East Lothian Courier | News | CAB avoids debt crisis

Friday, 16th May, 2008

Published: Thursday, 17th April, 2008 08:05

CAB avoids debt crisis

COUNCILLORS have agreed to write off £31,000 in rent arrears to enable Haddington Citizens Advice Bureau (CAB) to settle into its new Court Street office with a clean financial slate.

The decision was agreed at last Tuesday’s meeting of East Lothian’s cabinet, who heard the debt had accumulated as a result of an unexpected change in the organisation’s rental that was outwith its control.

Council official Jim Lamond told members: “Following the unexpected withdrawal in January 2003 from the original rental agreement by Tesco – the owners of the CAB’s then office at Market Street – a new agreement was put in place. It was agreed that the council would share the rent with the CAB until February 2006.

“It was hoped that by the end of that period the CAB would have found more suitable premises, but due to circumstances they did not move until January this year.

“As the primary leaseholder, the council was obliged the pay the site rent to Tesco from February 2006 until now. In total, some £31,000 was paid,” said Mr Lamond.

“The council could arguably seek to recover as much as 50 per cent of this figure from the CAB. However, the council has recently entered into a new five-year partnership with the CAB for their new Court Street premises.

“I recommend that no further rental recovery be made against Haddington CAB in respect of Market Street,” he added.

Accepting the recommendation, depute council leader, Councillor Stuart Currie, said: “This organisation does fantastic work for the community.”

Councillors also approved a core grant of £58,776 for Haddington CAB from a total miscellaneous grants budget (MGB) of £210,000 for 2008/09.

Also in the first round of MGB payments agreed for the new financial year, Musselburgh CAB received £43,024 in core funding. Both offices were also awarded a further £42,500 to pay for money advisors.

Other recipients of MGB handouts named last Tuesday were Lothian Mineworkers Convalescent Home (£5,254) and Dunbar Quilters (£300).

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