Discussions have been held between the council and trade unions over plans to transfer sport and leisure services to a private company.
Unison has this morning confirmed that it has met with Harrogate Borough Council representatives to discuss the proposal to form a Local Authority Controlled Company (LACC) to run its leisure facilities.
Unison branch secretary David Houlgate said:
“We are thankful that the Council is now talking to us and the meeting yesterday was helpful. We are also pleased that the Council has let us have some written detail too. We need to take a good look at that but already we can make the following observations:
“Clearly the council has ambitious plans for new and upgraded facilities and we cautiously welcome this but it has to be remembered that sport and leisure is a discretionary service so we would not wish to see high spending in this area impact on other, more critical, services elsewhere which could put jobs at risk.”
As well as the council’s six six leisure centres and its Active Health service, the plans could include transferring Little Explorers Day Nursery, the Turkish Baths, and community centres in Jennyfield, Fairfax and Knaresborough to the LACC.
According to a report set to be considered by HBC’s cabinet next week, transferring services stands to save £222,000 in business rates and £76,000 in VAT, with improved financial performance of £130,000 per year. There would be additional costs of £144,000, leaving savings of £284,000 per year, in the council’s figures.
The council has projected an increase in revenue of around £500,000 – equivalent to 10 percent of its current income – as a result of being run by a single-focus company.
The report also states that the council commissioned four studies into its leisure services in and alternative ways of delivering them, in 2018. It adds:
“SLL’s final report was presented to Cabinet on December 16, 2019 and as a result cabinet agreed in principle to progress the creation of a Company to run its sport and leisure facilities and services.”
Discussions between HBC and unions this week follow a public disagreement between them. Unison said on Monday it was disappointed that the council had failed to make any contact with its members – a claim which HBC branded “ridiculous”.
- Unions speak out about the lack of communication on plans which have “no overwhelming public support”
- HBC tells unions: “To expect a running commentary… is unrealistic”
The council consulted with residents last month about the proposals. In the report to cabinet, the results show 46 percent of the 433 people who responded either disagreed or strongly disagreed with the plans. Twenty-seven percent agreed or strongly agreed, while 27 percent neither agreed nor disagreed.
“We have seen the council report and it would appear that this decision was actually taken last year, so we do wonder what the point of the recent resident’s survey was. Having now seen the survey responses it does seem to confirm our view that there is not much support from the 433 residents who responded, for sport and leisure to be run by a LACC.”
The union has welcomed measures to protect employees, including keeping them in the local government pension scheme. However, it raised concerns about changing terms and conditions after the LACC is formed, and the possibility that an outside provider will be found to run services in future.
The proposals to create the LACC will be put before the council’s cabinet when it meets online next Wednesday, June 17.
