Shropshire leisure centres to be taken over
Five of Shropshire’s biggest leisure centres are set to be taken over by a private firm.
Five of Shropshire’s biggest leisure centres are set to be taken over by a private firm.
Serco has been named by Shropshire Council as the preferred bidder to run Market Drayton Swimming Centre, Oswestry Leisure Centre, Shrewsbury Sports Village and Indoor Bowls Hall, Whitchurch Swimming Centre and the Quarry Swimming and Fitness Centre.
If talks are successful Serco will take charge of the sites – and the 162 people working there – from July for the next ten years.
Staff will be transferred under the current terms and conditions of their contracts.
The bid was approved by the council’s cabinet at Shirehall yesterday. The council, which pays £1.2m a year to run the centres, claims it will save £350,000 a year in subsidy payments.
Under the deal the contractor will draw up an annual business plan which will need to be approved by Shropshire Council.
Chief executive Kim Ryley said: “The staff have guaranteed jobs for 10 years, all their entitlements and pensions are protected and the public know the centres are going to get investment to keep them high quality for at least 10 years.”
Steve Charmley, cabinet member for active and healthy lifestyles, said: “Subject to the successful conclusion of detailed negotiations, Serco will manage five of our leisure centres.
“We hope to award the contract to the company which submitted the best bid both in terms of quality and price.”
Comments for: "Shropshire leisure centres to be taken over"
Time's Up
"Claims that cuts to the salaries of staff at Shropshire Council was a ‘precursor’ for the privatisation of the county’s public sector are ‘bonkers’, its leader has said."
Keith Barrow quoted in the Shropshire Star, 23 September 2011.
Martin Price
What about ring fenced money inherited from SABC for refurb/ rebuild of Quarry Swimming Pools and Gymn?
Where has this money gone?
Will Serco take over land and property?
What is Serco's record like?
Dont make same or similar mistakes as Veola refuse mess.
Wouldnt a non-profit mutual business be better deal for locals.
What happened at Wem Ludlowand Bishops Castle. Cant Council learn rather than go off on tangent
matthew
What happened at ludlow exactly? Clean, modern, excellent swimming facilities?. Ludlow pool is leaps and bounds ahead of the quarry and costs no more to use. Teme leisure have managed it very well so hopefully serco will do the same.
liver bird
matthew ludlow pool costs tens of thousands more than shrewsbury pool, it might not charge you a higher fee but it DOES cost ALOT more too use as do all facilities in rural areas you are subsidised by more efficient places like shrewsbury
Brewer
Sounds like a good model and thus a sensible decision.
As a council tax payer, just interested to know what the contract is worth to Serco over 10 years and was the council running them at a profit or a loss?
Answer
The council still have to pay Serco to run them, not the other way round. Complete shambles.
mary f
ARE YOU UNABLE TO READ BREWER it will COST taxpayers money and it will cost residents money because prices will go up to fund their profits
John Howard
More public assets and money given away to private hands. I'm struggling to think of anything that's been privatised running more efficiently or costing us less - railways, electricity, water and telecomms being prime examples of how we've been ripped-off. In this very issue of the Star you can read the latest blow meted out by our privatised waste collection service which has somehow chosen to do less and charge us more.
Shropshire Lass
Couldn't have put it better myself!
Martin@Salop
Leisure Service is a clue same as rubbish collection. Subsidised.
glyn
Does that mean that a 40min squash game at the Sports Village can come back down to an affordable price??
Shrews 1
I've never heard of prices dropping, if anything you'll be expected to become part of a membership scheme and pay a raised fee, be thankful for what you've got!
The Original Jake
"The staff have guaranteed jobs for 10 years"
I don't believe a word of that. In their current roles, perhaps, but how long will the current roles last?
Serco are legally obliged to take on the staff on their current terms under TUPE, but how long before they announce a review and restructuring of the workforce? Expect to see a whole raft of different job roles with subtle changes, yet significant enough so they don't fit current roles. Staff will be invited to apply for new roles, but there will be 10%-20% fewer actual jobs.
Telford Steve
TUPE rules stand for nothing, they can change your T&C's of employment by the time you have your first lunch break on the first day of the new employer when they're handing out P45s. I'm in this situation but at least they gave us twelve months notice that it's going to happen.
