1985 WANSBECK– the £1.5 Million scam.
The prologue
Wansbeck District Council was dominated by the Labour Party from when it was first formed in the early 1970’s. It covered an area covering Ashington, Newbiggin by the Sea, Bedlington, Guidepost and Stakeford. Coal mining had dominated the Wansbeck area since the mid 19th Century and had attracted thousands of families and individuals who came to find work in the pits. From the mid -1960’s successive Governments closed pits as they became ‘worked out’ or because they were no longer viable. Pit closures resulted in the bitter 1984/85 dispute between the National Union of Mineworkers and the Government.
Background
During this time, I was an elected member of Wansbeck District Council and a member of the small group of Liberal Councillors who were in opposition.
In 1985 Wansbeck Council was controlled by the Labour Party and had been since its inception a decade earlier. The Labour Group were largely drawn from the membership of the National Union of Mineworkers and they were fixated on the retention of coal mines regardless of any other consideration. My colleagues and I were anxious to persuade the Council that reliance on the coal industry was unrealistic. The future required a plan to develop a strategy for an alternative economy.
Endlessly goaded by the opposition members because the Labour Group had no plan to bring new industries to Wansbeck, the Labour Group came up with a plan. Initially the plan was kept secret from the opposition and most of the members of the Labour group; most of the Labour Group rarely contributed to the business of the Council and were also unaware of the Labour leadership plan.
To great surprise a special ‘Full Council’ meeting was called with the Press and Public excluded. The Leader of the Council and the Chief Executive outlined their grand plan to attract investment in Wansbeck.
The plan was as follows:
Two American gentlemen from New York in the U.S.A were to be given £1.5 Million to advertise the District of Wansbeck ‘Horizontally and Vertically’ in magazines across America.
A few months earlier the Council had recruited an Economic Development Officer who was the author of the plan. Councillors were told that the plan had the full support of the Chief Executive. When the opposition members wanted to ask questions about the plan, we were told that these two chaps had been to Wansbeck and stayed in the Holiday Inn at Seaton Burn. Both men were very excited about the prospects of Wansbeck and looked forward to bringing much American investment to Wansbeck creating thousands of jobs.
The Council paid the bill for the substantial costs incurred by the visit, including flights?
When opposition Councillors asked about the companies that the two Americans represented the Labour leadership accused the opposition Councillors of questioning the integrity and ability of the Council Leaders and the Senior Officers of the Council? This was a response designed to deflect attention from the issue. The Lib Dem group were very uneasy about the vagueness of the plan so, it was decided that some investigation was required.
What happened next …
The Council Treasurer, Jim Foulger, was a thoroughly decent man and a Senior Officer that I felt I could trust so I arranged to see him. I explained the reservations that I had. He said he had similar reservations and he had never been consulted on the plan. He had been excluded from the meetings with the two Americans and he was horrified at the proposal being promoted. Without anyone’s knowledge the Treasurer sent the Council Solicitor to New York to check out the two Americans and he came back to say that the two had an address at the top of a skyscraper in New York. The companies consisted of the two men only. A sign on the door of their office described them as Marketing Advisers, another door leading to the same room described them as Public Relations Advisors.
Whilst the Solicitor was in New York a check was done on the background of the Economic Development Officer (EDO) and there was a connection with the island of Jersey in the Channel Islands.
On a hunch I telephoned the Editor of the Jersey Newspaper and he became excited and wanted to know where the EDO was? The Editor said that our man, the EDO, was ‘wanted’ in Jersey, but no explanation was given? Further enquiries were then made!
When the Treasurer disclosed his findings the Labour leadership took fright and the plan was abandoned, the EDO was sacked and unbelievably the Labour leadership gave him £28,000.00 as a payoff? He had been with the Council for only a matter of months?
The EDO was answerable to the Chief Executive. So, it was concluded that the Chief Executive had to be implicated? The Chief Executive left or was sacked; the Councillors were not told which. The CE too was given a hefty payoff. Shortly afterwards he was appointed Chief Executive of Northern Arts.
One and a half Million pounds was saved! Over £100,000.00 was wasted.
by Alan Thompson.
The Politics of Wrath Chapter 1
