DARTMOUTH Town Councillor Simon Rushton has resigned as chair of the town council’s finance and general purposes committee - in a public protest at the handling of the sale of the old Dartmouth Cottage Hospital site.

He said: “I believe the decision to give away receipts from the sale of the hospital to an almshouse charity is the wrong thing to do.

“At stake here are important principles, a large amount of money, and a once in a lifetime opportunity for Dartmouth Town Council to do the right thing, so the issue continues to be a matter of significant public interest and the fight goes on.”

Dartmouth Town Council is to acquire the former hospital site from the NHS in a lease back deal struck with a local hotel developer. As part of the sale agreement the developer has agreed to provide social value to Dartmouth in the form of a substantial contribution to be used for social purposes. Ongoing income from the ground rent of the site and this revenue will be ringfenced by the town council to be used for social benefit.

The town council said simultaneously, but separately to the negotiations with the developer and with Torbay and South Devon NHS Foundation Trust, it has entered into an agreement with a local charity experienced in providing social housing. The town council will transfer all funds and future income it receives from the developer, less directly incurred costs to the charity. The charity agrees to use these funds to provide affordable housing in Dartmouth and hardship grants to Dartmothians in need in accordance with the charity’s governing rules.

Among his reasons for resigning as chair Cllr Rushton said the deal with the local charity may not be legal and was not transparent; other potential charity bidders were not invited to apply; it was done without authority; money is being given as a “no strings attached” grant; it is not an efficient use of public money; and it doesn’t provide the main benefit the community said they wanted from the sale of the hospital (permanent, quality housing for key workers and families).

Cllr Rushton has contacted Dartmouth Town Council’s Mayor to table an agenda item on the issue at next week’s full council meeting.

In his application for the agenda item Cllr Rushton wrote: “This is to enable the council to properly, and publicly, consider how to make best use of receipts from the sale of the hospital. An opportunity for councillors to discuss and vote on how money that will be received from the sale of the hospital will be used before any irrevocable agreements are entered into or decisions are taken.”

A spokesperson for Dartmouth Town Council said: “We can confirm that Cllr Rushton resigned as Chair of the Finance and General Purposes Committee at the committee meeting on September 26.

“Cllr Rushton has requested a discussion on this matter at the next full town council meeting and, at that meeting, his questions will be addressed.

“At this stage we are confident that the council has followed due process in this matter and it would be inappropriate to respond on the specific details until the council has considered them further.”

The next full Dartmouth Town Council meeting is on Thursday October 6 at The Guildhall