April - Newry and Mourne District Council

NEWRY AND MOURNE DISTRICT COUNCIL
COMHAIRLE AN IÚIR AGUS MHÚRN
Ref: F/1/1
Report of Finance Committee Meeting held on Thursday 22 April 2010 at 3.30 pm
in the Boardroom, District Council Offices, Monaghan Row, Newry.
In the Chair:
In Attendance:
Officials in
Attendance:
Apologies
Councillor C Burns (3.30 - 4.25 pm)
Councillor A Williamson (4.25 - 4.35 pm)
Councillor W Burns
Councillor C Casey
Councillor J Feehan
Councillor T Hearty
Councillor S Rogers
Councillor G Stokes
Councillor A Williamson
Mr T McCall, Clerk & Chief Executive
Mr R Dowey, Director of Finance
Mr G McGivern, Director of District Development
Mr F Somerville, Director of Building Control
Mrs C McKenna, Assistant Director of Administration
(General Services)
Mrs E McParland, Assistant Director of
Administration (General Services)
Ms C Carvill, Committee Administrator
Mr J McCorry, Director Technical/Leisure Services
F/56/2010:- REPORT OF FINANCE COMMITTEE MEETING –
THURSDAY 11 MARCH 2010
It was agreed to note the above Report and the recommendations contained therein
which was formally approved by the Council at the Monthly Meeting held on Monday 12
April 2010. (Copy circulated)
1

FINANCIAL MATTERS
F/57/2010:- CAPITAL SPEND REPORT – 11 MONTH PERIOD ENDED 28
FEBRUARY 2010
(REF: F/1)
Read: Capital Spend Report for 11-month period ended 28 February 2010.
(Copy circulated)
It was agreed to mark the above report ‘Noted.’
Mr Dowey noted that the budget for the 2009/2010 year was £4.4m with a net spend of
£801,720 which resulted in an under spend of £3.6m. He noted that £2.1m had been
included for the purchase of lands at Cecil Street.
In reply to a query from Councillor Rogers, Mr Dowey advised that the Council usually
financed capital spend through borrowing and the figures reflected that the Council had
borrowed less than anticipated.
F/58/2010:-
Read:
REVENUE ACCOUNT – 11 MONTH PERIOD ENDED 28 FEBRUARY
2010
(REF: F/1)
Net Revenue Expenditure Report for 11-month period ended 28 February
2010. (Copy circulated)
It was agreed to mark the above report ‘Noted.’
Mr Dowey noted that the majority of the Council’s income came from Government Grant
and District Rates. He noted, however, the District Rates had been less than anticipated
and an assumption had been built into the budget that these arrears would be
forthcoming. He noted there was a favourable variance in broad terms, which was
attributed to salaries and wages.
F/59/2010:- COUNCILLORS PAYMENTS – 11 MONTH PERIOD ENDED 28
FEBRUARY 2010
(REF: M/24/3)
Read: Summary of Councillors Payments for 11 months to 28 February 2010.
(Copy circulated)
It was agreed to mark the above report ‘Noted.’
2

F/60/2010:-
Read:
OFFICIAL / COURTESY VISITS
REF: (M/42/2)
Report re: Official/Courtesy Expenditure for 11 months to the 28 February
2010. (Copy circulated)
It was agreed to mark the above report ‘Noted.’
F/61/2010:- SALARIES & WAGES YEAR TO DATE – 28 FEBRUARY 2010
(REF: F/1)
Read: Salaries & Wages Analysis by Account Code year to date as at 28
February 2010. (Copy circulated)
It was agreed to mark the above report ‘Noted.’
Mr Dowey said there was a favourable variance of £637,818. He noted there was a
number of grant aided salary posts and one of the reasons for a favourable variance
was that the Council had budgeted for a wage increase higher than the actual increase
of 1%.
F/62/2010:- EMPLOYER PUBLIC LIABILITY CLAIMS QUARTER ENDED 31
MARCH 2010
(REF: L/3)
Read:
Report of Employer Public Liability Claims received during Quarter ended
31 March 2010 and Quarter ended 31 March 2009. (Copy circulated)
It was agreed to mark the above report ‘Noted.’
F/63/2010:-
Read:
2O10 INSURANCE RENEWAL
(REF: M/38)
Marsh Insurance 2010 Insurance Renewal Report. (Premium Summary on
Page 11 circulated)
Mr Dowey noted that in light of the issues surrounding RPA timetable the combined
Liability Insurer (public and employee liability) had offered a new 3-year Long Term
agreement with discounted rating which would not continue to apply in the event RPA
proceeded during the proposed period - i.e. May 2011.
On the proposal of Councillor A Williamson seconded by Councillor S Rogers it
was agreed the Council enter into a 3 year Long Term Agreement with Chartis
Insurance UK Ltd in respect of the combined liability policy in the revised total of
£473,094 instead of £525,624, which represented an overall cost reduction of 2%
in comparison with the previous year.
3

