The Livestock Market and The Football Ground

The revelation that the new livestock market to be built just outside Hereford could cost £10 million will make many local people wonder how such an amount can be justified on what is, in effect, a private business.

Whilst there was every justification, including an ancient charter from 1597, for the Herefordshire Council to find and purchase a new site for a livestock market which needed to be moved out of Hereford, there is an arguement that those who wish to run and use a market should ensure that the council have a reasonable return on their investment.

With the market moving out of town, little contribution to the city of Hereford from the business that will take place at the new site is expected. Even a fair proportion of the livestock traded will have come from over the border.

The council say that the market site in the centre of town is worth £4/£5 million. Therefore the net cost to the Council of building a new market will be around £6 million (and probably more).

It could be said that with an investment of £6 million the Council should receive a return of 6%, ie £360,000 per year. Whilst they will have some rent from the auctioneers and any other businesses that might move to the site, it seems highly unlikely that this market will run at a 'profit' for the council. In any case the market may only be used one day a week for most of the year.

Contrast the backing for this project with the lack of backing, as yet, for the Edgar Street Football Ground which is a focal point in the city. Whilst the ground is owned by the council very little has been spent on it over the past years, other than some recent building for new changing rooms which was funded by Hereford United.

Some of the facilities at the ground are probably hardly legal especially the catering and toilet areas.

It could be said that if the council can spend £6m on a livestock market for a pittance of a return, why can't they spend a similar amount on a football stadium. However that seems highly unlikely given that council tax payers might have to fund part of the bill.

Perhaps the council should consider selling the ground to the club. With a 'sporting covenant' in place, no one would be able to change its use and the cost to the club would be discounted. Then if the 'facilities' were not up to a certain standard, the council could put pressure on the club to improve them.

It probably won't happen because of the involvment of the Richardsons. They hold the 'first lease' from the Council and are owed around £1m by Hereford United.

But in an age where councils and government seem keen to privatise virually everything in one way or another, the idea of a council owning a football ground goes against the general trend. The £9,000 a year lease for Edgar Street is a tiny return for a site that on the open market must be worth at least the same if not more than the soon to be moved livestock market.

If the ground was sold to Hereford United at a discounted price of say £1m wouldn't that be better business for the Council than £9,000 a year and less hassle?

---