Coun Mutton part of ‘Arena panel’ will publicly debate issues over the part council-owned Ricoh company, Arena Coventry Limited.
A special committee overseeing Ricoh Arena affairs is to be set up by the new leadership of Coventry City Council according to a report by the The Telegraph.
The Telegraph understands the high-level “Arena panel” will include cabinet members and the outgoing leader John Mutton – deposed as council leader by Ann Lucas in last week’s leadership contest.
It is believed it is partly an attempt by ruling Labour councillors to be more open in publicly debating issues over the part council-owned Ricoh company, Arena Coventry Limited.
Some critics have accused councillors of secrecy, particularly when they approved behind closed doors in January a £14million taxpayer bailout of ACL.
It bought out ACL’s bank mortgage – becoming “its banker” instead – to alleviate financial pressure after Coventry City Football Club had stopped paying its £100,000 rent bill for using the stadium.
The new panel comes as the Sky Blues’ hedge fund owner Joy Seppala and CCFC Holdings Ltd chief executive Tim Fisher are seeking a High Court judicial review of the bail out – claiming it broke “state aid” laws designed to prevent public bodies creating unfair competition.
With another Sky Blues company – CCFC Limited – in administration and awaiting administrator Paul Appleton’s report to creditors later this month, CCFC Holdings also accuses the council of unlawfully seeking to enforce new owners for the club.
But any council-supported takeover of the club and half the stadium was backed yesterday by new Conservative group leader John Blundell. Coun Lucas has refused to comment on ACL matters for legal reasons.
Coun Blundell – who replaces Torbay parliamentary hopeful Kevin Foster as council opposition leader – said: “We’ve got to get the right people on board.
“That would give the council an opportunity to divest itself of ACL at an advantageous time for the taxpayers of Coventry.
“I don’t think in the long-run the council should be involved in running a stadium or football club.”
* Coun Blundell a 61-year-old “proud grandfather” who once worked for tools manufacturer Matrix Churchill and family compenents firm Blundell & Co, in Tile Hill, said it had been his long-held ambition to run the Tory group. The former children’s cabinet member said his group would be pragmatic in examing the new Labour leaders’ policies, including the financing of a “living wage” for the lowest paid council staff, which his group advocated earlier this year.
A Margaret Thatcher enthusiast who believes government cuts are necessary and desirable, the ex-King Henry VIII pupil backs school academies.
Social enterprises running council services could be favoured at times to privatisation, he added.
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