F/64/2010:-
Read:
CUT IN GENERAL GRANT (RESOURCES ELEMENT)
REF: (F/1)
Letter dated 23 March 2010 from NILGA re: Cut in General Grant
(Resources Element) asking for the Council’s views in relation to the
reduction of the General Grant as NILGA hoped to arrange a meeting with
the Minister once the information was collated to urge him to reconsider his
decision in this matter.
It was agreed to mark the above correspondence ‘Noted.’
Mr Dowey said this would be a matter for the Political Parties.
F/65/2010:-
Read:
Read:
(a)
(b)
(c)
LONGSTONE GAC
(REF: CC/44)
Minute No. F/255/2009 – Loan - Longstone Community Association Ref:
CC/44 and Minute No. F/44/2010 – Contribution - Longstone GAC Ref:
CC/44. (Copies circulated)
Letter dated 10 March 2010 from SG Haughian Solicitor re: Longstone
GAC outlining the Club’s proposals as follows:
The Club will immediately set up a direct debit to ensure that the Council
received regular monthly payments of £300 per month.
In exchange for the Council signing a Deed of Postponement in relation to
their existing charge over Folios 17725 and 17726 Co Down, the Club will
permit the Council to take a first charge over the new playing field which is
being purchased at £175,000.
The Club will make a one off lump sum payment of £1,000 on agreement
of these terms.
The letter further confirmed that First Trust Bank would not require any
form of charge over the new playing field as it felt there was enough equity
in the existing playing field and sports hall. (Copy circulated)
Mr Dowey said Longstone Community Association / GAC currently owed the Council the
sum of approximately £87,000, repaying an original loan grant of 11 November 1999 in
the sum of £120,000. The original agreement had been for 32 quarterly payments over
a period of 8 years and in theory the loan should have been paid in full by 2007. The
Council had not charged interest on the loan but it was noted that the Local Government
Auditor had raised issues with the payment. The Club were now looking to change the
security.
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In a reply to a query from Councillor Casey, Mr Dowey noted that the Council currently
had a charge over the building and was now being offered security over the playing field.
Councillor Rogers noted that there was a strong commitment from the Club in that they
had arranged to set up a direct debit on a monthly basis.
After a short discussion on the proposal of Councillor M Murphy seconded by
Councillor S Rogers it was agreed the Council instruct the Council’s Solicitor to
write in reply to letter dated 10 March 2010 from SG Haughian Solicitor re Their
Client Longstone GAC and advise that the Council was in agreement with
proposals (a) and (b) of said letter but had expressed concern over proposal (c)
and has expressed a preference for a larger lump sum payment. No final decision
could be taken until all matters were satisfactory to the Council.
F/66/2010:-
Read:
ANNALONG MARINE PARK BUILDING, ANNALONG
(REF: R/S 86)
Letter dated 28 March 2010 from Lower Mourne Gaelic League re:
Voluntary Contribution 1623 for the sum of £5,000 requesting that monies
be carried over to the financial year 2010/2011 due to a delay in the lease
for the Marine Park building in Annalong being signed. The group’s
Solicitor was currently considering the Lease and the Lease Agreement
and would presently forward recommendations to the Council. As these
matters were in the process of being resolved the group will be able to use
the monies in the near future. (Copy circulated)
On the proposal of Councillor M Murphy seconded by Councillor A Williamson it
was agreed the Council agree to the deferral of the offer of Voluntary Contribution
Reference 1623 in the sum of £5,000 to the 2010/2011 year i.e. accrue as at 31
March 2010.
F/67/2010:- BAD DEBT WRITE OFFS – 31 MARCH 2010
(REF: F/1)
Read:
Report of Bad Debt Write Offs as at 31 March 2010. (Copy circulated)
On the proposal of Councillor J Feehan seconded by Councillor C Casey it was
agreed the Council write off bad debts in the sum of £13,654.23 as at 31 March
2010.
5

