THE Isle of Wight Council has written off thousands of pounds worth of debt owed by the Island 2000 Trust.
The decision to write off the £146,000 deficit remaining on the financial arrangements between the authority and the trust was taken by the council, under delegated powers.
Island 2000 was created by the council in 1997, to deliver a range of projects external to, and in partnership with the council, in the early days securing £2.5 million funding for Dinosaur Isle, Sandown, and Ventnor Botanic Garden.
Although the trust was set up as a legally independent body, with its own board and management arrangements, the council and the trust worked closely together, the council acting as the trust’s bankers.
At its peak, Island 2000 employed 17 staff and delivered a significant programme of projects across the Island, working with schools, parish councils and many others.
However, Ian Boyd, Island 2000 director, said: "Grant funding could not always cover the full cost of running the organisation and, over the last ten years, the support of the council has been vital, enabling us to bring to the Island more than £7 million of funding for public and community projects in return."
He said the deficit covered by the council was spread over a period of ten years and should be seen against the benefits that had come from the conservation, community, education and arts work that had been delivered during time.
"The trust has cut its staffing down to five and has been operating independently of the council since April," said Mr Boyd.
"We are now working hard to rebuild for the future."
In a report, the council concluded there was little prospect of the remaining £146,000 being repaid in the short term and any action to recoup the money would result in the trust’s closure.
The write-off would be met from the provision for bad and doubtful debts so would, therefore, not impact directly on the revenue budget, it said.
Reporter: martinn@iwcpmail.co.uk