Bolton Council is "barmy" to let off the company responsible for car parks across the town centre from some of the £4m it owes, a councillor said, as a decision on the debt was summoned to scrutiny.

National Car Parks Limited (NCP Ltd) is asking the council to wipe out around £1.2m plus VAT.

When NCP Ltd agreed to a contract with the authorities, it agreed to a Guaranteed Revenue Payment to be paid once a month and to be reviewed once a year in return for the right to run the two multi-storey car parks on Deane Road and Topp Way, the two car parks next to The Octagon, the car park next to the market and the on-street terminals across the town centre. 

This Guaranteed Revenue Payment stood at around £80,000 plus VAT at the most recent review.

However NCP Ltd owes almost £4m to the council after it missed the payment over the course of the coronavirus crisis as its car parks were closed or unused due to lockdowns and restrictions.

It is asking the council to wipe out a part of the sum for March 2020 to January 2022 and to cut the amount of the Guaranteed Revenue Payment to the amount it was when it agreed to the contract.

On Monday, the cabinet was recommended to approve this request.

It did so but a decision on the debt was summoned to scrutiny by the opposition including David Grant, the leader of Horwich and Blackrod First.

Cllr Grant said: "They aren't a cash-strapped company. They've had a few bad years but they aren't a cash-strapped company. 

"They've got reserves of £30m. They've got a worth of £280m. They're owned by an investment bank [The Development Bank of Japan]. This is an affront to the taxpayer while we are reducing our services and if the cabinet are approving this I am calling it in for clarification."

John Dyson, the council's director of place, stood up for the agreement with NCP Ltd and stressed the cost was not to be covered by the taxpayer but by a central government coronavirus grant.

Martyn Cox, the leader of the Conservatives, said: "I'm not sure why we would want to be so generous with them.

"I'm not sure if the boot was on the other foot they would want to be so generous with us."

Roger Hayes, the leader of the Lib Dems, said: "You have a company which is international, is cash rich, is well to do, negotiating with a local authority with cuts in it budgets year on year.

"The people out there will think we are barmy and will think we need our heads examining."

A scrutiny committee is to consider the decision at a later date.

Previously a spokesperson for NCP Ltd declined to comment.

This article was written by Jack Tooth. To contact him, email jack.tooth@newsquest.co.uk or follow @JTRTooth on Twitter.