LAND & PROPERTY
F/68/2010:-
Read:
BLEARY BUNGALOWS, CORRENSHIGO, NEWRY
(REF: R/S77/42)
Minute No. F/47/2010 – Play Area – Bleary Bungalows, Correnshigo,
Newry. (Copy circulated)
Mr Dowey noted that this issue had been raised at the Finance Committee Meeting held
on Thursday 11 March 2010 which was approved at the Monthly Meeting of the Council
held on Monday 12 April 2010 and had been referred back to today’s Meeting. He noted
that a Fews Councillors Meeting would be held to discuss this issue with Mr Curtis, Ms C
McKenna, the Clerk and Mr Rory McShane on Thursday 27 May 2010 at 10.00 am and
a Report would be tabled at the Finance Committee Meeting on Thursday 17 June 2010.
Mr McCall noted that residents would be invited to attend for part of the meeting.
It was agreed to mark the above information ‘Noted.’
F/69/2010:-
Read:
PROGRESS REPORT PURCHASE OF LAND
(REF: F/1)
Progress Report for financial year 2009/2010 re: Purchase of Land. (Copy
circulated)
It was agreed to mark the above report ‘Noted.’
F/70/2010:-
Read:
PROGRESS REPORT SALE OF LAND
(REF: F/1)
Progress Report for financial year 2009/2010 re: Sale of Land. (Copy
circulated)
It was agreed to mark the above report ‘Noted.’
On the proposal of Councillor A Williamson seconded by Councillor C Casey it
was agreed the Council contact the developer re: provision of alternative access
to adjoining housing development through the recreation area at Rooney Road,
Kilkeel (R/S 77/9) for further information and advise that if the Council does not
receive a reply within 8 weeks of date of letter the file would be closed.
6

F/71/2010:-
Read:
ANNUAL REPORT – LAND & PROPERTY LEASED TO OTHERS
APRIL 2010
(REF: F/1)
Annual Report re: Land & Property Leased to Others April 2010. (Copy
circulated)
It was agreed to mark the above report ‘Noted.’
F/72/2010:-
Read:
ANNUAL REPORT – LAND & PROPERTY LEASED FROM OTHERS
APRIL 2010
(REF: F/1)
Annual Report re: Land & Property Leased From Others April 2010. (Copy
circulated)
It was agreed to mark the above report ‘Noted.’
F/73/2010:-
Read:
SALE OF GERRY BROWN PARK TO JOHN MITCHELL GFC
(REF: SC/29/1)
Briefing Note re: Sale of Gerry Brown Park to John Mitchell GFC advising
the Council agreed to sell Gerry Brown Park, Newry to John Mitchell GFC
and had signed a Memorandum of Sale in October 2008. There had been
no recent progress and no deposit has been paid. The briefing note
recommended that the Council advise the Club that if they do not proceed
with this matter within the next 8 weeks the Council will close the file.
Valuations will have to be checked if the sale is to proceed. In the event
John Mitchell GFC preferred to rent the lands, given the cost incurred to
date, it should be made clear to them they will have to pay the Council’s
legal and professional costs in advance. (Copy circulated)
It was agreed the Council write to John Mitchell GFC to advise that it did not
receive a reply within a period of 8 weeks from date of letter, the file on the
proposed sale of Gerry Brown Park to John Mitchell GFC would be closed.
It was further agreed that the Club be advised that if the sale were to go ahead the
valuation would have to be checked before it proceeded.
F/74/2010:-
Read:
LANDS IN CECIL STREET – MR P MURTAGH
(REF: R/S310/A)
Letter dated 26 March 2010 from Shooter Property Services re: Lands in
Cecil Street – Mr Pat Murtagh - Proposed Acquisition by Newry & Mourne
District Council advising that in light of present market conditions they can
find no current or recent evidence of transactions in the market to support
7

