Millers Footwear (No.2)

EDM number 1234 in 1989-90, proposed by DN Campbell-Savours on 04/07/1990.

That this House notes the admission by Mr Alan Arnold that he did not intend to use Millers' funds to finance the purchase of another business; notes his statement that the moneys were returned when the deal did not go through; asks when this was; questions why it was Mr Arnold used these Millers' funds and made payments of ú71,500 to a bank in Jersey at a time when Millers, his company, owed ú24,400 plus some accrued interest, according to Allerdale District Council's own minutes, to Allerdale District Council; questions why it was that Allerdale ratepayers' moneys were in effect allowed to be used in this way to pay for Arnold's wheeler dealing activities through off-shore tax havens; notes that this loan was negotiated by the Chief Executive of Allerdale following upon approaches made by persons acting for Millers; questions why Allerdale failed to place a representative on the board of Millers to safeguard the interest of ratepayers whose money was at risk; notes that the terms of the original loan made in mid 1988 provided for early repayment and that these terms were defaulted on; notes that the outstanding loan was rescheduled almost annually under a bed and breakfast arrangement; notes that Allerdale District Council is an unsecured creditor and as such is unlikely to get a brass farthing out of Millers following upon appointment of the receivers; and believes that nearly a quarter of a million pounds plus some accrued interest of Allerdale ratepayers' money is likely to be lost.

This motion has been signed by a total of 1 MPs.