Isle Of Wight Council Votes To Move Ahead With Venture Quays Purchase - Despite Financial Concerns

Isle of Wight councillors have voted to push ahead with the purchase of Venture Quays - despite concerns over the local authority's financial position.

At a Cabinet meeting this evening (Thursday), members unanimously agreed to proceed with plans to buy the land from Homes England.

Talks over the £1.3 million purchase have been ongoing since July 2019, as Isle of Wight Radio previously reported.

As well as the historic Columbine building, the deal also includes three other nearby sites including the Victoria Barracks building, the Albany warehouse, and a Maresfield Road site currently used for car parking.

Boat builders Wight Shipyard, who currently occupy the Columbine building, have previously called on the council to "end the uncertainty" over its future, as Isle of Wight Radio exclusively reported.

At tonight's meeting, all ten councillors voted in favour of the purchase. Council leader, Cllr Dave Stewart said it was a "truly international investment". He said:

"Having completed our financial review following the impact of Covid-19, I am satisfied this acquisition still represents significant financial and social value for our Island.

"I am also satisfied the council remains financially viable and subject to the detailed financial terms being agreed by all parties should proceed with this investment in one of our prime waterfront sites.

"I say this because I see the 150 or more jobs this investment will protect; I also see the extensive opportunities for housing and business development in marine manufacturing we will be able to preserve and regenerate going forward.

"Many Islanders are already aware of the significant historical background that East Cowes generally, and Venture Quays in particular, has in terms of marine Engineering – from flying boats and shipbuilding, through to the highly skilled aluminium welding and construction involved in the catamarans of today which are built and sold across the world.

"This is a truly international investment opportunity on the Island for the Island."

The coronavirus pandemic has left the Isle of Wight Council in a "serious financial position". It has forecast a £10 million black hole in its budget for this year.

That led to questions as to whether it would be able to afford the purchase, especially as the council looks to develop housing on land at Albany and Maresfield Road. Cabinet member for finance, Cllr Stuart Hutchinson, said:

"The purchase is really advantageous to the council... I recognise we will need to look for additional funding to make sure the development happens. This is an absolutely essential site. We must not let a short term problem [coronavirus] deter us from making a good decision that will help us for many years in the future."

As part of the negotiations, a time frame has been set by Homes England for the council to have planning permission in place by March 2022 and building works to have started by March 2024.

Homes England will be able to buy the land back for £1, if the conditions are not met. Cllr Paul Brading questioned this clause and whether it was negotiable. In response, Cllr Stewart said:

"This is an integral part of what Homes England is all about and housing will form part of the arrangement. I can however confirm that we respect this aspect because we are looking for as much freedom as we can."

Earlier this week, the council's CEO John Metcalfe had a meeting with the Island's MP and local government minister for housing, Simon Clarke.

Reacting to the outcome of tonight's meeting, MP Bob Seely said:

“I’m delighted that the IW Council has agreed to proceed to the next stage in purchasing the East Cowes Waterfront sites. I welcome this decision and I fully support Councillors taking this decision despite the financial situation.

“This decision is a very important one and has been a long time in the making. I have been working with the Council since being elected to bring about positive change that will safeguard jobs for Islanders. It is to the Council’s credit that they are ending a level of uncertainty about the future of shipbuilding on the Isle of Wight.

“It has taken SEEDA and Homes England 15 years to dispose of this site. That is far too long. I hope the lessons will be learned from the process. The original scheme negotiated by Homes England was not in the interests of the Island, and I said so at the time, but we were contractually obliged to stick with it. It would have undermined the future of shipbuilding at the site.

“Since then we have worked hard to ensure Homes England did the right thing by the Island. We have had some frank calls with them, but I am delighted that, thanks to Sir Edward Lister’s intervention when he was Chairman of Homes England, we were able to take a new negotiating approach. In addition, and working together to make our case, we were able to secure the site at a price that the Island could justify. We obtained the site at our valuation.

“I am writing to ministers to inform them that we intend to use this site to create jobs and new industries for East Cowes and the Island.

“This is a fantastic opportunity for the Council to preserve part of our economy and enable companies to grow by giving them certainty, particularly given the serious impact of coronavirus on our economy. Not only will this decision serve to protect jobs and diversify our economy, but it will also bring forward brownfield housing sites for development and lessen pressure on greenfield sites.”

By acquiring the sites, the council says it will be able to maintain marine and associated industries at Columbine and will also be able to potentially redevelop the Victoria Barracks site for leisure and public realm use.