the original figure and can no longer recommend that the Council proceed
with the acquisition as originally advised. Shooter Property Services will
reopen negotiations with Mr Murtagh and will keep the Council advised of
progress. (Copy circulated)
Read:
Email dated 9 April 2010 from Shooter Property Services re: Proposed
acquisition of lands at Cecil Street, stating that as previously advised in
their original valuation dated 27 February 2008 and subsequent negotiated
agreement reported 29 September 2009 were no longer sustainable and
discussions had been held with Mr Murtagh with a view to reopening
negotiations to reflect the current reality in the property values. It would
seem that there was no likelihood of a successful conclusion to the
discussions and Mr Murtagh decided to withdraw from further negotiations
and effectively close the matter of disposal by agreement to the Council.
(Copy circulated)
On the proposal of Councillor C Burns seconded by Councillor A Williamson it was
agreed to go “Into Committee” in accordance with Section 23 (2a) of the Local
Government (NI) Order 1972, by virtue of the confidential nature of the business to be
transacted.
When the Council came “out of Committee” it was reported that a consultation would
take place with the Council’s solicitor and a report would be brought back at a later date.
Councillor C Burns left the Chamber and Councillor Williamson assumed the
Chair.
F/75/2010:-
Read:
PROPOSED SALE OF SURPLUS LANDS TO NEWRY CITY FC
(REF: R/S154)
Letter dated 25 March 2010 from McShane & Co Solicitors re: Proposed
sale of surplus lands to Newry City FC advising that they had contacted
the Solicitors for Newry City Football Club who had confirmed that they
had no further instructions in this matter. The letter asked if the Council
had received any indication from Newry City Football Club recently that
they were proceeding with this matter. (Copy circulated)
On the proposal of Councillor C Casey seconded by Councillor G Stokes it was
agreed the Council write to Newry City FC re: Sale of surplus lands to Newry City
FC and advise that if no reply was received from the Club within 8 weeks of date
of letter the file on this matter would be closed. Letter to also advise that if Newry
FC decided to go another route they be required to pay the legal costs of the
Council.
8

F/76/2010:-
Read:
BESSBROOK UNITED FC
(REF: R/S 116)
Report of Meeting with Fews Councillors and Bessbrook United FC held on
Friday 29 January 2010. (Copy circulated)
The Report recommended the following:-
1. The Council consider in principle leasing Orior Park Soccer Pitch and associated
grounds to Bessbrook United FC for a period of not less than 21 years and that
costings for outright sale also be acquired subject to full Council approval, DOE
approval and subject to contract.
2. Bessbrook United formally write to the Council requesting the above land transfer
and that the Carnbane League also write a letter of support both of which should be
considered along with this report at the next appropriate meeting of the Finance
Committee.
3. The Council write formally to the contractor responsible for the erection of the ball
stops at Orior Park requiring them to repair the uprights and netting as a matter of
urgency at no cost to the Council.
Mr Dowey referred to recommendation 2 of the report and noted that the Council had
not received letters of support from Bessbrook United or Carnbane League.
On the proposal of Councillor C Casey seconded by Councillor S Rogers it was
agreed to mark the above report ‘noted’ and that in the event the conditions were
met the Council carry out the actions as outlined in the recommendations of the
report.
F/77/2010:-
Read:
ROSS THOMPSON SITE
(REF: CP/17/42)
Letter dated 26 March 2010 from McShane & Co re: Former Ross
Thompson site at Bank Parade, Newry advising that a figure of £3,000
plus Solicitors fees and Agent’s fees had been suggested for removal of
the covenant in favour of The Kilmorey Estate. (Copy circulated)
On the proposal of Councillor Casey seconded by Councillor Rogers it was
agreed that the sum of money and associated costs amounting to £4175 plus VAT
be agreed in order that unencumbered title can be obtained for the former Ross
Thompson site at Bank Parade, Newry.
9

F/78/2010:-
Read:
LANDS AT MOURNE VIEW PARK, NEWRY
(REF: CC/97)
Letter dated 8 March 2010 from Mr K Cumiskey re: Lands at Mourne View
Park, Newry - Restoration of Linenhall Arch confirming that Mr Michael
Crilly and Mr Kieran Cumiskey were joint owners of the land in question
and that they were willing to enter into negotiations with regard to the sale
of land as stated in the Council’s letter dated 3 March 2010.
On the proposal of Councillor S Rogers seconded by Councillor C Casey it was
agreed to instruct the valuer to open negotiations with the established owners of
the land Messrs. Crilly & Cumiskey, and possibly at a later stage with WIN
Business Park, with regard to acquiring a small portion of private garden within
the cartilage of the Linenhall Arch at Mourneview Park, Newry which measures
approximately 6.75m 2 .
F/79/2010:-
Read:
DISUSED AREA AT DERRYBEG, NEWRY
(REF: CC/64)
Letter dated 2 March 2010 from NIHE re: Disused Play Area at Derrybeg,
Newry advising that the disused play area would be too small for housing
and the Housing Executive would not therefore wish to acquire the land.
It was agreed to mark the above correspondence ‘Noted.’
F/80/2010:-
FORMER GRILL’S SITE, DAISY HILL, NEWRY
(REF: R/S 300)
Mr Dowey advised that a recommendation had been received from Mr Somerville,
Director of Building Control that the Council would not be applying for planning
permission and it was a developed site which should be put on the market as a site with
potential development opportunities.
On the proposal of Councillor C Casey seconded by Councillor S Rogers it was
agreed the former Grill’s Site, Daisy Hill, Newry be put onto the open market as a
site with potential development opportunities.
At the request of Councillor Casey it was agreed the Council’s Environmental Health
and Building Control Departments investigate reports of a septic tank seeping out onto
the street along the margins of the Grill’s Site at Daisy Hill, Newry.
F/81/2010:-
Read:
DISPOSAL OF ALBERT BASIN SITE
(REF: R/S89/2/14/A
Letter dated 25 March 2010 from O’Reilly Property Services re: Disposal of
Albert Basin Site advising that a limited level of interest had been
10

