Twelve directors quit Croydon regeneration body
Twelve directors of the Croydon Economic Development Company have walked out today, as the regeneration body begins to wind down its operation.
Tony Kildare, the company’s chief executive, is now the only remaining board member, after Croydon Council announced the mass resignation of the other twelve because of “unprecedented financial constraints imposed from central government”.
The regeneration body has been hit by withdrawal of funding under the Department for Communities and Local Government’s Local Enterprise Growth Initiative. It was taken over by the council in November 2009 after running into financial problems.
Its future now looks even more uncertain, after a report to Croydon’s Conservative-run cabinet three weeks ago revealed there would be a limited economic development role for the company from now on, in the light of spending cuts.
In March, the team was panned for spending £165,000 on a trip to the global property conference Mipim, in Cannes.
Cabinet member for regeneration and economic development, Simon Hoar, said today: ”We are saddened that CEDC non executive board members have chosen to resign at this time.
“It must have been a difficult decision for them and we appreciate that they have acted in the best interests of continuing economic development in the borough.
“We are grateful for the commitment they have shown and pleased that even in leaving they continue to recognise the value of an independent approach to this important area of work.
“The removal of grant, which is part of the government’s difficult task of reducing public sector spending, has unfortunately undermined the function of the company.
“The directors have acted honourably and we respect them for their honesty and openness. Our priority now must be to make alternative arrangements in order to continue the winding up of the company and to make appropriate arrangements for affordable economic development functions to continue. To achieve this, the council has appointed three new non-executive directors.”
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