MY experiences in commercial life taught me that when one borrows there is inevitably a risk incurred – however small, that risk is a fact.
So when the proposition is considered concerning the borrowing of £45million in order to pay off the Housing Mortgage Debt due to the government a risk is involved.
The question arises which mortgagee is the safer and which could be relied upon to be trusted not to ‘call in’ the debt compared to any outside body to whom the council may apply for this mega sum. Whether the mortgagee be a bank, finance organisation etc, the risk of the debt to be recovered or part of same is always on the cards.
I enquire why other local authorities have not adopted this risky business, viz placing the towns finances in hock such as this loan scheme concerning our council housing scheme, surely it must have been considered but have any other housing authorities ventured into the market and borrowed £45million?
I hope the council taxpayers will be given an opportunity to be brought into the council’s confidence and a full explanation be published before we take upon ourselves this huge debt together with all the consequences connected with this risky step.
PHILIP WHITELEGG, Saxonhurst Close, Northbourne
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