Don't you wonder when the supermarkets offer a 50% discount - Isn't the price of one double what it used to be?
In a similar vein, City of Edinburgh Council offer 50% subsidized allotment plots for those people on pensions and benefits. But they also insist that the allotment pay for themselves. The two goals are incompatible.
By the Council's logic, because 1/4 of the rental income is missing as a result of the "subsidy" everyone's rent has to rise by 34% (including the subsidized rate) to make good the shortfall. So the 50% subsidized rate is only a 16% cut at the break even point where income equals outgoings. This is the road we are travelling down in Edinburgh. The attractive subsidy just comes from putting up rents.
Here are the figures:
City of Edinburgh Council collects rents on 1,019 allotment plots.
506 are full rentals (£80), 513 are concessions (£40). So the split is just about 50:50.
If everyone paid the full rate the full 2012 rental income (£80 per plot) would be £81,520.
Instead as roughly half of the rentals are at the subsidized rate the rental income is in fact £61,000
The Council calculates their actual allotment costs for 2012 as £73,337 (revised up from their initial estimate of £63,654) .
These costs are greater than the actual rental amount received (£61,000 as above) but less than
the rental income plus the the subsidy due from the Council (£81,520 as above).
So inclusive of the Council's contribution Edinburgh Allotments already run at a profit. And yet rents are going up £10 next year and another £10 in 2014 up to £100. By that stage City of Edinburgh Council, having washed their hands of financing the subsidized rates, will be making a fat profit from the allotments. The allotment holders will be saddled with funding the subsidy and paying the Council a new tax.
But this is not going to be a shock to FEDAGA, the organisation supposedly representing the interest of allotment holders in Edinburgh, because the FEDAGA committee came up with this scheme specifically to generate a profit for the Council. Their cockeyed justification is that by making a profit from allotments the Council will then have a capital fund to purchase new sites. Effectively the burden of the allotment expansion scheme fall on the existing allotment holders (who cannot benefit there being a limit of one allotment per person). How this madness won the day is easy to see from the Council's point of view. From any other angle it is completely crazy logic. You can buy a lot of veg for £100, and you have to fork out quite a bit to run an allotment, in terms of sweat, time and money. The rent rises are just not fair. Something to discuss at our site AGM this weekend, along with the flooding problem!