Alf Cannan's I Have A Dream

[2112]

A day to get out the bad news, when you’re unlikely to be questioned. The NPMs lead story is the MDC so far costing over £450,000. Most of that sum being wages and salaries. What does concern me is their directors saying that the MDCs objective is to become profitable to provide a revenue stream to the Treasury. They reckon to be producing income within the year 2024-2025. That’s debatable. From a personal perspective I feel uncomfortable with ‘speculators’ and commercial enterprise being involved in something which clearly should have been a not for profit organisation, any profits being ploughed back in, for the greater good. 
 

That’s rather amusing really, if you factor in the cost of buying the surrounding properties, the start up costs etc. They want it to be profitable but in the real world it will take years to recoup its outlay. Unless they are charging top dollar rents? There will be complaints if they did. They should have turned the whole area over as a new social housing estate - an extension to Hillside. For Key Worker housing they could have developed other IOMG properties - Fairfield School? 

[Two-lane]

"It recorded a £448,274 loss, with more than half of the figure going towards wages and salaries."

"The Manx Development Corporation made a loss of more than £178,000 in its first year."

£628,000 so far. Probably mostly salaries.

 

[Non-Believer]

"Arm's Length" though, so nobody of a political nature accountable. No doubt, "Theoretically it's not actually taxpayer's money" either, etc etc.

[Blade Runner]

Where are they getting an income from to pay for the work at the nurses home or the demo works nearby?

There is more than a couple of hundred grands worth of work done there.

[Holte End]

3 minutes ago, Non-Believer said:

"Arm's Length" though, so nobody of a political nature accountable. No doubt, "Theoretically it's not actually taxpayer's money" either, etc etc.

I believe Treasury is accountable, the funny bit is where in Tynwald Alex Allison stated that MDC is held to the same process of procurement as Departments, which they have not been. So is this misleading Tynwald.If an armslength body doesn't follow Treasury rules what are the sanctions, will they bring a motion to Tynwald to force them too or is that only for private companies, not armslength. 

[english zloty]

2 hours ago, Blade Runner said:

Where are they getting an income from to pay for the work at the nurses home or the demo works nearby?

There is more than a couple of hundred grands worth of work done there.

The FNH will not wash its face. That’s even when allowing for the bent planning permission and the removal of affordable housing from the quota. MDC is a scam they can’t get out of without huge and probably fatal embarrassment for this administration 

[Nellie]

3 hours ago, Blade Runner said:

Where are they getting an income from to pay for the work at the nurses home or the demo works nearby?

There is more than a couple of hundred grands worth of work done there.

I'd imagine they have raised loans, guaranteed by the Treasury, to provide the cash flow for this development. Probably need to see a Balance Sheet, rather than a Profit and Loss account to get a proper picture.

At the end of the day, once they start (hopefully) to produce some income, from sales or rental income, they will be able to cook the books, by showing whatever value they, and Treasury, like on the property assets that Government have given to them. 

 

 

[Two-lane]

RogerMexico provided this link in another thread:

https://www.tynwald.org.im/spfile?file=/business/opqp/sittings/20212026/2023-GD-0134.pdf

"Subsequent to the year end, the Company acquired property in the sum of £2,003,903 in relation to the
Westmoreland Village redevelopment."

How will this appear in the accounts - as £2million received free of charge?

 

[CrazyDave]

4 hours ago, Two-lane said:

"It recorded a £448,274 loss, with more than half of the figure going towards wages and salaries."

"The Manx Development Corporation made a loss of more than £178,000 in its first year."

£628,000 so far. Probably mostly salaries.

 

Correct, and completely expected and normal for that type of business.

[english zloty]

8 minutes ago, CrazyDave said:

Correct, and completely expected and normal for that type of business.

No it isn’t. Any sensible business would start small and easy. Sell at a profit do a couple more, expand the business and so on. 
 

MDC started on a really difficult build. Talking a good show but knowing fuck all about development or how to communicate with the community. Took ages to do fuck all and then proceeded to knock down half of the building. From my development days I would say that they are 12 months away from letting any property in a money pit for ( I think) 36 undersized apartments and a cafe which I am guessing will be frequented by DHSC staff and little else 

and that’s before they start Opex which will be significant because the genius business model is short let (ie high turnover and lost rent). 
 

as a start… 

[Moghrey Mie]

16 Related party transactions

During the period the Group undertook transactions with related parties as listed below:

2023 2022 Related party Relationship Transaction type £ £ L Jones Architects Ltd Laura Jones - Common Director Feasibility study 13,424 14,000

All transactions with related parties are conducted at commercial terms on an arm’s length basis. 

Edited December 26, 2023 by Moghrey Mie

[Two-lane]

https://www.linkedin.com/pulse/manx-development-corporation-accelerates-brownfield

"Manx Development Corporation Accelerates Brownfield Development Plans Following £50m Green Funding from Lloyds Bank International"

[Two-lane]

51 minutes ago, Two-lane said:

How will this appear in the accounts - as £2million received free of charge?

https://www.gov.im/media/1375598/manx-development-corporation-shareholder-agreement.pdf

In my completely simplistic understanding of para. 14.1.4.1, the property has been given to MDC. If MDC goes totally bust, the gov. might or might not get the property back.

[Two-lane]

https://www.iomtoday.co.im/news/letter-to-the-editor-treasurys-lack-of-transparency-631252

"Secondly, that as Treasury Minister with the benefit of this variation you appear to have underwritten an overdraft extending to a staggering £100million with Lloyds Bank, for this company to draw down debt, sanctioned only by an elite Council of Ministers committee of three. "

[finlo]

Liverpool lemon MK2!