Posted on: Wednesday 24 July 2024
A report requesting emergency financial support for Torfaen Leisure Trust has been approved by councillors.
The report recommended the council give the trust an additional £1.3m, after it raised concerns it did not have enough funds to last until the end of the financial year.
The funding was allocated on condition that the trust accepts the management agreement will come to an end this year and a new procurement process will begin.
Speaking at the council meeting on Tuesday, Executive Member for Communities and former trustee Cllr Fiona Cross said: "There is no one in this room who wants this to happen less than myself, but it is an option we have to maturely explore in order to be responsible with the funds we have, and the impact it might have on the choices we then have to make if we don't explore having a different contractor.
"This is not something that has just affected Torfaen Leisure Trust - Covid has had an impact. There are other trusts that tend to be smaller but they're working across different areas, they get better scales for the finances they have, and they can share resources."
According to the report, the council has allocated an annual payment to the trust since it was set up in 2013, with a view of the trust eventually becoming a sustainable commercial enterprise.
The trust, which manages the Bowden Centre, in Pontypool, Cwmbran Stadium leisure facility, Fairwater Leisure Centre and Pontypool Active Living Centre and ski slope, made significant progress towards becoming a commercial enterprise between 2013 and 2019.
Last year, the trust was allocated £1.3m for 2023/2024, plus an additional £500,000 to support its recovering from the impact of the Covid pandemic.
But in December 2023, it became clear the trust was continuing to struggle with financial sustainability after the pandemic and the council made several payments to help stabilise the financial position. Then in February 2024, the trust said it would not be able to set a balanced budget for 2024/2025 without additional financial support.
Councillors requested the feasibility of bringing leisure services back within council control is considered alongside the procurement process.
You can watch the meeting here.
Read the report here