There are two catergories of debt, one is on book debt , this the £1 Billion we can see on KCC accounts. The second type debt is off the book debt, such as PFI.
All KCC debt must be disclosed as what is called “fair value”
The fair value of the financial liabilities of all KCC borrowings is one billion six hundred and thirty one million two hundred and sixty two thousand or £1,631,262,000. If we divide this number by the population of Kent (at 2015 figures) of 1,524,700 people, this equals the debt per person in Kent.
This equals a debt per person in Kent of £1,070. Don’t forget the national debt and the SDC debt, throw that into the mix and we are all in debt to a rather large figure.
I said in Policy 1 Part 1 that the interest rate was high at 7.51%, this is verifiable at page 110 of KCC Accounts 2015-16 where it states:
“The fair value borrowing is higher than the carrying amount (see graph above) because the Council’s portfolio of loans include a number of fixed rate loans where the interest rate payable is higher than the the prevailing rates at the Balance Sheet date. This shows a notional future loss (based on economic conditions at 31/03/16) arising from a commitment to pay interest to lenders above current market rates.
Across the Folkestone West Division there are four primary schools, St Eanswythes, Morehall Primary, Stella Maris and Christchurch Academy. There are three secondary schools: Harvey Grammar, Folkestone Academy and Pent Valley and East Kent College. Then there is the new state of the art Beacon School on Park Farm road which offers pupils with complex needs a wide range of educational experiences.
PFI damages our childrens aspirations, it damages their opportunities and it damages future generations. It damages them with debt, as the debt and the interest on the debt must be paid and this money cannot go into education.
How do we resolve this? Well firstly by voting for me on May 4th 2017, I will use what rights I have as a Cllr to persuade KCC that PFI is not a sensible form of borrowing, nor is it transparent.
As a candidate it is necessary I believe to offer solutions, not just criticism. I would resolve, if elected, to work with KCC to explore the option of a Kent Bond. Local Authorities used to be the second biggest bond issuers after building societies. In 1979 the Thatcher Govt stopped them. Now they have been reintroduced. Your parents, grandparents may have well used the local authority to get onto the property ladder, ask them. The economic climate is right and buying local bonds represent a form of hypthecated saving that will appeal to many across Kent local authorities, not just KCC. These bonds would makes a ideal investment for pension purposes. The bond could be set at a reasonable price allowing residents, local business and larger investors to buy them if they wish.
Issuing bonds could easily be part of the solution to fill KCC’s projected shortfall caused by ever more cuts by the Conservative led chamber at County Hall
Vote Independent, Vote Bryan Rylands, May 4th 2017
Promoted by Bryan Rylands Flat D, Avenay Court, Folkestone. CT20 2LN
All opinion & facts stated in this article are mine and have nothing whatsoever to do with the Shepwayvox Team.