Planning role to be kept separate
A council that is setting up a development company insists it will keep its role as planning authority separate.
Newark and Sherwood District Council is setting up a development company to try to make up the shortfall in funding it is expecting to see in the coming years.
The council has already bought land on Bowbridge Road next to Newark Sports and Fitness Centre.
It will be used for housing and the council is expecting to get at least a 10% return on its investment.
It is also buying land off Lowfield Lane, Balderton, for £4.62m, which is allocated for housing, and already owns other parcels of land in the district.
The council faces a potential conflict of interest, however, because it is also the planning authority, which is responsible for deciding applications for planning permission.
It means the council could be asked to decide a planning application submitted by its own company.
A spokesman for the council said its role as a local planning authority and as a developer and planning applicant would be kept separate throughout the decision-making processes and various committees.
“This is not a new issue of potential conflict for any local authority,” said the spokesman.
“There have always been occasions where a council owns land and is a planning applicant as a developer, while also having the role of local planning authority to determine that planning application.
“This conflict is one that local authorities are required to manage and retain the integrity of the planning process.”
Mechanism
The spokesman said planning applications must be determined by taking into account national planning policies and guidance and the local development plan.
“The authority takes great care to ensure that members who are involved with making a decision to promote a council development are not involved in the planning decision as to whether or not to grant permission,” said the spokesman.
“Where there is a conflict that cannot be managed appropriately there is a mechanism within the planning legislation for a planning application to be determined by the secretary of state.”
Councillors approved the formation of the development company at a full council meeting.
They also elected five people to the shareholder committee, which will be responsible for strategic decisions such as appointing directors to the board, reviewing the company’s annual report and reviewing the company’s performance.
The committee will be council leader Mr Roger Blaney (Conservative) planning committee chairman Mr David Payne (Conservative) planning committee vice-chairman Mr Paul Handley (Conservative) Labour group leader Mr David Staples and Labour group deputy leader Mr Paul Peacock.
Independent group leader Mrs Gill Dawn, who abstained, said: “I shall not be putting any names forward but I truly wish this council well in this endeavour.”
Council chairman Mrs Linda Tift (Labour) said her party would be happy to represent the views of any independent members who contacted them.