Council steps in to bail out struggling leisure trust

Twm Owen, local democracy reporter

The charity which runs a council’s leisure attractions has been given a £1.3 million bailout but could be replaced.

The funding has been provided as the trust set up to run the leisure centres, and a dry ski slope on a commercial basis, has failed to balance its books and has required continued financial support.

Some councillors have called for the leisure services to be brought back in house as a result.

At Torfaen Borough Council’s July 23 full council meeting it was agreed to provide the Torfaen Leisure Trust with an extra £1.3m this year to meet the budget its independent board has set, with councillors told there is a risk it could no longer operate.

But the council has also agreed to start a procurement exercise inviting new bids to run its leisure services that include the iconic Cwmbran Stadium, Pontypool leisure centre and the dry ski slop in Pontypool Park.

Bid

David Leech, the council’s communities director, said the Torfaen Leisure Trust could submit a bid, and the council will also encourage it to look at how it could work with other operators to save costs with it expecting interest from alternative providers.

But, in response to lobbying by the trust which asked councillors to provide the cash without starting a new tender exercise, Mr Leech tweaked his recommendation to make clear the council is entitled to change provider.

Abersychan independent councillor Giles Davies said he was concerned at a further request for funding from the trust and said: “There are other, private gyms, that have got to make ends meet, they can’t come crying to the council. Can’t we take it back in house?”

He added: “Don’t give them this money take it back in house or look for another provider.”

Llanfrechfa and Ponthir Labour member Karl Gauden said the trust had become “a bit of a money pit” and said Neath Port Talbot council had recently brought its leisure services in house and said the council should speak to that authority.

Llantarnam independent Cllr Alan Slade said he was “all for bringing it back in house” but cautioned: “If Torfaen Leisure Trust can’t make it pay, who can?”

His independent ward colleague Cllr David Thomas described the decision as a “vote of confidence” in the management of the trust but Mr Leech said that wasn’t the case.

Financial controls

He said a consultant, appointed by the council due its concerns at the trust’s financial controls, had identified areas that needed strengthening but said the issue facing the trust was its small size and inability to meet inflation and the cash would support its operating model.

Mr Leech also said the issue of scale, and management costs could apply to the council taking direct control of the service, and said a quick analysis could be done.

Cllr Fiona Cross, the Labour cabinet member responsible, said as a charity the trust is able to benefit from grants and funding and there was a risk some could have to be paid back if the service returned to the council.

The trust was set up in 2013 to run leisure services and and receives an annual management fee from the council, currently £1.3m and before the 2020 Covid pandemic the fee had been reducing by 4.67 per cent every year in line with a management plan but has sine required repeated financial support.