County Councils risky investments

[dewdrop]

We continually hear that Councils are strapped for money and many staff have been laid off. Yet Cork City Council made a high criticalised investment in a g arden display and now it is reported Clare County Council will suffer a loss on an investment at the Cliffs of Moher. Are these bodies empower to make such investments.

 

[zztop]

Yes...councils are empowered to act as promoters of projects
that are of benefit to the public and have been doing so for
decades.EVERY swimming pool & leisure facility & library
loses an absolute fortune.

 

[horusd]

Yes...councils are empowered to act as promoters of projects
that are of benefit to the public and have been doing so for
decades.EVERY swimming pool & leisure facility & library
loses an absolute fortune.

This is a very important point. I see no reason why some councils can't get their act together and invest in commercially viable and sustainable projects. They seem to lack the most basic commerical sense. Making money seems anathema to them.

I was at the Rose festival in Raheny recently (Dublin City Council) and suggested to them that they sell roses on site. The guy looked at me as if I'd two heads, yet commercial buyers were selling plants and making a killing in the very same festival? A small on-site shop beside their extensive nurseries would make a tidy sum, but no, too much like hard work and innovation.

 

[Howitzer]

I see no reason why some councils can't get their act together and invest in commercially viable and sustainable projects.

This is the basis on which the DDDA made it's investment in the Glass Bottle site. It's also the basis on which a lot of the Social and Affordable housing schemes were organized.

You are right public bodies aren't good at making commercial decisions. What they are good at is providing services. That is what they should stick to, and if needs be license private companies where opportunities arise. Allow them to take the risk and take a fee for the opportunity afforded.

 

[ajapale]

I see no reason why some councils can't get their act together and invest in commercially viable and sustainable projects.

One reason:
Because if they invested in commercially viable and sustainable projects then they would be competing head on with private sector enterprises (rate payers). If the project were truly commercially viable and sustainable then the private sector should be allowed invest.

 

[Staples]

If, by virtue of their activities, the councils generate profit-making opportunities, the best approacjh would be to sell these opportunities to those capable of exploiting them more efficiently.

Councils are in the business of providing public services - they're not geared to run shops.

 

[Chris]

One reason:
If the project were truly commercially viable and sustainable then the private sector should be allowed invest.

I would refine this statement a bit: "If the project were truly commercially viable and sustainable then the private sector would be investing in it"

If only a public entity is willing to spend money on something, where anybody is able to invest (i.e. not a government monopolised industry), then it can be said almost certainty that that venture is not commercially viable.