experienced, which was to be expected given the size of the site and the
complications regarding planning and access. It would appear that
interested parties have instructed agencies to act on their behalf to obtain
information from O Reilly Services and they were confident that at least
three potential bidders would reveal themselves in the coming weeks.
(Copy circulated)
It was agreed to mark the above correspondence ‘Noted.’
F/82/2010:-
Read:
PICNIC SITE AT MILLBAY, KILKEEL
(REF: R/S 124/2)
Letter dated 30 March 2010 from McShane & Co re: Picnic site at Millbay,
Kilkeel – Department of Environment to the Council advising that Mrs
Poland was prepared to execute a voluntary transfer of the lands occupied
by the Council. It would be necessary to have an accurate map drawn up
for Land Registry purposes.
On the proposal of Councillor S Rogers seconded by Councillor C Casey it was
agreed that the Council accept the voluntary transfer from Mrs S Poland in
respect of lands occupied by the Council in Folio 4465 Co Down and that the
Council pay all of her legal and any related professional fees.
F/83/2010:-
Read:
BALLINRAN COMMUNITY ASSOCIATION
(REF: F/3)
Letter dated 7 April 2010 from Elliott Duffy Garrett re: Northern Ireland
Rural Development Council and International Fund for Ireland re: Ballinran
Community Association advising that their client Ballinran Community
Association have instructed that they were not prepared to enter into
Priority Deed wherein Newry & Mourne District Council’s charge will rank
equal with their client’s Charge Pari Pasu. Both clients, Northern Ireland
Rural Development Council and International Fund for Ireland, have
provided more grant funding to Ballinran Community Association than
Newry & Mourne District Council, therefore the clients will only enter into
Priority Deed wherein the Charge in favour of Northern Bank ranks first up
to the amount of the bank’s loan. The Charge in favour of their clients
ranks second up to the amount of their grants and the Charge in favour of
the Council ranks third up to the amount of its grant.
It was unanimously agreed that the Council accept the terms as laid out in the
letter dated 7 April 2010 from Elliott Duffy Garrett Solicitors re: Ballinran
Community Association.
11

F/84/2010:-
Read:
SALE OF PUBLIC CONVENIENCE AT GREENCASTLE STREET,
KILKEEL
(REF: PC/22)
Letter dated 19 April 2010 from Mr A Graham expressing interest in
purchasing the public conveniences at Greencastle Street, Kilkeel.
Mr Dowey noted that the Council had not concluded any agreement with the Zion
Masonic Lodge, Kilkeel who had expressed an interest in purchasing the public
conveniences. In his opinion the building would then have to be put onto the open
market and valued.
Mrs McKenna said the Council had written to the Masonic Lodge but had not yet
received a reply.
On the proposal of Councillor M Murphy seconded by Councillor S Rogers it was
agreed that the Council put the public conveniences located at Greencastle Street,
Kilkeel on the open market for sale, provided there was no legal obligation to Zion
Masonic Lodge.
F/85/2010:-
Read:
LAND AT CAMLOUGH LAKE – SEAN CAUGHEY
(REF: R/S46)
Letter dated 16 April 2010 from Land & Property Services re: Land at
Camlough Lake, Owner Mr Sean Caughey advising that following
discussions with the landowner Sean Caughey, they could not report
agreement at a figure that could be recommended to the Council.
It was agreed to mark the above correspondence ‘Noted’ and that the file would be
closed at the current time.
There being no further business the meeting ended at 4.35 pm.
FOR CONSIDERATION AT THE MONTHLY MEETING OF THE COUNCIL TO BE
HELD ON MONDAY 10 MAY 2010.
Signed
______________________
Mr R Dowey
Director of Finance
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