ALEO say it is not forcing charities out of premises
An agency of Glasgow City Council has denied forcing charities out of their properties and putting profits before people.
City Property, an arm’s-length external organisation (ALEO), was criticised in the Scottish Parliament by MSPs after Glasgow the Caring City had to look elsewhere after it couldn’t afford rent of £4,000 a year.
James Dornan, Glasgow Cathcart SNP MSP, called City Property a “cash squeezing monster” accusing it of increasing rents to pay a £120 million loan the council took out to pay for staff redundancy packages and early retirement deals.
Glasgow the Caring City, Maryhill Foodbank and Garthamlock Community Group are just three groups that have either been forced to move premises or had their rents ramped up as a consequence of the policy.
Aid charity Glasgow the Caring City was forced to move from its Castlemilk headquarters after its peppercorn rent was increased from £1 to £4,000.
Dornan said: “I do not recognise that a charity should have to go from paying a peppercorn rent to having to pay £4,000 a year because Glasgow City Council took out a mortgage for £240 million to pay for redundancies and early retirements.
"I do not think that that is a justifiable use of Glasgow city property."
I do not recognise that a charity should have to go from paying a peppercorn rent to having to pay £4,000 a year - James Dornan
“City Property Glasgow was a monster that was created to do exactly that. Glasgow used to have a community ethos so that empty properties could be used for community benefit until such time as they were required.
“When City Property Glasgow came into being, it was told to squeeze every single penny out of the tenants to pay back their rent.”
However City Property said this figure was inaccurate as the rent increases would be introduced gradually starting at £1,000 a year and the charity was offered support from the council to meet the new expense.
Responding to claims made in TFN and other media, a spokesman for City Property defended its policies saying that it aimed to be an ethical organisation in how it conducted its business.
“We aim to conduct our business and to manage our portfolio and service provision in a socially, economically and environmentally responsible way,” said the spokesperson.
“Fifteen percent of City Property’s tenants are community groups and charities so we recognise the need to engage and support this sector.
“We do this both by communication with individual tenants and generally by regular meetings with the Third Sector Forum.”
He added: “City Property recognises the difficult trading conditions faced by many charities and endeavours to provide support these tenants where possible. This includes consideration of instalment plans for tenants with rent arrears.
“City Property also liaises closely with council organisations who offer grant assistance to charities through various initiatives.”
Last month Ross Galbraith, manager of Glasgow the Caring City, said: "The problem is with City Property who don't seem to realise what charities like ourselves are doing for Glasgow. All they seem to see if the bottom line, the financial aspect. We are never in a position to pay high rents."
