£1m deficit is deep trouble for leisure

Published on Tuesday 10 June 2008 10:22

PRICE rises may be on the cards at Edinburgh's sport and leisure centres after the company that runs them plunged nearly £1 million into the red.

Edinburgh Leisure said with higher utility bills on the way and the planned closure of the Royal Commonwealth Pool (RCP) for refurbishment, it may need to look at above-inflation price rises for customers, or another controversial review of crche facilities.

Moves to close six crches earlier this year sparked uproar among parents and led to a compromise deal which is due to result in four closures later this month.

Leisure chiefs have also warned that shutting Leith Waterworld earlier than expected could be one way to save money, although this would almost certainly face opposition from local councillors.

Edinburgh Leisure, a not-for-profit organisation, manages the council's sports and leisure facilities, such as Meadowbank.

It also runs the council's 30 million indoor climbing centre at Ratho, and its financial problems are the main reason for last year's 969,000 deficit.

The venue was forced to close for a 6m overhaul, which then suffered a five-month delay.

Other problems included a below-budget income from the Braid Hills and Princes golf courses, and a drop in swim membership at the RCP and Portobello after sauna access was removed from the basic package.

Edinburgh Leisure's chief executive Keith Jackson said today: "The past 12 months have been a challenging period.

"Our core business remains strong, with usage figures demonstrating continued growth – bucking the national trend – and we still have over 1m in reserve."

The Edinburgh International Climbing Arena went into receivership in 2004 and was on the brink of closing until the city council stepped in with a rescue package. Its fortunes are improving, and it is expected to run at a loss of 404,000 this year.

Edinburgh Leisure has set itself a target of a 6000 budget surplus this year and will make cutbacks of 419,000 to achieve this – including scrapping some development and coaching posts.

Looking further ahead to 2009/10, finance director James Stewart said: "Currently, a small surplus of 15,000 has been projected.

"But we have already identified that the renegotiation of two energy contracts could result in a significant cost increase.

"There is a possibility that the city council may not be able to deliver the funding level identified."

Mr Stewart highlighted four "possible actions", which include a price increase above 3.5 per cent, reducing the crche service, cutting sport development work and closing Leith Waterworld.

Crche campaigner Sam Anderson, 38, from Canongate, said she was "saddened but not surprised" by the warnings. She said any further reduction in services would be opposed."

City sports leader Deidre Brock said:

"We are confident that the underlying business is in good shape."