PAPER E
ECONOMIC DEVELOPMENT,
PLANNING, TOURISM AND LEISURE SERVICES SELECT COMMITTEE – 28 APRIL 2003
EXTERNALISATION OF WIGHT LEISURE
REPORT OF THE HEAD OF COMMUNITY DEVELOPMENT
AND TOURISM
REASON FOR SELECT COMMITTEE CONSIDERATION
Members agreed to receive a report on the externalisation of Wight Leisure when setting the Select Committee’s workplan for the year.
ACTION REQUIRED BY THE SELECT COMMITTEE
That
Members note the report
BACKGROUND
The
proposal to externalise Wight Leisure to a Not for Profit Distributing
Organisation (NPDO) is something that the Council has been considering for
quite some time. Following the
completion of a Best Value Review of the services provided by Wight Leisure the
Executive of 7 May 2002 formally approved the proposal to externalise Wight
Leisure. At its subsequent meeting of
21 May it approved a timetable which, ‘with the goodwill and best endeavours of
all parties’, would have seen the externalisation take place on 1 October
2002.
Regrettably
it was not possible to achieve the 1 October 2002 target nor has it been
possible to achieve the externalisation at all although work is still
progressing to this end. It has
therefore been thought prudent to ask an independent ‘third party’ to review,
the process followed, decisions made and actions taken over this elongated
period of time. The ultimate aim of
this review being to help the Council come to a judgement that the work
completed to date provides a sound basis for the externalisation.
A
placement, Mr Tony Hall, from the Institute of Public Finance has been procured
and began work on Monday 14 April. Mr
Hall has leisure experience from his time on an 18 month placement as the
Director of the Environment in Lambeth and he has also undertaken work in
relation to not for profit trusts in the London Borough of Southwark.
The objectives of the project are: -
1. To clarify the significance, structure and source of capital funding for the Westridge development.
2. Ensuring the development costs are structured to comply with s19 Local Government (Miscellaneous Provisions) Act 1976.
3. To ensure that a common understanding underlies financial analysis by PMP of the business plan prepared by Wight Leisure and Leisure Partners.
4. Resolving some remaining questions about the basis of the proposed performance indicators in the business plan.
5. Resolving some of the client/contractor relationship issues that have arisen as a result of this process and brokering a future effective working relationship.
Mr
Hall is due to report at the end of April.
Subject to his findings and recommendations it is felt that it would
take a further 3 months to complete the final negotiations and all of the
necessary legal work necessary to complete the process.
RELEVANT PLANS, POLICIES, STRATEGIES AND PERFORMANCE INDICATORS
· Wight Leisure Best Value Review – Final Report, May 2002
· Audit Commission Inspection of Wight Leisure, October 2002
CONSULTATION PROCESS
No consultation has been undertaken in the preparation of this report.
FINANCIAL, LEGAL, CRIME AND DISORDER IMPLICATIONS
The cost of the third party appointment will be met from current budgets.
APPENDICES ATTACHED
None
BACKGROUND PAPERS USED IN THE PREPARATION OF THIS REPORT
None