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

Programme Manager - Castle Point Borough Council

Essex County Council
Up to £550.0000 per day
Programme Manager - Castle Point Borough Council Castle Point, Essex Full-Time, Temporary 2 month contract £550 per day Umbrella, Outside IR35 Project England, Essex, Thundersley
Recuriter: Essex County Council

Finance Assistant - Debt Collection - 12-month FTC

Essex County Council
Up to £25959 per annum + + 26 Days Leave & Local Gov Pension
Finance Assistant - Debt Collection - 12-month Maternity Cover Fixed Term ContractFixed Term, Full Time£25,081 per annumLocation
Recuriter: Essex County Council

Shared Planning Lawyer

Broxbourne Borough Council
Up to £68,506 pa
Are you a focused, enthusiastic team player who enjoys a varied and interesting caseload Cheshunt, Waltham Cross
Recuriter: Broxbourne Borough Council

Strategic Director of Adult Social Care and Health

Tameside Metropolitan Borough Council
circa £130,000 p.a.
Are you someone who leads with heart, thinks with vision, and delivers with impact? Tameside, Greater Manchester
Recuriter: Tameside Metropolitan Borough Council

Assistant Director of All Age Commissioning

Tameside Metropolitan Borough Council
£107,521 p.a.
Are you someone who leads with heart, thinks with vision, and delivers with impact? Tameside, Greater Manchester
Recuriter: Tameside Metropolitan Borough Council
Linkedin Banner