MPs slam Lib Dem secrecy over KC shares sell-off

Hull North MP Diana Johnson today tabled a Parliamentary motion attacking the decision by Hull's ruling Liberal Democrat councillors to sell the local authority's stake in Kingston Communications (KC).

The Early Day Motion (EDM) reads:

"This House is dismayed by the hasty decision of Hull City Council to sell its entire shareholding in Kingston Communications; notes that Hull's link with Kingston Communications is being severed by the Liberal Democrat-controlled Council without consultation and with no mention of the intention during the recent local elections; observes that this move breaks a tradition of municipal ownership and part-ownership in Hull's communication company that has lasted for over a century; is disappointed at the lack of public discussion and any notion of open government by the Liberal Democrat administration; notes that the timing of the decision has denied the people of Hull an opportunity to express their opinions on the matter; acknowledges that as the shares are owned by the council the ruling Liberal Democrat Group are legally entitled to make this decision; but is concerned that the move could have an adverse effect on well paid, skilled local jobs currently provided by the company with no guarantees about improving the quality and choice available to telephone and internet customers in Hull."

Diana Johnson MP said: "Whatever people think about the pros and cons of the KC shares sell-off, the secretive way in which the decision was made by Lib Dem councillors is a disgrace. It reeks of hypocrisy.

"Lib Dems are usually the first to complain over consultation and freedom of information issues, but the Hull Lib Dems' own commitment to open government did not even extend to mentioning this major and historic £107 million decision to Hull voters prior to the recent local elections. Is there a 'stealth manifesto' of policies that the Lib Dem did not want electors to see before polling day?

"As a result of this decision, Hull City Council now has no voice within KC and the majority of the Council's shares are now in foreign hands. This comes at a time when the activity of speculators, asset-strippers and private equity companies is a growing concern. We will now watch what happens to KC jobs in Hull with great anxiety.

"Although Hull's local economy has got stronger since 1997, any loss of skilled well-paid local jobs would not help the city's progress and future prosperity.

"There is also no firm guarantee that the act of disposing of the Council's entire KC shareholding will mean any greater choice or quality for Hull's telephone and internet customers.

"Whatever their future course of action, I hope that Lib Dem councillors will be more open and less secretive about how this financial asset is used for the people of Hull than they have been about the sale of the KC shares."

In Parliament today, the Leader of the House of Commons, Jack Straw MP, condemned Hull Lib Dem councillors as "utterly irresponsible" over the decision to sell KC shares.