Cheshire East Council has released figures to show that the net cost of the cancelled Lyme Green Waste Transfer Station project in Macclesfield is £262,000.
The Council says a full review has been carried out, factoring in all potential and actual costs and savings. The figures released show a comparison between the actual costs of aborting the project and the estimated costs had the scheme progressed as initially planned.
Costs include £595,000 paid to the main contractor and £106,000 in professional fees, offset against this £701,000 is £246,000 which is made up of £145,000 as the building is being retained for an alternative use, £18,000 which is the cost of surveys to be offset against future disposal and £292,000 which is the cost of site clearance and preparation which is also offset against future disposal.
Added to the £246,000 is £2,036,000 in costs for providing the service from November 2011 to March 2015 ( £1,1882,000 in payments to the third party contractor and £154,000 additional costs) and £365,000 investigation costs (£225,000 for the DIP review and £140,000 for severance payments).
This brings the total costs for the aborted scheme to £2,647,000.
Cheshire East Council has then deducted the costs had the scheme been completed which are £1,500,000 and £885,000 estimated running costs which brings the net cost to the Council between November 2011 and March 2015 down to £262,000.
Council Leader Michael Jones said: "I am pleased that the residents of Cheshire East now have the true picture of the costs arising from this event.
"It is important that we are fully apprised of the facts and I am satisfied that this presents a much more accurate account of how money was spent, how it was saved and how other factors came into play to mitigate the full financial impact of this episode."
The attached figures, released by Cheshire East provide a breakdown of the costs of the Lyme Green project together with projected and actual savings.
The Cheshire East Labour Group says it does not dispute the amount spent on construction works at Lyme Green without getting planning permission, nor the amounts paid to senior staff who left. However, it does dispute what costs are recoverable and what costs the council would have incurred had it gone ahead with Lyme Green. The also claim the latest figures released by the Council fail to take into account the extra administration burden caused.
Cllr Sam Corcoran said, "The latest figures quoted by Cllr Michael Jones are a travesty of creative accounting. The Conservatives now seem to be claiming that the Lyme Green fiasco was a good investment and has saved the Council money! If Cllr Jones survives the no-confidence vote on Thursday then I will be demanding that details of the figures be released."
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I didn't spot anything. Seemed plausible.
Feel cheated. Could have watched Eggheads.
Sarcasm intended.