City leisure services set to face axe

LEISURE centre chiefs today warned cutbacks are "inevitable" as the firm that runs the city's council-owned sports facilities faces up to its worst ever financial crisis.

The warning came as campaigners fighting the closure threat hanging over four centres revealed that well over 1000 people have signed their protest petitions in two weeks.

Edinburgh Leisure, which manages the Capital's public leisure centres, swimming pools and golf courses on behalf of the city council, is facing a second successive four per cent cut to its council funding from next April and is eyeing around 1.7 million of savings in the next three years. The Evening News revealed earlier this month that Dalry Swim Centre, Kirkliston Leisure Centre, Crags Sports Centre and Portobello Golf Course have been earmarked for possible closure in order to plug the funding gap.

One alternative plan is to close the loss-making Edinburgh International Climbing Arena at Ratho, along with one or two of the smaller facilities, to save the same amount of cash.

Edinburgh Leisure's acting chief executive John Comiskey and chairman Charles Winstanley said today they have no more back-room costs they can cut - meaning the cuts will directly hit services.

In an effort to prevent the closures, opposition councillors have proposed a raft of other options, including not replacing former chief executive Keith Jackson and handing some of Edinburgh Leisure's management responsibilities to existing city council staff.

But Mr Winstanley said: "If the council decide to reduce our funding by some 400,000 next year, reductions in leisure services are inevitable."

Under proposals expected to be approved by councillors today, Edinburgh's Leisure's council funding will shrink by four per cent, or 347,000, next year. When it faced a 349,000 budget cut earlier this year, it announced the last four of its loss-making creches would have to close - but another cut is certain to have an even bigger impact on frontline services.

Members of Kirkliston Community Council say they have already gathered around 1000 signatures for their campaign to stop their local leisure centre being closed.

And Edinburgh Central MSP Sarah Boyack, who set up petitions to save the Dalry Swim Centre and Crags Sports Centre, say they are gathering strong support.

"Word of these campaigns is spreading like wildfire through the local community," she said.

The financial position of Edinburgh Leisure is made more extreme by other pressures on top of its reduced council funding. The 20 per cent VAT rate from January 2011 is expected to lead to a 93,000 a year increase in the cost of buying items, while the increase in employer National Insurance contributions will add around 75,000 a year to costs.

Add the one-off 180,000 cost Edinburgh Leisure faced for the early retirement of former boss Mr Jackson, as well as yet unknown budget cuts, and the company expects to need to find around 1.7m of savings in the next four years.

The company made a loss of 114,000 in 2008/09 but managed to achieve a 150,000 profit last year and is on track for another profit this year. However, it expects a loss in 2011/12 due to reopening the Royal Commonwealth Pool.

Added with the other financial pressures, it could run up annual losses in the region of 800,000 - which would ultimately put it out of business.

But many believe that savings can be found elsewhere to prevent the closure of popular local sports facilities.

What is clear is that the biggest single step that Edinburgh Leisure could take - the closure of Ratho climbing centre - will not be enough to save the local centres. However, that and other measures, possibly including cutting opening hours and a staff pay freeze, would be enough to stop the closures.

1. Close Ratho climbing arena

EDINBURGH Leisure took over the management of the Edinburgh International Climbing Arena in 2006 after the climbing enthusiasts behind it went into receivership.

Since then, the centre has divided opinion. While it has been seen by many as a positive addition to Edinburgh, others see it as a facility that is not well used - and baulk at the 700,000 a year loss that the centre makes.

Rather than closing the facility, another option might be trying to attract companies in the private sector to take over its running.

Councillor Gordon Buchan, culture and sport spokesman for the Conservative group, said: "Edinburgh Leisure run sports centres, whereas for specialist centres like Ratho, a general sports provider is perhaps not the best and someone else might be able to do it better."

2. Don't replace the chief executive

SINCE the early retirement of former boss Keith Jackson earlier this year, finance director John Comiskey has done the job alongside his own.

The present situation, where the chief executive's responsibilities are shared among directors, would save an 800,000 salary every year.

Some councillors believe this situation could continue.

Gordon Munro, culture and sport spokesman for the Labour group and a member of the Edinburgh Leisure board suggested savings could be made if council officials got more influence with the management of the company.

3. Cut opening hours, raise prices and freeze pay

EDINBURGH Leisure chiefs will already be looking at whether they can cut some centres' opening hours.

Such options could help, but only as an "add on" along with more radical savings elsewhere.

Another option is to raise prices, although this would be unpopular and could risk customers being lost to private facilities.

A pay rise for all employees of one per cent costs the company around 150,000. Only a one per cent rise is budgeted for next year - so even a pay freeze would only save 150,000.

4. Take over school sports facilities

DISCUSSIONS are already taking place about opening up sports facilities to the public in more of the city's schools.

Part of these discussions involve the management of the facilities, with them either being managed by the schools or Edinburgh Leisure.

The advantage of Edinburgh Leisure running them is there would be a new potential income stream for the company, which could help prevent the need for some closures.

However, an agreement would have to be reached with community groups that already use school premises after-hours.

If Edinburgh Leisure was to run school sports facilities, it is likely that any centre closures could go hand-in-hand with improvements to nearby school facilities opened to the public.