Critics have attacked a council's investment in a Norfolk golf club which is to be sold for less than what it was bought for.

Breckland Council's ownership of Barnham Broom Golf Club and Hotel has caused widespread controversy since it was purchased in 2006.

The long-running saga is soon to reach an end after members agreed to go forward with the selling of the asset back to the current tenant - who sold it to the authority for £7m.

Eastern Daily Press: Barnham Broom Golf ClubBarnham Broom Golf Club (Image: Barnham Broom Golf Club)

But questions remain over the handling of the site which has been wrapped in secrecy right from the start.

Breckland Council has defended its decision to sell less than it was bought for, arguing overall, the investment has generated a "substantial profit" through rental income over the last 17 years, which has been used to deliver its services to residents in the district.

Council bosses have remained tight-lipped about the sale, which they say is to protect its commercial interests, and the exact sale figure remains confidential.

It has even spent £15,000 on legal fees to prevent commercial details from being made public.

Eastern Daily Press: Paul Hewett, executive member for property, projects & procurementPaul Hewett, executive member for property, projects & procurement (Image: Breckland Council)

At a scrutiny committee meeting, Paul Hewett, executive member for property, projects and procurement said: "The investment has served its purpose and has yielded a good return.

"For the last 17 years interest rates have been low. Focusing on the loss of capital misses the bigger picture as it has generated a lot more money than if we hadn't bought it."

The golf club was reportedly bought at a time when the Labour government threatened to confiscate cash from council reserves.

Councillors reportedly approved the purchase without knowing what the asset was.

Eastern Daily Press: Harry Clarke, leader of Breckland Council's Labour groupHarry Clarke, leader of Breckland Council's Labour group (Image: Newsquest)

Harry Clarke, leader of the Labour opposition group, said: “As far as the wider public is concerned, I think Breckland will still need to do a lot to convince many that this was a wise investment initially and potentially a wise disposal."

When asked if, in hindsight, it was a good idea, Mr Hewett said: "You can look back with a rose-tinted view and say, I wouldn't have done that. No one makes a bad decision intentionally. 

"Would I do it now? Concentrating huge amounts of taxpayers' money in one area exposes it to a high risk. The world has fundamentally changed since 2006 and we need to be more cautious about the investment decisions we make."

Eastern Daily Press: The golf course and hotel was bought in 2006 by Breckland CouncilThe golf course and hotel was bought in 2006 by Breckland Council (Image: Newsquest)

Roger Atterwill, leader of the Independent and Green Group, argued that while it produced revenue, the sale means the council has lost money to spend in the future.

"It is like selling the family silver, which we won't be able to leverage," he said.

"It has underdelivered and caused lots of heartache along the way."

Members of the opposition groups voted against the sale at the scrutiny meeting but it was later passed by the Conservative-controlled cabinet.

The sale comes as Breckland grapples with a rising overspend of its revenue budget, which has reached more than £700,000.

It has meant it has been forced to dip into its reserves to cover this.

The golf club and hotel provided 10pc of the authority's revenue income from its commercial portfolio but it is not thought any funding for services will be affected by the sale as the drop in revenue has already been factored in.

Eastern Daily Press: A man mows the golfing green at Barnham BroomA man mows the golfing green at Barnham Broom (Image: Newsquest)

With interest rates currently high, it is thought the council will be able to get better returns by using the money from the sale for new investments which will cover the loss of revenue from the club.

Terry Jermy, chair of the scrutiny committee, argued the investment had failed to live up to its expectations.

"There is a world of difference between the expected benefits in 2006. It is frustrating looking back at what it was supposed to be to what it turned out to be."

In line with the 2006 contract, current tenants Barnham Broom have the first opportunity to buy the premises.

If they refuse, it will go back on the open market for sale to third parties although it seems it is likely they will accept the offer.