Durham Council is spending £38000 on a cafe in county hall, a building it has announced to wants to bulldoze. How on earth can it cost that much.
Full story from Northern Echo:
A COST cutting council has come under fire after planning to spend £38,000 on a new coffee shop.
Durham County Council – which just this week announced plans to cut home-to-school transport funding and charge the poorest pensioners for community alarm systems – intends to convert a former security office at County Hall into a shop selling drinks and snacks.
When some councillors queried the thousands of pounds being spent they were told the business case was based on the authority selling an extra 26 cups of coffee a day over the next five years and the project would cover its costs and generate additional income.
But County Councillor John Shuttleworth said this explanation, provided by a manager at County Hall in an e-mail seen by The Northern Echo, was a “smokescreen”.
Cllr Shuttleworth pointed out that the Labour-controlled authority was also planning to move from County Hall after agreeing in principle in July to vacate its headquarters so it can be demolished for offices.
He said: “Given that we are leaving County Hall and we already have a little shop there is absolutely no point in having another one.
“If the council does go down the road of leaving the building then potentially you have wasted £40,000.”
Referring to the council’s recently proposed cuts, Cllr Shuttleworth, an independent who represents Weardale, added: “School transport and old and vulnerable people have to come first before you start thinking about yourself.
“If you are that bothered [about coffee] you can always bring a flask into work.”
Durham County Council already operates a small shop at County Hall selling tea, coffee, bacon sandwiches, biscuits and other snacks, although access is restricted to members and staff.
It is understood the new shop, which will replace the current one, will be open to both staff and visitors.
When an Echo reporter visited County Hall he discovered that a cup of coffee from the Bishop’s Table restaurant – another catering facility at County Hall – cost £1.30.
Assuming the same cost in the new shop and using the council’s assumption that it will sell an extra 26 cups of coffee a day over what the old one sells this would generate an extra £33.80 a day, or £169 a week, based on a five-day week, or £8,788 a year.
Liberal Democrat County Councillor Mark Wilkes said: “I find some of the claims the council is making quite dubious.
“I also find it quite staggering the amount they are proposing to spend on converting a small room into in effect a glorified tuck shop.
“When people are being told that this service and that service is being cut they are going to feel uncomfortable about these plans and be entitled to ask some serious questions.”
The county council believes sales will increase due to the shop being more visible and providing an improved range of products and the return on its investment will be achieved prior to the demolition of its headquarters.
Stuart Thompson, catering manager at Durham County Council, said: “We are relocating the County Hall shop to a more prominent position near to the staff entrance.
“We anticipate that this will result in an increase in customer numbers and greater income, which is expected to far exceed the level of investment meaning the move will be self-financing.
“In a separate initiative some members of staff are visiting the catering facilities at the York Railway Museum so that they can gain experience and knowledge from their operation.
“This will involve minimal cost and was organised because we are currently providing catering facilities at Locomotion, in Shildon, and it will help us to improve our own facilities and operate more efficiently.”