MEMBERS of Northumberland County Council's cabinet have unanimously agreed to close the Northumberland development company Arch and replace it with a new arms length company.
A report was presented to members of the cabinet on Thursday (JUNE 14) recommending the company be closed following allegations of corruption and the abuse of tax payers' money by some executives at the company.
It was felt that the damage done to the company's reputation meant that forming a new company was the best option moving forward.
Speaking before the meeting, Councillor Richard Wearmouth, portfolio holder for economic development, said: "Part of the reason we've decided to form a new company is so that people who have had a sour experience with Arch recognise that this is a new start."
"The new company will be called Advance Northumberland. We want to home in on town centres and improving town centre.
"We have some projects that are already underway like the one in Prudhoe, but what we really want is to look at other towns like Hexham, which may need some attention and support which has been lacking recently.
Coun. Wearmouth, who is also the chairman of Arch said the new company would focus on revitalising town centres, affordable housing, and supporting small and medium sized businesses.
He added that the company will no longer be taking on investments that could be managed by the private sector, or investing outside the county.
Like Arch, Advance Northumberland will be a private limited company with Northumberland County Council acting as the sole shareholder.
The new company will be formed in the autumn, with staff and assets transferring over.
Speaking at the cabinet meeting last week, councillor Nick Oliver said: "Arch was set up with good intentions, but that has been lost in recent years.
"We wanted to improve governance at Arch and make sure the relationship between the council and the company is transparent.
"There will be much higher hurdles to get across in terms of investment and the committee will be able to look at whatever they want."
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