The Original Jake
Yep, been there myself, hence the liberal dose of cynicism.
twiggo
Shropshire Council overspends on flash new leisure centre for Oswestry and then flogs it off so that the private sector can benefit from the investment.....brilliant.
mark carolan
It should be shropshire for sale plc subsidised by us and the profit comes rolling in and we will pay more to use it these torys are good shut one school then another goes into special measures,the incinerator,the slinky,moving staff from one place to another but don't worry as it's not their money it's yours??????????? WELL SAID TWIGGO.
Barnabus berkeley
It beggars belief that Shropshire Council has just paid for all leisure centre staff to complete "Shropshire Council induction training" (the training that outside consultants were paid thousands to provide which asked questions like "What is Shropshire Council").
The staff that went on the courses new that the Council were going to sell off the leisure centres this autumn so one would assume that those in charge at Shropshire Council knew too.
What a bunch of idiots in charge at Shirehall. Are we supposed to trust that they will get a good price for the leisure centres......??
Roger
Contracting out services currently carried out by direct labour always costs more in the end, see Violia debate thread. It may look good today but what will it look like in three years time? Ten years seems a long time for a contract with an new contractor inj a new contract area. Who will now address the Shrewsbury swimming baths debate? Is the current building and plant capable of lasting another ten years - I think not! How will this be addressed? We have money in the bank for that, where is it now? and where will it go? Who's neck is on the block for this one when it goes wrong?
H. St. John Peasbody
The savings made will help with the contribution towards Thearte Severn.
The Truth
The saving is made from not having to pay building rates and internal charges. Why let a private company (Asset Striper)control the sites when an internal trust with real local knowledge could make the same saving but still provide a public service without making a profit ? Serco is a multi national PLC, do you really think they do this just because they are passionate about providing the rate payers with excellent leisure provision as is current. They have shareholders who demand profit, dont be naive people. Previous comment (Glyn) I think you will find you will have to pay a membership fee or a much higher price in the future, dont be so short Sighted. The public have to stop this, please contact your local councillor to make them stop this. Sad day for Shropshire, its not to late. Lets ACT now.
twiggo
And if they can't make enough profit, are the services protected or will Serco shut them down and flog off the sites for housing etc leaving us without a swimming pool, football pitches etc.
Andrew finch
GOOD, better run , more professional.
Reality
Open your eyes, the staff have had to operate under huge restrictions the past 3 years. I have worked at both Serco and Council sites, trust me this is not good news for the customer or staff !
Andrew finch
To be honest we use bannies and before that rowton . when ever we turned up for swimming at Shrewsbury 100 and 1 reasons why you cant go that time and not very helpful staff .
Wile Coyote
If you're anything in real life like you are on here I can't imagine why the staff weren't helpful towards you...
Andrew finch
Hey you coyote, i am always a very polite person in society , do not be so rude!!
Wile Coyote
I shall believe you this time Mr Finch! My apologies.
Public Debate wanted
Another example of the Kim Ryley dictatorship. Councillors are to weak to stand up to him. They should be ashamed. There must be one decent cabinet member who will stand up against this,there should be a proper public debate with all the facts and figures, not just what they want us to hear !
towbar
You Jest !!! Any cabinet member of any council regardless of where it is who publically disagrees with the chief has his place at the trough reassigned to a councillor who does not !!!
Rupert barrington-Black
I am not saying that this is what Serco will do.
This is what other companies who have entered into similar arrangements with local authorities to manage golf courses have done.
All existing staff are TUPE’d to the managing company. Within 3 years significant number of staff/posts lost either through turnover/natural wastage/redundancy.
Company reduces the facilities available.
Company has contracted within the life of the contract that they will make significant improvements/replacements to club-house plant machinery etc. Typical contract length is 10 years. No improvements made, any challenge is met with response that they have 10 years to make the improvements and will do so, but don’t. Reality is that local authority do not have the staff/willingness to ensure performance with the contract.
The Original Jake
Agree 100%.
Matthew
I'm guessing the value of these assets must be at least £20 million which the council is just handing away. If they are only saving £350,000 a year that means it will take 80 years to recoup the loss of value of the assets before they begin to actually save money. It is a bit like saying you are going to sell your house to save on electrity bills.
grumpy old man
Once again, the council have shown/admitted that they couldn't run a business succesfully...they have yet to prove that they can run a council succesfully though....
Roger
There is a subsequent article on this with no way to comment on it so I will develope the debate here.
