YORK City’s owners Malton-based JM Packaging have hit back in a row with the club’s Supporters’ Trust over finances at Bootham Crescent.

The riposte has come in response to a Supporters’ Trust statement that suggested any amount of tax relief received by JM Packaging during their stewardship should be deducted when the £1.3 million interest-free loans, that they have made available to the club, are paid back on the assumed sale of Bootham Crescent and relocation to a new stadium.

City’s directors have also refuted Trust claims that they are holding back important financial information and standing in the way of supporter representation in the Minstermen’s boardroom.

The Trust statement, issued during their annual general meeting, read: “Some members have expressed concern about the group tax relief that JM Packaging have received via the losses of the club.

“The Trust has discussed this at length with the club’s financial consultant Pete Rookes and will seek an agreement that this is accounted for when calculating the final payment due to JMP.”

In reply, a statement from City’s board of directors, stated: “JM Packaging has injected £1.3 million into York City since 2006 in order to safeguard the club’s survival as a full-time professional football club and provide a team that can compete in the Blue Square Bet Premier.

“JM Packaging has not financially supported York City in order to obtain tax relief.

“Indeed, the £1.3m could have been used instead to enhance and develop JM Packaging and could have generated interest for the company. Surely, it is the desire of all sensible business people to have two profitable companies operating side by side.”

The Trust also complained that additional interest-free loans of £450,000 – on top of the original sums pledged by JM Packaging when they become 75 per cent majority shareholders – were made to the club without acquiring the contractual consent of the supporters’ body.

Further concerns, meanwhile, were addressed in the following statement by the Trust: “Based on information we have received, the club’s forecast shortfall for the season (before cup runs and transfer fees) is considerably in excess of previous seasons. It is worth noting that the Trust received the budget for the season after the club had already made certain commitments to playing expenditure.”

The club’s board explained the decision not to notify the Trust of this season’s wage expenditure was due to the refusal to sign a confidentiality agreement, saying: “Since October 2010, the club’s financial management consultant Peter Rookes has always made himself available to answer any financial questions from the Trust board and has attended several of their meetings, where he has addressed any financial queries.

“In conjunction with Peter Rookes’ appointment and, for normal business requirements, the Trust board were asked to sign a confidentiality agreement in relation to business accounts, which include sensitive information such as player salaries but the Trust did not agree to sign this document.

“In October, the Trust board also approved a further cash injection from JM Packaging to support the club for the remainder of this season.”

On the subject of representation in the boardroom, the Trust put forward Matt English and former club director Mike Brown for consideration.

Both were interviewed with Brown turned down but English offered the new role of operations director at the club.

The club statement continued: “The conclusion of the interview process was that Matt English was viewed as a good candidate. The Trust was informed of this, but the appointment has not been pursued any further.

“Mike Brown was not offered a directorship as it was deemed he was not interested in taking on club board working responsibilities on the same equitable basis as the other York City directors. This was communicated to the Trust Board.”

The Trust have also had a formal request for representation on the Stadium Steering Group declined by City of York Council, who feel the interests of the football club are adequately served by chariman Jason McGill’s presence.

The club board, meanwhile, questioned the Trust’s contribution to club affairs in recent years, as well as its position as a representative body for the club’s fan base.

It started: “The club board objects to the Trust board’s public statement and finds the timing of their announcement wholly irresponsible given the club board’s complete focus on securing the new community stadium and its release on the eve of our important FA Trophy quarter-final match and our quest to achieve the play-offs.

“We understand around 20 people attended the Trust AGM and we do not know their current level of annual membership. On this basis, the club board is unsure whether the Trust is representative of the York City fan base.

“We have the utmost respect for the ideal of the York City Supporters Trust, but its board members have been mainly inactive during the past few years and have made minimal contribution. As 25 per cent owners of the football club, in the reconstruction agreement the Trust agreed it would circulate a statement to the public stating their intention to help supporters raise £50,000 per year for York City Football Club.

“Since that agreement, made five years ago, the financial contribution from the Trust could have been £250,000. This target has never been met and there has been little fundraising activity.

“During the same period, JM Packaging has contributed over £1m to York City FC to secure its professional football club status.”

The current Trust board consists of Kirsten Ovenden, Steve Beck, Ian Hey, English, Simon Mallett, Brown, Sam Paxton, Martin Jones and David Brewis with James Goodwill and Andy Hall co-opted members. Brewis is the secretary but the Trust is currently without a chairman following the resignation of Mallett.