Labour chief questions Shropshire leisure centres deal

Shropshire's Labour leader has questioned the savings that will be made under a new deal to get a private multi-national firm to run five of the county's leisure centres.

Shropshire Council has agreed to begin talks with leisure giant Serco. The plan is for Serco to be put in charge from July, once terms and conditions have been agreed, and the 162 staff will transfer under existing terms and conditions.

If the deal is successful the company, based in Hampshire, will take over Market Drayton Swimming Centre, Oswestry Leisure Centre, Shrewsbury Sports Village and Indoor Bowls Hall, Whitchurch Swimming Centre and the Quarry Swimming and Fitness Centre in Shrewsbury.

The council believes the deal will improve leisure services and bring in-much needed investment.

The authority currently spends £1.2 million annually on running the five leisure centres, but believes it will be able to save £350,000-a-year under the new deal, which will run for at least a decade.

But county Labour leader Councillor Alan Mosley has questioned the decision to hand over the leisure centres to a 'multi-national concern'.

He said Serco looked likely to set up a social enterprise to run the five centres, and doing this would allow it to save about £500,000-a-year on business rates. He said Serco could therefore save money without actually doing anything.

"This raises the question of why the council itself did not look at developing a community interest company or having discussions with council staff about them taking this on themselves which would have led to the same £500,000 savings and control not going to an enormous multi-national," he added.

Councillor Steve Charmley, the council's cabinet member for active and healthy lifestyles, said social enterprises were 'common practice' in other parts of the country.

"However, it's very important to understand that the reasons for undertaking this process are not based solely on financial savings. The bids all offer major investment in Shropshire and new ways of working."

By Andrew Owen