"Serko must invest" The buildings and facilities which will require investment can be withdrawn from the contract if investment oppertunities arise. In other words they will not be investing in the Shrewsbury or whitchurh swimming centres. Im not sure where we are on Market Drayton. The remaing buildings are all new or newish so the investment required is limited.
Has the reduction in the value of the contract been agreed for buildings removed from the contract pre contract?
Is there a delapidations clause. Will Serko be required to compensate the council if the value of the estate and facilities they are managing is reduced over the term of the contract?
What will happen to the staff running the buildings which are removed from the contract? Will they be reinstated to council employment or made redundant?
It would seem that buildings which should not be included in the contract have been, whilst others which could have been included are not.
It seems to me that the strategic plan for liesure has not jet been sufficiently developed for the council to know what they actually want. This means that to commit to a long term contract is to say the least unwise and potential disaterous. This is not the time to do this.
They say that a camel is a horse designed by a committee. This looks like a camel of a contract.
Dai Jones
why not give them the old crumbling ruined centres to turn around and keep the brand spanking new clean fresh popular profitable ones like sundorne sports village and the brand newbuild in oswestry for the ratepayers to enjoy
this would prove they were better at runnning things then if given the same staff, budget, political interference and lack of capital investment for year after year they were still able to turn these sites round
but to give them nice new sites like this is daft, anyone could run them they are already well run
Helen
so prices will rise and staff will lose their pension rights etc
wheres the benefit?
grumpo
As Leisure facilities, services and buildings are passed to the private sector and Council staff numbers are cut further it must be assumed that the responsibilities of the Chief Executive have been reduced .Add the transfer of West Mercia Supplies and other buildings and services that have been closed and the number of staff that have been made redundant and surely the Councillors must review the Chief Executives and Heads of Departments salaries and reduce them accordingly.After all the staff have had their salaries reduced whilst taking additional responsibilities !
At the same time how much more money is going to continue to be spent on outside consultants such as the one who it seems was initially employed to organise an office move but has somehow managed to be placed in charge of a Service.Was this post advertised and what is the salary .Why did staff who have been transferred attend the so called Council induction courses when it was absolutely pointless as the Chief Executive must have known they were leaving.
gary
if they really wanted to maximise the chaos whilst minimising the savings they could offer them to veolia to run them? surely they couldnt do a worse job that they do with the bins
gillian l
shrewsbury swimming pool is tired, run down and grubby and ugly on the outside, it needs knocking down frankly but new maangement is a good start, i welcome this
Alibee
I don't understand this fully....
The Council will sell the Quarry to make money, and a private business will buy it to make money.....Why doesn't the Council make money from it?
Or Is it subsidised by the Council now, if so won't they just subsidise it after it's privatised?
Please can someone tell me how a private company can make money from something without a)cutting jobs, b)increasing costs/prices c)less maintenance d)subsidise.
ol
like most people in shropshire i dont use these sites at all, i exercise at home, by jogging or attend private classes so i resent paying for these council gyms to be open with staff on high salaries and final salary pensions just to lifeguard and teach boxercise etc its just not a priority in this day and age, councils should stick to the basics like roads and bins and leave leisure to the private sector IMO
Andrew finch
The wife just use to drop me 25 miles form home and tell me to power walk home before i joined a private gym.
Roger
Many of the lifegaurds are volunteers so the costs are very small, shirt and shorts. I'm not sure how they will react if asked to provide their services free of charge to support the profits of a private company. The ability to swim is a safety issue and fitness is a health issue, investments to reduce costs in later life. They are long term issues not to dropped and reinstated willy nilly, that is just stupid.
Wile Coyote
Um? Volunteers? While there are NO staff on high salaries at (currently) Council run Leisure Centres, there are certainly no lifeguard volunteers either.
Lifeguards have to have the internationally recognised and OffQual standard NPLQ in order to work for Shropshire Council. They deserve their slightly higher than a shelf stacker wage for that alone, never mind the work they do preventing accidents and intervening in incidents.
really confused
"I don’t understand this fully….
The Council will sell the Quarry to make money, and a private business will buy it to make money…..Why doesn’t the Council make money from it?"
Basically, no-one in the council seems to have the slightest clue how to make money from a viable business, using basic business strategy. (Take for instance car park charging and the Ellesmere cafe) The only way councils know how to make money is to charge extortionate amounts for services where there is no competition and then squander it on useless projects.