Profits key in Palace deal (From Haringey Independent)

Profits key in Palace deal

11:35am Wednesday 30th January 2008 in

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So the Alexandra Palace Board is still trying to flog the failed Firoka deal.

The smell of big profits means Firoka overlooks the behaviour of its partner and has given a "fresh commitment", whatever that means.

The chairman claims that "Firoka has provided the clarity the board wished to see". For the public, the only clarity is the clarity of named documents obtained from Haringey Council, grudgingly, under the Freedom of Information Act.

The reported sale price agreed is £1.5 million and that figure has almost certainly now been exceeded by sale costs. The deal only makes sense to the property developer of last resort.

It would be easier to believe that the Palace board will "keep its responsibilities as guardian of this precious and much-loved building uppermost in mind", if the board had not already agreed to a huge swathe of commercial offices (30,000 sq ft) and to demolish the world's first television studios. In the agreed lease, there is also provision for a casino. The chairman said the casino was a myth and was not in the final proposals. A casino is arguably not within the aims of the charity commission.

In his High Court witness statement, Firoz Kassam of Firoka attested: "If the deal that was finally agreed... is not allowed to complete in the terms agreed, the current intention is to abandon any interest in Alexandra Palace".

The judge had no difficulty in calling Firoka's bluff over the withdrawal threat, but Mr Kassam also described the negotiations as "difficult, protracted and complex". We can believe that. How likely is it that the public will get a different and better deal?

After nearly suffocating the trading company, the board has only just revived it again and they've claimed it needs to generate the maximum profit possible. Is the board standing by to shut it down again? Uncertainty hanging over Alexandra Palace Trading Ltd hobbles its future.

If the deal goes forward to Haringey-style consultation, it is likely to end in the High Court again and with the same result as before.

The council needs to act decisively. Any idea of selling to an asset-stripper must end now.

Clive Carter Stapleton Hall Road, Stroud Green