Coun Philip Price, Deputy leader, Herefordshire Council, says company sale was best for councils (From Hereford Times)
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Coun Philip Price, Deputy leader, Herefordshire Council, says company sale was best for councils
6:00pm Friday 6th July 2012 in Letters
I REFER to your article (Hereford Times, June 28) headlined “Demand for answers after company was sold too cheaply”. The article included a number of erroneous assertions by Councillor Terry James.
The decision to sell West Mercia Supplies was taken last year because the council and its partners in Shropshire, Telford and Wrekin and Worcestershire had been advised that the office supplies part of the business in its existing form was not sustainable into the medium term in a rapidly changing and highly competitive market. The opportunity for our customers to find cheaper alternatives in such a dynamically commercial environment was considered to be a very real challenge for the future of the company.
The return on the sale was entirely consistent with the independent and specialist market valuation advice which we had received and we have ensured that the sale demonstrates value for money for the people of Herefordshire.
Furthermore, we have retained the energy sale part of the business which is profitable, has a sustainable future and will continue to provide a return to the people of Herefordshire for the foreseeable future.
COUN PHILIP PRICE, Deputy leader, Herefordshire Council.