Row erupts after council writes off Livi's £300k debt
A ROW has erupted within West Lothian Council after the ruling administration wrote off £300,000 of debt for rent owed on Almondvale Stadium to save it from being bulldozed.
Opposition Labour councillors say the SNP-led administration has let taxpayers in West Lothian down with "one stroke of the pen" for accepting just 30,000 from the 330,000 owed by Livingston.
But council leader Peter Johnston has defended the decision, saying it will save the club from liquidation as the new owners, the Livi 5 consortium, would have walked away if they were forced to pay the cash.
Labour councillor Graeme Morrice said: "It was the council pursuing the outstanding rent arrears that resulted in the club going into administration. To now give up on the debt doesn't make sense.
"We fully understand the financial difficulties being experienced by Livingston FC. Indeed, the previous Labour administration was always very supportive of the club and encouraged community support.
"However, Livingston FC is a commercial company and the council wouldn't let off any other West Lothian business that was due rent and rates – or even individual residents in arrears with their council tax or council house rent.
"With the council forgoing the 300,000 owed, this is money that now cannot be used for valuable local services."
Following the decision at a budget meeting this week, council leader Johnston hit back, saying the council either accepted the deal or force Livingston into liquidation and knock down the stadium.
He added: "By voting not to write off the rent arrears, Labour councillors voted to kill off Livingston FC by putting the club into liquidation.
"It would only have created the nightmare scenario of the council being left with a white elephant of a stadium and no football club to play in it.
"Given the 200,000 annual costs of running the stadium, we would have had no option but to send in the bulldozers.
"The council, along with the other major creditor, HMRC, have now accepted the voluntary credit arrangement which will allow Livingston FC to emerge from administration and the council to recover at least 30,000.
"I believe that in Ged Nixon, Gordon MacDougall and Neil Rankine we have people that West Lothian Council can work with and trust.
"It keeps Livingston FC in existence and provides a new start for the club. We share the common objective of securing a future for Livingston at the very heart of the West Lothian community."
Livi chief executive Ged Nixon said that while it was an unfortunate situation for taxpayers, the club would not have survived if the debt was to be paid otherwise.
He said: "It is public money and the straightforward proposal was to liquidate the club to prove a political point and close the football club.
"It's not ideal, but at least the council will now get some money and will be able to get ongoing rent."
Meanwhile, the club's appeal against relegation to Division Three will be heard on Monday by the SFA and will be chaired by Lord McLean.
On the field, Livi's woes continued with another disappointing defeat in the Third Division with a 1-0 away loss to Albion Rovers last week.
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Sunday 05 February 2012
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