learnt from this case by all community and town councils in Wales.

‘Councils need to be innovative in dealing with community issues, but they must at all times display appropriate risk management and operate within their legal framework,’ he said.

Responding to the report, a spokesperson for the council said: 'The council note the content of the report issue by the Auditor General for Wales on 19th June in relation to its investigation into Quay Café.

'Until we have had sufficient time to fully consider the details of the report then we are unable to comment further. The report will be considered at a Special (Public) Meeting of the council which we are in the process of organising after which a full response will be issued.'

SIGN UP
For your free daily news bulletin
Highways jobs

Joiner

North Yorkshire Council
£30,023 to £39,481 per annum
If you’re a qualified Joiner with a passion for making a real difference in the community, this role is for you! Harrogate, North Yorkshire
Recuriter: North Yorkshire Council

Corporate Director Community Development

North Yorkshire Council
£145,894 to £169,693 plus relocation support
If you are an accomplished senior leader with experience of delivering strategic change Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Deputy Manager, Supported Accomodation Service

Durham County Council
Grade 11, £42,123 - £46,579 per annum
Be the Difference. Build Futures. Change Lives. Every young person deserves someone who believes in them. Someone who sees their potential, celebrate Durham
Recuriter: Durham County Council

Head of Children's Social Care

Durham County Council
£139,874 per annum
At Durham County Council, we are ambitious for our children, young people and families. We are committed to ensuring every child is safe, supported an Spennymoor
Recuriter: Durham County Council

School Crossing Patrol

Durham County Council
Grade 1 £3,781 (approx.) £13.27 per hour
Join our School Crossing Patrol Service!   Are you punctual and reliable? Do you have good communication skills and a strong sense of community spirit Peterlee
Recuriter: Durham County Council
Linkedin Banner