Mayor rejects call to apologise for Chrysalis PFI fiasco

9.42.42am GMT Thu 24th Jan 2008

Cllr Philip Peake

Labour Mayor Steve Bullock has rejected a call from Forest Hill Lib Dem councillors Alex Feakes and Philip Peake to apologise to council tenants and leaseholders in the area for the failure of the Council's preferred Chrysalis PFI scheme for the regeneration of social housing. The government chucked out the PFI proposal because it failed to meet the standard required to release funding, citing 90 problems with the bid.

The Councillors put forward the request for an apology at Wednesday's meeting of Lewisham Council.

"Tenants and leaseholders have been led up the garden path by the Council", commented Cllr Peake, "their hopes for better housing have been raised, only to be dashed by the Council's failure to get funding from the government."

The council housing estate in the area will have another chance to get government funding for improvements, but it may have to be via a mechanism that puts the housing stock even further beyond the Council's control. Discussions and consultations with residents will start in the coming weeks. However, the Mayor has refused to own up to the mistakes in the PFI bid and take up the Lib Dem suggestion to apologise to residents.

"The Mayor tells us that he has a mandate from the people, but won't admit to the people when he's got it wrong", said Cllr Feakes. "His stance on this issue further undermines his credibility and that of the directly elected Mayor system."