Insurance shock at The Public
Controversial West Bromwich arts centre The Public is only insured for £49 million – even though it has cost £63 million, it was revealed today.
Figures obtained under Freedom of Information legislation show that the building itself is covered for £44,923,000 with contents insurance of £4,492,320.
Tony Ward, leader of the opposition Conservative group at Sandwell Council, said: "As a businessman looking in, this is the single biggest liability that the council has as things stand at the moment. It is a very big risk.
"We are talking big figures here and if anything were to happen to the building this would mean a massive loss to the taxpayer.
"If this were happening at a private business it would be deemed madness. No matter what people say the costs will go up to £70 million.
"And if anything happened to the building it would be catastrophic."
His views were echoed by pressure group the TaxPayers' Alliance.
Spokeswoman Fiona McEvoy said: "This significant shortfall will come as no surprise to those following this venture who've now become accustomed to the haphazard manner in which it has been managed.
"If this building cost as much as some reports suggest, taxpayers will find themselves considerably out of pocket should anything happen to it due to this inadequate cover."
The external annual buildings and contents insurance premium for The Public is £17,744.52.
Sandwell Council has taken over responsibility for the project. Its finance chief Lynda Bateman said: "The council is satisfied that the value insured is completely adequate.
"Insurance premiums under a buildings policy are based on the rebuilding cost and are not the same as the market value."
Yesterday it was revealed that The Public has been placed on the authority's 'strategic risk register'.
