Plan to axe 60 quango staff under Croydon Council plans (From Your Local Guardian)

Plan to axe 60 quango staff under Croydon Council plans

9:13am Wednesday 7th July 2010 in

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More than 60 staff will lose their jobs under Croydon Council plans to axe its economic development company.

Workers at the Croydon Economic Development Company (CEDC) will be placed on gardening leave and ordered to spend no extra company money before it can be wound up in September.

The future of Croydon’s successful food and fashion festivals as well as the borough’s district centre managers are also in doubt after an £8.5m Local Economic Growth Initiative grant that funded CEDC was stopped by the Government in June.

Although these are run by Croydon town centre Business Improvement District (Bid), CEDC owns 49 per cent of the company, directly employs its staff and provides its accommodation at Amp House.

Projects supporting Croydon’s key retail and construction industries, and providing vital loans to small businesses, will be axed in March 2011 if the council cannot find cash from elsewhere in its budget.

CEDC was set up, in part, to help regenerate deprived communities such as New Addington and Fieldway.

One senior Croydon businessman, who did not wish to be named, said: “It’s a bloody disaster. [CEDC chief executive] Tony Kildare is fuming, he’s absolutely livid about this.

“It’s essential the council replaces these services, even if it’s through an in-house body, because these things are vital to businesses in Croydon.”

Croydon Council’s cabinet will decide whether to back officer recommendations to pull the plug on CEDC during its next meeting, on Monday, July 12, to make a £6m saving.

CEDC came under the control of Croydon Council last November after it needed a £1m bailout to continue its work. It was criticised for twice sending a delegation to Cannes for a regeneration conference.

Mr Kildare refused to comment on CEDC’s plight, but chief executive Barry Rourke said: “We are obviously disappointed at the Government’s decision to withdraw funding at a time when a broad range of activity and support is being delivered by the CEDC.

“It is particularly important Croydon continues to seek to attract new and growing businesses here. This work is vital in periods of economic turbulence.”

Simon Hoar, cabinet member for regeneration and economic development, said: “In light of the reductions in funding for economic growth, we simply cannot continue to fund some of these projects, or to support the CEDC at its present level.

“Taxpayers want a leaner, more efficient local government that focuses on value for money, and we are determined to deliver it.”

Tim Fisher, whose fledgling chocolate shop was saved in May thanks to a CEDC loan, said his business would have been put back three years without the company’s help.

Mr Fisher, left, said: “If I had not had its help I would have had to start again.

“It’s not only the money, it was the advice and practical help. Where do people go for that if CEDC doesn’t exist?

“The council wants people to run businesses and employ people in Croydon, but how are they going to do that without these resources?”

His loan was part of almost £900,000 handed out to 80 firms by CEDC since 2008.