Wirral Council in the rough again as councillor calls for investigation into scrapped golf resort project

A councillor has called for an inquiry into a ditched development agreement, which recently cost his local authority hundreds of thousands of pounds.

Cllr Tom Anderson, leader of the Conservative group in Wirral Council, wants the authority's Audit and Risk Management Committee to look into the handling of the Hoylake Golf Resort project.

In 2015, Nicklaus Joint Venture Group (NJVG) was designated the preferred development partner for the scheme, with a framework development agreement approved at a 2016 Cabinet meeting.

As part of the agreement, NVJG could approach the Council for financing and an application was submitted for a £26m loan in 2019, which was later refused.

The plans were the subject of borough-wide protests with the plug pulled on the £26m loan in June 2019, shortly after Labour lost overall control of Wirral Council and group leader Phil Davies stepped down.

It was revealed the following month that Wirral Council had tied in to a development agreement with the developer which included an exclusivity clause, and which could leave the council open to legal action.

After councillors refused to approve the £26m in funding, NJVG raised a dispute with Wirral Council, alleging breaches of the development agreement in support of a damages claim of £20m.

An emergency meeting of Wirral Council was called on August 11 behind closed doors, where a motion to grant authority to Wirral Council's legal director to agree a settlement of £495,000 was approved by 22 votes to 21.

Labour councillors and Tranmere's independent councillor voted in favour of the motion and Liberal Democrat, Green and Conservative councillors voted against.

Labour said this decision was the "only way to avoid throwing good money after bad", but opposition leaders criticised the move.

At last night's full council meeting, Cllr Anderson made his call for an inquiry.

Cllr Anderson's call was voted for by all parties at the meeting and contained an amendment from Wirral's Labour group.

The motion read: "Council seeks confirmation of the full extent of the agreement with Nicklaus Joint Venture Group to develop a 'Hoylake Golf Resort', including risks and associated costs to date.

"Council therefore requests the Audit and Risk Management Committee to investigate the governance and financial arrangements associated with this project, including evidence from those involved in the original decision; a timeline of key points; a full breakdown of costs and who authorised those costs and scrutiny of relevant and significant events, both political and financial, up to, and including the date of settlement.

"Further, Council seeks assurances that any other similar agreements which may have been entered into are assessed for risk exposure."

Yesterday's motion begins the process for the investigation beginning.