The Competitions Tribunal in a ruling published this morning has ruled that a controversial loan made by Greater Manchester’s Combined Authority to the City Centre Developer Renaker was legal and above board
The landowner Aubrey Weiss had brought the case, accusing the authority of giving an unfair advantage to the developer after it gave a £140m loan for its developments on Trinity Way and at New Jackson
The loans by the Greater Manchester Housing Investment Loans Fund was ruled not to be unfair and was not given at unfair rates
Aubrey Weiss in a long running battle had claimed that the loan had breached the Subsidy Control Act
However the ruling described the decision-making process by GMCA was “perfectly rational and not inherently defective”.
“Underlying the application is an allegation that because of a possible cosy relationship with Renaker chairman Daren Whitaker, the Renaker Group was being provided with loans at unduly favourable rates. The Tribunal is satisfied that this is clearly not the case.
It added that loans went through a proper process and the terms and rates considered by persons with significant experience in development loans.
spokesperson for the Greater Manchester Combined Authority (GMCA) said:
“Today we won on every count, with the Tribunal Chair praising our approach, which has helped deliver 11,000 new homes across Greater Manchester, regenerating brownfield sites at no cost to the taxpayer and generating income which we’ve used for our wider work to tackle the housing crisis.
“Throughout this case there have been flagrant attempts to undermine our reputation through false allegations and insinuations. Today’s judgment should be the final word on the matter. It definitively debunks the false idea that loans were administered corruptly or that there was a cosy relationship between GMCA officers and developers.
“We’ve been clear from the start that all monies lent through the Housing Investment Loan Fund were offered at market rates and were therefore not a form of subsidy. Today’s ruling confirms this. The Tribunal Chair also roundly dismissed the claimant’s suggestion that loans were agreed behind closed doors as “rather unreal” And he recognised our “perfectly rational” process and the robust measures we’ve put in place in administering loans – a process which incorporates independent expert advice.
“Since the Housing Investment Loans Fund was set up in 2015, we have not turned down a single viable scheme and have supported a wide variety of developers and projects – including 38 small loans offered to SME developers. There have been no defaults, with all loans repaid with interest, providing outstanding value for money for taxpayers.
“We’ve reinvested our share of the interest in supporting our housing priorities – including work to bring forward the country’s first Good Landlord Charter and training new housing enforcement officers to drive up standards for renters.
“This judgement completely vindicates the approach we’ve taken. We’re proud of the Housing Investment Loans Fund and the expert team of highly experienced professionals that administers it. We will continue to use the Housing Investment Loans Fund to unlock and accelerate regeneration work in Greater Manchester.”
