THE ex-leader of Allerdale council has mounted a spirited defence of a controversial deal set up under his watch – and which has now been embraced by his successors.

The joint venture known as the Allerdale Investment Partnership (AIP) was set up by the authority with IAG to sell off surplus land, resulting in the building of Lidl in Maryport and plans submitted for more than 300 new homes in Workington.

The scheme previously sparked claims that the former executive was “in cahoots” with a Luxembourg-based tax avoiding fund, and that the partnership represented a possible conflict of interests, with leading councillors having to act at the same time on behalf of the electorate and a private business.

The partnership also attracted criticism from those who were concerned that the authority was selling off prime land for less than the market value.

But former council leader Alan Smith described the AIP as the “vehicle” needed to help the council go forward in challenging financial circumstances.

He also complained that some of those who were now intent on pressing ahead with the scheme had been among its most vocal critics ahead of May’s election.

He made the comments as the executive talked up plans for the council to become more self-sufficient by 2030 and to get more out of their capital assets as part of a move towards commercialisation.

Coun Smith said: “The previous administration tried all that. We went in to the AIP, and we got slagged off in the local elections by people sitting around this table about selling the family silver.

“But we wanted to use our assets for the betterment of our borough because we could see that the government grant was going to be cut, so we had to make arrangements to keep the council going – and we got slammed for it.

“And now you are telling me you are going to do the same old thing, in using the AIP which was demonised by the opposition.

“The AIP was fundamentally a good business proposition and now you are going to take it forward because of what we [the former Labour-led executive] put in place.”

Coun Joe Sandwith, was among the Independent councillors who have continued to express anger about the sale of land under the previous administration.

He said: “I’m quite amazed that councillor Smith is trying to defend the dealings that he had with the AIP because, as I see it, they didn’t sell off the family jewels – they simply gave them away at the prices the things went for.”

But coun Smith hit back to say that the sale of the land had gone through “stringent” tests and had been looked at by the district auditor.

He said: “The land we had a value on the books but, in reality, was worth a nominal amount of money. It is now coming back with a profit [in the form of repayments from the AIP].

“We have had £250,00 now and £1m is supposed to be coming back into this council: that’s £1.25m for assets and industrial pieces of land that were worth absolutely nothing.”

In December 2018 the Allerdale Investment Partnership announced it had secured new investment and support from the founders and owners of IAG – a fund administrator founded in 2000 with close to £12 billion under administration.

IAG works in a variety of sectors, but with a particular focus on property and development in the UK, from care homes and leisure to offices and shopping centres – and brings expertise and industry contacts to help develop the AIP’s sites.