Andrew De Freitas says Chris Shaw is 'in denial' about financial mess left by Labour ten years ago
FORMER North East Lincolnshire Council leader Andrew De Freitas has accused his successor Chris Shaw of being "in denial" at the financial mess left by the previous Labour administration in 2003.
Responding to claims that his Lib Dem-Tory administration had mortgaged the authority "to the hilt", Councillor De Freitas said that the £80 million borrowed between 2005 and 2008 was necessary to replenish the council's depleted reserves.
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Councillor Andrew De Freitas, left, and North East Lincolnshire Council leader Chris Shaw.
The Lib Dem group leader's comments come in the wake of claims by Councillor Shaw at last month's full council that his Lib Dem-Tory administration had been guilty of "financial incompetence" by borrowing excessive sums of money to fund an overambitious capital programme that was never fully realised.
Councillor De Freitas described the accusations as "nonsense" and added: "If his claims have any substance then I'm surprised that a number of us aren't behind bars."
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Following a meeting with chief executive Tony Hunter, he now accepts the figures quoted by Councillor Shaw were correct, but refutes the suggestion that the council had acted recklessly.
And he says the reason that the council borrowed such large sums of money was because the previous Labour administration had completely depleted the authority's general reserves.
The financial mess inherited by the coalition administration was revealed in a damning Audit Commission report in 2004, which highlighted "inadequate reserves" and "ineffective budgetary control".
NELC's own figures show that at the end of the 2002/03 financial year the council had a deficit of £2.4 million in general reserves, just £6 million in earmarked reserves, a deficit of £2 million in investments and debt of £99.1 million.
By contrast, at the end of the 2009/10 financial year, the council had £8.8 million in general reserves, £54.2 million in earmarked reserves, investments of £51 million and debt of £89.4 million.
Councillor De Freitas said: "He is suggesting the council was reckless but it wasn't being reckless. It was being responsible in recognising the need to restore its balances to create a stable financial situation for the local authority so that it could move forward.
"The council inherited by Councillor Shaw and his colleagues was in a much better place than when Labour lost office in 2003. These figures speak for themselves.
"They are proof that he is in denial."
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by fasteddie59
Sunday, March 17 2013, 7:35PM
“Will any of the big 3 listen?
New Waltham and Humberston by election..
Conservative candidate 81 years old
Lib Dem candidate over 70
Labour candidate 19?
Could you believe it? Is this the best the big 3 can come up with.
No wonder UKIP are going to win in this election.
Straight talking common sense, and willing to listen to you "the people"”
by fasteddie59
Sunday, March 17 2013, 7:34PM
“New Waltham and Humberston by election..
Conservative candidate 81 years old
Lib Dem candidate over 70
Labour candidate 19?
Could you believe it? Is this the best the big 3 can come up with.
No wonder UKIP are going to win in this election.
Straight talking common sense, and willing to listen to you "the people"”
by fasteddie59
Sunday, March 17 2013, 7:34PM
“New Waltham and Humberston by election..
Conservative candidate 81 years old
Lib Dem candidate over 70
Labour candidate 19?
Could you believe it? Is this the best the big 3 can come up with.
No wonder UKIP are going to win in this election.
Straight talking common sense, and willing to listen to you "the people"”
by Mat_the-Hat
Saturday, March 16 2013, 2:02PM
“De Freitas or Shaw? Not much to choose between them as far as I can see. Two self serving politicians, both with parliamentay ambitions fighing and squabbling like schoolchildren over party politics. True, Councillor Shaw and his party are running roghshod over the opinions of the electorate of this town and flying in the face of the what those who elected them actually want, the swimming pool fiasco and plans for top town being a case in point. Meanwhile Councillor De Freitas' party are propping up an immoral Government, (one that did not gain a majority and was given no mandate by the people of this country), to implment measures that will ultimately destroy the NHS, leave many people in dire poverty, less people in work and all apart from Mr Cameron's super rich fiends financially much worse of. It seems that they are not even going to have the guts to back the Labour Party on their own idea, the mansion tax, because their Tory bedfellows are, unsurprisingly, against it.
Councillor Shaw appears to be in denial, thinking that his administration can continue to do what they like regardless of what the people want, he will no doubt learn the hard way at the next election. He will certainly have to pursue any parliamentary ambitions outside of NEL, as he would have about as much chance of being elected as an MP for Grimsby or Cleethorpes a Counciller De Freitas has.”
by gy82a
Thursday, March 14 2013, 7:57AM
“get rid of all councillors who attach themselves to a political party as there Westminster alligences and Heath Robinson style make it unworkable and petty ITS TIME FOR A GREAT GRIMSBY PARTY !!!!”
by williampink
Wednesday, March 13 2013, 10:02PM
“If all the councillors were independent we would not have these cross party arguments. why do we need party politics to run local government.”
by gy82a
Wednesday, March 13 2013, 8:03PM
“thats good comeing from someone whos a member of the party that has just put the country into a period of stagflation which is very difficult to combat due to by tackling the inflation you deepen the stagnation and vice verse so please take your coalition and intercourse off NOW !!!!!”
by davendogs
Wednesday, March 13 2013, 4:39PM
“I approach voting with several things in mind. The first, I am voting for the person irrespective of party. Second, that person has to have the local populance at heart, not a tow the party line sort. This leaves for the best part very few options.”
by davidmantle
Wednesday, March 13 2013, 4:35PM
“I don`t know about being in denial over the financial mess but in cloud cuckoo land over the Scartho baths fiasco.”
by Grantyy
Wednesday, March 13 2013, 2:08PM
“All these political parties seem to do is blame each other to first gain power and then blame each other to cover up the mess they have left behind.
What they should be doing is what they believe what is best for this country but instead they choose to oppose each other as often as possible to try to gain votes even if that is to the detriment of the country???”