Enniskillen Credit Union Ltd has decided against moving ahead with its plans for new premises in Darling Street. At present, it operates from Head Street.

A report of progress was tabled at the recent annual general meeting by the Planning and Development Committee in which it was recalled that 12 months previously, progress was described as, 'exceptionally slow'. Members were reminded that planning permission was obtained in August 2006 and that Building Control approval was awaited on, with the hope the company would be operating out of the new premises mid-2008.

In its fresh Report to AGM, the Committee recalled that in January of this year Building Control had indicated it was going to allow the development to go ahead and, at that stage, the true cost of the new premises was made clear.

In all, the cost to Enniskillen Credit Union would be £1.65m, made up from the £460,000 that was paid for the site at the outset and the balance which represented the development costs.

REPORT

The Committee Report commented:

As your Board of Directors, we have to decide whether the spending of this considerable amount of money would be the best use of our members' funds. We took advice from various financial experts, formulated forward-looking business plans and we discovered that, after spending the £1.65m on the project that, if we were to sell the building after completion, the finished building would only be worth in the region of £1m, an instant nett loss of £650,000'.

The Report submitted that this evidence together with reports from other parties were of great concern to the Board and it recalled that, after numerous meetings, it was agreed at the July meeting of the Board of Directors not to proceed with the project and, instead, sell the Darling Street premises.

'At this point in time, the Darling Street premises is currently on the market for sale'.